HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>The “capital arbitrage” in domestic innovative drug industry would not be sustainable.</li>
<li>Based on data, the sales and profits of innovative drugs at present can hardly support the current valuation of pharmaceutical companies (or recover the high cost of license-in deals).</li>
<li>However, we are still highly bullish on China healthcare industry if seen from the big picture.</li>
</ul>


The “capital arbitrage” in domestic innovative drug industry would not be sustainable.
Based on data, the sales and profits of innovative drugs at present can hardly support the current valuation of pharmaceutical companies (or recover the high cost of license-in deals).
However, we are still highly bullish on China healthcare industry if seen from the big picture.


China Healthcare Weekly (Dec.24)- Capital Arbitrage, Drug Commercial Results, Healthcare Big Picture

AlphaSituations-Event/Catalyst Driven Research, AlphaSituations

Robert Sassoon

AlphaSituations-Event/Catalyst Driven Research

AlphaSituations

Since its establishment, AlphaSituations has delivered a track record of outperformance with a hit rate of winners of more than 70% of its portfolio of ideas generating annualized average returns of 20%. In January 2022, AlphaSituations was contracted by Water Tower Research, an investor engagement and stakeholder communication platform to provide coverage of Special Situations

Event-Driven

There are two potentially positive catalysts for <a href="https://www.smartkarma.com/entities/immunovant-inc" target="_blank" data-smartkarma-citation="entities:33093:1" rel="noopener">Immunovant Inc (IMVT US)</a> . One is news on the resumption of its clinical trials following a voluntary pause of dosing after the company had become aware of a physiological signal consisting of elevated total cholesterol and LDL levels in trials with respect tone of its indication targets.  The company is expected to provide a further update on its current and future indications and timelines in the coming weeks.The other is the prospect of a buyout proposal for the minority holdings in IMVT by 58% shareholder Roivant Sciences. We are of the view that there it is more likely than not that Roivant will proceed with a buyout proposal for IMVT. The expected timeline is when the pending Roivant/Montes Archimedes Acquisition Corp (MAAC US)  merger is completed which is targeted for 3Q 2021. Based on what Roivant has been saying as well as precedent transactions, we would expect a buyout will come with a hefty premium in the 60%-80% range. This is a trade worth considering.

There are two potentially positive catalysts for Immunovant Inc (IMVT US) . One is news on the resumption of its clinical trials following a voluntary pause of dosing after the company had become aware of a physiological signal consisting of elevated total cholesterol and LDL levels in trials with respect tone of its indication targets.  The company is expected to provide a further update on its current and future indications and timelines in the coming weeks.The other is the prospect of a buyout proposal for the minority holdings in IMVT by 58% shareholder Roivant Sciences. We are of the view that there it is more likely than not that Roivant will proceed with a buyout proposal for IMVT. The expected timeline is when the pending Roivant/Montes Archimedes Acquisition Corp (MAAC US)  merger is completed which is targeted for 3Q 2021. Based on what Roivant has been saying as well as precedent transactions, we would expect a buyout will come with a hefty premium in the 60%-80% range. This is a trade worth considering.

MergerTalk: Why Skepticism Over A Potential Immunovant Buyout May Offer A Lucrative Opportunity

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Global indexes remain overwhelmingly positive which is supported by the fact that there is a dearth of breakdowns. Overall our big picture view remains unchanged; overhead longer-term resistance on the MSCI EM, EAFE, and ACWI ex-US indexes (all priced in local currency) is something to be aware of, however if the ACWI-US is above $70 our intermediate-term outlook remains bullish and we suggest buying any dips. In today's report we highlight attractive charts within defensives (Consumer Staples &amp; Utilities), cyclicals (Consumer Discretionary, Energy, Financial, &amp; Materials), and in-between Sectors (Communications, Services, &amp; Health Care)

Global indexes remain overwhelmingly positive which is supported by the fact that there is a dearth of breakdowns. Overall our big picture view remains unchanged; overhead longer-term resistance on the MSCI EM, EAFE, and ACWI ex-US indexes (all priced in local currency) is something to be aware of, however if the ACWI-US is above $70 our intermediate-term outlook remains bullish and we suggest buying any dips. In today's report we highlight attractive charts within defensives (Consumer Staples &amp; Utilities), cyclicals (Consumer Discretionary, Energy, Financial, &amp; Materials), and in-between Sectors (Communications, Services, &amp; Health Care)

Global Equity Strategy: Stick With Technology

Netherlands

argenx SE operates as a biotechnology company. The Company develops antibody based therapies for the treatment of severe autoimmune diseases and cancer. argenx serves customers in the Netherlands and Belgium.

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Argenx SE (ARGX US)

China Healthcare Weekly (Dec.24)- Capital Arbitrage, Drug Commercial Results, Healthcare Big Picture

This insight analyzed the concerns on capital arbitrage in domestic innovative drugs, the unsatisfactory innovative drug commercial results,...

Xinyao (Criss) Wang

MergerTalk: Why Skepticism Over A Potential Immunovant Buyout May Offer A Lucrative Opportunity

Why we think it is more likely than not that minority shareholders of Immunovant (IMVT US) will receive a buyout proposal with a hefty premium...

Robert Sassoon

Global Equity Strategy: Stick With Technology

Global indexes remain overwhelmingly positive which is supported by the fact that there is a dearth of breakdowns. Overall our big picture view...

Vermilion Research

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