Pan-Asia Catalysts/Events, Quiddity Advisors

Travis Lundy

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

Taisho Pharmaceutical Holdin / Event-Driven

<ul>
<li>Six+ weeks ago, the founding family which controls a 33% stake in cash-rich <a href="https://www.smartkarma.com/entities/taisho-pharmaceutical-holdin" target="_blank" data-smartkarma-citation="entities:3774:1" rel="noopener">Taisho Pharmaceutical Holdin (4581 JP)</a> announced a Tender Offer MBO to buy out minorities.</li>
<li>¥8,620/Share is 0.85x PBR but the takeover is at 0.72x operating assets with net debt at zero That's low - comps are 2+x book and twice the EV/EBITDA ratio.</li>
<li>But the scourge that is cross-holding investors blindly following management means they have 61-63% before this gets started, and only one small firm has voiced an objection.</li>
</ul>


Six+ weeks ago, the founding family which controls a 33% stake in cash-rich Taisho Pharmaceutical Holdin (4581 JP) announced a Tender Offer MBO to buy out minorities.
¥8,620/Share is 0.85x PBR but the takeover is at 0.72x operating assets with net debt at zero That's low - comps are 2+x book and twice the EV/EBITDA ratio.
But the scourge that is cross-holding investors blindly following management means they have 61-63% before this gets started, and only one small firm has voiced an objection.


Taisho Pharma (4581) - Slouching Activism May Not Get This Bumped

Smartkarma AI Primers, Smartkarma

αSK Primers

Smartkarma AI Primers

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

Research Reinvented

Equity Bottom-Up

Taisho Pharmaceutical Holdin / Equity Bottom-Up

<ul>
  <li>Taisho Pharmaceutical is a dominant player in the Japanese Over-the-Counter (OTC) pharmaceutical market, underpinned by a portfolio of highly recognizable brands such as Lipovitan, Pabron, and RiUP.</li>
  <li>The company faces significant growth headwinds, evidenced by declining net income and a stagnant domestic market. Its strategy is focused on international expansion, particularly in Southeast Asia, and strengthening its prescription drug pipeline to counterbalance these challenges.</li>
  <li>Valuation appears attractive, with a high Smartkarma value score, but this is offset by low growth and momentum metrics, suggesting a stable but low-growth investment profile. A recent management buyout and delisting from the Tokyo Stock Exchange aims to enhance operational efficiency and accelerate strategic decisions.</li>
</ul><p><em>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.</em></p>


  Taisho Pharmaceutical is a dominant player in the Japanese Over-the-Counter (OTC) pharmaceutical market, underpinned by a portfolio of highly recognizable brands such as Lipovitan, Pabron, and RiUP.
  The company faces significant growth headwinds, evidenced by declining net income and a stagnant domestic market. Its strategy is focused on international expansion, particularly in Southeast Asia, and strengthening its prescription drug pipeline to counterbalance these challenges.
  Valuation appears attractive, with a high Smartkarma value score, but this is offset by low growth and momentum metrics, suggesting a stable but low-growth investment profile. A recent management buyout and delisting from the Tokyo Stock Exchange aims to enhance operational efficiency and accelerate strategic decisions.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: Taisho Pharmaceutical Holdin (4581 JP) - May 2026

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.

Kobayashi Pharmaceutical Co / Event-Driven

<ul>
<li>CVC and NSSK are reportedly proposing a buyout of <a href="https://www.smartkarma.com/entities/kobayashi-pharmaceutical-co" target="_blank" data-smartkarma-citation="entities:14930:1" rel="noopener">Kobayashi Pharmaceutical Co (4967 JP)</a> worth over JPY500bn, possibly with the founding family. That implies JPY6,406 a share, a 9% premium.</li>
<li>While the offer appears attractive relative to precedent and peer multiples, Oasis, the largest shareholder, is unlikely to back it.</li>
<li>At the rumoured offer, Oasis will get a 17% return on its average cost, which is modest. The Taisho privatisation precedent suggests Oasis will push for a higher offer. </li>
</ul>


CVC and NSSK are reportedly proposing a buyout of Kobayashi Pharmaceutical Co (4967 JP) worth over JPY500bn, possibly with the founding family. That implies JPY6,406 a share, a 9% premium.
While the offer appears attractive relative to precedent and peer multiples, Oasis, the largest shareholder, is unlikely to back it.
At the rumoured offer, Oasis will get a 17% return on its average cost, which is modest. The Taisho privatisation precedent suggests Oasis will push for a higher offer. 


Kobayashi Pharma (4967 JP): CVC/NSSK Buyout Rumour Faces an Oasis Hurdle

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

EURO STOXX 50 Price EUR / Technical Analysis

<ul>
<li>Key support levels on global equity indexes (EURO STOXX 50, $ACWX, $EFA) are beginning to break as the U.S. dollar (DXY) and 10-year Treasury yield break above $105.70 and 4.35%.</li>
<li>This significantly increases the odds of a break below major $92-$93 support on $ACWI, and we would shift to a more cautious outlook only on a break below $92.</li>
<li>We shifted to overweight value within non-U.S. equities last week, and we are now also shifting to overweight small-caps within non-U.S. equities as well. Buys in Transportation, Communications, and HealthCare</li>
</ul>


Key support levels on global equity indexes (EURO STOXX 50, $ACWX, $EFA) are beginning to break as the U.S. dollar (DXY) and 10-year Treasury yield break above $105.70 and 4.35%.
This significantly increases the odds of a break below major $92-$93 support on $ACWI, and we would shift to a more cautious outlook only on a break below $92.
We shifted to overweight value within non-U.S. equities last week, and we are now also shifting to overweight small-caps within non-U.S. equities as well. Buys in Transportation, Communications, and HealthCare


Supports Starting to Break; Upgrading Non-U.S. Small-Caps to Overweight; Transports/Comm/HC Buys

Global Healthcare Analyst

Tina Banerjee

Thematic (Sector/Industry)

<ul>
<li>As we are heading into 2023, let us look back on the performance of some of our global healthcare stocks recommended throughout 2022.</li>
<li>Four stocks on which I am bullish, generated more than 50% return since their recommendations. 10 stocks on which I am bearish plunged more than 20%.</li>
<li>For 2023, investors should continue to focus on established healthcare companies, having strong and flexible balance sheet with muti-year revenue visibility.</li>
</ul>


As we are heading into 2023, let us look back on the performance of some of our global healthcare stocks recommended throughout 2022.
Four stocks on which I am bullish, generated more than 50% return since their recommendations. 10 stocks on which I am bearish plunged more than 20%.
For 2023, investors should continue to focus on established healthcare companies, having strong and flexible balance sheet with muti-year revenue visibility.


2022 in Rear Mirror View: Top Performers From My Global Healthcare Coverage Universe

Japan

Taisho Pharmaceutical Holdings Company Ltd. produces and sells pharmaceuticals, foods, and  other related products. The Company also provides insurance agency and information processing services and operates hotel businesses.

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Taisho Pharmaceutical Holdin (4581 JP)

Taisho Pharma (4581) - Slouching Activism May Not Get This Bumped

Taisho Pharma's TOB closes soon. It should have had a bump, but I think it needed a large vocal shareholder to say so, not a small fund asking the...

Travis Lundy

Primer: Taisho Pharmaceutical Holdin (4581 JP) - May 2026

Taisho Pharmaceutical is a dominant player in the Japanese Over-the-Counter (OTC) pharmaceutical market, underpinned by a portfolio of highly...

αSK Primers

Kobayashi Pharma (4967 JP): CVC/NSSK Buyout Rumour Faces an Oasis Hurdle

While the offer appears attractive relative to precedent and peer multiples, Oasis, the largest shareholder, is unlikely to back it. A higher offer...

Arun George

Supports Starting to Break; Upgrading Non-U.S. Small-Caps to Overweight; Transports/Comm/HC Buys

Support levels on global indexes (EURO STOXX 50, $ACWX, $EFA) beginning to break as $DXY and 10-year Treasury yield $TNX break above $105.70 and...

Vermilion Research

2022 in Rear Mirror View: Top Performers From My Global Healthcare Coverage Universe

From my coverage universe, two Taiwanese stocks generated 59% and 71% returns in nearly six months. New product launch and geography expansion are...

Tina Banerjee

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