Healthcare

• As widely speculated, Cosette asserted to Mayne Pharma (MYX AU) on the 17th May a Material Adverse Change (MAC) has occurred.
• Mayne disagrees, and views the pre-requisites for a MAC, as defined in the SID, have not been established. 
• What now? The Scheme is not terminated. Both parties remain in consultation. If those talks are not satisfactory (say, a price reduction [my guess]), Cosette said it will walk. 

• Asahi Intecc (7747 JP) announced 9MFY25 result, with double-digit growth across all key parameters. Revenue increased 14% YoY to ¥91.8B, driven by 16% growth in medical division.
• The company has raised guidance for FY25 revenue and operating profit and reduced net profit guidance to reflect better-than-expected performance of medical division and booking of impairment loss.
• Asahi will buy back up to 8.8M shares (representing 3.2% of issued shares) for ¥15B. Buyback will be conducted from May 16, 2025 to October 31, 2025.

• Innova Captab (1605221D IN) achieved strong Q4 FY25 revenue growth of nearly 20%, though profitability felt impact from new Jammu plant’s depreciation and finance costs.
• The new manufacturing facility in Jammu was commercialized in Q4 FY25, contributing INR  36 crores revenue and expanding production capabilities.
• The company expects strong FY26 growth, with Jammu plant adding INR 400 crores, projecting a 25% revenue CAGR long-term and improving margins.

• PegBio, a China-based near commercial stage biotech company, launched its IPO to raise up to US$39m via a Hong Kong listing.
• We have previously covered the company’s fundamentals and valuation. We highlight issues of the company.
• In this note, we look at the deal term. We think the valuation is demanding, but the company managed to get support from local government facilitate its listing.

• The venture-capital backed company set terms for its IPO and will be seeking a valuation cut of more than 50% from its 2021 peak.
• Their revenue was $123.8 million and $82.7 million for the three months ended March 31, 2025 and 2024, respectively, representing a year-over-year growth rate of 50%.
• This IPO has gained a substantial amount of orders as the underwriters are classifying the books as multiple-times oversubscribed. 

• Elevation Oncology’s market cap is $16.5m, trading at a 50% discount to its mid-year cash guidance of $30m-$35m.
• The company has no debt, $0.5m in payables, $3.7m in accrued expenses, and guided mid-year cash of $30m+.
• Potential upside of 30%-60% is based on liquidation or buyout scenarios, considering working capital liabilities and cash burn.

• Before I dig into my regular update, I want to share one chart that caught my eye this week.

• Colin King did a nice job modeling out Lionsgate RemainCo Stub / Starz valuation from last May to now.

• Interesting to see that at one point it was trading at a negative $1 price.

• Kaken Pharmaceutical (4521 JP) witnessed 31% YoY revenue growth in FY25 to ¥94 billion on the back of flurry of one-time upfront payments, resulting in surge in profits too.
• Kaken’s major drug Clenafin saw revenue drop of 2% YoY to ¥17 billion on patent cliff, while Artz revenue grew 6% YoY to ¥19 billion.
• For FY26, Kaken expects revenue to fall 6% to ¥88 billion. No respite from immediate pangs of revenue loss from NHI drug price revision and generic competition for top-selling products.

• Lantern Pharma uses AI & data to identify drug responders, uncover mechanism of action & rescue failed drugs.
• It is developing LP-300 for non- & never smoker NSCLC in the Harmonic trial.
• Secondary candidates include LP-100 for mCRPC and LP-184 and LP-284, which are in clinical development for multiple biomarker-defined tumors and hematological cancers, respectively.

Q125 saw Oryzon make significant headway towards Phase III for vafidemstat in BPD and clinical advancement for iadademstat across multiple early-stage studies. Operating performance was unsurprising, with opex rising slightly (+5.6% y-o-y to €3.4m) as the company continues to prepare for submitting the vafidemstat Phase III study protocol to the FDA (expected in Q225). The liquidity position has improved materially so far in Q2, supported by a €30m equity raise and another €13.3m in grant income. We estimate that pro forma gross funds (c €47m, including end-Q125 cash of €3.8m) will provide runway through 2027, excluding the BPD trials, which we model will be funded by a licensing partner. We adjust our launch timelines for the iadademstat programmes based on current visibility, with our valuation shifting modestly to €862.4m (€885.1m previously). We adjust our per-share valuation to €11.0 from €13.5, reflecting the increased number of shares outstanding following the equity raise.

• Good Morning, Physiomics PLC (PYC) announced a contract with a new UK client.
• We have published research on this which is attached and a snapshot of the research is below.
• The third new client in two months is announced as a contract is awarded for a project involving rheumatoid arthritis, which is a new therapeutic area for the Company.

• Rani is a clinical-stage biotherapeutics company developing the ingestible robotic RaniPill (RP) that enables oral delivery of biologics & other large molecules.
• Its pipeline features clinical assets RT-102 (teriparatide for osteoporosis) & RT-111 (ustekinumab for psoriasis).
• Both programs have completed Ph1 trials characterizing safety tolerability & pharmaco-kinetics.

• SBC has implemented strategic price revisions to drive customer growth & has revised its franchise fee structure to ramp as franchisees ramp their services, customer bases & revenue.
• Additional initiatives include enhanced focus on a broader range of market niches, new service offerings, leveraging a multi-branded approach to expanding service offerings and expanding its footprint domestically & internationally.
• SBC also recently authorized a share repurchase program of up to US$5m, with buybacks potentially beginning this month.

• In FY25, Eisai Co Ltd (4523 JP) reported 6% YoY growth in revenue, driven by 3Ls. Operating profit rose 2% YoY and net profit climbed 9% YoY to ¥46B.
• Eisai guided for FY26 revenue of ¥790B, flat YoY. Revenue for Leqembi is expected to grow significantly (¥76.5B, up 73% YoY). Operating profit is expected to remain flat at ¥54.5B.
• Leqembi’s potential market expansion holds promise, especially in the developed economies with the proportion of aged population gradually on the rise and with a dearth of suitable treatment options available.

• GASTROClear’s clinical application may be limited by doctors’ lack of sufficient trust/recognition. GASTROClear could mainly be commercialized in the non-clinical market in China first. However, the competition is more intense.
• The dual pressure of lack of medical insurance reimbursement and higher pricing may lead to lower-than-expected market penetration.It’s not easy for Mirxes’ revenue to return to the level of 2021.
• Short-Term valuation depends on market sentiment, but in long term, it still depends on the commercialization performance and the improvement of cash flow. The IPO pricing is expensive.

• After the market close on 16 May, Bain Capital sold about 6% stake in Classys (214150 KS) in a block deal sale.
• Bain Capital sold 3.93 million shares of Classys at 57,915 won per share (this price is 10.9% discount from Classys’ closing price the previous day).
• Bain Capital’s decision to sell a 6% stake in Classys via a discounted block deal, rather than offloading its entire 60.2% controlling stake, indicates a share overhang on future sales. 

• Momentum building – With a continued recovery at the core Optical segment, and high double-digit sales growth YoY at Life Science & Equipment, we believe Q1-3 FY3/26 results indicate sustained upward momentum at JTEC.
• The company has maintained FY6/25 guidance, and while this implies a back-end-loaded Q4 FY6/25, order visibility appears firm from demand on a global basis for the Optical business.
• Indications of progress in the Life Science and Equipment Development segment, driven by the semiconductor initiative, are promising, even if its full earnings potential remains longer-term. 

• Trump signed an executive order aimed at lowering prescription drug prices in the US, but the specific implementation may encounter obstacles. This is good news for China’s innovative drug assets. 
• Under tariff/trade war, as long as the US does not issue any bill proposing to suspend the technology exchange, licensing-out business model of China biotech will not be substantially affected.
• Hengrui’s IPO in Hong Kong is not attractive from a fundamental perspective. However, the recent strong performance of Hengrui’s A-share has lifted investors’ sentiment, making them “interested” in this IPO.

• Mayne Pharma’s acquisition by Cosette Pharmaceuticals at A$7.40/share faces a 14% spread, with closing expected in 1.5 months.
• The FDA issued an Untitled Letter to Mayne Pharma about Nexstellis promotional materials, but it is unlikely to trigger a material adverse effect.
• Shareholder approval for the merger appears likely, with key stakeholders supporting the deal and a vote scheduled for June 18.

• Taking care of business in the present and future. Cybin continues to move its commercialization preparation plans forward with the announcement of another important partnership, this time with Thermo Fisher Scientific (NYSE: TMO), a leading life sciences service provider offering Contract Development and Manufacturing Organization (CDMO) services.
• To this end, Cybin has engaged Thermo to not only supply both the drug substance and drug product capsules for its ongoing Phase 3 CYB003 program in major depressive disorder (MDD), but also for the potential commercial manufacturing of CYB003 if approved.
• Tariff protection. In this agreement, CYB003 will be manufactured in Thermo’s US sites in South Carolina and Ohio and will thus be protected from tariffs should the Trump administration proceed to apply them to pharmaceutical products as it has threatened.

• Dyadic has developed C1, its proprietary fungal expression system that can produce a variety of recombinant proteins.
• C1 has been commercialized in industrial applications and is in development for production of pharmaceutical grade proteins.
• C1 exhibits potential to economically produce recombinant proteins, biologic vaccines, virus like particles, antibodies, Fc-fusion, enzymes, AAVs and other biopharmaceuticals.

• Operating revenue increased by 48.8% YoY to JPY965mn, with operating profit rising 109.2% YoY to JPY93mn.
• Royalty income from four products and tegoprazan expansion resulted in JPY614mn, with other income at JPY351mn.
• RaQualia raised approximately JPY1.0bn through a third-party allotment, issuing 2,592,100 shares to HK inno.N.

• Terumo Corp (4543 JP) has reported FY25 result, with revenue and adjusted operating profit beating and operating and net profits missing guidance. TIS and GBS remained two brightest spots.
• FY26 guidance calls for a decelerated revenue growth of just 1% YoY (FY25 revenue growth rate was 12%). Foreign exchange will impact the revenue negatively.
• Implementation of the U.S. tariff poses downside risk to guidance, while better-than-expected foreign exchange rate and C&V business growth are the upside risks.

• Jiangsu Hengrui Medicine (600276 CH), a China-based pharmaceutical company, aims to raise around US$1.3bn in its H-share listing.
• JHP Has been ranked as one of the global Top 50 pharmaceutical companies by Pharm Exec for six consecutive years since 2019.
• We have looked at the company’s past performance and other deal dynamics in our previous note. In this note, we talk about the IPO pricing.

• Mayne Pharma (MYX AU) has released its scheme booklet regarding Cosette’s A$7.40 offer. The IE opines that the offer is fair and reasonable within its A$6.61-A$7.99 valuation range.
• The high spread reflects concerns that recent events would trigger the MAC clause. Thankfully, the scheme booklet does not indicate that Cosette is contesting it.
• Recent events should help quell retail opposition to the offer. At the last close and for a 2 July payment, the gross/annualised spread is 19.4%/262%. 

• Jiangsu Hengrui Pharmaceuticals (1276 HK) has launched its H Share listing at HK$41.45 to HK$44.05 per H Share. Pricing will be on 21 May.
• I discussed the H Share listing in Jiangsu Hengrui Pharma H Share Listing: The Investment Case. 
• The proposed AH discount can be argued as either light or attractive. I lean toward the latter and would participate in the H Share listing.

• After a rough week  – somewhat of an understatement – the Scheme Doc is now out.
• The Court Meeting is the18th June; the last day of trading the 23rd June, and implementation 2nd July. The IE says fair with a valuation range of A$6.61-A$7.99/share.
• This IE’s valuation range doesn’t factor in the pharma EO, given its ambiguity. Nor the FDA level. However, Mayne, ASIC AND Cosette have effectively signed off on the Doc’s veracity. 

• In FY25, Paramount Bed Holdings Co Lt (7817 JP) reported 2% YoY revenue growth to ¥109B, mainly driven by the nursing care business.
• Due to higher SG&A expenses, operating profit decreased 6% YoY to ¥13B and net profit was down 15% YoY to ¥9B.
• Paramount guided FY26 revenue to grow 4% YoY to ¥113B and also trimmed FY27 targets in mid-term plan.

• FY03/25 saw revenue increase by 2.4% YoY to JPY108.6bn, while operating profit decreased by 6.1% YoY to JPY13.0bn.
• The company forecasts FY03/26 revenue at JPY113.0bn (+4.1% YoY) and operating profit at JPY13.8bn (+6.3% YoY).
• The FY03/27 target includes JPY120.0bn revenue and JPY15.0bn operating profit, with a revised dividend policy of DOE 5.0%.

• Mirxes, a Singapore-based clinical-stage biotechnology company, launched its IPO to raise up to US$139m via a Hong Kong listing.
• We look at the deal dynamics and latest developments in the early cancer screening sector in China.
• We are of the view that there’s little fundamentals supporting that valuation. Precision oncology companies have not done well in China. 

• The company reported a net loss of JPY835mn in FY03/25, an increase from JPY780mn in FY03/24.
• Sales for FY03/26 are forecasted at JPY75mn, a 30.2% decrease YoY, with R&D expenses at JPY649mn.
• The company shifted its business model in January 2023 to focus on mRNA drug development and licensing.

• Revenue increased by 9.5% YoY to JPY8.6bn, with operating profit rising 123.5% YoY to JPY988mn.
• Family Care Services revenue grew due to babysitter service demand and elderly care service earnings increase.
• Edu-care business revenue rose 6.1% YoY, driven by subsidy income growth and new facility openings.

• Telomir Pharmaceuticals is a preclinical stage company focused on the science of lengthening telomere caps, which the company believes will extend human lifespans and improve quality of life as people age.
• The company announced the identification of Telomir-Ag2 as a novel drug candidate for the treatment of bacterial infections.
• This discovery has the potential to be a new weapon in fighting drug-resistant pathogens.

• Mayne Pharma (MYX AU) shares declined 15.76% after the public disclosure of an untitled FDA letter relating to NEXTSTELLIS promotional materials. 
• Mayne opines that the letter is not price sensitive as it does not prevent ongoing NEXTSTELLIS sales. Its response will likely withdraw the problematic presentation and adopt a compliance program. 
• The scheme is unlikely to be derailed, as I estimate that the MAC clause should not be triggered in the worst-case scenario of no NEXTSTELLIS sales. Risk/reward is attractive. 

• Jiangsu Hengrui Medicine (600276 CH) could raise up to US$1.6bn in its H-share listing if the Offer Size Adjustment Option and the Overallotment Option are both exercised.
• There is a big allocation to cornerstone investors that is locked up for 6 months. That eliminates the possibility of Fast Entry inclusion to global indexes.
• Jiangsu Hengrui (1276 HK) should be added to Southbound Stock Connect from the open of trading on 20 June following the end of the Price Stabilisation period.

• They say bad things come in threes. First, Mayne Pharma (MYX AU)announced TherapeuticsMD (TXMD US)‘s legal lawsuit. Then shares buckled in the wake of Trump’s executive order on pharma.
• The final straw was the FDA accusing Mayne of giving misleading impression of the risks of its oral birth control pill. Shares are now a whopping 29% adrift of terms.
• Mayne reckons the lawsuit and the FDA letter are not materially price sensitive; and it intends to move forward with the Scheme. A similar intention from Cosette would be welcome.

• After an IPO attempt two years ago, Mirxes filed an updated prospectus in an attempt to raise at least US$100m via a Hong Kong listing.
• In our previous note, we analyzed its product pipelines and highlighted signs of commercialization challenges.
• In this note, we note that the company expanded its clinical trial plans. Yet, more data shows that blockbuster-level uptakes are unlikely given the profile of its clinical data.

• The venture-capital backed company set terms for its IPO on Tuesday. The company will be offering 13.666 million shares at a $28-$32 range equating to a valuation of $2.3b-$2.6b.
• Their revenue was $123.8 million and $82.7 million for the three months ended March 31, 2025 and 2024, respectively, representing a year-over-year growth rate of 50%.
• This IPO is checking the boxes in terms of growth and the valuation comes at a significant discount to a previous funding round making the deal attractive for new investors. 

• SK Biopharmaceuticals (326030 KS) announced muted 1Q25 result, with all key parameters, including revenue, operating profit, and net profit declining sequentially, as the Xcopri sales in the U.S. moderates.
• Xcopri U.S. sales increased 3% QoQ, which is the lowest over the last one year, due to seasonal inventory drawdown, restructuring of major pharmacy chain, and high base effect.
• SKBP considers Xcopri U.S. revenue moderation as ‘temporary’ and sees recovery in 2Q. However, high revenue exposure to the U.S. seems to be a serious headwind in current uncertain scenario.  

• Omada delivers virtual care between doctor’s visits, providing an engaging, personalized, and integrated experience for their members that is designed to improve their health
• Revenue increased by 38% from $122.8 million to $169.8 million for the years ended December 31, 2023 and 2024, respectively.
• The company’s last funding round, Series E (February 2022), secured $192 million in a round led by Fidelity Management & Research with a valuation north of $1bn.

• Align Technology, a key player in the dental technology sector, has shown a mixed performance in its first quarter results for 2025.
• The company, which operates in the segments of Clear Aligners and Systems and Services, reported revenues of $979.3 million, which is a slight decline both sequentially and year-over-year.
• Despite these decreases, there are notable positive highlights: Clear Aligner volumes increased across several regions, with particularly strong growth observed in Asia-Pacific (APAC) and Europe, Middle East, and Africa (EMEA).

• BioStem Technologies is a leading innovator focused on harnessing the natural properties of perinatal tissue in the development, manufacture, and commercialization of allografts for regenerative therapies.
• The company announced its 1Q2025 preliminary financial results.
• The company continues to execute at a high level by posting record 1Q revenue and continued growth in earnings.

• On May 12, 2025, Imunon, Inc. (IMNN) announced financial results for the first quarter of 2025 and provided a business update.
• The company recently announced that the first clinical trial site for the Phase 3 OVATION 3 trial of IMNN-001 in patients with advanced ovarian cancer is activated and a second site will be activated this week.
• Imunon previously reported results from the Phase 2 OVATION 2 trial that showed IMNN-001 plus neoadjuvant and adjuvant chemotherapy (NACT) increased median overall survival (OS) to 46 months vs. 33 months for standard-of-care NACT.

• Back on the 21st Feb 2025, Mayne Pharma (MYX AU), a leader in dermatology and women’s health, entered into a Scheme with US-based pharmaceutical outfit, Cosette Pharmaceuticals, at A$7.40/share. 
• The transaction is progressing – the HSR Act condition was satisfied last week. A Scheme Booklet should be issued shortly, with an expected vote mid-June and late-June/early-July implementation. 
• Shares declined 3.1% yesterday over concerns a MAC could be triggered on the back of the Trump’s executive order on pharma. The impact is likely mixed, but leans neutral.

• On Monday, President Trump signed an executive order requiring drugmakers to start offering US patients the lowest price for a drug in a peer country (the Most Favoured Nation price).
• Mayne Pharma (MYX AU) is exposed as US accounts for 84% of revenue. I estimate that the average price reduction should be <16% so that the MAC is not triggered.  
• However, the MAC is not triggered if it arises “from any change in any law, regulation or rule of a Government Agency”, which should capture the Trump order.

• 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 the company’s product pipeline, its pre-IPO investors, and management.
• Our initial view is that the stock will rely heavily on its sales ramp. Yet we are not seeing signs that the company is at full throttle post-NMPA approval.

• Takeda Pharmaceutical (4502 JP) announced FY25 result, with revenue and operating profit being in-line with guidance. Revenue grew 7.5% YoY, driven by continued strong momentum from Growth and Launch Products.
• Takeda guided for its FY26 outlook of lower sales and higher margins, reflecting near term headwinds amid cost control.
• Continued strong performance of its Growth and Launch product portfolio, ripe late-stage pipeline, and expected margin improvement from FY26 envisage long-term growth prospect of the company. 

• Sales increased by 1.3% YoY to JPY405mn, with operating loss widening to JPY756mn due to higher SG&A expenses.
• In the Specified Cell Products Manufacturing Business, sales were JPY300mn, supported by stable orders and new manufacturing.
• Regenerative medicine segment loss narrowed to JPY217mn due to reduced R&D expenses after discontinuing α-GalCer/DC development.

Newron has announced receipt of regulatory clearance to conduct its Phase III programme for evenamide (ENIGMA-TRS), taking it one step closer to the market. It will comprise two separate trials: ENIGMA-TRS 1, a 600-patient international study with enrolment set to start imminently; and ENIGMA-TRS 2, a 400-patient US-focused study with enrolment due to commence within the next three months. Note that the decision to conduct two separate Phase III trials (instead of a widely anticipated single study) was slightly surprising, although we believe this may be strategic with a view to maximise success potential and gain regulatory approval, particularly in the key US market. The 12-week results from the ENIGMA-TRS 1 study, for which we believe the company is well capitalised, are anticipated in Q426, a major upcoming inflection point for Newron. We will present updated estimates in due course based on this latest news.

• Sales increased 9.9% YoY to JPY644.6bn, driven by strong overseas sales of dialyzer and dialysis-related products.
• Operating profit rose 19.1% YoY to JPY26.6bn, despite increased unrealized profit deductions and higher provision for doubtful accounts.
• Recurring profit decreased 44.6% YoY to JPY10.8bn, impacted by JPY5.4bn forex losses and increased equity in losses of affiliates.

• Protalix is a clinical and commercial pharmaceutical company using its proprietary ProCellEx plant-based expression system to pro duce thera peutic proteins for global markets.
• The company has two commer cialized products, Elelyso that is marketed by Fiocruz in Brazil & Pfizer in the rest of the world for Gaucher Disease and Elfabrio which was approved in May 2023.
• Chiesi Rare Disease will commercialize Elfabrio globally.

• Radiopharm Theranostics is advancing a portfolio of imaging and therapeutic radiopharmaceutical candidates in oncology.
• Its approach recognizes the opportunities in tumors beyond prostate, thyroid & neuroendocrine targets originated by precision oncology & validated by clinical trials & regulatory approval.
• RAD101, an 18F radioisotope imaging brain metastases is the most advanced asset.

Q125 marked another active period for SIGA’s order book, with BARDA exercising the final $26m intravenous (IV) TPOXX option in March, expected to be delivered in 2026, consistent with our estimates. Product revenues were $5.8m, driven by international TPOXX deliveries, which we believe may be related to the outstanding $6.7m contract with the Canada Department of National Defence (CDND). Importantly, sales momentum continued into Q2, with $62m in oral and IV TPOXX deliveries in April, substantially servicing the $94m order book at end-Q125. Liquidity remains strong, with net cash of $162.3m at end-Q125 enabling a $0.6/share dividend announcement in April (an attractive payout ratio of 72% and yield of 10.6%). We make modest revisions to our estimates, with our valuation upgrading slightly to $14.78/share with the model roll-forward ($14.41/share previously).

• Celltrion Inc (068270 KS) announced 1Q25 result, with revenue and operating profit decreasing 21% and 24%, QoQ, respectively. Net profit more than halved in 1Q25 compared with 4Q24.
• Sequential improvement in gross profit margin is one key positive highlight of 1Q25 result. Higher contribution of new products aided gross profit margin. This trend is expected to continue.
• Celltrion reaffirmed 2025 revenue guidance of KRW5T. Revenue is expected to be moderate in 1H25 and strong in the 2H25. Profitability improvement will be slower than expected earlier.

• Ligand Pharmaceuticals holds a portfolio of revenue, royalty & milestone generating assets that have been vetted by its internal investment team.
• Ligand considers individual biopharmaceutical products, platforms, companies & income streams in its opportunity set.
• It targets late-stage and commercial income-producing assets when making investments.

• Incyte’s first-quarter 2025 earnings report presents a mixed bag of results and outlooks, offering valuable insights for investors contemplating engagement with the company.
• Analyzing the financial performance, Incyte has demonstrated significant growth, reporting a 20% year-over-year increase in total revenues, reaching $1.05 billion.
• This is primarily driven by strong product revenue growth of 26%, benefitting from high demand for products such as Jakafi and Opzelura, along with the robust launch of Niktimvo.

• Option Care Health delivered a solid first quarter of 2025, with revenues rising by 16% over the year-ago quarter.
• The growth was well-balanced, with mid-teens expansion in acute therapies and high-teens growth in chronic therapies.
• The company capitalized on improved IV bag supply and continued investments in infrastructure to respond effectively to dynamic market demands.

• Tenet Healthcare Corporation reported strong financial results for the first quarter of 2025, showcasing significant year-over-year growth in key financial metrics.
• The company’s net operating revenues reached $5.2 billion, with a consolidated adjusted EBITDA of $1.163 billion, representing a 14% growth from the previous year.
• The EBITDA margin also improved to 22.3%, a substantial 320 basis point increase, indicating improved operational efficiency and cost management.

• Revenue and gross profit for 1H FY09/25 were JPY36mn, down 16.5% YoY, with SG&A expenses up 33.7%.
• Current assets decreased by JPY491mn, primarily due to a JPY427mn decline in cash and deposits from R&D expenses.
• Net assets fell by JPY499mn, mainly due to a net loss of JPY512mn, resulting in retained earnings at -JPY1.3bn.

• The Ensign Group, Inc. reported a strong performance for the first quarter of fiscal year 2025, reflected in various all-time high metrics which illustrate its robust growth and operational efficiency.
• Key positives include substantial increases in both occupancy rates—same-store and transitioning operations reached 82.6% and 83.5%, respectively.
• Moreover, the company saw significant growth in skilled census and managed care census across its operations, driven by effective local leadership and improved clinical outcomes.

• Companies in India have disclosed their shareholding pattern as of end-March in April. There are companies with significant float changes from end-December and/or end-September.
• The changes in free float could be reflected in domestic and global indices over the next few weeks and months resulting in action from passive trackers.
• Depending on the date that the shareholding was published, there could be 6 stocks with passive inflows from global trackers while 4 could see passive outflows in May.

• TransMedics Group stock surged ~20% on blowout 1Q’25 earnings on Friday after the company beat earnings expectations and hiked 2025 revenue guidance.
• I launched coverage of the stock in November 2024 and added TransMedics Group to my high conviction list of ideas.
• TransMedics Group shares have massively outperformed in 2025 with shares up ~79% over the year. I acknowledge limited upside and lower my PT to $118 on peer-group multiple compression.