Category

Healthcare

Daily Brief Health Care: Shenyang Xingqi Pharmaceutical, Grifols and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • China Healthcare Weekly (Mar.15)- New Policy of Innovative Drug, TCM Formula Granules, Xingqi Pharma
  • Liquid Universe of European Ordinary and Preferred Shares: March‘24 Report


China Healthcare Weekly (Mar.15)- New Policy of Innovative Drug, TCM Formula Granules, Xingqi Pharma

By Xinyao (Criss) Wang

  • A document titled “Soliciting Opinions on the Implementation Plan for Supporting the Development of Innovative Drugs throughout the Whole Chain” would completely change the outlook/investment logic of China’s innovative drugs.
  • We predict that due to the early opening of TCM formula granules VBP in some provinces and intensifying competition, the market pattern of TCM formula granules would face reshaping.
  • After the atropine eye drops is approved by the NMPA, Xingqi’s performance growth will accelerate. Supported by favorable policies, its market value is expected to reach above RMB30 billion.

Liquid Universe of European Ordinary and Preferred Shares: March‘24 Report

By Jesus Rodriguez Aguilar

  • Since mid-February, spreads have not followed a clear pattern across our European liquid universe of ordinary and preferred shares (9 have tightened, 9 widened, 1 remained at same level).
  • Recommended trades long preferred / short ordinary shares: Danieli, Grifols, Media-for-Europe, Sixt.
  • Recommended trades long ordinary / short preferred shares: Fuchs, Henkel, SSAB Svenska Stal, Roche.

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Daily Brief Health Care: Astrazeneca Plc Spons Adr, Intuitive Surgical, Abbott Laboratories, Abbvie Inc, Align Technology, Newron Pharmaceuticals and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • AstraZeneca PLC: Can The Amolyt Pharma Acquisition Be A Game Changer? – Key Drivers
  • Intuitive Surgical (ISRG US): Fifth-Generation Device Approval Adds to Secular Growth Story
  • Abbott Laboratories: Focus On Organic Growth Through Robust Product Portfolio! – Key Drivers
  • AbbVie Inc: Produodopa’s Green Light In Scotland & 6 Other Major Developments – Key Drivers
  • Align Technology: Acquisition of Cubicure
  • Newron Pharmaceuticals – Operational flexibility with new/updated financing


AstraZeneca PLC: Can The Amolyt Pharma Acquisition Be A Game Changer? – Key Drivers

By Baptista Research

  • AstraZeneca’s Fourth quarter and full-year ’23 earnings reflects strong performance.
  • Notably, the company achieved their decade-long target of $45 billion sales, demonstrating its consistent focus on long-term growth.
  • The company’s diverse commodity areas, ranging from oncology to rare diseases, all demonstrated strong growth in 2023, with the company’s profitability expected to increase because of this.

Intuitive Surgical (ISRG US): Fifth-Generation Device Approval Adds to Secular Growth Story

By Tina Banerjee

  • On March 14, Intuitive Surgical (ISRG US) received FDA approval for its fifth-generation multiport robotic system, da Vinci 5. The device will deliver meaningful improvements in surgery.
  • The company reported strong 4Q23 result, with revenue and EPS beating consensus. 2023 procedure growth of 22% matched the higher end of the company’s guidance range of 21–22%. 
  • Management has guided for a worldwide da Vinci procedure volume growth of 13–16% YoY in 2024. In the medium-term, ISRG aims to improve gross margin to above 70% level.

Abbott Laboratories: Focus On Organic Growth Through Robust Product Portfolio! – Key Drivers

By Baptista Research

  • Abbott Laboratories displayed robust performance during the Q4 2023 earnings call, reporting a growth of 11% in 2023 with organic sales increase of 14%.
  • Abbott’s Chairman and CEO, Robert Ford, underscored the company’s resilience and its strong footing despite the challenging conditions induced by the global pandemic.
  • Abbott’s operating margin is already on their pre pandemic level and the biggest opportunity for margin expansion is on the gross margin line.

AbbVie Inc: Produodopa’s Green Light In Scotland & 6 Other Major Developments – Key Drivers

By Baptista Research

  • AbbVie Inc.
  • showcased a robust performance in the fourth quarter (Q4) of 2023, delivering results surpassing initial expectations.
  • The company’s growth platform, independent of their iconic Humira, reported full-year sales growth exceeding 8%.

Align Technology: Acquisition of Cubicure

By Baptista Research

  • Align Technology Inc’s Q4 2023 earnings report demonstrated better-than-expected revenues and earnings, with the company achieving several key milestones, including treating 17 million Invisalign patients, delivering 4.7 million treatments for teenagers and selling over 100,000 iTero scanners.
  • Total revenues for the fiscal year exceeded the company’s previous outlook, with the non GAAP operating margin exceeding 21% for 2023.
  • The company’s Q4 revenues were up 6.1% YoY, attributable to increased Systems and Services revenues and higher Clear Aligner volume for teenage and international doctors.

Newron Pharmaceuticals – Operational flexibility with new/updated financing

By Edison Investment Research

Newron Pharmaceuticals has announced new arrangements that offer the company improved operational flexibility. We estimate a pro forma gross cash balance of €17.5m (estimated year-end gross cash of €12m plus €5.5m initial equity issue) to extend the company’s cash runway into FY25, well past the top-line readout from the potentially pivotal 008A study (expected this month) and initiation of the Phase III 003 study (anticipated in Q224), both assessing evanamide in schizophrenia subsets. Provided results are positive, we expect the company to sign a licensing deal by H224. We will present updated estimates following the release of full-year results on 19 March. Management has announced a private placement of up to €15m (c CHF14.4m) from an institutional investor (initial issue of 750k shares worth €5.5m with an option to subscribe to up to an additional 1.3m shares for €9.5m). The company also reported an amendment to its loan repayment terms with the European Investment Bank (EIB), pushing out the first repayment to November 2025 (previously €10m in June 2024).


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Daily Brief Health Care: AS ONE Corporation, Daiichi Sankyo and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • AS ONE (7476): Acquisition of Treasury Shares Via After-Hours Trading And Retirement of The Shares
  • Daiichi Sankyo (4568 JP): Second Time FY24 Guidance Raise; Event Heavy FY25 With 2 New Drug Approval


AS ONE (7476): Acquisition of Treasury Shares Via After-Hours Trading And Retirement of The Shares

By Shared Research

  • AS ONE Corporation (7476 JP) is a specialist trading company that uses a business model focused on catalog sales.
  • In FY03/23, sales were JPY91.4bn (+5.1% YoY), operating profit was JPY11.4bn (+22.0% YoY), recurring profit was JPY11.6bn (+21.6% YoY), and net income was JPY8.1bn (+12.6%YoY).
  • AS ONE Corporation announced the acquisition of treasury shares via after-hours trading (ToSTNeT-3) and retirement of the treasury shares.

Daiichi Sankyo (4568 JP): Second Time FY24 Guidance Raise; Event Heavy FY25 With 2 New Drug Approval

By Tina Banerjee

  • Daiichi Sankyo (4568 JP) has reported better-than-expected 3QFY24 results, with double-digit growth in revenue and profit, mainly driven by global mainstay products such as Enhertu and Lixiana, and favorable forex.
  • Driven by favorable Fx, sales increase from couple of products, and litigation payment, the company raised FY24 revenue, core operating profit, and net profit forecast 2%, 16%, and 30%, respectively.
  • FDA set an action date for Daiichi Sankyo’s second ADC drug candidate HER3-DXd of June 26 and for Dato-DXd of December 20. Both are for various types of lung cancers.

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Daily Brief Health Care: Volpara Health Technologies, CSPC Innovation Pharmaceutical-A, Qyuns Therapeutics, Hanmi Pharm and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Volpara Health (VHT AU): 12th April Shareholder Vote
  • Quiddity Leaderboard ChiNext & ChiNext 50 Jun 24: Multiple Changes to Expectations; US$481mn One-Way
  • Volpara Health (VHT AU): Scheme Vote on 12 April
  • Pre-IPO Qyuns Therapeutics (PHIP Updates) – Some Points Worth the Attention
  • OCI Or No OCI, Hanmi Pharm (128940 KS) Will Continue to Roar on Strong Base Business and Pipeline


Volpara Health (VHT AU): 12th April Shareholder Vote

By David Blennerhassett

  • On the 14 December, Volpara Health (VHT AU), which makes software enabling the early detection of breast cancer, announced an Offer by way of a Scheme with Lunit (328130 KS)
  • NZ’s OIO approval was satisfied on the 31 January. The  Scheme Booklet is now out, with a Scheme Meeting to be held on the 12th April.
  • Lunit is offering Volpara shareholders A$1.15/share, in cash, a 47.4% premium to last close. Cornerstone investors with 25.92% of shares out are supportive. The IE says terms are fair.

Quiddity Leaderboard ChiNext & ChiNext 50 Jun 24: Multiple Changes to Expectations; US$481mn One-Way

By Janaghan Jeyakumar, CFA

  • The ChiNext Index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
  • The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
  • In this insight, we take a look at the names leading the race to become ADDs and DELs in the June 2024 index rebal event.

Volpara Health (VHT AU): Scheme Vote on 12 April

By Arun George

  • The Volpara Health Technologies (VHT AU) IE considers Lunit (328130 KS)‘s A$1.15 offer fair and reasonable as it is above its A$0.67-0.82 per share valuation range. 
  • NZ OIO approval has been received. The scheme is conditional on shareholders’ approval by more than 75% of votes cast and more than 50% of shareholders.
  • The scheme vote will get up as the offer is attractive vs. historical trading ranges. At the last close and for the 21 May payment, the gross/annualised spread was 2.2%/13.0%.

Pre-IPO Qyuns Therapeutics (PHIP Updates) – Some Points Worth the Attention

By Xinyao (Criss) Wang

  • The biggest concern here is the uncertain commercialization outlook of Qyuns’s pipeline, mainly due to both industry factors in the field of autoimmune and allergic diseases and Qyuns’s own problems.
  • Qyuns is overvalued. There’re rumors that Qyuns was “not popular” in primary market when fundraising, perhaps due to Dr. Yu Guoliang’s past unsuccessful experience which made investors suffered losses before.
  • By reducing the size of IPO to maintain high share price, this IPO may “look successful”.Investors can seize this opportunity to take profits in time, but long-term hold isn’t recommended.

OCI Or No OCI, Hanmi Pharm (128940 KS) Will Continue to Roar on Strong Base Business and Pipeline

By Tina Banerjee

  • In 2023, Hanmi Pharm (128940 KS) reported 12% and 40% growth in revenue and operating profit, respectively, driven by double-digit revenue increase from Rosuzet and improving performance of China subsidiary.
  • In January, the company has enrolled first patient in phase 3 trial of type 2 diabetes/obesity drug candidate Efpeglenatide. The study is expected to complete in 2026.
  • Hanmi Science-OCI merger has hit a roadblock. Although merger with OCI will bring synergistic effect, Hanmi Pharm will continue to grow even if the merger does not happen.

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Daily Brief Health Care: Eiken Chemical, PegBio and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Eiken Chemical (4549) | Activists, Alchemy, and the Pursuit of Profit
  • Pre-IPO PegBio Co., Ltd. – This GLP-1 Biotech Has Gloomy Outlook


Eiken Chemical (4549) | Activists, Alchemy, and the Pursuit of Profit

By Mark Chadwick

  • Two activist investors are now on the shareholder registry of Eiken Chemical. 
  • Eiken has proactively announced a share buyback to return excess cash holdings. 
  • Eiken has a quality underlying business which generates solid FCF yield. Expect higher shareholder returns in the future. 

Pre-IPO PegBio Co., Ltd. – This GLP-1 Biotech Has Gloomy Outlook

By Xinyao (Criss) Wang

  • PB-119 (T2DM) has the fastest R&D progress, but this is a highly competitive market.China’s diabetes drug market is dominated by traditional drugs. It’s not easy for PegBio to break through. 
  • Since the future competitive landscape of GLP-1s (obesity) would present a very different situation.If PB-119 fails to have better weight loss effect, it would be eliminated due to fierce competition.
  • PegBio’s IPO on SSE STAR Market was rejected. We’re not optimistic about its future commercialization performance. Together with cash-flow issues, we doubt whether PegBio would bring expected returns to investors.

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Daily Brief Health Care: Basilea Pharmaceutica Ag, Hutchmed China Ltd and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Basilea Pharmaceutica – Strong Cresemba traction triggers milestone payment
  • Hutchmed China Ltd (13.HK/​​HCM.US) – High Growth Is Expected from 2024 to 2026


Basilea Pharmaceutica – Strong Cresemba traction triggers milestone payment

By Edison Investment Research

Continued strong sales of Cresemba, Basilea Pharmaceutica’s lead antifungal asset, in the Asia-Pacific region and China, has triggered the receipt of a US$1.25m milestone payment from Pfizer (license partner). This comes on the heels of Basilea’s first sales-related milestone from distribution partner Knight Therapeutics in January for sales in Latin America. We believe these reflect sustained market traction for Cresemba, leading to in-market sales of US$445m in the 12 months ending September 2023 (+22% y-o-y) and c CHF30m in milestone payments in FY23. In December 2023, Cresemba was granted a paediatric label expansion in the US, extending its market exclusivity to September 2027 (EU decision expected Q124). Basilea is also developing a successor to Cresemba: fosmanogepix, a broad-spectrum antifungal therapy (Phase III trials to commence in mid-2024). We anticipate the Prescription Drug User Fee Act (PDUFA) date (3 April 2024) for the company’s second asset, Zevtera, will be the next near-term catalyst, as the US represents a key market.


Hutchmed China Ltd (13.HK/​​HCM.US) – High Growth Is Expected from 2024 to 2026

By Xinyao (Criss) Wang

  • HUTCHMED’s 2023 results were in line with expectation. It is gradually becoming a self-sufficient innovative drug enterprise with sufficient cashflow due to upfront/milestone payments of Takeda and increasing product revenue.
  • 2024 revenue guidance seems very optimistic, which has to rely on fruquintinib’s global sales performance (or Takeda’s contribution), and also on the timing of approval of fruquintinib’s 2L gastric cancer.
  • Starting from 2024, HUTCHMED will enter a period of accelerated growth in product revenue based on major catalysts.Market value of US$1,200 – US$1,800 million is a good place to long. 

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Daily Brief Health Care: PegBio, Microport Scientific, WuXi AppTec , Pro Medicus Ltd and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • PegBio IPO Preview: A Founder-Led Biopharma Player Fighting T2DM and Obesity in China
  • China Healthcare Week (Mar.8) – GLP-1s, “Crowding Out Effect” in Healthcare, Microport’s Trouble
  • WuXi AppTec (2359.HK/603259.CH) – Updates About the BIOSECURE Act and the Outlook
  • Pro Medicus Ltd (PME AU): Expanding Footprint in North America Is Making The Image Crystal Clear


PegBio IPO Preview: A Founder-Led Biopharma Player Fighting T2DM and Obesity in China

By Andrei Zakharov

  • PegBio, a VC-backed biotech company, plans to tap capital markets in Hong Kong. CICC is leading the offering, and an IPO date has yet to be announced.
  • The company’s pipeline features promising drug candidates designed for the treatment of type 2 diabetes mellitus (T2DM), obesity, NASH, OIC and congenital hyperinsulinemia. 
  • PegBio employs a proprietary technology platform, called HECTOR, and has six drug candidates in the pipeline portfolio. PB-119 is their core product with the purpose to treat T2DM and obesity.

China Healthcare Week (Mar.8) – GLP-1s, “Crowding Out Effect” in Healthcare, Microport’s Trouble

By Xinyao (Criss) Wang

  • Since the domestic revenue scale of PD-1 has been much lower-than-expected, the market seems no longer willing to offer GLP-1 weight loss drug high expectations. However, that’s not right. 
  • For China healthcare, the emergence of negative domestic policies is a time for reassessment and seeking opportunities, rather than a time of blind pessimism.
  • Issuing convertible bonds is clearly a bad decision for Microport, which chose to sacrifice the interests of minority shareholders. Together with weak fundamentals/cashflow pressure, the management needs to take responsibility.

WuXi AppTec (2359.HK/603259.CH) – Updates About the BIOSECURE Act and the Outlook

By Xinyao (Criss) Wang

  • A Senate committee moved the bill (S.3558) forward that would prohibit pharmaceutical companies from using foreign service providers like WuXi AppTec and its subsidiaries. However, rational voices are still expected.
  • Seemingly conflicting proposals are mostly “noise” and disturbances to stock prices. This means in the future, we‘ll see stock prices move sharply again due to latest developments on these bills.
  • WuXi AppTec should have “bottom-line thinking” and prepare some “backup solutions”.Investors don’t need to be overly pessimistic, because when global capital flows reverse, no one will mind these bills anymore.

Pro Medicus Ltd (PME AU): Expanding Footprint in North America Is Making The Image Crystal Clear

By Tina Banerjee

  • Pro Medicus Ltd (PME AU) reported record high revenue and net profit in H1FY24. The result was largely driven by a 37% YoY increase in revenue from North America.
  • In H1FY24, PME won four key contracts. These contracts have a total contract value of A$200M (at committed minimum exam volumes) with contract terms ranging from 7 to 10 years.
  • PME believes H2FY24 will be stronger than H1FY24. Assuming key contracts up for renewal are renewed at same rate, PME sees forward revenue of >A$608M over the next five years.   

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Daily Brief Health Care: Classys, Jazz Pharmaceuticals, Karuna Therapeutics Inc, Cooper Cos, Viatris, Veeva Systems Inc Class A, Eisai Co Ltd and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Classys: One of Korea’s Top Beauty Medical Device Makers + Higher Shares Cancellation and Dividends
  • Jazz Pharmaceuticals: Zanidatamab’s Future Progression & 4 Other Drivers
  • Karuna Therapeutics: Is The Bidding Battle Underway?
  • The Cooper Companies Inc.: Huge Potential Of Myopia Management Market As A Growth Catalyst! – Key Drivers
  • Viatris Inc.: Strategic Expansion Into Key Therapeutic Verticals & 6 Other Major Drivers
  • Veeva Systems Inc.: Expansion of the Data Cloud & 5 Other Factors Driving Growth! – Financial Forecasts
  • Eisai Co Ltd (4523 JP): Despite Sluggish Launch, Ambitious Long-Term Target Set for Leqembi


Classys: One of Korea’s Top Beauty Medical Device Makers + Higher Shares Cancellation and Dividends

By Douglas Kim

  • Classys is one of the top beauty medical device companies in Korea. Classys’ main products include Shurink Universe and Volnewmer.
  • We have a positive view of Classys (214150 KS). Classys is trading at relatively reasonable valuations, considering the company’s strong growth in sales and profits.
  • On 28 February, Classys announced a shareholder return amount of 38 billion won (including share cancellation of about 25 billion won and dividend payout of 13 billion won).

Jazz Pharmaceuticals: Zanidatamab’s Future Progression & 4 Other Drivers

By Baptista Research

  • Jazz Pharmaceuticals reported a strong financial year in 2023, with overall revenues surpassing $3.8 billion.
  • This performance was primarily driven by the growth of key products in the company’s portfolio – Xywav, Epidiolex and Rylaze, which collectively accounted for a 27% year-over-year increase in revenue.
  • The company’s sleep therapeutic area contributed more than $1.9 billion in annual revenue, indicating a strong demand for its offerings given the high prevalence of sleep related disorders.

Karuna Therapeutics: Is The Bidding Battle Underway?

By Andrei Zakharov

  • In December 2023, American multinational pharmaceutical company Bristol Myers Squibb has agreed to acquire Karuna Therapeutics for $330 per share in cash, implying a total equity value of $14B.
  • The special meeting of Karuna’s shareholders to be held on March 12, 2023, to consider and vote on various proposals necessary to approve upcoming M&A deal.
  • I expect the bidding battle among big pharma to acquire Karuna Therapeutics and its valuable pipeline of transformative medicines to treat schizophrenia and psychosis in Alzheimer’s disease.

The Cooper Companies Inc.: Huge Potential Of Myopia Management Market As A Growth Catalyst! – Key Drivers

By Baptista Research

  • As per the Q1 2024 Cooper Companies earnings, the company reported an outstanding start to the fiscal year with record quarterly revenues of $932 million.
  • CooperVision rolled in solid growth worldwide, while CooperSurgical recorded its 13th consecutive quarter of double-digit organic growth.
  • The firm’s earnings were equally strong, with capacity expansion progressing well and demand remaining healthy globally.

Viatris Inc.: Strategic Expansion Into Key Therapeutic Verticals & 6 Other Major Drivers

By Baptista Research

  • Viatris Inc.
  • reported its Q4 and Full Year 2023 Earnings with strong operational results, showing revenue growth for the third consecutive quarter.
  • As Viatris begins 2024, it continues to generate strong free cash flows that provide the flexibility to balance capital return to shareholders and strategic investments for future growth.

Veeva Systems Inc.: Expansion of the Data Cloud & 5 Other Factors Driving Growth! – Financial Forecasts

By Baptista Research

  • Veeva Systems posted robust results for its Q4 and Fiscal 2024 year during its earnings call.
  • Revenues for the quarter totalled $631 million and for the year they were $2.4 billion, both exceeding guidance.
  • Non GAAP operating income surpassed expectations too, with $239 million for Q4 and $843 million for the full year.

Eisai Co Ltd (4523 JP): Despite Sluggish Launch, Ambitious Long-Term Target Set for Leqembi

By Tina Banerjee

  • Eisai Co Ltd (4523 JP) has come out with ambitious revenue target for Alzheimer’s disease drug Leqembi with new estimates for global eligible patient population and potential indication expansions.
  • By FY27, Eisai expects Leqembi can generate revenue of ¥290B (~$2B) worldwide. Leqembi revenue can potentially ballooned to a whopping ¥1.6T (~$10.8B) by FY33, according to the company.
  • Through January, Eisai could reach just 2,000 patients in the U.S. versus target of 10K patients by March. The sluggish progress of Leqembi makes Eisai’s target difficult to achieve.

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Daily Brief Health Care: Karuna Therapeutics Inc, Agilent Technologies, Henry Schein, Iti Inc, MariMed, Penumbra and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • Karuna Therapeutics Inc (KRTX.US) – This Company Is Worth Bristol Myers Squibb Paying a High Premium
  • Karuna Therapeutics (KRTX US): BMS Acquisition Offers Decent Short-Term Trading Opportunity
  • Agilent Technologies: Stabilization Of Demand In China & 5 Other Major Drivers
  • Henry Schein Inc: Investment in Future Growth and Specialty Business Outlook! – Major Drivers
  • Intra-Cellular Therapies Inc.: Initiation Of Coverage – 6 Major Drivers
  • MariMed, Inc. – Poised for Growth in 2024
  • Penumbra Inc: Initiation Of Coverage – A Tale Of Cautious Innovation! – Major Drivers


Karuna Therapeutics Inc (KRTX.US) – This Company Is Worth Bristol Myers Squibb Paying a High Premium

By Xinyao (Criss) Wang

  • Due to large patient population and strong clinical demand for new therapies, the future commercialization prospects of effective drugs in the field of schizophrenia would be relatively certain and promising.
  • Our forecast on the peak sales of KarXT is about US$10 billion. In other words, at this peak sales level, BMS is able to recover the US$14 billion in cost.
  • Karuna’s P/B is much higher than peers. If investors already have Karuna in portfolio, they may consider taking profits in time.But another rally is possible when KarXT is officially approved.

Karuna Therapeutics (KRTX US): BMS Acquisition Offers Decent Short-Term Trading Opportunity

By Tina Banerjee

  • Bristol Myers Squibb Co (BMY US) is acquiring Karuna Therapeutics Inc (KRTX US) for $330/share in cash for equity value of ~$14B. The transaction is expected to close in 1H24. 
  • Karuna’s lead asset, KarXT has FDA action date of September 26, 2024 for the treatment of schizophrenia in adults. KarXT has peak annual sales potential of $6–7B.
  • Considering strong clinical efficacy and favorable risk profile of KarXT, the deal seems to be fairly valued. Current market price of Karuna shares of $318.41 represents absolute spread of ~3.6%.

Agilent Technologies: Stabilization Of Demand In China & 5 Other Major Drivers

By Baptista Research

  • Agilent Technologies Q1 2024 earnings were decent.
  • Mike McMullen, the outgoing President and CEO of Agilent, announced his retirement and new CEO-elect, Padraig McDonnell took charge of the company.
  • Agilent reported Q1 revenue of $1.66 billion, which represents a decrease of 6.4% against the same period the previous year.

Henry Schein Inc: Investment in Future Growth and Specialty Business Outlook! – Major Drivers

By Baptista Research

  • Henry Schein’s financial results for the fourth quarter and full year of 2023 demonstrated a robust recovery from a significant cybersecurity incident, showcasing the resilience of their business model and the steadfast loyalty of their customers.
  • Notably, Henry Schein reported strong growth in its technology and value-added services businesses, a key strategic focus for the company.
  • Global sales of implants and biomaterials also showed significant growth, largely driven by strategic acquisitions that expanded the company’s offering and market presence.

Intra-Cellular Therapies Inc.: Initiation Of Coverage – 6 Major Drivers

By Baptista Research

  • This is our first report on biopharma major, Intra-Cellular Therapies.
  • The company reported solid progress in its Q4 and FY2023 results, marking a year characterized by steady growth across the company.
  • Central to the year’s success was the establishment of CAPLYTA as a vital treatment option for bipolar depression and schizophrenia.

MariMed, Inc. – Poised for Growth in 2024

By Water Tower Research

  • MariMed reported 4Q revenue of $38.9 million, which was exactly in line with our estimate.
  • This represents a 0.26% increase Q/Q and an 8.66% improvement Y/Y. Gross margins were 44.47%, a gain of 1.80% sequentially and 0.34% Y/Y.
  • Revenue was helped by a full contribution from the Thrive Dispensary in Casey, Illinois and beginning operations at the Mt. Vernon, Illinois manufacturing facility. 

Penumbra Inc: Initiation Of Coverage – A Tale Of Cautious Innovation! – Major Drivers

By Baptista Research

  • This is our first report on Penumbra, a global healthcare major.
  • The company reported its fourth quarter and annual earnings on its conference call.
  • The company made a revenue of USD 284.7 million in Q4, marking a year-over-year increase of 28.7%, while their annual revenues for 2023 reached USD 1,058.5 million, a 25% increase compared to 2022.

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Daily Brief Health Care: Shenzhen New Industries Biomedical Engineering-A, UMP Healthcare, Pharmaessentia Corp and more

By | Daily Briefs, Healthcare

In today’s briefing:

  • CSI300 Index Rebalance Preview: Potential Adds Outperforming Despite ETF Inflows
  • UMP Medical (722 HK): Slow H124, Deep Value, Execution Remains Key
  • Pharmaessentia Corp (6446 TT): Readying for Next Growth Phase with Besremi’s Continued Traction


CSI300 Index Rebalance Preview: Potential Adds Outperforming Despite ETF Inflows

By Brian Freitas

  • With 85% of the review period complete, we see 11 changes for the Shanghai Shenzhen CSI 300 Index (SHSZ300 INDEX) in June.
  • We estimate one-way turnover of 1.2% at the rebalance leading to a one-way trade of CNY 7.3bn (US$1bn). There are a lot of stocks with multiple days ADV to trade.
  • The potential adds have outperformed the potential deletes despite large flows from the National Team into ETFs tracking the CSI 300 Index. That support for the potential deletes will reverse.

UMP Medical (722 HK): Slow H124, Deep Value, Execution Remains Key

By Sameer Taneja

  • UMP Healthcare (722 HK) delivered a slow start to FY24, with revenues up 2.3% YoY and profits down 63% YoY, due to sluggish demand in Hong Kong. 
  • The company cut dividend for H1 FY24 by 25% to 1.3 HKD cents/share. Net cash on the balance sheet remained healthy at 265 mn HKD representing 64% of market capitalization.
  • The company is implementing stringent cost control and we believe that a slow turnaround and a 9-10% dividend yield is very probable at these levels. 

Pharmaessentia Corp (6446 TT): Readying for Next Growth Phase with Besremi’s Continued Traction

By Tina Banerjee

  • Pharmaessentia Corp (6446 TT) starts 2024 on a strong note, with revenue for first two months rising 103% YoY to NT$1.1B. The company is expected to become profitable this year.
  • China approval of Besremi, which is expected this year, can be a major near-term catalyst. Indication expansion of Besremi in the U.S. is anticipated in next year.
  • Pharmaessentia’s revenue is forecast to grow at an average rate of 55% per annum over the next two years. The company’s pipeline is progressing, thereby enhancing visibility beyond Besremi.

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