Global Healthcare Analyst

Tina Banerjee

Thematic (Sector/Industry)

<ul>
<li>Nippon Shinyaku filed NDA of tagraxofusp for a rare aggressive hematologic malignancy in Japan. Shionogi initiated rolling NDA submission to the FDA for Xocova for COVID-19 post-exposure prophylaxis.</li>
<li>Beigene is discontinuing clinical development program for ociperlimab, as a potential treatment for lung cancer. Celltrion received positive CHMP opinion for the addition of the Omlyclo autoinjector formulation.  </li>
<li>The first three children with SR-aGvHD will receive a course of Mesoblast’s Ryoncil commencing this week. Lupin is acquiring UK-based Renascience Pharma, a sole supplier of 4 specialty products.</li>
</ul>


Nippon Shinyaku filed NDA of tagraxofusp for a rare aggressive hematologic malignancy in Japan. Shionogi initiated rolling NDA submission to the FDA for Xocova for COVID-19 post-exposure prophylaxis.
Beigene is discontinuing clinical development program for ociperlimab, as a potential treatment for lung cancer. Celltrion received positive CHMP opinion for the addition of the Omlyclo autoinjector formulation.  
The first three children with SR-aGvHD will receive a course of Mesoblast’s Ryoncil commencing this week. Lupin is acquiring UK-based Renascience Pharma, a sole supplier of 4 specialty products.


APAC Healthcare Weekly (April 6)- Nippon Shinyaku, Shionogi, Beigene, Celltrion, Mesoblast, Lupin

Japan Specialist

Mark Chadwick

<ul>
<li>A rather inauspicious start to the year and equities tumbling 2.5% in the first trading week</li>
<li>Japan should be a top performing market in 2025 - it is undervalued, buoyed by reforms and has strong domestic fund flow</li>
<li>Wage growth is key this year, setting stage for a stronger economy. Semiconductor stocks were the star performers this week! </li>
</ul>


A rather inauspicious start to the year and equities tumbling 2.5% in the first trading week
Japan should be a top performing market in 2025 - it is undervalued, buoyed by reforms and has strong domestic fund flow
Wage growth is key this year, setting stage for a stronger economy. Semiconductor stocks were the star performers this week! 


Japan Strategy Weekly | 3 Reasons to Buy Japan in 2025

<ul>
<li>In 2022, JPY depreciated against USD to the lowest level in more than 30 years. This benefitted healthcare companies in Japan, which earn significant portion of revenues from the U.S.</li>
<li>This year, Yen has started reversing its course and began to strengthen. With benefit of favorable Forex gradually fading, investors need to be selective in picking healthcare bets in Japan.</li>
<li>We have discussed about five top picks from Japan healthcare sector. Domestic focused business, favorable industry tailwinds, and COVID recovery are the main investment thesis for the top picks.</li>
</ul>


In 2022, JPY depreciated against USD to the lowest level in more than 30 years. This benefitted healthcare companies in Japan, which earn significant portion of revenues from the U.S.
This year, Yen has started reversing its course and began to strengthen. With benefit of favorable Forex gradually fading, investors need to be selective in picking healthcare bets in Japan.
We have discussed about five top picks from Japan healthcare sector. Domestic focused business, favorable industry tailwinds, and COVID recovery are the main investment thesis for the top picks.


Japan Healthcare: Currency Benefit Seems to Be Fading; Focus Will Be on Underlying Business Strength

'Quantamental' Japan Specialist, LightStream Research

Campbell Gunn

'Quantamental' Japan Specialist

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<p style="text-align: center;"><strong>• LEADING INDICATOR •</strong></p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/164/379/original/2020-10-10_12-16-59.png?1602299856" class="editor-image img-responsive" data-smartkarma-image-id="164379"></figure><div class="content-caption">Source for all charts &amp; tables: Japan Analytics</div><p><strong>LEADING THE WAY</strong> - The market continues to make new post-COVID highs supported by global and local liquidity conditions and now a bottoming of earnings momentum. As was the case in 2009, the Cabinet Office Leading Indicator, which is published with a lag of two months, identified the low point ahead of the market and our Results &amp; Revision Score. At present, only three Sectors - Internet Content &amp; Services, Information Technology, and Non-Bank Finance have positive Scores, of which only the first and last are rising. We expect the coming 'wave' of announcements to turn the tide as has been 'previewed' in the percentages of positive results and revision over the last week.    </p><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/164/382/original/2020-10-10_12-48-29.png?1602301755" class="editor-image img-responsive" data-smartkarma-image-id="164382"></figure><div><p style="text-align: center;"><strong>• BEST &amp; WORST •</strong></p></div><div>
<p>The best and worst pair from yesterday's announcements is <a href="https://www.smartkarma.com/entities/sakata-seed-corp" target="_blank" data-smartkarma-citation="entities:9825:1" rel="noopener">Sakata Seed (1377 JP)</a>  and dental, surgical and ophthalmic instrument maker <a href="https://www.smartkarma.com/entities/mani-inc" target="_blank" data-smartkarma-citation="entities:6534:1" rel="noopener">Mani (7730 JP)</a>. the latter despite the company's very bullish fully-year forecast. </p>
<section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/164/515/original/2020-10-11_11-27-17.png?1602383275" class="editor-image img-responsive" data-smartkarma-image-id="164515"></figure></section><section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/164/516/original/2020-10-11_11-30-09.png?1602383437" class="editor-image img-responsive" data-smartkarma-image-id="164516"></figure><div class="content-caption">Source for all charts &amp; tables: Japan Analytics</div></section><hr>
<div><p style="text-align: center;"><strong>DAILY STATS</strong></p></div>
<hr>
<div><p style="text-align: center;"><strong>26 Quarterly Results</strong></p></div>
<div><ul style="list-style-type: disc;">
<li><p><strong>Results Score:</strong> 58% Positive / 10% Neutral / 32% Negative</p></li>
<li><p><strong>Average Results Score Change:</strong> +2.2 points</p></li>
<li><p><strong>Average % Change in Revenue:</strong> +2.1% Quarter YoY / -4.5% Rolling TTM YoY </p></li>
<li><p><strong>Average Operating Profit Margin Change:</strong> -1.9ppt</p></li>
<li><p><strong>Percentage Making Quarterly Losses:</strong> 18%</p></li>
</ul></div>
<hr>
<div><p style="text-align: center;"><strong>32 Annual • 12 Interim Forecasts/Revisions</strong></p></div>
<div><ul style="list-style-type: disc;">
<li><p><strong>Annual Forecast/Revision Score:</strong> 41% Positive / 6% Neutral / 53% Negative</p></li>
<li><p><strong>Interim Forecast/Revision Score Change:</strong> 42% Positive / 8% Neutral / 50% Negative</p></li>
<li><p><strong>Average Forecast/Revision Score Change:</strong> -2.1 point</p></li>
</ul></div>
</div>

• LEADING INDICATOR •Source for all charts &amp; tables: Japan AnalyticsLEADING THE WAY - The market continues to make new post-COVID highs supported by global and local liquidity conditions and now a bottoming of earnings momentum. As was the case in 2009, the Cabinet Office Leading Indicator, which is published with a lag of two months, identified the low point ahead of the market and our Results &amp; Revision Score. At present, only three Sectors - Internet Content &amp; Services, Information Technology, and Non-Bank Finance have positive Scores, of which only the first and last are rising. We expect the coming 'wave' of announcements to turn the tide as has been 'previewed' in the percentages of positive results and revision over the last week.    • BEST &amp; WORST •
The best and worst pair from yesterday's announcements is Sakata Seed (1377 JP)  and dental, surgical and ophthalmic instrument maker Mani (7730 JP). the latter despite the company's very bullish fully-year forecast. 
Source for all charts &amp; tables: Japan Analytics
DAILY STATS

26 Quarterly Results

Results Score: 58% Positive / 10% Neutral / 32% Negative
Average Results Score Change: +2.2 points
Average % Change in Revenue: +2.1% Quarter YoY / -4.5% Rolling TTM YoY 
Average Operating Profit Margin Change: -1.9ppt
Percentage Making Quarterly Losses: 18%


32 Annual • 12 Interim Forecasts/Revisions

Annual Forecast/Revision Score: 41% Positive / 6% Neutral / 53% Negative
Interim Forecast/Revision Score Change: 42% Positive / 8% Neutral / 50% Negative
Average Forecast/Revision Score Change: -2.1 point



🇯🇵 JAPAN • Results & Revisions 10/​​​​​​​​​​09 - Yaskawa, MANI, OSG, JINS, Sakata Seed

<figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/144/594/original/2020-07-07_06-10-50.png?1594069912" class="editor-image img-responsive" data-smartkarma-image-id="144594"></figure><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/144/595/original/2020-07-07_06-24-06.png?1594070670" class="editor-image img-responsive" data-smartkarma-image-id="144595"></figure><div class="content-caption">Source • Japan Analytics</div><p><strong><a href="https://www.smartkarma.com/entities/mani-inc" target="_blank" data-smartkarma-citation="entities:6534:1" rel="noopener">Mani (7730 JP)</a> -</strong> Medical instrument maker Mani had warned at the time of their interim results of a poor second half, and their third-quarter results are duly sombre. Mani is one of Japan's more global companies, having less than a quarter of sales in the domestic market and is suffering accordingly - an operating profit of just ¥0.1 billion is implied for the fourth quarter. The company has done well to improve margins despite a 19% decline in revenues over the last six quarters, primarily through lowering the costs of goods sold. The shares have remained stubbornly Overbought. The current valuation suggests limited upside, a<span>bsent a sharp top-line rebound, while</span><span> 'shorts' will have to contend with the 'quality-at-any-price' brigade.</span></p><p style="text-align: center;"><strong>DAILY STATS</strong></p><hr><div><p style="text-align: center;"><strong>15 Quarterly Results</strong></p></div><div><ul>
<li>
<strong>Results Score:</strong> 7 Positive / 2 Neutral / 6 Negative</li>
<li>
<strong>Average Results Score Change:</strong>-2.6</li>
<li>
<strong>Average % Change in Revenue:</strong> -3.8% Quarter YoY* / -1.0% Rolling TTM YoY</li>
<li>
<strong>Average Operating Profit Margin Change:</strong> -1.7ppt</li>
</ul></div><hr><div><p style="text-align: center;"><br><strong>5 Annual • 3 Interim Forecasts/Revisions</strong></p></div><div><ul>
<li>
<strong>Annual Forecast/Revision Score:</strong> 3 Positive / 0 Neutral / 1 Negative</li>
<li>
<strong>Interim Forecast/Revision Score Change:</strong> 2 Positive / 1 Neutral / 0 Negative</li>
<li>
<strong>Average Forecast/Revision Score Change:</strong> -2.6</li>
</ul></div>

Source • Japan AnalyticsMani (7730 JP) - Medical instrument maker Mani had warned at the time of their interim results of a poor second half, and their third-quarter results are duly sombre. Mani is one of Japan's more global companies, having less than a quarter of sales in the domestic market and is suffering accordingly - an operating profit of just ¥0.1 billion is implied for the fourth quarter. The company has done well to improve margins despite a 19% decline in revenues over the last six quarters, primarily through lowering the costs of goods sold. The shares have remained stubbornly Overbought. The current valuation suggests limited upside, absent a sharp top-line rebound, while 'shorts' will have to contend with the 'quality-at-any-price' brigade.DAILY STATS15 Quarterly Results

Results Score: 7 Positive / 2 Neutral / 6 Negative

Average Results Score Change:-2.6

Average % Change in Revenue: -3.8% Quarter YoY* / -1.0% Rolling TTM YoY

Average Operating Profit Margin Change: -1.7ppt
 5 Annual • 3 Interim Forecasts/Revisions

Annual Forecast/Revision Score: 3 Positive / 0 Neutral / 1 Negative

Interim Forecast/Revision Score Change: 2 Positive / 1 Neutral / 0 Negative

Average Forecast/Revision Score Change: -2.6


🇯🇵 JAPAN • Results & Revisions 6th July - Man(I) Overboard!

Japan

MANI, INC. manufactures medical goods and equipment.  The Company's products include threads and needles for surgeries, surgical knives for eye surgeries, and dental instruments and equipment.

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Mani Inc (7730 JP)

APAC Healthcare Weekly (April 6)- Nippon Shinyaku, Shionogi, Beigene, Celltrion, Mesoblast, Lupin

Nippon Shinyaku and Shionogi are filing for new drugs. Beigene dropped a phase 3 oncology asset. Mesoblast is about to start treatment with...

Tina Banerjee

Japan Strategy Weekly | 3 Reasons to Buy Japan in 2025

Equities stumble in 2025's first week, but Japan's undervalued market and wage growth potential offer hope for a stronger economy. Semiconductor...

Mark Chadwick

Japan Healthcare: Currency Benefit Seems to Be Fading; Focus Will Be on Underlying Business Strength

As Yen is recovering from its multi-year lows against Dollar this year, export-oriented healthcare companies are expected to significantly...

Tina Banerjee

🇯🇵 JAPAN • Results & Revisions 10/09 - Yaskawa, MANI, OSG, JINS, Sakata Seed

🇯🇵 JAPAN • Results & Revisions 10/09 - Yaskawa, MANI, OSG, JINS, Sakata Seed________________________________

Campbell Gunn

🇯🇵 JAPAN • Results & Revisions 6th July - Man(I) Overboard!

Mani (7730 JP) - Medical instrument maker Mani had warned at the time of their interim results of a poor second half, and their third-quarter...

Campbell Gunn

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APAC Healthcare Weekly (April 6)- Nippon Shinyaku, Shionogi, Beigene, Celltrion, Mesoblast, Lupin

Nippon Shinyaku and Shionogi are filing for new drugs. Beigene dropped a phase 3 oncology asset. Mesoblast is about to start treatment with...

Tina Banerjee

Japan Strategy Weekly | 3 Reasons to Buy Japan in 2025

​Equities stumble in 2025's first week, but Japan's undervalued market and wage growth potential offer hope for a stronger economy. Semiconductor...

Mark Chadwick

Japan Healthcare: Currency Benefit Seems to Be Fading; Focus Will Be on Underlying Business Strength

As Yen is recovering from its multi-year lows against Dollar this year, export-oriented healthcare companies are expected to significantly...

Tina Banerjee

🇯🇵 JAPAN • Results & Revisions 10/​​​​​​​​​​09 - Yaskawa, MANI, OSG, JINS, Sakata Seed

🇯🇵 JAPAN • Results & Revisions 10/​​​​​​​​​​09 - Yaskawa, MANI, OSG, JINS, Sakata Seed________________________________

Campbell Gunn

🇯🇵 JAPAN • Results & Revisions 6th July - Man(I) Overboard!

Mani (7730 JP) - Medical instrument maker Mani had warned at the time of their interim results of a poor second half, and their third-quarter...

Campbell Gunn

Equities stumble in 2025's first week, but Japan's undervalued market and wage growth potential offer hope for a stronger economy. Semiconductor...

🇯🇵 JAPAN • Results & Revisions 10/09 - Yaskawa, MANI, OSG, JINS, Sakata Seed

🇯🇵 JAPAN • Results & Revisions 10/09 - Yaskawa, MANI, OSG, JINS, Sakata Seed________________________________