Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

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<li>
<a href="https://www.smartkarma.com/entities/peptidream-inc" target="_blank" data-smartkarma-citation="entities:13514:1" rel="noopener">Peptidream Inc (4587 JP)</a> reported better-than-expected 2024 result, with all key parameters beating upwardly revised guidance. Both revenue and net profit hit record high.</li>
<li>Larger than anticipated upfront associated with the expanded Novartis collaboration and increased milestone revenue contributed to the stellar performance of 2024.</li>
<li>The company expects 2025 revenue to increase 5% YoY to ¥49B. Both core operating and operating profits are expected to increase 2% YoY and net profit by 1%.  </li>
</ul>



Peptidream Inc (4587 JP) reported better-than-expected 2024 result, with all key parameters beating upwardly revised guidance. Both revenue and net profit hit record high.
Larger than anticipated upfront associated with the expanded Novartis collaboration and increased milestone revenue contributed to the stellar performance of 2024.
The company expects 2025 revenue to increase 5% YoY to ¥49B. Both core operating and operating profits are expected to increase 2% YoY and net profit by 1%.  


Peptidream (4587 JP): 2024 Result Beats Guidance; Positive Outlook for 2025

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<li>
<a href="https://www.smartkarma.com/entities/kaken-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:18819:1" rel="noopener">Kaken Pharmaceutical (4521 JP)</a> enters into a license agreement with J&amp;J for the global development, manufacturing, and commercialization of a STAT6 program, which is being developed by Kaken.</li>
<li>Kaken will advance KP-723 to the completion of Phase I clinical trials, after which J&amp;J will take over. Kaken will receive an upfront payment of $30M from J&amp;J.</li>
<li>The deal is a boost for future revenue flow but offers no near-term respite for revenue loss from NHI drug price revision and generic competition for top selling products.</li>
</ul>



Kaken Pharmaceutical (4521 JP) enters into a license agreement with J&amp;J for the global development, manufacturing, and commercialization of a STAT6 program, which is being developed by Kaken.
Kaken will advance KP-723 to the completion of Phase I clinical trials, after which J&amp;J will take over. Kaken will receive an upfront payment of $30M from J&amp;J.
The deal is a boost for future revenue flow but offers no near-term respite for revenue loss from NHI drug price revision and generic competition for top selling products.


Kaken Pharmaceutical (4521 JP): Johnson Deal Is Good For Future, But For Now Bleak H2 Ahead

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/topcon-corp" target="_blank" data-smartkarma-citation="entities:738:1" rel="noopener">Topcon Corp (7732 JP)</a> shares rose 51% over two days, confirming a Bloomberg report that is conducting a privatisation auction. The process is in the second round of bids.</li>
<li>Exploring the privatisation process is unsurprising, as Topcon has materially underperformed the Nikkei 225 since its last medium-term management term plan was announced on 12 May 2023.</li>
<li>Despite the share price pop, Topcon trades at a discount to median peer multiples. At an offer of JPY3,000, Topcon would trade in line with median peer multiples.</li>
</ul>



Topcon Corp (7732 JP) shares rose 51% over two days, confirming a Bloomberg report that is conducting a privatisation auction. The process is in the second round of bids.
Exploring the privatisation process is unsurprising, as Topcon has materially underperformed the Nikkei 225 since its last medium-term management term plan was announced on 12 May 2023.
Despite the share price pop, Topcon trades at a discount to median peer multiples. At an offer of JPY3,000, Topcon would trade in line with median peer multiples.


Topcon (7732 JP): Privatisation Auction Underscores Underlying Value

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<li>
<a href="https://www.smartkarma.com/entities/sun-pharmaceutical-industries-limited" target="_blank" data-smartkarma-citation="entities:98:1" rel="noopener">Sun Pharmaceutical Industries (SUNP IN)</a> Q2FY25 net profit jumped 28% YoY to INR30B on 11% YoY growth in revenue. U.S. and India formulation businesses grew 22% and 11%, YoY, respectively.</li>
<li>Due to deferral of clinical trials of some specialty products, the company has cut R&amp;D investment guidance by 200bps to 7–8% of revenue for FY25 from earlier 8–10%.</li>
<li>With Leqselvi launch becoming uncertain and few others still in late-stage trials, there is no immediate driver to accelerate specialty business momentum.</li>
</ul>



Sun Pharmaceutical Industries (SUNP IN) Q2FY25 net profit jumped 28% YoY to INR30B on 11% YoY growth in revenue. U.S. and India formulation businesses grew 22% and 11%, YoY, respectively.
Due to deferral of clinical trials of some specialty products, the company has cut R&amp;D investment guidance by 200bps to 7–8% of revenue for FY25 from earlier 8–10%.
With Leqselvi launch becoming uncertain and few others still in late-stage trials, there is no immediate driver to accelerate specialty business momentum.


Sun Pharmaceutical (SUNP IN): Q2 Result Beats Estimate; Specialty Business to Face Growth Challenge

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<li>
<a href="https://www.smartkarma.com/entities/argenx-se" target="_blank" data-smartkarma-citation="entities:28604:1" rel="noopener">Argenx SE (ARGX US)</a> won FDA approval for second indication of Vyvgart for chronic inflammatory demyelinating polyneuropathy (CIDP) in June. The approval triggered ~30% rally in the share price.</li>
<li>
<a href="https://www.smartkarma.com/entities/johnson-johnson" target="_blank" data-smartkarma-citation="entities:1132:1" rel="noopener">Johnson &amp; Johnson (JNJ US)</a> is seeking FDA approval for nipocalimab for generalized myasthenia gravis (gMG). Approved in 2021, Vyvgart dominates the gMG market. In 1H24, Vyvgart fetched $876M revenue.</li>
<li>Nipocalimab will compete with Vyvgart. However, Argenx has already created a niche for itself and will continue to sit on a prime position due to its first mover advantage.</li>
</ul>



Argenx SE (ARGX US) won FDA approval for second indication of Vyvgart for chronic inflammatory demyelinating polyneuropathy (CIDP) in June. The approval triggered ~30% rally in the share price.

Johnson &amp; Johnson (JNJ US) is seeking FDA approval for nipocalimab for generalized myasthenia gravis (gMG). Approved in 2021, Vyvgart dominates the gMG market. In 1H24, Vyvgart fetched $876M revenue.
Nipocalimab will compete with Vyvgart. However, Argenx has already created a niche for itself and will continue to sit on a prime position due to its first mover advantage.


Argenx SE (ARGX US): Vyvgart Indication Expansion Triggers Rally; Can Competition Play Spoilsport?

United States

Johnson & Johnson manufactures health care products and provides related services for the consumer, pharmaceutical, and medical devices and diagnostics markets. The Company sells products such as skin and hair care products, acetaminophen products, pharmaceuticals, diagnostic equipment, and surgical equipment in countries located around the world.

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Johnson & Johnson (JNJ UN)

Peptidream (4587 JP): 2024 Result Beats Guidance; Positive Outlook for 2025

Peptidream surpasses expectations with record high revenue and net profit in 2024, fueled by expanded Novartis collaboration and milestone...

Tina Banerjee

Kaken Pharmaceutical (4521 JP): Johnson Deal Is Good For Future, But For Now Bleak H2 Ahead

Kaken Pharma partners with J&J for global development of STAT6 program, for $30M upfront payment. Deal boosts future revenue but no immediate...

Tina Banerjee

Topcon (7732 JP): Privatisation Auction Underscores Underlying Value

Despite the share price pop, Topcon trades at a discount to median peer multiples. At an offer of JPY3,000, Topcon would trade in line with median...

Arun George

Sun Pharmaceutical (SUNP IN): Q2 Result Beats Estimate; Specialty Business to Face Growth Challenge

Sun Pharma Q2FY25 net profit was up 28% YoY on 11% revenue growth. FY25 R&D investment guidance cut due to deferred clinical trials. Specialty...

Tina Banerjee

Argenx SE (ARGX US): Vyvgart Indication Expansion Triggers Rally; Can Competition Play Spoilsport?

Argenx won FDA approval for second indication of Vyvgart for CIDP in June. Currently, Vyvgart dominates gMG treatment market. Competitor's drug...

Tina Banerjee

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52-week Range

Market Cap (USDm)

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Peptidream (4587 JP): 2024 Result Beats Guidance; Positive Outlook for 2025

​Peptidream surpasses expectations with record high revenue and net profit in 2024, fueled by expanded Novartis collaboration and milestone...

Tina Banerjee

Kaken Pharmaceutical (4521 JP): Johnson Deal Is Good For Future, But For Now Bleak H2 Ahead

​Kaken Pharma partners with J&J for global development of STAT6 program, for $30M upfront payment. Deal boosts future revenue but no immediate...

Tina Banerjee

Topcon (7732 JP): Privatisation Auction Underscores Underlying Value

Despite the share price pop, Topcon trades at a discount to median peer multiples. At an offer of JPY3,000, Topcon would trade in line with median...

Arun George

Sun Pharmaceutical (SUNP IN): Q2 Result Beats Estimate; Specialty Business to Face Growth Challenge

​Sun Pharma Q2FY25 net profit was up 28% YoY on 11% revenue growth. FY25 R&D investment guidance cut due to deferred clinical trials. Specialty...

Tina Banerjee

Argenx SE (ARGX US): Vyvgart Indication Expansion Triggers Rally; Can Competition Play Spoilsport?

Argenx won FDA approval for second indication of Vyvgart for CIDP in June. Currently, Vyvgart dominates gMG treatment market. Competitor's drug...

Tina Banerjee

Peptidream surpasses expectations with record high revenue and net profit in 2024, fueled by expanded Novartis collaboration and milestone...

Kaken Pharma partners with J&J for global development of STAT6 program, for $30M upfront payment. Deal boosts future revenue but no immediate...

Sun Pharma Q2FY25 net profit was up 28% YoY on 11% revenue growth. FY25 R&D investment guidance cut due to deferred clinical trials. Specialty...