Healthcare

• 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 4Q and full year 2024 results.
• The company continues to execute at a high level by posting record revenue and earnings that beat expectations.

• The expansion space of BenQ is severely limited as the market has been saturated in Jiangsu Province. Due to DRG, future revenue/net profit growth would continue to be under pressure. 
• Low profit margin of general hospitals is a common problem in this industry due to pain points of business model.It’s difficult to achieve improvement.Investors need to be aware of this.
• BenQ’s valuation should be lower than Hygeia due to weaker profitability, smaller revenue scale, lower growth outlook.Post-money valuation before IPO of US$375 million (or about RMB2.7 billion) is already expensive

• Ensysce Biosciences is committed to finding a solution to the opioid crisis plaguing the US and other developed countries around the world.
• Through its proprietary TAAP technology Ensysce is in the process of receiving approval for an abuse-resistant yet still pain-relieving opioid.
• The company announced that data from its study of its overdose protection drug showed the compound to be effective and safe-furthering the case for FDA approval of this much-needed treatment.

Oryzon Genomics has announced that the first patient has been dosed in iadademstat’s Phase I/II trial, sponsored by the National Cancer Institute, (NCI) in extensive-stage small cell lung cancer (SCLC). The trial is evaluating lead oncology candidate iadademstat in combination with an immune checkpoint inhibitor (ICI), either atezolizumab or durvalumab, with primary objectives focussed on safety, tolerability, dose-finding and efficacy. Should the results of this trial be positive, they may support Oryzon’s plans for its STELLAR programme, a randomised, multi-centre Phase II study of iadademstat in combination with a checkpoint inhibitor for first-line extensive-stage SCLC. Management has indicated that additional data from STELLAR could aid an accelerated approval pathway.

• Amgen is rapidly positioning itself as a formidable player in the obesity drug market, a sector that has witnessed explosive growth due to the popularity of GLP-1 based therapies from Eli Lilly and Novo Nordisk.
• The company’s investigational drug MariTide is generating significant interest following promising Phase II results showing up to 20% weight loss with monthly dosing.
• With two Phase III trials now underway—targeting both diabetic and non-diabetic patients—Amgen is accelerating its strategy to gain a slice of what analysts forecast to be a $100 billion market by 2030.

• Universal Vision Biotechnology (3218 TT) is struggling with expansion plans, decelerated revenue growth, and unfavorable revenue mix. 2024 revenue growth of 4% is significant deterioration from 17% reported in 2023.
• China business remained challenging. In 2024, revenue from China 22% YoY to NT$594M.  Both the number of partnered hospitals and self-operated clinics/hospitals in China decreased during 2024.
• Through the first three months of 2025, revenue growth has not shown any sign of improvement. 1Q25 revenue grew just 5% YoY to NT$1,123M.

• Duality Biotherapeutics raised HKD 1,512m (USD 194m) from its global offering and will list on the Hong Kong Stock Exchange on Tuesday, April 14th.
• In our previous note, we looked at the company’s business lines of ADC products and analyzed its valuation.
• In this note, we provide an update for the IPO before trading debut.

• 2024 results appear to be improving, but there’s no large-scale/sustainable new increment with high certainty in revenue end.Fosun Pharma would rely on reducing costs/selling loss-making projects to recover profit/cash flow.
• Financial performance in 2025 could be under pressure due to VBP. Fosun Pharm is also mired in a huge guarantee quagmire. International business expansion is facing fierce market competition.
• There could be a “valuation discount” for Fosun Pharma due to the concerns on its business model and undervaluation could be a norm. Our recommendation is to invest Henlius directly.

• TuHURA is a clinical-stage, oncology-focused biotechnology company advancing innate immune agonists, checkpoint inhibitors & antibody-drug conjugates (ADCs).
• It offers the IFx platform technology featuring the IFx-2.0 tumoral injection delivery approach for Merkel cell carcinoma (MCC) & the IFx-3.0 intravenous delivery approach for lymphoma.
• IFx encodes a bacterial protein to be expressed in cancer cells, activating the innate immune system & subsequent cascade that may eliminate the tumor.

• The company reported revenue of JPY16.4bn (+32.1% YoY) and net income of JPY121mn, reversing previous losses.
• Medical Care Sales segment saw strong growth from D2C sales, driven by flagship products and enhanced advertising efficiency.
• Healthcare Marketing business achieved significant EBITDA boost from a profitable corporate project completed in Q3 FY05/25.

• On April 14, 2025, Soligenix, Inc. (SNGX) announced interim results from the ongoing, open label, investigator initiated study (IIS) evaluating HyBryte (synthetic hypericin) treatment for up to 54 weeks in patients with early stage cutaneous T cell lymphoma (CTCL).
• Of the eight evaluable patients at Week 18, six (75%) achieved ‘treatment success’, which is defined as a =50% improvement in the cumulative mCAILS (modified Composite Assessment of Index Lesion Severity) score compared to baseline.
• Four patients have completed the 54-week treatment with an average maximum improvement in mCAILS of 85%.

• Trump’s administration will soon impose tariffs on pharmaceuticals. Chinese API companies will be hit the most. Pharmaceutical companies that mainly focus on domestic market could be better investment options.
• NSCEB released “Changing the Future of Biotechnology”, among which WuXi AppTec was named again. Chinese CXO’s performance this year could be lower than expected due to geopolitical conflicts.
• RemeGen’s 2024 results improved, but concerns remain due to its  “disorganized” pipeline layout and uncompetitive products. The reasonable market value of Remegen is about RMB10 billion to RMB15 billion.

• Lensar (LNSR) is being acquired by Alcon for $14/share plus a CVR up to $2.75/share, with closing expected in H2 2024.
• OCI N.V. announced a $1bn extraordinary cash distribution, with shareholders choosing payment currency, ex-dividend date April 15.
• Kronos Bio (KRON) terminated a lease for $1.5m, with potential net cash outcome between ~$1 and $1.30/share.

• Hisamitsu Pharmaceutical Co (4530 JP) reported double digit revenue growth in FY25 on the back of 16% YoY growth in Salonpas focused OTC pharmaceutical products.
• Rx business revenues grew 5% YoY as Zicthoru, Apohide, Combipatch, Vivelle-Dot etc clocked healthy numbers excepting Mohrus product line.
• Hisamitsu expects FY26 revenue to be ¥165B, up 6% YoY, driven by new products, with net profit growth to decelerate on higher cost.

• AI Nose for healthcare, industrials, and robotics. Ainos is digitizing smell with AI Nose to capture airborne chemical signatures, using AI-powered processes to immediately classify and identify scents in any environment.
• Initially focused on healthcare, Ainos is developing a women’s health test, Ainos Flora with AI Nose, in addition to an elderly care project with Japanese partners to assist caregivers in monitoring seniors.
• Ainos recently entered partnerships with ugo and ASE, expanding AI Nose development to robotics and industrial applications.

• organic revenue CAGR at CER: high single digit to low double digits                       
• REBITDA margin: approx. 21.0% by 2027, with a progressive increase through 2030 
• Operating Cash Flow conversion: ≥70% 

• Max Healthcare Institute (MAXHEALT IN) completed the acquisition of Jaypee Healthcare in last November, thereby adding 700 beds. Jaypee added INR1,120M revenue with an operating EBITDA of INR230M in Q3FY25.
• Max is setting up ~500 bedded hospital at Thane, Maharashtra on an asset-light built-to-suit basis. The proposed construction of hospital premises is expected to be completed by 2028.
• Current expansion plan indicates significant capacity ramp-up (20%+) in FY26, and majority of which will come by Q1, thereby generating scope for revenue realization for most part of the year.

• HD as a leading dental materials player in China, has achieved robust topline growth over the track record period, driven by its core product lines and favorable industry tailwinds
• The company generates most of its revenue from the Chinese market, relying heavily on a distribution-led strategy for market expansion.
• Some areas of concern include signs of a slowdown in growth and potential margin compression if the shift in product mix continues.

• Ebos Group Ltd (EBO NZ) aims to raise around US$122m in order to partly fund its acquisition of SVS Veterinary Supplies (SVS).
• This will complement the company’s strategy of investing for growth and the second acquisition done in 2H25.
• In this note, we comment on the deal dynamics and run the deal through our ECM framework.

• Haemonetics Corporation reported its third-quarter fiscal 2025 financial results, indicating both strengths and challenges within its various business segments.
• The company achieved a revenue of $349 million, reflecting a 4% increase on a reported basis but remaining flat organically.
• Adjusted earnings per share improved by 14% to $1.19.

• Merit Medical Systems reported robust financial performance in the fourth quarter of 2024, displaying notable revenue and profit growth.
• The company recorded total revenue of $355.2 million for Q4, reflecting a 9% increase year-over-year on a GAAP basis and 10% on a constant currency basis.
• This exceeded Merit Medical’s growth expectations, which it had projected at 6% to 9%.

Sareum Holdings’ H125 results (to 31 December 2024) summarised a period of operational progress and an improved capital position, with successful fund-raising. Since the completion of the Phase I trial for lead asset SDC-1801 in June 2024, the focus has been on formulation optimisation and drug product manufacturing for the toxicology study, which we believe will now commence in May 2025, with completion likely in Q4 CY25 (Q2 CY25 previously). We expect this to extend the timeline for a Phase II trial start into 2026 although, with period-end cash of £4.1m, inflows from the subsequent private placement (£1.07m) and R&D credits (£0.2m), Sareum appears sufficiently funded to reach this milestone. We see the recent licence acquisition for SRA737 as a positive development as it adds another clinical-stage asset to the portfolio, which should help manage downside risks related to a more concentrated clinical pipeline.

• Lensar is being acquired by Alcon for $14/share in cash plus a CVR worth up to $2.75/share.
• The CVR payout requires Lensar’s systems to reach 614,000 procedures across 2026 and 2027, needing a 27% CAGR.
• North Run, holding 56% economic ownership, will receive CVRs only on common shares and warrants, not preferred shares.

• Teladoc Health, Inc. concluded 2024 with mixed financial and operational outcomes while emphasizing execution against its core strategic priorities.
• The company generated full-year revenue of $2.6 billion, a 1% decline compared to 2023, primarily due to challenges in its BetterHelp segment.
• However, adjusted EBITDA rose to $311 million, reflecting a 12.1% margin, supported by cost savings and productivity initiatives.

• NurExone (OTC-NRXBF) is a preclinical stage biotech company that is developing a breakthrough treatment for spinal cord injuries that has the potential to dramatically improve lives.
• The technology involved also has the potential to more efficiently get other treatments to the needed area.
• The company announced it obtained additional funding and released its 2024 financial results.

• Perrigo Company plc, a prominent consumer self-care products provider, discussed its third-quarter 2024 financial performance, offering insights into both the positives and challenges faced by the company.
• A significant focus of the call was Perrigo’s “One Perrigo” initiative aimed at streamlining operations and enhancing agility across its global platform.
• This restructuring effort includes upgrading organizational structure and technology to enhance efficiency and potential growth.

SIGA Technologies has declared a special dividend of $0.6 per share, marking a fourth straight year of dividend declarations. The outlay is at a similar level to the one paid in March 2024 ($43m based on current shares outstanding) and will be payable on 15 May 2025 to shareholders of record on 29 April. The strong end-FY24 cash position ($155.4m; no debt) suggested that a dividend payment announcement was widely anticipated, although we note that the amount was higher than the $0.5/share we had estimated. The dividend translates to a best-in-class payout ratio of c 72% (on FY24 EPS of $0.83) and a healthy dividend yield of c 10%. Given the recent market uncertainty, which has challenged capital returns, we believe this secondary income stream adds to SIGA’s appeal as an investment option among biopharma companies.

• 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 company’s past performance in our previous note. In this note, we talk about the recent updates and provide our thoughts on the possible A/H premium.

• While Amvis Holdings Inc (7071 JP)  expects decelerating revenue growth of 26% for FY25 (FY24: 33%),  EBITDA, operating, and net profits are likely to decline 9–22%.
• Personnel expenses as % of sales surged to 49.3% in Q1FY25 from 44.6% in Q1FY24. The trend is expected to continue with the increase in staff and training cost.
• Decelerating revenue growth, margin erosion, aggressive business expansion, and overhang related to improperly claimed medical service fee will limit the near-term upside potential for Amvis.

• BrainStorm Cell Therapeutics Inc. (Nasdaq: BCLI) develops NurOwn® stem cell therapy for NDDs – BCLI’s first target is ALS (MND/Lou Gehrig’s).
• Recent micro capitalization and patent development buy time for non-dilutive funding to be secured.
• BCLI’s Nasdaq compliance for minimum price was regained in late Oct 24, which helps maintain capital access.

• As markets reel from the reimposition of tariffs on Mexico and Canada, investors are scrambling for stability in a landscape marked by global trade uncertainty and rising macroeconomic risk.
• While the broader market has faltered, McKesson Corporation, the largest drug distributor in the U.S., has quietly emerged as a defensive standout.
• The company’s supply chain resilience, diversified business model, and essential role in healthcare delivery position it as a stock that is potentially insulated from the brunt of economic and policy headwinds.

• Duality, a China-based clinical-stage biotechnology company, launched its IPO to raise up to US$200m via a Hong Kong listing.
• We look at the deal dynamics and latest developments in the biotech sector.
• The deal initially presented upside for investors but there’s a portion of its valuation now at risk due to the latest development.

• Since late-February (2/25/25 Compass) we expected an 8-10% pullback to provide a buying opportunity. But that all changed in last week’s Compass (4/1/25), when we downgraded our outlook to bearish/cautious.
• A historic selloff has ensued and significant damage has been done as market dynamics have worsened.
• Until we see some base-building process develop alongside improving market dynamics, we remain cautious and we continue to favor defensives as long as the SPX is below its 200-day MA.

• Eli Lilly and Company reported strong growth and progress during its fourth quarter and full fiscal year 2024 results.
• The company saw a significant increase in revenue, primarily driven by notable sales of its new products, including Mounjaro and Zepbound, which contributed significantly to an impressive 45% increase in quarterly revenue and a 32% increase for the full year.
• The company benefited from the successful momentum of various newly launched medications across multiple regions, including impressive uptake in European markets.

• The company launched the next-gen of the Guardian Alert 911 Plus in February.
• The update integrates advanced fall detection and eliminates recurring monthly subscriptions.
• The updated device offers 4G LTE technology combined with fall detection in a more compact form.

• Park Medi World (1605334D IN)  is looking to raise at least US$147m in its upcoming India IPO. The deal will be run by Nuvama, CLSA, DAM Capital and Intensive FS.
• It is the second largest private hospital chain in North India, with an aggregate bed capacity of 3,000 beds.
• It the largest private hospital chain in terms of bed capacity in Haryana with 1,600 beds located in the state as of 1H25. 

• Jiangsu Hengrui Medicine (600276 CH) a China-based pharmaceutical company, aims to raise around US$2bn in its H-share listing.
• Given its similarity to Hong Kong-listed Hansoh Pharma, had done a comparison between the two.
• In this note, we looked at the latest results releases from both companies and highlighted granular differences. It is also interesting to compare the relative valuation from a historical perspective.

• ABLBio (298380 KS) announced licensing agreement with GlaxoSmithKline PLC (GSK LN) to develop novel treatments for neurodegenerative diseases by utilizing ABL Bio’s blood-brain barrier (BBB) shuttle platform, Grabody-B.
• ABL Bio is eligible to receive up to £2.075B in research, development, regulatory, and commercialization milestone payments across multiple potential programs. The company will receive tiered royalties on net sales.
• Last October, ABL Bio completed the manufacturing technology transfer for ABL301, a bispecific antibody containing Grabody-B to treat Parkinson’s disease, to Sanofi and unlocked a milestone payment of $5M.

• With recent approval from state regulators to move forward on planned projects in Bristol, RI and Johnston, RI, the company continues to grow the number of facilities operated under its O&O model, a core objective.
• In 1Q25, AMS acquired property in Bristol, RI where it expects to construct a linear accelerator facility that would likely begin treating patients in about 18-24 months & AMS anticipates significant synergies within its expanding Rhode Island footprint.
• We expect these and other potential new projects will likely leverage an ‘asset-light’ approach that includes partnerships to reduce AMS’s upfront capital investment & enable AMS to retain a majority interest in the centers.

• Reviva is a research and development pharmaceutical company with two portfolio compounds targeting nine indications.
• The candidates address multiple related mental disorders, rare diseases & other categories of un met need.
• Reviva’s lead indication in schizophrenia with brilaroxazine (RP5063) completed its 1st Phase III trial & is set to begin its 2nd in 2025.

• SK Bioscience (302440 KS) has initiated phase 3 trial of Sanofi-partnered pneumococcal conjugate vaccine candidate in Australia. This year, Phase 3 trial will be initiated in U.S., Korea, and EU.
• This year, SK Bioscience has initiated global Phase 1/2 trials of mRNA Japanese Encephalitis vaccine candidate in Australia and New Zealand. The company aims to secure interim results by 2026.
• ITD Biologika is targeting for a 17% revenue CAGR during 2024–2028. The company aims to achieve EBITDA margin of 25%+ by 2028 and become IPO ready.