Healthcare

• Otsuka Holdings (4578 JP) reported 12% YoY growth in revenue in 1Q25, as pharmaceuticals sales grew backed by a 35% YoY growth in Rexulti revenue to ¥75.7B.
• The company reiterated 2025 guidance. Higher costs to dent margins with subdued sales of Lonsurf, Jynarque.
• Indication expansion of Rexulti and Araris acquisition augur well for the company from a mid to long term perspective.

• Gilead Sciences delivered a mixed performance in their latest financial results, reflecting both strengths and challenges across their portfolio.
• The company reported overall product sales of $6.6 billion for the first quarter, a 1% decline year-over-year, primarily attributable to a significant decrease in sales of Veklury, a COVID-19 treatment, which was down 45%.
• The core business, however, excluding Veklury, demonstrated growth with a 4% increase, driven largely by their HIV segment and liver disease treatments.

• Theratechnologies (THTX) received takeover offers from Future Pak, with a $3.51/share cash offer plus a CVR worth $0.99/share.
• Naturgy Energy Group (NTGY:MC) plans to repurchase 9% of shares at €26.5/share, with priority for tenders below 375 shares.
• Lensar (LNSR) is being acquired by Alcon for $14/share cash plus a CVR worth up to $2.75/share.

• KRON is being acquired at $0.57/share plus a CVR, below expected net cash of $1/share.
• The CVR includes four components, with the “Additional Closing Net Cash” being the primary potential value source.
• Management’s 27% ownership suggests deal approval, despite potential risks and uncertainties in CVR payout assumptions.

• Laurus Labs (LAURUS IN) achieved a 122% YoY increase in PAT for FY25, driven by strong CDMO execution and higher margins.
• The company is accelerating its transformation from an ARV-heavy model to a diversified CDMO/CMO business, with growing client base and strong pipeline visibility.
• Laurus’ focus on small molecule and bio-CDMO segments, supported by strategic investments in new capacities, positions the company for continued growth, with improved asset turnover and higher operating leverage.

• Bristol-Myers Squibb’s first quarter results for 2025 reflect a blend of growth and strategic repositioning, highlighting both achievements and challenges facing the company in the ongoing fiscal year.
• The company reported total revenues of approximately $11.2 billion, an outcome supported by substantial performance in its growth portfolio, comprising prominent products such as its immuno-oncology (IO) portfolio, Breyanzi, Reblozyl, and Camzyos, amidst a backdrop of generics impacting their legacy brands.
• Their growth segment showcased an increase of 18% in sales, though offset by legacy products’ decline due to generic competition and regulatory factors like the Medicare Part D redesign.

• Chemed Corporation’s first-quarter results for 2025 provide a multifaceted view of the company’s performance across its businesses.
• Within its VITAS Healthcare unit, Chemed reported a solid overall performance, marked by a 15.1% increase in net revenue to $407.4 million compared to the same period the previous year.
• This growth was fueled primarily by an 11.9% rise in days of care and a geographically weighted average increase in Medicare reimbursement rates.

• Kronos Bio (KRON) signed an acquisition agreement at $0.57/share plus a CVR, below expected net cash value.
• Sage Therapeutics (SAGE) reported Q1 revenue growth, ongoing strategic review, and management urged to cut costs or sell.
• DMC Global (BOOM) exceeded Q1 guidance but faces uncertain outlook due to tariffs and demand destruction.

• Penumbra, Inc. reported its first-quarter 2025 financial results, demonstrating both positive and negative aspects of its performance.
• On the positive side, the company reported total revenue of $324.1 million, marking a year over-year growth of 16.3% on a reported basis and 16.9% on a constant currency basis.
• This growth was driven by robust performance in the U.S. thrombectomy business, which saw a 25% increase in revenue to $187.9 million.

• ResMed Inc.’s Q3 Fiscal Year 2025 results reflected both robust performance and strategic plans poised for long term growth, giving investors a mixed but intriguing picture of the company’s current standing and future potential.
• The company reported strong financial results, with an 11% increase in non-GAAP net income and a 13% boost in diluted earnings per share, reaching $2.37.
• Revenue rose by 8% on a headline basis and 9% in constant currency terms, reflecting comprehensive growth across products and markets.

• In this insight, we discuss the alpha generation through companies that announced share buybacks in the Korean stock market in March and April 2025.
• There were 40 companies in the Korean stock market that announced share buybacks in the past two months. On average, the share buyback announcements represented 1.7% of outstanding shares.
• Astute traders should put alert signals on share buyback announcements in Korea with more than 3% outstanding shares. 

• Lemo increased the number of massage equipment in the cinemas significantly, but the transaction value has reflected its ineffective business expansion. The Company may have already encountered a growth ceiling.
• Lemo’s business model requires high occupancy fee and maintenance costs, which is hard to decrease. However, if revenue growth slows down, Lemo’s profits would be “eroded” due to high costs.
• In Sep. 2024, valuation of Lemo reached RMB750 million. We think valuation of Lemo could be lower than that of peers in the future due to concerns on the outlook. 

• Suzhou Ribo Life is looking to raise at least US$100 million via a Hong Kong listing. CICC and Citi are the deal sponsors.
• Ribo Life is a world leading company in the area of siRNA research.
• The company’s RBD4059 is potentially the first in class siRNA drug for thrombotic diseases.

• FDC Limited is a pioneer in India’s pharmaceutical landscape, especially in Oral Rehydration Salts (ORS) and specialized formulations.
• The company’s flagship brand, Electral, continues to be a major revenue contributor, despite margin pressures from regulatory price caps.
• FDC’s strategic capex in ophthalmic, ear, and nasal drops business, coupled with its domestic and international presence, positions it strongly for sustained growth.

• Sumitomo Pharma (4506 JP) revised revenue guidance for FY25 to ¥399B from previous ¥381B. New guidance represents 27% YoY growth.
• This comes on the back of higher than expected sales in North American segment, which contributed 61% sales in 9MFY25.
• Operating profit guidance have been revised to ¥43.2B from ¥30B on controlled cost and higher sales.

• On April 29, 2025, Abeona Therapeutics, Inc. (ABEO) announced that the U.S. Food and Drug Administration (FDA) has approved Zevaskyn (prademagene zamikeracel) for the treatment of wounds in adult and pediatric patients with recessive dystrophic epidermolysis bullosa (RDEB).
• The company announced that the wholesale acquisition cost of Zevaskyn will be $3.1 million, which is significantly higher than what we had been modeling ($1.2 million).
• Management also guided that following the commercial launch in the third quarter of 2025, the company expects 10-14 patients to be treated and revenue from those treatments to be recognized by the end of this year.

• Hanmi Pharm (128940 KS) recorded 7% YoY growth in standalone revenue in 1Q25, driven by 47% YoY jump in export revenue to KRW68B due to increased clinical supply to Merck.
• Despite high base effect caused by respiratory outbreak in China, revenue and operating profit of Beijing Hanmi jumped 29% and 168%, QoQ, respectively, indicating continuous business recovery.
• Hanmi Pharm is expected to launch next-generation low dose triple antihypertensive, Amosartan-L in 2H25. The company expects Amosartan-L to replicate the success of dual combo, Rosuzet.

• Sichuan Biokin reported 2024 results, with a large chunk of revenue from its product licensing to BMS.
• We analyzed its key products’ current clinical trials and upcoming milestones. We also look at peer performance.
• Overall, we are of the view that many factors bode well for Biokin’s H-share listing

• Syngene International Ltd (SYNG IN) guided for mid-single digit revenue growth and lower EBITDA margins in FY26, following a mixed performance in FY25.
• The moderated outlook is primarily due to the initial operational costs and depreciation from the new US biologics facility and a normalization of inventory levels for a key client.
• Focus shifts to the successful integration and ramp-up of new capacities and the potential for underlying growth in key segments to materialize beyond the transient FY26.

• PegBio is looking at raising up to USD 100m to list in Hong Kong.
• We have previously covered the company’s fundamentals and a brief valuation.
• We also took a look at changes to its prospectus. The company filed an updated version. We are taking a close look.

• Shanghai Junshi Biosciences (1877 HK) reported 32% revenue growth during 1Q25, driven by toripalimab in China. 10 out of total 12 approved indications of the drug were included in NRDL.
• Toripalimab was launched in the U.S. in January 2024 and reported ~$19M revenue for 2024. Approvals received in new geographies like India, UK, Singapore, Australia etc.
• Loss narrowed to RMB 239M in 1Q25 from RMB 307M in 1Q24 as the company slowly and steadily optimizes the R&D spend.

• 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 that it is targeting a new target indication with its Gemini treatment, the prevention of infection in burn patients.
• This opens up Gemini to a large new market and expands the potential revenue generation of the company.

• Three contracts have been announced since the Interim report on 6 March and three peer reviewed scientific articles have been published so far this year.
• It includes sales from new clients in new therapeutic areas, which not only builds our confidence in the anticipated 31.5% increase in revenue for YE June 2025, but is also positive for FY June 2026.
• A contract was reported on 17 March with a brand-new client in the field of Antibody Drug Conjugates (ADCs).

• Lung Cancer Cough (LCC) is an under-served, perhaps unserved therapeutic subsegment of the Lung Cancer/Oncology market.
• 57-65% of early diagnosis lung cancer patients suffer from LCC, it is a highly debilitating condition.
• The US lung cancer therapeutics market consensus values range from ~USD 29.9bn in 2023 to ~USD 71.3bn in 2034, suggesting a compound annual growth rate (CAGR) of 8.2% over our 10 year forecast period.

• Theratechnologies (THTX) received a non-binding takeover offer from Future Pak, with a potential 62% upside including CVR.
• Merck KGaA is nearing a $47/share acquisition of SpringWorks Therapeutics (SWTX), with no competing bidders reported.
• Liquidia (LQDA) and UTHR are engaged in legal battles over patent infringement and Yutrepia’s approval, affecting market valuations.

• Astellas Pharma (4503 JP) has announced strong FY25 performance, with all key parameters surpassing guidance, while FY26 guidance is a mix of positives and negatives.
• Astellas has guided for FY26 revenue of ¥1,930B, up 1% YoY. While strategic brands are expected to grow by double and triple-digit, Xtandi is expected to report 5% revenue decline.
• FY26 core operating profit is guided at ¥410B, up 5% YoY, driven by cost optimization effort. Core net profit for FY26 is expected to increase 3% YoY to ¥304B.

• Thermo Fisher Scientific’s Q1 2025 earnings report exhibits both strengths and challenges, reflecting the complex macroeconomic landscape.
• The company reported a solid revenue of $10.36 billion and an adjusted operating income of $2.27 billion.
• Their adjusted operating margin stood at 21.9%, with an adjusted EPS of $5.15, reflecting a 1% year-over-year growth.

• EVAX is a clinical stage company that has proprietary AI models designed to more efficiently and more accurately target much-needed treatments.
• The company has two streams of possible revenue: from the treatments themselves and from the licensing of AI technology.
• The company announced that data on its cancer vaccine showed strong and encouraging results.

• Lexaria is a biotechnology company seeking to enhance the bioavailability of multiple drug agents using DehydraTECH (DHT), its technology using oral and topical delivery.
• It combines lipophilic APIs with specific fatty acid and carrier compounds followed by dehydration.
• DHT offers several attractive features: substantial improvement in bioabsorption in terms of time to measurable plasma levels & AUC, brain permeation, taste masking & side effect reduction.

• There was big passive buying in Sigma Healthcare (SIG AU) in March from S&P/ASX trackers following the completion of the merger with Chemist Warehouse Group.
• Sigma Healthcare (SIG AU) should be added to a global index in May and those passive trackers will have a lot of stock to buy.
• While there will be positioning in the stock, it appears lighter than the estimated passive buying. Shorts are being covered and that could provide a boost.

• Intuitive Surgical Inc.’s recent earnings reveal a mixed performance with both strengths and challenges.
• Positively, the company reported strong operational outcomes in the first quarter of 2025.
• Da Vinci procedures saw a substantial 17% growth, driven predominantly by robust performances in general surgery across the US and certain international markets, such as India and Korea.

• Quest Diagnostics reported strong results for the first quarter of 2025 with a 12% increase in revenues, primarily driven by acquisitions, organic growth, and increased demand for advanced diagnostics.
• The company’s strategy, focused on expanding its advanced diagnostics portfolio in key clinical areas and increasing automation and AI usage, appears to be paying dividends, as evidenced by the robust revenue growth in its physician and hospital channels.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• The rise of innovative drugs in China is actually in line with the interests of large pharmaceutical companies and MNCs. The only ones get “hurt” are small overseas startups/small biotech.
• BeiGene’s turnaround from losses to profits has entered the countdown.However, investors may not be happy with the net profit margin brought by single revenue driver Brukinsa based on our calculation.
• Fosun has increased its stake in Henlius by acquiring additional shares at HK$24.6/share, bringing its total ownership to 63.43%.This sends positive signals. A falling stock price is a buying opportunity.

• We go long on HLB LS, short on HLB Inc, and close the short once HLB LS converts. If the deal falls through, there’s potential for extra profits.
• The view that the merger’s worse for HLB LS is gaining support, making it likely the spread could go negative, though there’s risk, the chances are pretty high.
• The 4% spread is the floor for arb profit, and cancellation risk could add extra gains. This angle deserves serious consideration right now.

• Daiichi Sankyo (4568 JP) reported strong FY25 results, with revenue and operating profit increasing 18% and 57%, YoY, to ¥1,886B and ¥332B, respectively. Performance was mainly driven by Enhertu (+45%).
• The company expects FY26 revenue to increase 6% YoY to ¥2,000B. Core operating profit and operating profit are expected to increase 12% and 5%, YoY, respectively to ¥350B.
• The company has announced a ¥200B buyback plan to acquire a maximum of 80M shares from May 1, 2025 to March 24, 2026.

• During the recent financial year, bioMérieux reported strong financial results with several highlights and areas of concern.
• The company achieved significant progress in its GO•28 strategic plan, demonstrating robust sales growth, profitability improvement, and advancements in sustainability efforts.
• However, challenges remain in certain segments, such as declining sales in specific divisions and the potential impact of recent acquisitions.

• Chugai Pharmaceutical (4519 JP) reported 22% YoY rise in core revenue in 1Q25, as overseas sales grew 55% YoY while domestic market remain subdued.
• Hemlibra drove overseas sales. Actemra and Alecensa witnessed growth in both overseas and domestic markets.
• Chugai reiterated 2025 guidance of revenue and net profit growth of 2% and 3%. The progress has been satisfactory with major line items achieving 24–25% of the full-year guidance numbers.

• Eurofins Scientific S.E. presented its fiscal year 2024 performance, outlining both achievements and areas of focus for future development.
• The results reveal a nuanced performance with some segments outperforming, while others faced challenges.
• On a positive note, Eurofins reported robust financial growth, with revenues increasing by 6.7% and an adjusted EBITDA margin of 22.3%, representing a 180 basis point improvement year-on-year.

• The earnings of Sartorius Stedim Biotech for the first quarter of 2025 presents a mixed yet intriguing scenario for potential investors.
• The company reported a notable 6.5% increase in sales revenue in constant currencies, with the growth predominantly driven by a robust performance in its recurring consumables business.
• The Bioprocess Solutions division, in particular, saw a 10% increase in sales revenue, benefiting from strong double-digit growth in consumables while the equipment business remained subdued.

• Gross spread is 2.62%, implying a solid annualized return of ~22.0% assuming a June closing—an attractive profile given the minimal regulatory and financing risks.
• The market is pricing in a ~93.2% probability of deal success, reflecting strong confidence driven by Board support, substantial shareholder backing (36% aligned), and the absence of antitrust red flags.
• Challenging but feasible threshold: requires 84.3% of free flaot to tender to reach the 90% acceptance condition and enable squeeze out.

• Intuitive Surgical (ISRG US) revenue grew 19% YoY to $2.3B in 1Q25.  Procedures volume grew ~17% YoY, which boosted instruments and accessories revenue.
• The company placed 367 da Vinci surgical systems, compared with 313 in 1Q24. It included 147 da Vinci 5 systems, compared with 8 in the same period last year.
• Intuitive has raised the procedure growth guidance range from 13–15% to 15–17%, while trimming down gross margin to the range 65–66.5% from 67–68%, due to tariffs.

• Lexaria is a biotechnology company seeking to enhance the bioavailability of multiple drug agents using DehydraTECH (DHT), its technology using oral and topical delivery.
• It combines lipophilic APIs with specific fatty acid and carrier compounds followed by dehydration.
• DHT offers several attractive features: substantial improvement in bioabsorption in terms of time to measurable plasma levels & AUC, brain permeation, taste masking & side effect reduction.

Oryzon has secured €30m through an equity raise (straight equity, no warrants attached) to support clinical development activities and other corporate initiatives, offering the potential to extend its cash runway well into 2027. Management communicated that the offering was significantly oversubscribed with strong investor demand, noting that €15m of the round was anchored by a US-based institutional investor, with the remaining demand filled by investors across the US, Europe and Spain. We view the announcement as an important development for Oryzon, especially considering the overall macroeconomic environment. The next key inflection point remains FDA clearance for its Phase III programme in borderline personality disorder (BPD), anticipated within H125.

• Samsung Biologics (207940 KS) recorded 120% YoY increase in operating profit to KRW487B, while net profit increased 109% YoY to KRW376B in 1Q25. Revenue increased 37% YoY to KRW1,298B.
• Stable ramp-up of Plant 4 while maintaining the full utilization of Plants 1 through 3, alongside favorable impact of foreign exchange rates drove 1Q25 performance.
• 1Q25 order intake amounted to approximately 40% of the total annual contract volume in 2024. Despite ongoing tariff threat, Samsung Biologics has maintained full-year guidance of 20–25% revenue growth.

• MIRA Pharmaceuticals(MIRA) Company Sponsored Research Report

• 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.

Recce is raising up to A$15.8m in equity fundraising through a now-completed A$5.0m share placement and an entitlement offer for remaining shareholders that could raise up to an additional A$10.8m in gross proceeds. Both rounds of financing are priced at A$0.28 per new share. We anticipate the total funding should support Recce’s operations into Q226 (Q4 CY25) as its near-term focus lies on advancing R327 topical gel (R327G) through registration-enabling pivotal studies. We expect Recce to start a registrational Indonesian Phase III study of R327G for the treatment of diabetic foot infections (DFIs) in the coming weeks. We now obtain an rNPV valuation of A$615.1m and our per-share valuation adjusts to A$2.51 per share (vs A$2.68 previously), reflecting the increase in shares outstanding after the placement.