Healthcare

• China TCM’s Profit Warning indicates a weak 25H1 results. Performance downturn is longer-than-expected. But as an industry leader, China TCM will enhance its bargaining power by integrating the industrial chain.
• Investors have reignited interest in betting on privatization of China TCM and potential merger with Taiji, as deadline is approaching.Privatization price may be lower considering China TCM’s weak 25H1 results.
• HK$0.84-2.17/Share is the reasonable share price range at this stage.The catalyst for China TCM’s share price is CNPGC may announce how to address the horizontal competition issue within three months.

• Shoulder Innovations Inc., a pure-play shoulder arthroplasty device company, is expected to IPO soon. 
• The company’s amended S-1 puts the initial price range per share at $19.00 to $21.00, implying a market cap of ~$450M at midpoint on a fully-diluted basis.  
• I have a positive view of Shoulder Innovations IPO and see upside vs. IPO price due to the company’s superior growth profile, industry-leading gross margins and capital efficient technology.

• Chugai Pharmaceutical (4519 JP) reported 5% YoY rise in core revenue in 1H25, as overseas sales grew 7% YoY and domestic market revenue was up 3%.
• Actemra witnessed growth in both overseas and domestic market. Hemlibra overseas sales stood at ¥151B (30% of total sales), down 6% YoY.
• In 1H25, two significant developments that happened are successful P3 trial of orforglipron and positive results from phase I/II study of NXT007.

• Intuitive Surgical’s recent quarterly results highlight a strong performance, marked by a 21% increase in revenues and a pro forma earnings per share rise of 23%.
• The company saw robust growth in procedure volumes, with da Vinci procedures increasing by 17%, attributed to strong performance in benign general surgery in the U.S. and a notable rise in international procedures outside urology.
• The introduction of their latest robotic platform, the da Vinci 5, is beginning to show positive traction with broad launches underway in the U.S., and initial adoption in Europe and Japan following regulatory clearances.

• The drug list of 11th national VBP varieties has been released. Innovative drugs will not be included in VBP. Results of this VBP is expected to be implemented by 2025.
• The performance improvement of CRO may not be reflected until 25Q3 or 25Q4 at the earliest, but the market may reflect this expectation in advance. Tigermed’s turning point is coming.
• Everest Medicines’ Placing Price is expensive.The reduction of holdings by major shareholder CBC and Founder Fu Wei indicates that the Company has been overvalued. Valuation should be lower than BeiGene.

• IQVIA marked a significant milestone in the second quarter of 2025 by surpassing $4 billion in quarterly revenue, a first in the company’s history.
• This revenue achievement was noted to be above the high end of the anticipated guidance.
• Adjusted EBITDA and adjusted diluted EPS also performed well, aligning with or eclipsing the expected targets.

• Medpace Holdings, Inc. recently reported its second-quarter 2025 earnings, revealing both strengths and challenges.
• Revenue for the quarter was $603.3 million, marking a 14.2% increase year-over-year.
• The uptick was driven by higher reimbursable activities, particularly in therapeutic areas like metabolic studies where costs are higher than average, alongside a shift in therapeutic focus away from oncology.

• Quest Diagnostics, a prominent player in the medical diagnostics sector, presented its second-quarter 2025 results, highlighting a blend of strategic growth and operational challenges.
• The company’s performance was marked by a notable 15.2% increase in consolidated revenues to $2.76 billion compared to the previous year, driven by organic growth and strategic acquisitions.
• This growth was primarily fueled by heightened demand for advanced diagnostic solutions and expanded relationships with enterprise accounts.

We revisit our investment case for Basilea Pharmaceutica as it is navigating a period of heightened business activity, with the US launch of Zevtera and the anticipated second Phase III trial for lead drug designate fosmanogepix. We believe that Basilea’s anti-infectives-focused business model remains resilient amid increased macroeconomic uncertainty, with the building blocks in place for sustained growth. Following a rewarding 2024 (revenues up c 32% y-o-y to CHF208.5m), we continue to expect Cresemba to spearhead growth but see further upside from Zevtera sales in the US. A strong cash balance (CHF124.6m) and R&D backing from BARDA (another $39m committed in July) de-risks development plans in the medium term. Trading at an FY25e P/E ratio of 11x (vs the c 20x industry average), the stock is priced attractively, in our view. We raise our valuation to CHF1,291.4m or CHF105.2 per share (from CHF1,155.5m or CHF95.3/share).

• GH Research (NASDAQ:GHRS) releases GH001 final Phase 2b OLE data.
• The final data from GH Research’s six-month open-label extension (OLE) study of its lead fast-onset and short-acting 5-MeO-DMT monotherapy candidate GH001 in treating treatment-resistant depression (TRD) has been released with a headline remission rate of 73% at six months.
• The results did not disclose the changes in MADRS from baseline, but in any event the remission data appears to represent a good outcome. But let’s examine the results further.

• Telix Pharmaceuticals (TLX AU) received a subpoena from the SEC seeking various documents and information primarily relating to the company’s disclosures regarding the development of prostate cancer therapeutic candidates.
• Telix is in the process of responding to the information request. The company has elected to notify the Australian Securities and Investments Commission of the SEC’s information request.  
• SEC subpoena will not affect the normal business operation of Telix. While the matter is ongoing, Telix will continue clinical development programs for its prostate cancer therapy candidates.

• Everest Medicines (1952 HK) aims to raise around US$200m via a top-up placement.
• This will be the third placement this year for the stock, the previous two deals didn’t do well. Although the stock has bounced back a lot since.
• In this note, we comment on the deal dynamics and run the deal through our ECM framework.

• Leads Biolabs raised HKD 1290m (USD 166m) from its global offering and will list on the Hong Kong Stock Exchange on Friday, July 24th.
• In our previous note, we looked at the company’s operation, management track records and discussed the IPO valuation.
• In this note, we provide an update for the IPO before trading debut.

• Context: The Fisher & Paykel Healthcare (FPH AU) vs. ResMed (RMD AU) Price-Ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: The long position is supported by higher growth aligning well with the statistical analysis. The trade faces some event risk due to an upcoming earnings announcement.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Natco Pharma acquires a 35.75% stake in South Africa’s Adcock Ingram, marking its largest overseas expansion to date.
• This move instantly gives Natco a strong foothold in Africa’s pharma market and diversifies its global revenue streams from current headwind of US market.
• Natco transitions from a primarily India/US-focused player to a serious contender in strategic emerging markets, enhancing its growth outlook.

• Shoulder Innovations will be offering 5.0mm shares at $19-$21 and to debut on July 31st.
• The underwriters have reserved up to 6% of the shares of common stock offered through a directed share program. 
• The sector had a surprise underperformance from CarlsMed this week and will be looking to rebound with this upcoming IPO. 

• In today’s edition: -Ask FNArena -Review All-Weather Model Portfolio -Recent Updates On Expert Views -Best Buys & Conviction Calls

• AI Nose provides the missing piece of the AI sensory puzzle in industrial settings.
• Lu detailed what AI Nose and its capabilities are, emphasizing that the e-nose technology platform is not just a sensor, but a trainable AI platform designed to detect, classify, and interpret multiple scent signals like a human nose.
• AI Nose can deliver 90% accuracy in distinguishing between everyday scents, 85% accuracy in senior care settings, and 80% accuracy in distinguishing 22 types of industrial scents in semiconductor settings. 

• Novartis AG reported a strong financial performance for the second quarter of 2025, marked by double-digit sales growth, core margin expansion, and a subsequent upgrade to its full-year guidance regarding core operating income.
• The company delivered robust sales growth of 11% in constant currency, while core operating income surged by 21% in constant currency.
• This financial momentum is largely attributed to significant growth in its priority brands.

• Samsung Biologics (207940 KS) maintained positive momentum in 2Q25, with consolidated revenue and operating profit rising 11% and 9%, YoY, respectively. 
• Leveraging on strong 2Q result and successful ramp-up of Plant 4 providing additional momentum, the company has revised annual revenue growth guidance upward to 25–30% YoY from 20–25%.
• Going ahead, the company is planning to shed its biosimilars subsidiary, Samsung Bioepis, to “focus on strengthening its core capabilities as a pure-play CDMO.”

• Telomir Pharmaceuticals is a preclinical stage company focused on reversing biological aging and degenerative diseases.
• The company announced preclinical test results that showed Telomir-1 restored mitochondrial function without triggering oxidative stress or cell proliferation in human cells.
• This sets Telomir-1 apart from many other related treatments and opens the door to treating numerous serious conditions.

• GNI Group (2160 JP) is looking to raise around US$100m from a primary placement (after upsize).
• The deal is a small one, representing 2.4 days of the stock’s three month ADV, despite being 9.0% of total shares outstanding.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Sinotau, a China-based clinical-stage biotech, is looking to raise at least USD 100 million via a Hong Kong listing. The book runner is CICC.
• In this insight, we look at the company’s core products, XTR008, XTR006, XTR004, and XTR003, including its mechanism and clinical data.
• We also look at the company’s pre-IPO investors and management team.

• Carlsmed, Inc. (CARL) priced a full-size deal of 6.7mm shares at $15.00 (midpoint of the range) and opened at $15.00.
• There were concerns with the color coming from the book as the underwriters failed to provide price guidance to investors the day of pricing on the deal.
• Given that the deal “broke” on day one, we believe investors “may” be turned off by the company in the short term.

• CleanSpace Holdings Ltd (ASX:CSX) is a designer and manufacturer of respiratory protection equipment and consumables.
• Specialising in powered air purifying respirators (PAPRs), CleanSpace is known for its compact, lightweight, ergonomic units that do away with the need for belts and hoses to provide filtered air to workers.
• A scan through competitor websites reveals that belt and hose units remain the dominant design, providing CSX with a real opportunity to take market share (RaaS estimates CSX has ~1.2% of the global industrial market in FY25).

• PMVP’s market cap is $72m, with $166m in cash as of Q1, offering substantial discount to net cash.
• Interim trial results for rezatapopt, targeting p53 Y220C mutation, expected soon; ORR of 30%+ seen as success.
• Shareholder pressure significant, with 36% voting against board compensation; potential for strategic review if results disappoint.

• Monogram Technologies (NASDAQ: MGRM) is a medical device company developing a product solution architecture to enable patient-optimized orthopedic implants at scale by linking 3D printing and robotics with advanced pre-operative imaging.
• On 5/17/25, the company received clearance from the FDA on its 510(k) submission for its mB s TKA System.
• The first live in patient surgery OUS is expected in 2025.

• WuXi XDC Cayman (2268 HK)‘s stock price has recovered from the tariff fear induced selloff and the higher market cap should result in global index inclusion in August.
• WuXi XDC Cayman (2268 HK) has gone from bottom of the pack to middle over the last 9 months and there could be further relative upside.
• There is positioning in the stock but it appears to be lower than positioning in its peers. Long/short trades could offer better risk/return.

• Innogen, a China-based near-commercial stage biotech company, is looking to raise at least USD 100 million via a Hong Kong listing. CITIC Securities and CICC are the joint sponsors.
• In this note, we look at changes to the company’s refiled application proof.
• We also did a comparison between the company’s product and PegBio’s PB-119. PegBio was listed on HKEx in May. We also check its products’ online listing.

• After a sequence of contracts building from the core business, the YE Trading Update reports revenue higher than expectations, with a consequential reduction in losses and higher cash balances.
• Assuming the momentum is maintained, it extends the cash runway to 12 months.
• Revenue expectations for June 2025 are increased to £834k which is 46% ahead of FY June 24, while the Loss After Tax is 31% lower at £419k, than the comparable period. 

• Shanghai MicroPort MedBot Group (2252 HK) announced flash results for 1H25 where they expect the revenue to rise 70–80% YoY and net loss to narrow down to RMB 125M.
• Toumai Laparoscopic Surgical Robot continued to be the main growth driver securing new orders of 18 units and achieving commercial installation of more than 13 units in overseas markets.
• MedBot’s recent approvals of Toumai variants, technology advantages, and commercialization strength places it at an inflection point, expected to be back in the black soon.

• Noritake – Despite strong profits from semiconductor ceramics, lack of strategy for underperforming segments and idle assets invites activist pressure for structural reform. 
• Square Enix – New turnaround plan lacks clear KPIs and capital discipline, prompting activists to demand sharper execution and improved shareholder returns. 
• Eiken Chemical – Activists gained board influence through compromise, advancing governance reform and signaling momentum toward a potential buyout.

• 3SBio Inc (1530 HK)‘s stock price has soared over the last couple of months, and the higher market cap should result in global index inclusion in August.
• 3SBio Inc (1530 HK) has gone from middle/bottom of the pack to best performer among its peer group over the last two months.
• There will be a lot of positioning in the stock, but we see a similar trend across stocks in the industry.

• Sanli Environmental and mDR saw significant increases in average daily trading turnover, with returns of 98.9% and 137.5% respectively.
• Q&M Dental led net institutional inflows with S$7.68 million, alongside increased CEO ownership and active share buybacks.
• OKP Holdings secured a S$258 million contract, boosting its order book to S$736 million, with visibility to 2031.

• CSL Limited, an Australian multinational specialty biotechnology company, reported its financial performance for the first half of fiscal year 2025, presenting a nuanced picture of its current business landscape.
• From an investor’s standpoint, analyzing both the positive aspects and the challenges noted in the earnings call gives a clearer sense of CSL Limited’s operational and strategic trajectory.
• Starting with the positives, the company reported solid financial results, with group revenues reaching $8.5 billion, reflecting a 5% increase at constant currency.

• DWTI announced after the close on July 15 that it has decided to add H-1129, an in-house discovered candidate compound, to its pipeline and develop it as a treatment for corneal and conjunctival diseases caused by immune disorders.
• ‘Corneal and conjunctival diseases’ refers to a general term for conditions characterized by inflammation or damage to the cornea and conjunctiva.
• The cornea is the dome- shaped transparent layer covering the iris, pupil and anterior chamber, which focuses and refracts light onto the retina. 

• AI-Enabled personalized spine surgery solutions is set to debut on Wednesday, July 23rd.
• Channel checks just completed, are currently revealing, according to guidance, multiple-times oversubscribed with continued long-only conversions.
• Based on the flash numbers released in the prospectus of $12.0m in Q2 revenue, the growth for the year would be roughly 77% which are highly-attractive figures.

• ImmVira, a China-based clinical-stage biotech, is looking to raise at least USD 100 million via a Hong Kong listing. The joint book runners are CITI and CICC.
• In this insight, we look at the company’s core product, MVR-T3011, including its mechanism and clinical data.
• We also look at the company’s pre-IPO investors and management team.

• Artificial-Intelligence-Powered spine surgery developer Carlsmed is offering 6.7M shares priced between $14 and $16 apiece. At the mid-point, the company is seeking a market value of $430M.
• Carlsmed currently markets the aprevo Technology Platform for lumbar spine fusion surgery, and is developing aprevo for cervical spine fusion surgeries, which is expected to be commercialized in 2026.
• Carlsmed estimates there is a total addressable market of $13.4B for aprevo in the U.S. Aprevo may also benefit other musculoskeletal applications beyond the spine, unlocking greater market potential.

• Longeveron is focusing on using its primary treatment, Lomecel-B, to fight a rare pediatric heart birth defect that devastates families but continues to receive good FDA news regarding its treatment for Alzheimer’s Disease.
• The company announced that it has licensed a US patent from the University of Miami that has widespread therapeutic indications for heart diseases.
• This acquisition fits in perfectly with the existing lineup and should prove beneficial to patients and shareholders.

• Merck’s $10 billion acquisition of Verona Pharma marks another pivotal move in its broader strategy to offset the looming revenue hit from Keytruda’s patent expiration in late 2028.
• The company is navigating an era of transformation, with nearly 20 launches planned over the next few years, including key assets in cardiometabolic, immunology, HIV, and oncology.
• While Keytruda generated $29.5 billion in 2024 revenue and remains Merck’s crown jewel, its approaching loss of exclusivity is expected to erode annual revenues by $18 billion, prompting Merck to aggressively expand and diversify its pipeline.

• The recent placement and price surge in Sichuan Kelun-Biotech Biopharm (6990 HK) could result in the stock being added to a global index in August.
• Sichuan Kelun-Biotech Biopharm has outperformed its peers as the entire industry has been trading well. There is a small increase in short interest in the stock.
• Positioning has increased steadily over the last month. Momentum in the stock and its peers could lead to further upside before profit taking kicks in.

• InterGlobe Aviation Ltd (INDIGO IN) and Max Healthcare Institute (MAXHEALT IN) should replace Indusind Bank (IIB IN) and Hero Motocorp (HMCL IN) in the NIFTY Index in September.
• The review period for the September rebalance ends 31 July, the announcement of the changes will take place end August and implemented at the close of trading on 29 September.
• While there has been a steady increase in cumulative excess volume for Max Healthcare Institute (MAXHEALT IN), there could be more room to run in the stock. 

• Anthem Biosciences raised INR 34bn (US$394m) in its IPO valuing the company at INR 320bn (US$3.7bn). The stock lists today.
• The grey market premium is INR 132/share, so the stock could list 23.2% higher than the IPO price. That will help in getting larger index flows.
• Anthem Biosciences could be added to one global index in November while the stock price gain will determine whether the stock is added to the other global index in December.

• Next Science (NXS:AX) plans a large capital return after selling assets to Demetra Holdings, with a 13% spread to expected distribution.
• Cantor Equity Partners I (CEPO) merges with BSTR, becoming a major Bitcoin treasury, exiting with a 17% gain.
• Banxa’s (BNXA:V) spread widens to 30% amid shareholder sales and pending acquisition by OSL Group, with Genius Act tailwinds.

• Shoulder Innovations Inc., high-growth and pure-play shoulder arthroplasty device company, filed for an IPO in the United States.
• Their flagship product, InSet Glenoid, is the first and only FDA cleared device that solves glenoid loosening. The company has raised ~$115M in equity according to the S-1.
• I believe there is good near-term visibility for growth as Shoulder Innovations drives commercial expansion and achieves greater domestic reach.

• Ono Pharmaceutical (4528 JP) guided Opdivo revenue in FY26 to be ¥138.5B (Japan: ¥125B, up 4% and Overseas: ¥13.5B, up 3%), up 4% YoY.
• Opdivo in combination with Yervoy (from Bristol Myers Squibb) was approved in Europe, US, South Korea, and Japan for the first-line treatment of patients with unresectable or metastatic hepatocellular carcinoma.
• In FY26, Opdivo’s revenue growth will come from indication expansion but smaller addressable patient population remains a concern for long term.

• WuXi AppTec’s 25H1 Profit Alert indicates the whole year performance may beat expectations. However, “valuation discount” reflects geopolitical risks. The intensive share repurchases is insignificant compared with previous share reductions.
• Sino Biopharm will pay US$500.9 million to acquire LaNova. Based on pipeline/licensing cooperation, this is a deal with very high cost performance. However, valuation contribution may remain to be seen.
• United Lab plans to raise HK$2.17 billion in net proceeds from Placement. Valuation logic will shift from a traditional bulk medicine company to innovative drug company. 15x P/E is expected.

• Anthem Biosciences (1234D IN) raised about US$397m in its India IPO.
• Anthem Biosciences (ABS) is a contract research, development and manufacturing organisation (CRDMO) with fully integrated operations spanning drug discovery, development, and manufacturing.
• We have looked at the company’s past performance in our previous notes. In this note, we will talk about the peer comp and IPO valuations.

• Cochlear Limited recently announced its half-year results for fiscal year 2025.
• In its earnings call, the company disclosed a mixed performance across its business segments.
• On the positive side, the company reported a strong 13% growth in Cochlear implant revenue and an even stronger 22% growth in Acoustics revenue, leading to an overall net sales increase of 6% in constant currency.

• Agilent is a leading provider of instruments, services, and consumables for labs in the life sciences, diagnostics, applied chemical markets, and R&D sectors
• With a market cap of $30 billion, Agilent was born within Hewlett Packard and spun off more than 25 years ago
• Agilent has a total addressable market of $160 billion and has a history dating back to 1938, starting as a testing instrument for audio equipment used by Disney in the production of Fantasia

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.

• Next Science plans to distribute net proceeds of US$30m from asset sale to shareholders, equating to A$0.158/share.
• The asset sale requires shareholder approval, with major stakeholders like the Walker family likely supporting the transaction.
• Uncertainties include FDA compliance issues, tax treatment of distribution, and potential changes in net proceeds estimate.

• They are a commercial stage medical technology company that currently offers advanced implant systems for shoulder arthroplasty.
• They generated net revenue of $31.6 million for the year ended December 31, 2024, compared to net revenue of $19.3 million for the year ended December 31, 2023 (64% growth).
• This IPO could set terms as early as next week for a late July or early August debut. 

• Fisher & Paykel Healthcare’s recent financial results for the fiscal year ending March 31, 2025, reveal a balanced mix of robust growth and strategic challenges, providing a comprehensive overview of the company’s current performance and future outlook.
• On the positive front, the company reported operating revenue of $2.02 billion, marking a 16% increase from the previous year.
• This growth is primarily driven by broad-based expansion across its hospital consumables portfolio and significant contributions from the obstructive sleep apnea (OSA) masks.

• Pro Medicus Limited, a healthcare IT company specializing in enterprise imaging, reported a record first half of the fiscal year in both financial performance and strategic milestones.
• The company’s revenue increased by 31.1%, with profit after tax soaring by 42.7%, reflecting robust financial health.
• The earnings before interest and taxes (EBIT) margin grew to 71.9%, underscoring the company’s profitability.

• Mesoblast Ltd (MSB AU) reported $13.2M revenue from Ryoncil since its launch on March 28 through June 30. With full treatment cost of $1.55M, Ryoncil pricing has been reasonably set.
• With mandatory CMS coverage becoming effective on July 1 in all U.S. states and Mesoblast completing onboarding of the remaining major U.S. transplant centers, Ryoncil revenue is expected to accelerate.
• As of June 30, 2025, Mesoblast had cash balance of $162M. Considering cash burn of $16.6M for the latest quarter, the company has an estimated funding available for ~10 quarters.