Healthcare

• Biotech will continue selling early-stage pipeline in a sluggish market, but this will further lower its valuation as financing won’t improve quickly.
• Pharmaceutical distribution companies are facing challenges, driving ongoing consolidation in the industry. However, this trend will ultimately benefit the growth of leading companies in the long run.
• If investors truly understand “the essence” of HEC Changjiang Pharma, they will be more calm/rational to look at this absorption merger and the inclusion of Hang Seng family of indexes.

• Press reports Brookfield is seeking support from sovereign wealth funds, including those from Abu Dhabi (ADQ) and Singapore (GIC), to back its bid, though discussions remain in the early stages.
• The news about the potential involvement of ADQ and GIC are positive as any support or addition of new investors increases the likelihood of a takeover bid for Grifols.
• The discount is closing accordingly, at mid-session August 30, the share-price spread has tightened to 15.4%, the lowest ever. I suggest maintaining the position long B (or ADR)/short A shares.

• Argenx SE (ARGX US) won FDA approval for second indication of Vyvgart for chronic inflammatory demyelinating polyneuropathy (CIDP) in June. The approval triggered ~30% rally in the share price.
• Johnson & Johnson (JNJ US) is seeking FDA approval for nipocalimab for generalized myasthenia gravis (gMG). Approved in 2021, Vyvgart dominates the gMG market. In 1H24, Vyvgart fetched $876M revenue.
• Nipocalimab will compete with Vyvgart. However, Argenx has already created a niche for itself and will continue to sit on a prime position due to its first mover advantage.

• H-1337 dosing commenced in PIIb clinical trials in the US in Aug-2023.
• The study is a multicenter, randomized, double-blind, active-controlled, dose-finding study investigating the efficacy and safety of H-1337 in patients with glaucoma and ocular hypertension by application of eye drops for 28 days.
• The number of patients is 200 cases in 4 groups: H-1337 0.6% (twice daily), 1.0% (twice daily), 1.0% (once daily), and Timolol (beta blocker drug for efficacy comparison, twice daily). 

• 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 it has received a $14 million grant from the NIH for the continued development of its abuse deterrent opioid-PF614-MPAR.

• On August 8, 2024, MediciNova, Inc. (MNOV) filed form 10-Q with financial results for the second quarter of 2024.
• The company is conducting a Phase 3 clinical trial of MN-166 (ibudilast) in amyotrophic lateral sclerosis (ALS), which includes 12 months of double-blind treatment plus a six-month open label extension period.
• The primary endpoint is change from baseline in ALSFRS-R at Month 12 and survival time.

• On Thursday 29 August, Terumo Corp (4543 JP) announced a secondary offering where 7 major cross-holders would sell just under 5% of the shares outstanding to international investors. 
• In recent quarters, Terumo has seen better consensus EPS growth than Peers in recent quarters, and Peers have underperformed. Right now, Terumo isn’t ‘cheap’ but consensus growth is strong.
• This back-end demand in this case has enough moving parts that it bears a closer look. 

• A group of shareholders are looking to raise around US$1.36bn from selling ~5% stake in Terumo Corp (4543 JP).
• While the deal shouldn’t come as a surprise, given the ongoing cross-shareholding unwind narrative in Japan, the timing of such a selldown isn’t always certain.
• In this note, we will talk about the placement and run the deal through our ECM framework.

• Terumo Corp (4543 JP) has announced a secondary offering of up to 73.2 million shares, worth JPY203 billion (US$1.4 billion) at the last close. 
• The secondary offering facilitates the exit of large shareholders. Terumo also announced a buyback worth a maximum of JPY30 billion or 15 million shares.
• Looking at recent large Japanese placements is instructive for understanding the potential offer price. The pricing date will fall between 10 and 12 September (likely 10 September).

• Back on the 22 July, Arvida (ARV NZ), a leading retirement living and aged care provider, announced a Scheme from Stonepeak at NZ$1.70/share, in cash, a 65% premium to undisturbed.
• The Scheme Booklet is now out, with a Scheme Meeting to be held on the 25th September. Expected implementation on the 13th November.
• The Scheme Consideration of NZ$1.70/share is within the Independent Adviser’s valuation range at NZ$1.63 to NZ$1.94/share. Arvida’s directors unanimously recommend shareholders to vote in favour of the Scheme.

• The Arvida (ARV NZ) IE considers Stonepeak’s NZ$1.70 offer fair and reasonable as it is within the NZ$1.63 to A$1.94 valuation range. 
• The transaction will require OIO approval, statutory supervisors’ consent and shareholder approval. The Metlifecare Ltd (MET NZ) precedent suggests that the OIO and statutory supervisor should be forthcoming.
• The offer is attractive and recent changes in substantial shareholders are benign. At the last close and for the 13 November payment, the gross/annualised spread was 3.0%/15.2%. 

• The company’s discussions with the FDA progress as ORMP plans to launch a Phase 3 oral insulin trial in the U.S. under a differentiated protocol aligned with the positive data from specific patient subgroups in a prior Phase 3 study of ORMD 0801.
• ORMP hopes to leverage its analysis of the patient subgroups’ responses in order to fine-tune its development efforts under a revised protocol to advance its oral insulin therapy in diabetes management.
• ORMP is also continuing discussions with Hefei Tianhui Biotech Co., Ltd. (HTIT) regarding their strategic JV to leverage their respective strengths and combined capabilities and technologies.

• If the System or this treatment method is really effective and accepted by hospitals/doctors, under the coverage of medical insurance catalog already, why BrainAurora’s revenue scale is still so small?
• CSRC questioned BrainAurora’s high selling expenses. Since either SG&A or R&D expenses already exceed revenue, BrainAurora would continue to suffer from losses. The Company hasn’t established a solid profit model.
• BrainAurora completed a total of 7 rounds of financing, with a post investment valuation of RMB2.7 billion. However, it is difficult for BrainAurora to match this high valuation after IPO.

• In this insight, we discuss the potential alpha generation from new entries in the “KOSDAQ Rising Stars.”
• For the KOSDAQ Rising Stars New Entries in 2023, there was a massive outperformance. Of course, we want to reiterate that past performance is NOT indicative of future performance.
• On 28 August 2024, KRX provided a list of 39 KOSDAQ Rising Stars companies (including 29 existing ones and 10 new companies).

• With 2 days left to review cutoff, there could be 1 inclusion and 3 deletions for the index at the September rebalance.
• Even if there are no constituent changes, capping changes will lead to one-way turnover of 4.4% and a round-trip trade of A$212m.
• The final list of inclusions/exclusions will depend on price movements till Friday and whether the index provider makes any significant changes to the free float of stocks in the universe.

• CEL-SCI is developing two platforms: Multikine and LEAPS.
• Multikine has completed a Phase 3 trial for head and neck cancer while LEAPS is conducting preclinical studies for RA, Pandemic Flu and breast cancer.
• In June 2021, CEL-SCI reported selected data from its IT-MATTERS trial demonstrating a benefit in the non-chemotherapy population.

• AbbVie has demonstrated a robust financial performance in the second quarter of 2024, affirming the company’s strong positioning in the biopharmaceutical industry.
• Under the new leadership of CEO Rob Michael, AbbVie has experienced a promising trajectory with several of its key products and pipeline developments standing out.
• However, as with any investment, there are a multitude of factors to consider, including challenges that might influence future performance.

• On August 12, 2024, Satellos Bioscience Inc. (MSCLF) announced financial results for the second quarter of 2024 and provided a business update.
• The company announced new data from a canine model of Duchenne muscular dystrophy (DMD) that showed treatment with SAT-3247 led to an increase in Regeneration Index, which measures the number of newly regenerated muscle fibers compared to the number of damaged and dying muscle fibers.
• Satellos also recently announced the acceptance of a regulatory filing to commence a Phase 1 clinical trial of SAT-3247.

• Inventurus Knowledge Solutions (IKSINCD IN) is looking to raise up to US$400m in its upcoming India IPO. The deal will be run by ICICI, JM Financial, Jefferies, Nomura and JPM. 
• Inventurus Knowledge Solutions (Inventurus from hereon) is a technology-enabled healthcare solutions provider, offering a care enablement platform which assists physician enterprises in the US, Canada and Australia. 
• Its physician-oriented platform includes clinical documentation solutions, patient scheduling assistance, automated prescription refill solutions and clinical document management, amongst others. 

Basilea has announced yet another milestone following the European Commission (EC) approval for Cresemba’s use in the paediatric population (in invasive aspergillosis (IA) or mucormycosis (IM)). The approval extends the market exclusivity of Cresemba by two years to October 2027, which triggered a CHF10m milestone payment from Pfizer, its European license partner. The EU nod follows the December 2023 approval in the US in the same indications, making Cresemba the first azole to be approved for children across the two key regions (it has been approved for adults since 2015). Cresemba reported strong in-market sales in H124, and the second half of the year is expected to be milestone rich with another CHF25–30m in payments expected, based on management guidance.

For our next Corporate Webinar, we are glad to welcome RemeGen’s Chief Financial Officer, Mr. Tong Shaojing.

In the upcoming webinar, Tong will share a short company presentation after which, he will engage in a fireside chat with Smartkarma Insight Provider, Eric Wen . The Corporate Webinar will include a live Q&A session.

The Corporate Webinar will be hosted on Thursday, 19 September 2024, 09:00 SGT.

About RemeGen

RemeGen was cofounded in 2008 by Mr. Wang Weidong, founder of Rongchang Pharmaceuticals, a leading traditional Chinese medicine company in China and Dr. Fang Jianmin, a Canadian-American scientist. Headquartered in the coastal city of Yantai Shandong Province of China, RemeGen has research labs and offices throughout China and the United States. RemeGen is committed to the discovery, development, and commercialization of innovative and differentiated biologic drugs of significant clinical value in the key therapeutic areas of autoimmune oncology and ophthalmic diseases.

• Evolent Health, a prominent player in the healthcare industry, has recently garnered significant acquisition interest, making it the focus of sale talks.
• As a company with both strengths and challenges, Evolent Health presents a complex investment thesis.
• On the positive side, Evolent has demonstrated consistent revenue growth, a strong pipeline, and a strategic focus on delivering clinical value through its Performance Suite and Specialty Technology and Services.

• Bicara Therapeutics, a clinical-stage biotech company with focus on the treatment of patients with HPV-negative head and neck cancer, files for a $200M IPO.
• The biotech firm was backed by Biocon Limited, India’s largest biopharmaceutical company, venture capital and investment firms, among others.  
• I believe Bicara Therapeutics will succeed in its pivotal Phase 2/3 trial of their bifunctional antibody in combination with Keytruda (pembrolizumab) during 2025.

• Poly Medicure (PLM IN) raised INR10B through QIP and allotted ~5M equity shares to eligible institutional buyers. Lighthouse India Fund IV AIF has been issued 20.5% of the QIP shares.
• The company intends to use the proceeds to fund capex and inorganic initiatives. The company is setting up three new plants, to expand offerings in high-value therapeutic areas.
• Poly Medicure intends to acquire businesses that offer similar products, which will help the company to expand product portfolio and increase reach in various global markets.   

New data were revealed from Actinogen Medical’s ongoing analysis of the now-completed XanaCIDD study that support the view that the company’s lead drug candidate, Xanamem, may provide consistent and durable benefits in treating depression symptoms compared to placebo. The XanaCIDD study was designed to assess a 10mg daily dose of Xanamem versus placebo in patients with major depressive disorder (MDD) over a six-week treatment period. In line with the top-line results reported on 12 August, the new data confirm that maximal treatment effects on depression on all endpoints occurred at week 10, or four weeks after the end of the six-week treatment period. The results appear to be consistent with the molecule having a durable clinical effect in terms of controlling brain cortisol and potentially exerting anti-depressant activity.

• WuXi XDC’s YoY revenue growth rate fell to double-digit while it was kept triple-digit growth rate in previous periods. How much revenue generated from backlog isn’t within WuXi XDC’s control. 
• The significance of healthy growth of the global ADC market is that the good story of ADC CXO is able to continue. So, WuXi XDC’s short-term performance growth is guaranteed.
• The establishment of an independent biopharmaceutical supply chain based on US national security concerns is inevitable. So, WuXi XDC’s stock price performance is more influenced by geopolitical conflicts than fundamentals. 

• 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 it has received a $14 million grant from the NIH for the continued development of its abuse deterrent opioid-PF614-MPAR.

• Q1-4 FY6/24 results were behind guidance, with the Optical business experiencing longer than expected customer inspection periods delaying revenue recognition.
• The Life Science & Equipment segment made some progress with new product sales, but positive earnings contributions are still further down the road in our view.
• The company has lowered guidance for FY6/25 and FY6/26 as previously disclosed in the rolling three-year medium-term plan. 

• STCube announced it plans to increase capital by 89 billion won (13 billion won through a third party rights offering and 75.7 billion won through shareholder preferred capital increase).
• We have a positive view of STCube’s capital raise and there could be some alpha generating returns in our view.
• The fact that the company’s share price surged nearly 5x from the last rights offering in May 2022 (to October 2022) is likely to positively impact capital raise this time. 

• Prodia (PRDA IJ) is starting to see its growth strategy gain traction with a QoQ increase in 2Q2024 revenues driven by more esoteric testing and promotions driving growth. 
• The company has started to roll out physical outlets more aggressively, especially points of collection, with new clinical labs also providing a wider array of tests including genomic testing.
• Prodia continues to drive its omnichannel strategy through U by Prodia and its ProdiaLink for Doctors, with capex for Prodia Digital in decline. Valuations remain extremely attractive versus Indian comparables.

• Telix Pharmaceuticals (TLX AU) announced 65% YoY revenue growth to A$364M and reversed a loss with A$29.7M net profit in 1H24.
• The U.S. sales from Illuccix was the main driver with a 64% YoY increase in revenue to A$359M (~$243M), reflecting continued growth in sales volume and market share gains.
• Telix reaffirms its full year 2024 revenue guidance of $490–$510M (A$745–776M), up 48–54% YoY. R&D expenditure guidance for 2024 remains at 40–50% increase on 2023.

• Cingulate is developing its Precision Timed Release (PTR) technology to deliver ADHD drugs to improve onset & efficacy of previously approved products.
• The company licensed rights to manufacturing a 3-layer tablet that releases dexmethylphenidate (CTx-1301) over the active day.
• CTx-1301 provides immediate onset, eliminates the need for a booster dose, reduces diversion & simplifies dosing among other benefits.

• 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 & began its 2nd in 2Q:24.

• WuXi Bio’s 24H1 performance is disappointing. Since XDC has become new growth driver for WuXi Bio, why continue to invest in WuXi Bio instead of directly investing in WuXi XDC?
• Production capacity expansion is aggressive, with high personnel salaries/cost pressure. Without sustained growth in high-margin orders, WuXi Bio’s profitability will continue to decline. Gross margin may not bounce back quickly.
• The mid-to-late stage order increment in US would be dominated by Japanese/Korean CXO. Without a definitive long-term logic, valuation cannot return to previous highs. Any rebound is difficult to sustain.

• The September 2024 Rebalance results for the NIFTY broad market Indices were announced after the close on Friday 23rd August 2024.
• There will be two changes for NIFTY 50 and five changes for NIFTY 100 during the September 2024 index rebal event. All of these changes were as predicted. 
• All NIFTY 50 and NIFTY 100 changes will also be reflected in the NIFTY Next 50 index which could see US$647mn one-way capping flows.

• Roughly six weeks ago, Shanghai Henlius Biotech (2696 HK) announced the scrip option condition was met. Just that Shanghai Fosun Pharmaceutical (2196 HK) (the Offeror) was weighing its options
• This situation mirrored L’Occitane (973 HK)‘s (eventual) scrip option. And in place of Pleasant Lake in that transaction; Henlius has Loyal Valley Capital (5.8309% shareholder) behind the scenes.
• Late Friday, Henlius updated the terms of Fosun’s Offer to now include the scrip option alternative. We expected nothing less. 1H24 results will also be out later today. 

• We summarise the latest spreads and newsflow of merger arb situations we cover across Hong Kong, Australia, New Zealand, Singapore, Japan, Indonesia, Malaysia, Philippines, Thailand and Chinese ADRs.
• Highest spreads: Yichang HEC Changjiang Pharma (1558 HK), China Traditional Chinese Medicine (570 HK), Canvest Environmental Protection Group (1381 HK), Malaysia Airports Holdings (MAHB MK), Capitol Health (CAJ AU). 
• Lowest spreads: Tohokushinsha Film (2329 JP), Fuji Soft Inc (9749 JP), Descente Ltd (8114 JP), Second Chance Properties (SCE SP), Fancl Corp (4921 JP), C.I. TAKIRON Corporation (4215 JP).     

• Dalton & Co. increased their stake in Hogy Medical to 19.15%, signaling confidence in the new Medium-Term Business Plan.
• Hogy Medical’s new plan aims to boost ROE above 6%, drive revenue to ¥46 billion, and enhance shareholder returns.
• Potential M&A activity in Japan’s med-tech sector and the new plan could unlock significant shareholder value, with a possible 50% upside in share price.

• The Share Alternative is necessary to improve success rate of privatization. Our guess is Henlius Biopharmaceuticals/Lin Lijun would vote for this privatization, but we’re not sure about Qatar Investment’s decision.
• Due to its “flaws”, undervaluation of Henlius is difficult to fundamentally change. So, those conservative and cautious investors would choose the Cash Alternative considering the risks behind the Share Alternative.
• Even if there’re plans of re-listing, it may be based on a new entity formed after integrating Henlius and other assets within Fosun Pharma. So, the value of Rollover Entities/Securities remains uncertain.

• I tally 45 – mostly firm, mostly Asia-Pac – transactions currently being discussed and analysed on Smartkarma. Inside is a timetable of upcoming key events for each deal 
• Two new deals were discussed this week: Alimentation Couche-Tard (ATD CN)‘s non-binding proposal for Seven & I Holdings (3382 JP).; and EQT’s Offer for PropertyGuru (PGRU US).
• Key updates took place on APM Human Services (APM AU), TCM (570 HK), GaPack (468 HK), Alps Logistics (9055 JP), Fancl Corp (4921 JP), and Jeisys Medical (287410 KS).

• Shanghai Fosun Pharmaceutical (Group) (2196 HK) announced the Shanghai Henlius Biotech (2696 HK) share alternative offer, subject to proration due to a cap of 8% of outstanding shares. 
• The share alternative offer was necessary to facilitate the vote as the HK$24.60 offer is half the HK$49.60 IPO price. 
• The co-founders, HenLink and LVC, will likely tender some or all their shares for scrip. At the last close and for the December-end payment, the gross/annualised spread is 7.4%/17.9%.

• China Traditional Chinese Medicine (570 HK)‘s profit warning suggests weaker-than-expected 2024H1 results, but the interim report is needed for clarity. This is unlikely to negatively affect the company’s privatization plans.
• In 24H1, healthcare investment and financing activities have slowed, and it will take time for investors’ confidence in the sector to recover.
• Giant Biogene (2367 HK)‘s 24H1 results exceeded expectations, leading management to raise its 2024 guidance. However, the profit margin declined, and we remain cautious about long-term growth prospects.

• Clarity Pharmaceuticals Ltd (CU6 AU) received FDA fast track designation for its lead candidate 64Cu-SAR-bisPSMA for PET imaging of prostate cancer lesions. Currently, 64Cu-SAR-bisPSMA is in phase 3 trial.
• If approved, 64Cu-SAR-bisPSMA has the potential the best-in-class diagnostic as the product has improved lesion detection capability compared to existing prostate cancer diagnostics.
• Clarity’s copper platform, strong prostate pipeline and therapeutic and diagnostic efficacy data represents an attractive opportunity to grow a significant radiopharmaceutical franchise in oncology and other indications.

• Cardinal Health Incorporated has shown a remarkable year with strong operational performance, achieving a considerable improvement in key financial metrics as highlighted in their Fourth Quarter FY 2024 Earnings.
• During the fiscal year 2024, Cardinal Health reported striking growth in earnings per share (EPS), marking a 29% increase in both the fourth quarter and for the entire year.
• The substantial growth in EPS throughout FY 2024 to $7.53 indicates a positive trajectory exceeding the company’s initial guidance significantly.

• Medtronic PLC reported its fiscal 2025 first-quarter results, reflecting a sustained performance trajectory with key financial metrics meeting or exceeding expectations.
• Highlights from the earnings call emphasize continued growth across several of Medtronic’s business segments, along with strategic advancements in product innovations and global market expansions.
• Revenue growth was reported at 5.3%, surpassing the midpoint of guidance, with significant contributions from the Cardiovascular, Neuroscience, and Diabetes segments.

• Boston Scientific Corporation recently reported its second-quarter results, surpassing expectations with a strong performance driven by its cardiovascular portfolio and robust execution across multiple regions.
• The company saw a remarkable 16% growth in operational sales, with organic sales climbing 15%, well above its projected range.
• This growth was bolstered by innovation, clinical evidence, and strategic leadership in various categories.

• In reviewing the latest results from Edwards Lifesciences, notable elements of growth and development paired with challenges shed light on the company’s financial and operational trajectory during the second quarter of 2024.
• With total company sales reaching $1.6 billion, this marked an 8% increase on a constant currency basis compared to the same period last year.
• While Transcatheter Aortic Valve Replacement (TAVR) growth was not as robust as expected, increasing by 6% globally, the Transcatheter Mitral and Tricuspid Therapies (TMTT) segment demonstrated impressive growth, with a 75% increase in sales.

• AMS’s Versa HD Linac in Mexico began patient treatments this month, representing a new revenue stream set to begin in 2H24.
• AMS also recently signed a JV for a Gamma Knife facility in Guadalajara, Mexico, marking its 4th international O&O location.
• AMS will upgrade an existing Gamma Knife Perfexion system there to an Esprit & also extended another lease agreement with a planned Esprit upgrade.

• Align Technology, renowned for its Invisalign clear aligners and iTero intraoral scanners, produced mixed outcomes in the second quarter of 2024.
• The company reported revenues of $1,028.5 million, marking a 3.1% increase sequentially and a 2.6% increase year-over-year.
• While revenue growth substantiates the company’s ability to expand amidst economic fluctuations, the impact of unfavorable foreign exchange shaved off significant potential gains, particularly with a $18.1 million or 1.7% year-over-year reduction.

SIGA Technologies announced another contract win with the US Department of Defense (DoD), which is for the procurement of c $9m in TPOXX. This is the third DoD contract win in roughly three years for a total of approximately $28m and adds to the already robust H224 orderbook of c $154m of outstanding TPOXX orders, following the July 2024 $112.5m option exercise from the Biomedical Advanced Research and Development Authority (BARDA) for oral TPOXX. While delivery timeline details are yet to be disclosed, we expect this new DoD order to at least start being partially serviced in FY25. The DoD has also provided $27m in R&D support to the post-exposure prophylaxis (PEP) development effort, for which the regulatory filing is planned within the next 12 months.

• Azitra is developing genetically engineered bacteria for therapeutic use in dermatology.
• The company possesses a microbial library of 1,500 unique bacterial strains that are candidates for a variety of indications.
• Azitra’s lead candidate is ATR-12 for the rare disease Netherton Syndrome (NS).

• AMS’s Versa HD Linac in Mexico began patient treatments this month, representing a new revenue stream set to begin in 2H24.
• AMS also recently signed a JV for a Gamma Knife facility in Guadalajara, Mexico, marking its 4th international O&O location.
• AMS will upgrade an existing Gamma Knife Perfexion system there to an Esprit & also extended another lease agreement with a planned Esprit upgrade.

• Eoflow announced Insulet had filed an injunction on 3 July against Eoflow and Menarini requesting a ban on the manufacture, sale, distribution, and use of EOPatch in 17 European countries.
• Given that Eoflow should have reported this event earlier, this is likely to result in further loss of confidence on Eoflow by many investors in the near term. 
• If Eoflow is able to complete its rights offering (albeit lower amount than proposed), this could boost its chances to become a formidable competitor to Insulet on a global basis. 

• Dupert, a drug for the special treatment of non-small cell cancer has been approved by the NMPA.
• In 2022, China recorded the highest number of new cancer cases, and their exceptional high incidence of smoking is of particular concern.
• Innovent’s portfolio of nine oncology drugs is very attractive in the biggest cancer market.

• Bumrungrad Hospital Pub Co (BH TB) has reported mixed performance in 2Q24, with revenue growing 3% YoY to THB6,331M. However, bottomline growth outpaced the revenue growth.
• We are cautiously optimistic about the future growth prospect of the company as well as valuation multiple expansion prospect due to intensifying competition in attracting international patients.
• In recent times, revenue contribution from international patients has not changed much and is hovering around a range of 53–55%, significantly lower than pre-COVID time’s range of 64–67%.

• Tenax has licensed the calcium sensitizer/K-ATP activator levosimendan and is pursuing approval for an indication in Group 2 Pulmonary Hypertension in the US and Canada.
• The drug has been approved in over 60 countries with 35 published trials supporting its safety and efficacy and has over 1 million patient exposures.
• In January 2018 Tenax announced a new indication for Levo and met with the FDA to confirm trial design.

• With a strategy to design products to treat multiple indications, QNRX intends to study QRX003 for several conditions & build a database supporting its efficacy and safety as a treatment for a range of dermatological conditions.
• The company plans to begin a clinical study of QRX003 in Peeling Skin Syndrome (PSS), a rare autosomal disease that has no approved treatment.
• By developing its assets for multiple indications, QNRX aims to increase the potential for an expedited regulatory pathway, attain economies of scale on R&D, sales & marketing and other costs and potentially broaden the target market if/when commercial sales launch.

The uptrend in Cresemba sales in Asia-Pacific and China triggered the receipt of Basilea’s third milestone payment of US$1.25m from Pfizer for the region (in addition to the March and May 2024 milestones). Asia-Pacific and specifically China have strategic importance as China comprises c 20% of the market opportunity for Cresemba. In-market sales for Cresemba remain robust globally and revenues have grown 24% y-o-y to US$489m during the 12 months ending March 2024. We expect Basilea to receive over CHF35m in milestones in H224 and for its overall activity to intensify in the next few weeks with the launch of the first Phase III fosmanogepix trial (in candidemia and invasive candidiasis) and the expected finalisation of a Zevtera US commercial partner, both significant inflection points.

• Cytokinetics recently reported their Second Quarter 2024 Earnings, marked by progression in their clinical development programs, particularly focusing on their pipeline’s most advanced candidates, aficamten and omecamtiv mecarbil, in various heart-related conditions.
• This update provides insights crucial for evaluating the health of the company’s R&D efforts, potential market reach, and overall strategic trajectory, with implications for investment considerations.
• 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.

• Arrowhead Pharmaceuticals recently discussed its fiscal 2024 third-quarter performance and provided updates on its drug pipeline and commercial strategies, suggesting a pivotal phase in its growth trajectory.
• As the pharmaceutical company aims to augment its pipeline to include around 20 clinical or marketed products by 2025, it focuses heavily on the development and potential market launch of its flagship product, plozasiran, targeting familial chylomicronemia syndrome (FCS) and other conditions associated with high triglycerides.
• 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.

• Bloomberg reported that Brookfield (BN CN) is seeking bank backing for up to €9.5 billion in debt to facilitate a potential take-private acquisition of Grifols SA (GRF SM).
• Considering a €10.18/share possible offer price (institutionals are seeking €12), the A shares are trading at a 7.3% gross spread and are pricing a 62.5% possibility of deal completion.
• The preferreds trading at 17.5% discount vs ordinary shares should be favored in case of takeover, with Long B shares/short A shares my preferred way to get involved.

• On August 8, 2024, Arrowhead Pharmaceuticals, Inc. (ARWR) announced financial results for the third quarter of fiscal year 2024 that ended June 30, 2024 and provided a business update.
• Arrowhead recently presented preclinical data on ARO-INHBE and introduced ARO-ALK7 at its summer seminar on obesity/metabolic disorders.
• We anticipate both programs entering the clinic in 2025.