Daily Brief Health Care: M3 Inc, Asahi Intecc, Raqualia Pharma, Zhaoke Ophthalmology and more

• M3 Inc (2413 JP) fell 85+% from 2021 highs to spring 2026 lows. We’re not that far off that level now. Earnings a week+ ago sent shares tumbling. 
• The company is now trading just above 20x earnings with 15% CAGR targeted organic revenue growth over the next five years plus inorganic growth expected from M&A.
• M3 now has its ABCs. An Activist. A Buyback. And Cash. And it has growth at lower multiples than peers. 

• Asahi Intecc (7747 JP) reported solid result for FY26, with all key parameters beating guidance. Strong overseas demand and favorable exchange rate fluctuation (yen depreciation) drove the performance.
• Asahi Intecc expects both medical and device divisions to grow supported by expanding demands centered in overseas market. For FY27, the company guided for double-digit growth for all key parameters.
• Asahi Intecc has revised upward the numerical targets for the final fiscal year (FY30) of its medium-term management plan, due to steady market improvement and favorable Fx.

• Operating revenue decreased 5.2% YoY, with a JPY339mn operating loss, reflecting absence of upfront and milestone payments.
• Royalties increased 14.4% YoY to JPY1.2bn, driven by strong tegoprazan sales in South Korea and global rollout.
• The company expects JPY4.0bn operating revenue for FY12/26, with JPY3.0bn from RaQualia and JPY1.0bn from FIMECS.

• Zhaoke Ophthalmology is at a pivotal transition from a pure R&D entity to a commercial-stage company, with three core assets for myopia, dry eye, and wAMD now under NDA review in China.
• The company is strategically positioned to capitalize on the rapidly growing Chinese ophthalmology market, which is driven by an aging population and increasing prevalence of eye conditions.
• Significant financial headwinds persist, characterized by substantial net losses and cash burn from heavy R&D investment, making future profitability contingent on successful and timely drug approvals and commercialization.

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