Healthcare

• 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.

• Trump announced actions to reduce regulatory barriers to domestic pharmaceutical manufacturing, with the core intention to open regulatory “green light” for manufacturing in US, which will change the industry pattern.
• With the promotion of VBP and the implementation of medical insurance price comparison system, there’s a trend of accelerated pharmacies closures. The entire pharmacy industry will face performance headwinds.
• BeiGene’s BRUKINSA recorded negative QoQ growth in 25Q1, which seems below expectations. However, this is temporary headwinds, since the 2025 full-year revenue guidance remains unchanged. Bottom-line valuation  is US$24.5-26.5 billion.

• Pfizer recently reported its first-quarter 2025 financial results, providing an overall positive snapshot of its performance within a challenging market environment.
• Revenue was reported at $13.7 billion, marking a 6% operational decline largely driven by lower Paxlovid sales, partly reflecting a one-time Paxlovid revenue credit from the prior year.
• Despite this, some of its core products such as the Vyndaqel family, Nurtec, and Padcev demonstrated strong growth, reinforcing the company’s focus on prioritizing key growth drivers.

• Kissei Pharmaceutical (4547 JP) reported 16.9% YoY jump in revenue during FY25 driven by Beova and Tavneos despite price revision pressures and generic competition.
• The company has issued FY26 guidance of revenue rising 3.6%, with pharmaceuticals segment remaining flat dragged by lower overseas licensing fees.
• The only trigger point at this moment happens to be the recent licensing deals signed by the company with various players gives it an opportunity to expand offerings and market.

• Regeneron Pharmaceuticals’ first quarter 2025 results illustrate a multifaceted performance landscape, marked by both promising advancements and significant hurdles across its drug portfolio.
• Starting with EYLEA, the company saw U.S. net sales of $736 million, a decrease of 39% compared to the prior year, amid heightened competition from low-cost, off-label Avastin, influenced by patient affordability issues due to a funding gap at co-pay assistance foundations.
• While EYLEA HD sales increased by 54% year-over-year, its sequential growth was stagnant.

• AstraZeneca has reported its first quarter 2025 financial results, revealing a robust performance marked by a 10% increase in total revenue.
• The pharmaceutical giant’s growth was driven by rising demand for its innovative medicines, with core operating profit up by 12% and core EPS rising by 21%.
• This performance was partially bolstered by favorable tax settlements.

• I tally 49 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma.
• Five new deals discussed on Smartkarma this week: SmartPay Holdings (SMP AU), NTT Data Corp (9613 JP), Zeekr (ZK US), Torii Pharmaceutical (4551 JP), and Mitsubishi Shokuhin (7451 JP).
• Key updates/news took place on: Domain Holdings Australia (DHG AU), Gold Road Resources (GOR AU), Canvest Environmental Protection Group (1381 HK), Shibaura Electronics (6957 JP), Tsuruha Holdings (3391 JP).

• Labcorp Holdings reported its financial performance for the first quarter of 2025, reflecting a mixed set of outcomes amidst macroeconomic and regulatory dynamics.
• The company achieved solid revenue growth of 5.3%, reaching $3.3 billion, driven primarily by organic growth and strategic acquisitions.
• However, foreign currency translation exerted a slight negative pull on these figures.

• Novartis, a global pharmaceutical leader, reported its Q1 2025 results with impressive financial metrics combined with significant advancements in its pharmaceutical portfolio.
• The company’s operational metrics showcased robust performance, with net sales increasing by 15% and core operating income growing by 27%.
• This resulted in a core margin of 42.1%, up by 400 basis points, indicating effective cost management and revenue growth strategies.

• Revelation Biosciences is a life sciences company whose development of immunologic-based therapies is based on the well-established biology of phosphorylated hexaacyl disaccharide (PHAD) and its effect on the innate immune system.
• The company announced its 1Q2025 financial results after recently revealing that it is targeting a new target indication with its Gemini treatment, the prevention of infection in burn patients.

• Shionogi & Co (4507 JP) is acquiring Torii Pharmaceutical, as well as the pharmaceutical business of Japan Tobacco and U.S. group company Akros Pharma (sub-subsidiary of Japan Tobacco) for ~¥160B.
• With minimum overlap in focus areas, Shionogi believes that the transaction will create a leading company that delivers innovative pharmaceuticals. However, R&D expenses of the combined company will remain elevated.
• Considering the promising pipeline, we are hopeful on the long-term growth prospect of the combined company. Shionogi is scheduled to announce FY25 result on May 12.

• Revenue increased by 2.5% YoY to JPY30.3bn, with operating profit up 1.0% YoY to JPY2.5bn.
• Occupancy rates at existing assisted-living facilities averaged 94.4%, with LIKE facilities at 99.3% in cumulative Q3.
• Good Partners’ revenue and profit were strong, with a 45.5% YoY revenue increase to JPY2.0bn, including internal revenue.

• 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 its 1Q results that illustrate the company is on the verge of potentially transformational year.

• With the Capital Markets Act in place, real-time quotes, intraday fills, and orderbook trading for fractional shares are possible—opening the door for Korea’s Robinhood moment.
• Fractional share trading in Korea is still minimal at 0.1% of volume, but real-time infrastructure from brokers could drive significant flow and growth.
• It will deepen sentiment-driven flows and cause real-time price discovery shifts, opening up new trading opportunities.

• HK inno.N (195940 KS) announced positive topline result from the U.S. Phase 3 trial evaluating K-CAB in gastroesophageal reflux disease. U.S. filing is expected in 4Q25.
• HK inno.N has reported strong 1Q25 result, with double-digit growth across all key parameters. Revenue increased 16% YoY, while operating profit grew at a faster pace of 47% YoY.
• The U.S. filing and approval are the major catalysts. However, HK inno has other growth engines as well. Innovative pipeline is also progressing, ensuring long-term growth prospect.

• CytoSorbents is commercializing its E.U. approved CytoSorb blood purification technology to treat life-threatening conditions in the intensive care unit and cardiac surgery.
• The company also seeks U.S. and Canadian approval of a second product, DrugSorb-ATR, to reduce perioperative bleeding risk in patients on blood thinners during cardiac surgery.
• Based on the results of its pivotal U.S. and Canadian STAR-T trial, the company submitted for FDA De Novo approval on September 27, 2024, and Health Canada on November 1, 2024, with final regulatory decisions expected in 2025.

• Lantheus is a leader in radiopharmaceutical offerings in oncology & precision diagnostics.
• It offers a portfolio of diagnostic & therapeutic products directly & via partnerships & licensing.
• The primary revenue driver is Pylarify, a PET tracer for PSMA-expressing prostate cancer.

Oryzon Genomics has been awarded a €13.26m (US$15m) non-dilutive grant under the Med4Cure initiative, part of the Important Project of Common European Interest (IPCEI) framework, launched in May 2024. As an associate partner, Oryzon will undertake the development of project VANDAM, focused on personalised medicine approaches in rare and orphan diseases. The grant represents c 64% of the €20.68m accepted budget for the 44-month programme and, combined with the €30m recently raised through equity financing, should provide additional financial flexibility to advance Oryzon’s pipeline. The initial focus of the project will be on aggression in subtypes of autism spectrum disorder (ASD) and neuroendocrine tumours, which is strategically aligned with Oryzon’s long-term emphasis on precision medicine in CNS and oncology. We expect to incorporate the grant into our financial model following the Q125 results.

• Sales dropped 55.8% YoY to JPY264mn due to generic competition and inventory adjustments ahead of drug price revision.
• SG&A expenses rose 7.3% YoY to JPY1.4bn, including R&D expenses of JPY819mn, up 18.5% YoY.
• Operating loss was JPY1.2bn, compared to a loss of JPY807mn in Q1 FY12/24, with maintained full-year forecast.

• Today after the close, Shionogi & Co (4507 JP) and Torii Pharmaceutical (4551 JP) announced an agreed deal whereby Shionogi would launch a Tender Offer to take over Torii.
• Torii Pharmaceutical shares rallied sharply after earnings so the actual TOB Price of ¥6,350/share is not a particularly high premium vs undisturbed. Valuation transparency is limited. Synergies are not included.
• But the price is an ATH, the company is heavily de-levered (so a 23% premium to undisturbed is decent) and the minimum threshold is not high.

• Torii Pharmaceutical (4551 JP) has recommended a tender offer from Shionogi & Co (4507 JP) at JPY6,350 per share, a 13.8% premium to the last close.
• Despite the lack of an auction and low takeover premium, the offer is attractive compared to historical trading ranges and peer multiples and represents an all-time high. 
• Japan Tobacco (2914 JP), the controlling shareholder, has provided an irrevocable. The required minority acceptance rate is achievable as the offer is reasonable.  

• Hengrui’s high growth in 2024/25Q1 mainly relies on the realization of BD cooperation. The short-term performance improvement cannot conceal the long-term pressure. The turning point of endogenous growth hasn’t arrived.
• Hengrui would continue to be affected by VBP. The generic drug business is “outdated”, whose valuation contribution is negligible. The BD model will lead to significant fluctuations in performance.
• Our forecast is net profit YoY growth in 2025-2027 would fall back to 15-20%. Hengrui’s valuation should be lower than that of BeiGene and Hansoh in Hong Kong stock market.

• 2025 guidance reaffirmed despite better-than- expected 1Q25 revenues.
• Despite beating expectations with a 6% Y/Y growth in reported revenues to $2.4B (8% Y/Y growth on a constant currency basis) for 1Q25, Biogen nevertheless maintained its full year revenue guidance for a mid-single digit drop in constant currency (CC) revenues, which will make it the sixth consecutive year of revenue decline for the company.
• Although Biogen lowered its 2025 non-GAAP EPS guidance range to $14.50-$15.50 from the previous range of $15.25- $16.25, this negative revision is not a sign of unanticipated business deterioration. 

• Hogy Medical (3593 JP) reported flat sales of ¥39.1B in FY25. However, sales from Premium kits rose 18%. Surgical kits category contributed 66% of total revenue.
• Higher costs dented operating margin by 100 bps while net profit declined 46% YoY to ¥1.5B due to higher tax outgo.
• The company guided FY26 sales to grow 7% to ¥41.8B, with profits also expected to witness mid to high single digit growth.

• Aptamer Group o.325p £6.47m (APTA.L) The developer of next-generation synthetic binders delivering innovation to the life science industry has entered into a global licensing agreement with the University of Glasgow.
• The Agreement is for the commercial use of its Optimer binders as vaccine adjuvants in the swine health sector.
• The University will lead product development; commercialisation is anticipated within the next 12 months.

• Jiangsu Hengrui Medicine (600276 CH) (JHP), a China-based pharmaceutical company, aims to raise around US$2bn 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 past performance and other dynamics in our previous note. In this note, we talk about the updates and provide our thoughts on the A/H premium.

• 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 released test results that showed Telomir-1 reverses multiple signs of cellular decline across human cell lines.
• This provides a foundation for the company to pursue treatments of autism and spasmodic dysphonia.

• HCA Healthcare’s recent earnings call for Q1 2025 presents a nuanced picture of the company’s performance and strategic position.
• The company recorded strong financial results based on consistent volume growth, an improved payer mix, and increased operating margin.
• Diluted earnings per share also saw a notable 20% increase, reaching $6.45.

• Avantor’s first-quarter 2025 earnings results reveal both challenges and strategic initiatives that frame a complex investment landscape for the company.
• Avantor reported an organic revenue decline of 2% year-over-year, signaling underperformance primarily within its Lab Solutions segment.
• Despite this, the company managed to maintain an adjusted EBITDA margin of 17%, a 20 basis point increase from the prior year.

• 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 have presented our final expectations for the upcoming index rebal event. We expect 9 ADDs/DELs for the ChiNext index and 5 ADDs/DELs for the ChiNext 50.

• Jiangsu Hengrui Medicine (600276 CH), a leading Chinese pharmaceutical company, has filed its PHIP for an H Share listing to raise US$2 billion.     
• Jiangsu Hengrui Pharmaceuticals (JHR HK) ranked first among Chinese pharma companies in revenue from NME drugs in 2023 and the number of commercialised NME drugs in 2024.
• The investment case rests on its product portfolio, strong revenue growth, rising profitability, cash generation, strong balance sheet and undemanding valuation. 

• Sagility India (2058883D IN) (Sagility) raised around US$250m in its India IPO in Nov 2024. The lockup on its pre-IPO investors is set to expire soon.
• Sagility is a pure-play healthcare focused solutions and services provider to Payers (U.S. health insurance companies), and Providers (primarily hospitals, physicians, and diagnostic and medical devices companies).
• In this note, we will talk about the lockup dynamics, possible placement and updates since our last note.

• The main purpose for Sihuan to acquire Combio is to form a strong innovative drug business Xuanzhu and then make large capital gains from the subsequent spin-off and listing.
• All the three Core Products need to face fierce competition, and their clinical data do not show obvious advantages to competing products, making them hard to stand out.
• Based on the announcement on Nov.12, 2024, valuation of Xuanzhu was RMB8.5 billion. However, due to the lack of competitive pipelines and weak commercialization prospects, we think Xuanzhu is overvalued.

• Axbio, a China-based technology company, is looking to raise at least USD 100 million via a Hong Kong listing. CICC and SPDB are the joint sponsors.
• In this note, we took a quick look at the core products and key products, as well as its management team.
• Although there are interesting takes from the prospectus, we are not convinced on the prospect of the deal yet.

• Progress is reported on Sareum’s most advanced assets which are the foundation of its near-term clinical strategy and development priorities.
• The October 2024 and March 2025 funding enables both simultaneous pipeline work, as well as new opportunities in the constantly evolving therapeutic landscape for kinase inhibitors.
• Preclinical studies have been carried out to evaluate the potential of the TYK2/JAK1 inhibitors for autoimmune diseases in central nervous system indications (CNS).

OSE Immunotherapeutics has presented new data for lusvertikimab in ulcerative colitis (UC), with encouraging results from the extension period of the Phase II CoTikiS trial. The key takeaway was that over 90% of patients who achieved a clinical response during the initial 10-week timeframe maintained symptomatic remission through the 24-week extension period. Furthermore, 61% of participants who did not achieve remission during induction achieved it after the extension (on the 850mg dose, the higher of the two tested doses). The safety of lusvertikimab was also confirmed across the 34-week treatment period. In our view, these results demonstrate the potential of lusvertikimab to provide durable responses for UC, thereby strengthening the candidate’s data package.

• Key 1Q25 takeaways include: 1) Artificial Intelligence (AI) remains at the forefront of management’s strategic vision to transform the broader healthcare journey through RCM automation, enhanced patient engagement, and real-time analytics, with the launch of CCLD’s “AI Center of Excellence” 2) by leveraging CCLD’s data, domain expertise, and offshore resources competitive advantages, senior executives plan to incorporate proprietary AI solutions across operations, products, and services to manage workflows more efficiently 3) management maintains ample liquidity to fund M&A transactions, with incremental deals typically accretive starting 90 days following closings reflecting lower CACs and meaningful cost savings and 4) we look for CCLD’s earnings power to ramp up, as the company’s differentiated value proposition increasingly resonates with healthcare providers and patients, and ongoing expense management and AI-derived operating efficiencies increasingly drive margin expansion.

• Zacks Small-Cap Research Note for Lantern Pharma, Inc. (LTRN)

• MIRA Pharmaceuticals(MIRA) Company Sponsored Research Report

• February marks 18.7% NR yield growth MoM, 21.3% growth YoY  
• Exports of NR too go up by an impressive 23.7% MoM  
• Malaysian gloves set to upend China’s competition in US market  

• Bumrungrad Hospital Pub Co (BH TB) reported 6% decline in hospital revenue to THB 6,120M in 1Q25 as revenue from international patients decreased 12% YoY.
• In 1Q25, EBITDA decreased 13% YoY to THB 2,338M, with EBITDA margin contracting 300bps YoY to 37.7% as SG&A expenses rose 6% to THB 1,084M.
• Competition from peers like BDMS and the new co-payment rules remain near term hiccups.

• Medtronic Plc (MDT US) has submitted the Hugo robotic-assisted surgery system to the FDA for a urologic indication in 1Q25. In clinical trial, Hugo met the safety and effectiveness endpoints.
• Approval is expected in 2H25. Medtronic expects Hugo would contribute to the company’s surgical business in FY26 and will be ‘a meaningful growth driver’ for the company in the medium-term.
• Medtronic is well-positioned for accelerated growth, driven by momentum in some of the most attractive growth markets in MedTech. The U.S. approval of Hugo is an icing on the cake.

• The HKD hit its upper limit of 7.75/USD. Capital inflows are expected post–Labor Day, likely boosting Hong Kong stock prices.
• Mindray faces headwinds. A turnaround may come in 25Q3–Q4, but the market seeks a new growth story. A 20–25x TTM P/E reflects fair value, not undervaluation.
• Akeso’s high valuation leans on HARMONi-3 and HARMONi 7 over HARMONi-2. Final OS data raises concerns, as MRCT is challenging and the safety margin is lower than expected.

• Unlike most biotech companies in Hong Kong which focus on innovative drugs, CF PharmTech mainly produces generic drugs. Its revenue mainly comes from CF017, with high single product risk.
• The pipelines have to face fierce competition and don’t have advantage in R&D progress in from of competing candidates. CF PharmTech is hard to generate decent profits due to VBP. 
• Since its establishment, CF PharmTech has raised its valuation step by step through multiple rounds of capital increase and equity transfer.Valuation was RMB4.021 billion in 2022, which is already high.

• West Pharmaceutical Services has demonstrated a resilient first-quarter performance in 2025, achieving results that exceeded initial expectations, notably benefiting from GLP-1 product contributions and reduced destocking impacts.
• These factors highlight West’s operational strengths, supported by competitive advantages and robust customer relationships.
• For the Proprietary Products division, organic sales growth reflected a moderate 2.4% increase, largely driven by pricing strategies and demand for their high-value (HVP) products.