Global Healthcare Analyst

Tina Banerjee

Thematic (Sector/Industry)

<ul>
<li>CSPC Pharmaceutical’s Phase 3 trial of depression drug candidate HA1406 met pre-specified primary efficacy endpoint. Jiangsu Hengrui Pharmaceuticals received NMPA approval for long-acting basal insulin, sudelidec injection.</li>
<li>Otsuka Holdings secured FDA approval for Simtriyo, a once-daily extended-release capsule for ADHD. Nippon Shinyaku obtained exclusive commercialization rights for Tadekinig alfa in the U.S. for Hyperinflammatory Syndrome.</li>
<li>Pharmaessentia announced topline results from the Phase 1b clinical trial of P1101 (Besremi) and anti-PD1 in Chronic Hepatitis B or D. Cipla secured FDA approval for generic Advair Diskus.</li>
</ul>


CSPC Pharmaceutical’s Phase 3 trial of depression drug candidate HA1406 met pre-specified primary efficacy endpoint. Jiangsu Hengrui Pharmaceuticals received NMPA approval for long-acting basal insulin, sudelidec injection.
Otsuka Holdings secured FDA approval for Simtriyo, a once-daily extended-release capsule for ADHD. Nippon Shinyaku obtained exclusive commercialization rights for Tadekinig alfa in the U.S. for Hyperinflammatory Syndrome.
Pharmaessentia announced topline results from the Phase 1b clinical trial of P1101 (Besremi) and anti-PD1 in Chronic Hepatitis B or D. Cipla secured FDA approval for generic Advair Diskus.


APAC Healthcare Weekly (August 2) – CSPC, Hengrui, Otsuka, Nippon Shinyaku, PharmaEssnetia, Cipla

<ul>
<li>Shanghai Henlius Biotech announced that PMDA of Japan approved phase 2/3 clinical trial of HLX43 for injection (an anti-PD-L1 antibody-drug conjugate) for advanced squamous non-small cell lung cancer (NSCLC).</li>
<li>Simcere Pharmaceutical announced that, SIM0613 for Injection, an antibody-drug conjugate, received the clinical trial approval in China, and is intended for commencing the clinical trial for advanced solid tumors.</li>
<li>Olympus has signed an exclusive global distribution agreement with EndoRobotics. Under this agreement, robot-assisted technologies manufactured by EndoRobotics will be distributed globally by Olympus exclusively.</li>
</ul>


Shanghai Henlius Biotech announced that PMDA of Japan approved phase 2/3 clinical trial of HLX43 for injection (an anti-PD-L1 antibody-drug conjugate) for advanced squamous non-small cell lung cancer (NSCLC).
Simcere Pharmaceutical announced that, SIM0613 for Injection, an antibody-drug conjugate, received the clinical trial approval in China, and is intended for commencing the clinical trial for advanced solid tumors.
Olympus has signed an exclusive global distribution agreement with EndoRobotics. Under this agreement, robot-assisted technologies manufactured by EndoRobotics will be distributed globally by Olympus exclusively.


APAC Healthcare Weekly (May 10) – Henlius Bio, Simcere, Olympus, Daewoong Pharma

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/toho-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:11546:1" rel="noopener">Toho Holdings (8129 JP)</a>'s rumoured JPY200bn proposal for <a href="https://www.smartkarma.com/entities/phc-holdings-corp" target="_blank" data-smartkarma-citation="entities:34198:1" rel="noopener">PHC Holdings (6523 JP)</a> implies about JPY1,571. Mitsubishi Chemical and Mitsui sold 3.4m shares on-market near that level, signalling little faith.</li>
<li>Their selling weakens the deal's risk/reward: it signals lower deal certainty, and there would be a large overhang of about 20% of the shares if Toho walks away.</li>
<li>My fair value range remains JPY1,800–2,030, but at the last close, JPY1,595, the risk/reward is skewed to the downside.</li>
</ul>



Toho Holdings (8129 JP)'s rumoured JPY200bn proposal for PHC Holdings (6523 JP) implies about JPY1,571. Mitsubishi Chemical and Mitsui sold 3.4m shares on-market near that level, signalling little faith.
Their selling weakens the deal's risk/reward: it signals lower deal certainty, and there would be a large overhang of about 20% of the shares if Toho walks away.
My fair value range remains JPY1,800–2,030, but at the last close, JPY1,595, the risk/reward is skewed to the downside.


PHC Holdings (6523 JP): Corporate Selling Tilts the Risk/Reward to the Downside

<ul>
<li>Shanghai Henlius Biotech entered outlicensing agreement with Eisai for serplulimab for upfront payment of $75M. Wuxi Biologics has signed a license and research service agreement with Vertex Pharmaceuticals. </li>
<li>Daiichi Sankyo’s indication expansion application for Datroway in TNBC has been accepted and granted Priority Review in the U.S. PeptiDream has initiated registrational Phase 2 clinical trial of radiotherapeutic candidate.</li>
<li>ABL Bio submitted clinical trial application to the FDA for a Phase 1 clinical trial of ADC candidate ABL209. SK Bioscience is in-licensing a clinical-stage RSV vaccine candidate.</li>
</ul>


Shanghai Henlius Biotech entered outlicensing agreement with Eisai for serplulimab for upfront payment of $75M. Wuxi Biologics has signed a license and research service agreement with Vertex Pharmaceuticals. 
Daiichi Sankyo’s indication expansion application for Datroway in TNBC has been accepted and granted Priority Review in the U.S. PeptiDream has initiated registrational Phase 2 clinical trial of radiotherapeutic candidate.
ABL Bio submitted clinical trial application to the FDA for a Phase 1 clinical trial of ADC candidate ABL209. SK Bioscience is in-licensing a clinical-stage RSV vaccine candidate.


APAC Healthcare Weekly (February 8) – Henlius Bio, Wuxi Bio, Daiichi Sankyo, Peptidream, ABL Bio

<ul>
<li>
<a href="https://www.smartkarma.com/entities/toho-holdings-co-ltd" target="_blank" data-smartkarma-citation="entities:11546:1" rel="noopener">Toho Holdings (8129 JP)</a> has made a non-binding proposal to take <a href="https://www.smartkarma.com/entities/phc-holdings-corp" target="_blank" data-smartkarma-citation="entities:34198:1" rel="noopener">PHC Holdings (6523 JP)</a> private at a rumoured valuation of more than JPY200bn, implying JPY1,571 per share.</li>
<li>KKR and other large holders want an exit, but the rumoured offer is below the last close (JPY1,684) and my fair value range of JPY1,800–2,030.</li>
<li>The deal fits Toho's diversification strategy, but funding, 3D Investment Partners' 24% stake in Toho, and potential competition from domestic funds make completion challenging.</li>
</ul>



Toho Holdings (8129 JP) has made a non-binding proposal to take PHC Holdings (6523 JP) private at a rumoured valuation of more than JPY200bn, implying JPY1,571 per share.
KKR and other large holders want an exit, but the rumoured offer is below the last close (JPY1,684) and my fair value range of JPY1,800–2,030.
The deal fits Toho's diversification strategy, but funding, 3D Investment Partners' 24% stake in Toho, and potential competition from domestic funds make completion challenging.


PHC Holdings (6523 JP): Willing Sellers, but Not at Toho's Rumoured Price

Japan

SYSMEX CORPORATION manufactures reagents and equipment for clinical tests including hematologic (blood) and immune tests. The Company also develops, manufactures, and trades particle analyzers such as blood coagulation analyzer and related software. Manufacturing and sales outside Japan include the United States, EMEA, China and Asia Pacific regions.

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Sysmex (6869 JT)

APAC Healthcare Weekly (August 2) – CSPC, Hengrui, Otsuka, Nippon Shinyaku, PharmaEssnetia, Cipla

Hengrui got NMPA approval for long-acting insulin. FDA approves Otsuka’s new CNS drug. Pharmaessentia announced positive topline result from Phase...

Tina Banerjee

APAC Healthcare Weekly (May 10) – Henlius Bio, Simcere, Olympus, Daewoong Pharma

Henlius Bio and Simcere got trial approval for their respective ADC candidates in Japan and China, respectively. Olympus forges exclusive global...

Tina Banerjee

PHC Holdings (6523 JP): Corporate Selling Tilts the Risk/Reward to the Downside

Mitsui and Mitsubishi Chemical sold near Toho's rumoured JPY1,571, cutting deal certainty and leaving a 20% overhang. Fair value is JPY1,800–2,030,...

Arun George

APAC Healthcare Weekly (February 8) – Henlius Bio, Wuxi Bio, Daiichi Sankyo, Peptidream, ABL Bio

Henlius stuck outlicensing deal with Eisai. Wuxi Bio signs deal with Vertex. Daiichi’s Datroway got priority review in U.S. for TNBC. PeptiDream...

Tina Banerjee

PHC Holdings (6523 JP): Willing Sellers, but Not at Toho's Rumoured Price

Toho's rumoured bid of more than JPY200bn (JPY1,571 per share) for PHC is below my estimated fair value of JPY1,800–2,030. Sellers want out, but...

Arun George

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