Healthcare

• China Traditional Chinese Medicine (570 HK) profit warning notes that the 1H24 net profit would decrease by 60%-70% YoY due to pricing pressure, higher impairment losses and remedial taxes. 
• The profit warning could pose a risk to the scheme, as the consortium can withdraw if there is an adverse material change in China TCM’s profits or prospects.
• If there were a danger of triggering the MAC clause, the consortium would not have made the regulatory submissions. The flip side is that the warning helps the shareholders vote. 

• After the market close on 21 August, Eoflow (294090 KS) announced a rights offering capital raise of 9.1 million new shares, representing share dilution of 23%.
• Based on the expected rights offering issue price of 9,040 won, the company is expected to raise 82.2 billion won in this capital raise. 
• Eoflow has monthly cash burn rate of about 3.3 billion won. If the rights offering is successful, it would have adequate capital resources for about a couple of years. 

• China Traditional Chinese Medicine (570 HK) flagged a 60-70% drop in its 1H24E net profit versus 1H23, due to reduced sales/profit of TCM concentrate, bad debt provisions, and remedial taxes. 
• MAC triggers? No – Sinopharm won’t exercise such right, even if one was ostensibly triggered. I’d be surprised if Sinopharm wasn’t fully aware of TCM’s underlying operations. 
• Get involved on any dips today. Trading wide at a 11.7%/38.7% gross/annualised spread, assuming Dec-end payment.

• Gilead Sciences Inc. showcased a solid performance for the second quarter of 2024, marked by robust commercial execution and growth across key therapeutic areas such as HIV, liver diseases, and oncology.
• Notably, Biktarvy, an HIV treatment, observed an 8% year-over-year growth, while Trodelvy in oncology saw a 23% increase, and cell therapy revenues increased by 11%.
• Additionally, the company reported disciplined management of operating expenses which significantly contributed to bottom-line growth.

• Viatris has delivered a solid performance in the second quarter of 2024, marking the fifth consecutive quarter of operational revenue growth.
• Under the leadership of CEO Scott Smith, the company, which was formed from the merging of Mylan and Upjohn, a division of Pfizer, has effectively integrated two global entities and streamlined its operations through strategic divestitures.
• This strategic realignment has evidently positioned Viatris at a pivotal point for future growth, focusing strongly on expanding its innovative products alongside its stable base business.

• Royalty Pharma experienced a strong second quarter for the 2024 fiscal year, outperforming earlier guidance with a 12% increase in portfolio receipts which include royalty and other income.
• The company’s robust performance can be attributed to an 11% growth in royalty receipts, indicating solid recurring cash flow from their extensive and high-quality portfolio of more than 35 commercial products.
• 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.

• On August 14, 2024, NeuroBo Pharmaceuticals, Inc. (NRBO) announced financial results for the second quarter of 2024 and provided a business update.
• The company recently completed enrollment in the single ascending dose (SAD) Part 1 portion of the Phase 1 trial of DA-1726 and we anticipate topline results in the third quarter of 2024.
• The multiple ascending dose (MAD) Part 2 portion of the Phase 1 trial is enrolling and topline results are expected in the first quarter of 2025.

• Zydus Lifesciences Ltd (ZYDUSLIF IN) reported stellar performance in Q1FY25, with all key parameters improved sequentially and YoY. The company achieved highest ever operating profit and margin during the quarter.
• Sustained growth momentum across all the businesses along with enhanced profitability drove Q1FY25 performance. Execution success of differentiated pipeline in the U.S. and outperformance of India business were particularly noteworthy.
• Despite delivering 21% YoY revenue growth in Q1FY25, Zydus reiterated FY25 revenue growth guidance of high teens. The company expects EBITDA margin of 28.5–29.0% for FY25.

• Galderma (GALD SW) is one of the largest Global and Swiss Index additions at the August and September 2024 reviews following its recent IPO valued at ~$17bn.
• The company is forecasted to get added in the second Global Index at the September 2024 review. Estimated demand is ~$162m and ~5.0 ADV.
• The IPO lock-up expiry is forecasted to generate an additional demand of ~$42m and ~1.3 ADV at the December 2024 review. 

• Tong Ren Tang’s performance growth is mainly driven by M&As. Its organic growth and operation management capability are not strong, leading to the concerns on the sustainability of future growth.
• Profit margin is disappointing.If Tong Ren Tang fails to balance the interests of different parties and control costs/expenses,low profit margins will be the norm despite the growth of revenue scale.
• From the perspectives of revenue scale, profitability, operational efficiency, business model, there’s still a gap between Tong Ren Tang and Gushengtang. Tong Ren Tang’s valuation should be lower than Gushengtang.

• BioLineRx is a commercial stage biopharmaceutical company with a development portfolio advancing motixafortide, a platform molecule targeting indications in stem cell mobilization (SCM) & in the treatment of advanced pancreatic cancer.
• The candidate is approved in the US for SCM and is undergoing studies for use in gene therapy and in pancreatic cancer.
• Partner Gloria Biosciences is developing motixafortide in Asia & is expected to be conducting bridging studies in the near term for SCM and longer-term studies for other indications.

• Based on the second quarter 2024 results, Abbott Laboratories displayed a strong overall performance cementing its position in various segments, while also highlighting areas that require further attention.
• The company reported organic sales growth of over 9%, excluding COVID testing sales, surpassing analyst expectations and marking a 16% sequential increase from the first quarter.
• This led the company to raise guidance for the full year, now forecasting organic sales growth of 9.5% to 10%, and adjusted earnings per share between $4.61 and $4.71.

• Intra-Cellular Therapies reported robust financial and operational results for the second quarter of 2024, underpinned by significant growth in their primary product, CAPLYTA.
• This performance highlights several positive developments and a few areas of consideration for potential investors.
• 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.

• Maravai LifeSciences has emerged as a compelling acquisition target in the life sciences sector,particularly following recent developments and a sharp decline in its market value.
• With its stock having fallen nearly 80% from its 2021 peak, the company has struggled to diversify beyond the COVID-19 vaccine boom.
• However, Maravai’s strategic assets and innovative capabilities still hold significant value, making it an attractive prospect for companies like Repligen.

• On August 9, 2024, Edesa Biotech, Inc. (EDSA) announced financial results for the third quarter of fiscal year 2024 that ended June 30, 2024 and provided a business update.
• In June 2024, the company announced that EB05 was selected by the Biomedical Advanced Research and Development Authority (BARDA) for evaluation in a U.S. government-funded clinical trial in hospitalized adult patients with acute respiratory distress syndrome (ARDS).
• The data from this study could provide additional support for expanding the use of EB05, with the ultimate goal being an approval for EB05 as a standard-of-care therapy for all-cause ARDS.

• Advancing AI Nose beyond healthcare into smart manufacturing.
• Ainos announced initial results from a VOC sensing program in industrial safety and smart manufacturing with its Japanese co-development partners.
• As of August 15, 2024, AI Nose achieved 79% accuracy in detecting 22 different VOCs to identify 761 samples of potentially hazardous gases or contaminants. 

• Peptron’s lack of single-stock futures means no risk-free arbitrage but also less speculative selling, making the 25% discount an attractive outright position opportunity.
• The low capital increase rate may stabilize the stock price, and more forfeited shares could lower the cost of securing subscription rights during the trading window.
• Consider buying rights during the trading period or targeting forfeited shares. Conservatively estimate the final offering price range to set a profitable cost for securing rights.

• Since mid-July, share-price spreads have generally widened across our European liquid universe of ordinary and preferred shares (9 have tightened, 8 widened, 2 remained at same level).
• Recommended trades long preferred / short ordinary shares: Atlas Copco, Grifols SA (GRF SM) (see section on the company), Media-for-Europe, Sixt.
• Recommended trades long ordinary / short preferred shares: Henkel, SSAB Svenska Stal.

• Jeisys Medical announced that it has decided to exchange shares with Syracus Subco, its largest shareholder. The stock exchange ratio between Syracus Subco and Jeisys Medical is 1 to 1.3575606. 
• The exchange date is 23 October. Through this stock exchange, Archimed Group (owner of Syracus Subco) seeks to delist Jeisys Medical (287410 KS).
• Jeisys Medical also announced that it plans to cancel 1,075,838 common shares, representing 1.4% of its outstanding shares. 

• Archimed, via its Korean entity Syracuse Subco, now holds 91.35% of Jeisys Medical (287410 KS) following the second tender offer. Jeisys shares will be delisted in the next couple months.
• Jeisys Medical (287410 KS) is a KOSDAQ 150 Index (KOSDQ150 INDEX) constituent and there will be a replacement for the stock in the index.
• Recent ad hoc replacements to the KOSDAQ 150 Index (KOSDQ150 INDEX) have traded well and that warrants positioning for this event.

• Medtide relies heavily on limited number of customers to contribute performance. If there is any significant reduction in demand by its major customers, Medtide’s performance growth would be materially/adversely affected.
• Due to geopolitical conflicts, pharmaceutical companies are becoming more cautious about their reliance on China CXO. So, the development of Medtide’s overseas business would become more uncertain in this context.
• Medtide’s business scale is still small and its position in the global peptide CXO industry is not as strong as described. Valuation of Medtide should be lower than peers.

Although the topline results of PALM 007 (studying SIGA’s tecovirimat in the treatment of mpox) did not meet the statistical significance for the full population (primary endpoint), we are encouraged by the clinically meaningful benefit reported over placebo in early-treated patients and in those with severe disease. The data highlight an opportunity to establish an effective regime for these key populations, given the lack of effective treatment options and the overall importance of early treatment in infectious diseases. PALM 007 was not a registrational study, and SIGA’s priorities in mpox are the four remaining ongoing studies targeting this indication, which may potentially support a mpox label in the US. Currently, tecovirimat is approved for mpox treatment in the EU and UK.

• LGMK has expanded its product portfolio with recently launched Freedom Alert Plus, Freedom Alert Mini & Aster.
• Incorporating both predictive and preventive tools as it innovates, new product features include advanced fall detection, geofencing for memory care, connected cloud & caretaker app support, sensors and AI / ML (machine learning), among others.
• By leveraging enhanced sensors, algorithms and ML technology to analyze movement patterns + other relevant data, LGMK technology can detect pattern changes that might indicate potential for falls (predictive technology), as well as provide health communications such as medicine reminders (preventative technology).

• Achieve Life Sciences is developing cytisinicline for use as a smoking cessation treatment in the United States and rest of world.
• Topline results from ORCA-2 were reported in April 2022 and for ORCA-3 in May 2023.
• Results exceeded expectations on safety & efficacy parameters.

• Zimmer Biomet Holdings, Inc.’s most recent quarterly performance reflects a steadied progress in its growth trajectory and continuous strategic advancements, though it faced specific challenges during the period.
• The company reported a year-over-year revenue growth of 5.6% on a constant currency basis for the second quarter of 2024.
• This marks Zimmer Biomet’s tenth consecutive quarter of mid-single-digit or higher growth.

• Bio-Techne Corporation recently held its earnings call for the fourth quarter of fiscal year 2024, during which the company announced in-line financial results with modest organic revenue growth of 1% year-over-year.
• This growth came amidst market stabilization and strategic execution by the company despite a complex external environment that included reduced biotech funding and significant budget recalibrations from large pharmaceutical entities and academia.
• 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.

• 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), JTower (4485 JP), China Traditional Chinese Medicine (570 HK), Canvest Environmental Protection Group (1381 HK), Capitol Health (CAJ AU). 
• Lowest spreads: Fuji Soft Inc (9749 JP), Descente Ltd (8114 JP), Second Chance Properties (SCE SP), C.I. TAKIRON Corporation (4215 JP), Fancl Corp (4921 JP), Alps Logistics (9055 JP). 

• With rising COVID-19 cases, a pandemic outbreak in late 2024 is likely. Investors should focus on related sectors and stocks again.
• Due to BIOSECURE Act, US companies are leaving Chinese partners.If Trump is elected, his sanctions on China’s supply chain may intensify. So, there should be “valuation discount” for China CXOs.
• Livzon may have negative YoY revenue growth in 24H1, but full-year revenue may have positive low single-digit YoY growth. Due to good dividend/repurchase policy, Livzon deserves more patience from investors.

• Classys (214150 KS) posted strong 2Q24 result, with quarterly revenue and operating profit reaching record highs, mainly driven by the growth in sales of aesthetic medical equipment.
• Revenue from Classys medical devices increased 36% YoY and 44% QoQ to KRW30B (51% of revenue) as demand for core platforms has increased significantly in major global countries.
• If 1H24 momentum continues (which seems to be quite possible), the company will handily beat 2024 sales guidance of KRW225B, driven by both devices and consumables.

• After performance headwinds in 2022 and 2023, we have seen a turnaround of Sino Biopharma in 24H1. The Company is gradually getting rid of the negative influence of VBP.
• Even if the performance improves in 2024, there is still great uncertainty about whether the performance target for 2030 (revenue to reach HK$100 billion) can be achieved as scheduled.
• The innovative drug pipeline actually lacks competitiveness. Current valuation is not cheap. Deficiencies in corporate governance are one reason why the market is reluctant to offer Sino Biopharm high valuation.

• I tally 46 – 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: JTower (4485 JP) and BusinessOn Communication (138580 KS)‘s Tender Offers. Orora (ORA AU) approached by Lone Star. Ramsay Health Care (RHC AU) Offer also rumoured.
• Key updates took place on China Traditional Chinese Medicine (570 HK), Namoi Cotton Co Operative (NAM AU), APM Human Services (APM AU), and CPMC Holdings (906 HK).

• On 16 August, Peptron (087010 KS) announced that it decided to increase capital through a rights offering worth about 120 billion won, involving 2.64 million shares (12.8% of outstanding shares). 
• The expected rights offering price is 45,450 won, which is 22% lower than current price.
• We are negative on Peptron’s rights offering mainly due to much lower expected rights offering price, concerns about additional rights offering next 2-3 years, and continued lack of profitability.

• In the second quarter of 2024, Henry Schein delivered a solid financial performance, underscoring its resilience amid challenging market conditions.
• The company reported robust operating cash flow and an increase in gross margin, reflecting the benefit of strategic initiatives focusing on high-growth, high-margin products and services, as well as recent acquisitions.
• However, the recovery from a cyber incident last year has been progressing slower than initially anticipated, impacting sales momentum.

• Novo Nordisk presented its latest earnings with a detailed overview covering various aspects from financial metrics to research and development updates, contingent on forward-looking projections that may change.
• The management emphasized strong commercial performance, especially in the diabetes and obesity segments, despite challenges in the rare disease category.
• Financially, Novo Nordisk reported a robust 25% sales growth, marking an industry-leading progression.

• Celltrion Inc announced that its proposed merger with Celltrion Pharm has been cancelled due to disapproval of this deal among an overwhelming percentage of Celltrion Inc shareholders.
• This cancellation of a merger between Celltrion Inc and Celltrion Pharm is likely to continue to have a positive impact on Celltrion Inc and negative impact on Celltrion Pharm.
• The major reason is because Celltrion Pharm trades at high valuation multiples while Celltrion Inc trades at lower valuation multiples. Celltrion Pharm’s P/B valuation is more than 3x Celltrion Inc’s.

• Amgen’s second quarter 2024 financial results signify a substantial 20% year-over-year increase reaching $8.4 billion in revenue, representing a robust period for the company.
• Notably, this is credited to a widespread growth across multiple product lines, with particular strength observed in medicines like Repatha, EVENITY, BLINCYTO, TEZSPIRE, and others in the inflammation and oncology sectors.
• 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.

• GRAIL, a commercial-stage healthcare company and maker of MCED blood test called Galleri, reported its quarterly results for the first time as independent publicly traded company.
• The 2Q print was solid, with +43% y/y revenue growth, ~35,200 Galleri tests sold and ~$32M total revenue all better than expected.
• Finally, management expects moderate revenue growth rates in 2025 and subsequent years due to cost reductions and decreasing investment in other programs beyond Galleri.

• BioMarin Pharmaceutical Inc. reported a strong performance in its second quarter of 2024 earnings, achieving several milestones while continuing to refine its strategic priorities to enhance profitability and drive sustainable growth.
• Beginning with the financial performance, BioMarin announced a 20% year-over-year growth in total revenues, reaching $712 million for the quarter.
• This growth was notably driven by the robust demand for Voxzogo, which itself experienced a substantial 62% revenue increase to $184 million.

• BioNTech’s second quarter of 2024 earnings revealed a company navigating both ongoing strides in its primary COVID-19 vaccine franchise and advancing its footprint in the oncology sector.
• The call demonstrated BioNTech’s commitment to expanding its product offerings while managing the shifts in market demands and regulatory landscapes.
• For the second quarter of 2024, the total revenue reported by BioNTech was approximately EUR 129 million, a decline from EUR 168 million in the same quarter the previous year.

• Baxter International Inc. presented its second quarter 2024 earnings, displaying significant progress stemming from its strategic overhaul and operational enhancements.
• The results surpassed the expected guidance in both revenue and earnings per share (EPS), prompting an uplifting revision in the full-year financial forecast.
• This positive outcome is indicative of the successful implementation of operational efficiencies and a centralized business model that is beginning to bear fruit.

• DaVita reported another robust quarter in Q2 2024, demonstrating solid performance metrics that underline the company’s ongoing efforts to enhance its services and fiscal management.
• Under the leadership of CEO Javier Rodriguez, DaVita has maintained a positive growth trajectory, albeit with some hurdles that were also highlighted during the earnings call.
• This analysis includes critical insights gathered from the earnings discussions, focusing on both the positive outcomes and areas posing challenges for the company.

• Zoetis reported strong financial results in the second quarter of 2024, showcasing a robust operational growth across various segments and products.
• Revenue increased by 11% operationally, while adjusted net income saw a significant operational growth of 18%.
• The well-balanced growth was evident with a 12% increase in the U.S. and a 10% operational rise internationally, demonstrating the company’s effective market strategies and innovative product offerings.

• In the second quarter of 2024, Illumina posted revenue results that exceeded expectations.
• While the revenue from core Illumina stood at $1.1 billion, demonstrating solid execution against strategic priorities, the company admits facing challenges due to extended sales cycles and concerns over global economic pressures which affected equipment orders.
• Despite these hurdles, consumption of sequencing activity consumables saw a significant rise primarily driven by the NovaSeq X Plus, emphasizing an ongoing transition that spells potential future growth.

• China Traditional Chinese Medicine (570 HK)’s monthly update reinforces the bull case. The gross spread has remained uncomfortably high since falling on no news on 26 June. 
• The monthly update will relieve the bulls, as the consortium has finally made the regulatory submissions. The update stresses that the filing delay is due to an unwieldy consortium. 
• Potential stumbling blocks remain, which should not be an issue. Nevertheless, the risk (17.7% downside to the undisturbed price)/reward (21.4% gross spread) remains attractive. 

• 7747 Asahi Intec announced FY06/25 OP guidance of Y25.2bn, close to street expectations, pointing to substantial upside. GPM guidance has increased and continuation of strong 4Q YoY sales is expected.
• Seven days of short interest outstanding could lead to a short squeeze; Earnings briefing tomorrow reinforcing these trends should be a further catalyst for upside.
• With short interest now low and limited potential for further gains after the recent rebound, 7733 Olympus appears to be losing momentum, especially with China sales continuing to flag.

• A 14.8% gain month-to-date, including this past Monday’s 6.5% pop – you just knew something positive was taking place behind closed doors. And leaking its way into the public.   
• So it was no real surprise to read in the latest monthly update announcement on the HKEx that various regulatory approvals are almost, but not quite, satisfied.
• The wording in the announcement strikes a positive tone. Even remaining conservative on the timeline, this could be wrapped up before year-end. 

• Asahi Intecc (7747 JP) reported strong FY24 result, with all key parameters beating estimates. FY24 revenue exceeds ¥100B, a significant milestone of the mid-term management plan.
• For FY25, Asahi Intecc has guided for revenue of ¥117B (up 9% YoY), operating profit of ¥25B (up 14% YoY), and net profit of ¥19B (up 19% YoY).
• Growth will be driven by increase in overseas revenue in medical division despite the impact of stronger yen. Positive environment and strong demand enhance conviction on the long-term growth prospect.

• On July 30, 2024, Imunon, Inc. (IMNN) announced positive topline results for the Phase 2 OVATION 2 Trial of IMNN-001 in patients with advanced ovarian cancer.
• The company reported an 11.1 month increase in median overall survival (OS) compared with standard-of-care alone in the intent-to-treat (ITT) population with a hazard ratio (HR) of 0.74, which indicates a 35% improvement in survival.
• For the 40% of trial participants treated with a PARP inhibitor, the HR dropped to 0.41, with a median OS in the IMNN-001 treatment arm that had not yet been reached at the time of database lock, compared with a median OS of 37.1 months in the standard-of-care arm.

• 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 released its 2Q2024 earnings and highlighted advances made with its signature treatment-Lomecel-B.
• The treatment has made significant progress and received multiple FDA designation for both Alzheimer’s Disease and the devastating HLHS.

• Sales were JPY11.4bn (+7.1% YoY), EBITDA JPY1.5bn (+10.3% YoY), operating profit JPY1.0bn (+24.7% YoY), net income JPY429mn (+5.0% YoY).
• Revised FY09/24 forecast: Sales JPY14.6bn, EBITDA JPY1.8bn, operating profit JPY1.2bn, recurring profit JPY1.1bn, net income JPY1.4bn.
• Segment performance: Collective Intelligence Platform sales JPY9.3bn (+8.5% YoY), Medical Institution Support sales JPY377mn (+2.6% YoY), Preventative Healthcare sales JPY1.7bn (+1.4% YoY).

• 1H FY12/24 revenue was JPY2.2bn (-31.4% YoY), operating profit JPY97mn (-87.9% YoY), net income JPY32mn (-93.8% YoY).
• Q1 FY12/24 revenue was JPY937mn (-46.9% YoY) with an operating loss of JPY103mn; Q2 revenue increased to JPY1.3bn (-12.9% YoY).
• Medical Personnel Services revenue was JPY1.7bn (-4.8% YoY), Other Services revenue was JPY575mn (-61.9% YoY).

• Upcoming potential milestones include the submission to the Ethics Committees at a third site in Australia and one in India, possible approval from one or both as early as FY25 2Q or 3Q and the launch of the patient enrollment process at those venues following Aethlon’s site visits.
• The company expects to begin the patient enrollment process in October 2024.
• We would expect AEMD to announce that the first patient has been treated possibly by year-end 2024 or early 2025.

• Operating revenue increased to JPY1.4bn (+39.1% YoY), with an operating loss of JPY154mn and a recurring loss of JPY278mn.
• Royalty income from four launched products and global expansion of tegoprazan generated JPY998mn (+36.3% YoY) in 1H FY12/24.
• Total operating expenses rose to JPY1.6bn (+50.9% YoY), including R&D expenses of JPY833mn (+38.0% YoY) and SG&A expenses of JPY506mn (+62.1% YoY).

• Ionis Pharmaceuticals Inc., a leader in RNA-targeted therapeutics, recently held its second quarter 2024 earnings call outlining several achievements and perspectives on ongoing projects and upcoming product launches.
• Ionis has made significant progress with a clear strategic focus on its pipeline, recent approvals, and foundational growth in its research and commercial domains.
• 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.

• Accolade has been in the news for receiving solid acquisition interest.
• The company’s position as a potentially attractive acquisition target may be considered based on various aspects of its business model and financial performance as presented in their recent quarterly results.
• The company operates within the healthcare services industry, providing personalized health care solutions, which remain a significant growth sector due to increasing demand for customized healthcare and technological advancements like artificial intelligence and virtual care services.

BB Biotech (BION) offers investors exposure to the innovative, rapidly expanding biotech sector. It is the largest biotech investor among its investment company peers, focused on high-quality biotech assets that target substantial market opportunities. The company recently released its interim report for the period ended 30 June 2024, which provided an update on recent performance and developments with portfolio companies, and outlined the major milestones expected from these holdings during the second half of 2024. This note summarises the key points from the report, and the reasons why BION’s managers are optimistic about the outlook for the biotech sector and for their portfolio.

• Bio-Rad, in its second quarter of 2024, presents a mix of performances and outlook corrections amidst a complex operating environment.
• CEO Norman Schwartz highlighted that the quarter saw revenue meeting expectations and a better-than-expected margin performance due to favorable product mix and good cost management.
• Despite these positives, the company is facing challenges specifically within the biotech and biopharma sectors, leading to a cautious revision of its full-year 2024 financial outlook.

• Blueprint Medicines has commemorated a full year since the U.S. approval of AYVAKIT for indolent systemic mastocytosis (ISM), showcasing significant achievements in both financial and operational domains.
• The company’s Q2 2024 financial results reflect a robust trajectory for AYVAKIT, bolstered by favorable reception among physicians, patients, and payers, and underscored by promising revenue figures that outstrip prior expectations.
• 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.

• 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 the AI technology.
• 2Q financials show the company has solid cash and is attracting interest from potential partners.

• FibroBiologics is a cell therapy company focused on the development of fibroblast-based therapies for the treatment of chronic diseases with significant unmet medical needs.
• The company recently announced positive proof-of-concept data regarding the development of a novel artificial thymus organoid that restored immune function in a severe combined immunodeficiency (SCID) mouse model.
• We continue to anticipate that a Phase 1/2 clinical trial of CYWC628, the company’s lead asset targeting diabetic foot ulcers, will be completed in Australia in 2025.

Immix Biopharma’s second quarter was headlined by intensified clinical activity for lead CAR-T asset NXC-201 (targeting amyloid light chain amyloidosis, ALA), followed by commencement of patient dosing in the US-based NEXICART-2 trial in July 2024. With an 18- to 24-month timeline for full trial enrollment (planned n=40) and top-line data expected in Q2/Q326, we now anticipate a biological license application (BLA) to be filed in H127 (vs 2026 previously). In our view, the development path has been partially de-risked by the potential $8m grant inflows from the California Institute for Regenerative Medicine (CIRM), which should bolster liquidity and extend the operational runway to Q425. We adjust our top-line estimates to reflect grant inflows but conservatively push out the NXC-201 launch timeline to 2028 (vs 2027 previously). We revise our valuation to $123.1m or $4.5/share (from $139.5m or $5.3/share).

• IN8Bio is a clinical-stage, oncology-focused biotechnology company using ?d T cells against solid and hematological tumors.
• Its pipeline is built on the DeltEx platform & drug-resistant immunotherapy (DRI) technology which have produced clinical candidates targeting leukemia & GBM.
• INB-100 is evaluating leukemia in a Ph1 study, while INB-200 & INB-400 are Ph1 and Ph2 assets evaluating GBM.

• SCLX is filling a much-needed area of the health care sector, that of developing non-opioid pain relief products.
• The company already has commercialized products that are proven to improve patients’ lives.
• The company released its 2Q2024 results that showed revenues that bested estimates as sales of its primary products showed robust growth, while adding another product to its mix.

• 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 released its 2Q2024 results that blew past estimates as demand for its innovative wound care products accelerates.
• The company also outlined plans to continue and advance the rapid growth seen in 2024.

• The company reported no sales in Q2 FY03/23, with operating and recurring losses narrowing YoY due to decreased SG&A expenses.
• The company shifted its focus to mRNA drug candidates and IP licensing, enhancing collaborations and research progress.
• The company ended its fertility treatment support business in May 2024 and ceased sales of Depth products in December 2022.

• On August 9, 2024, Soligenix, Inc. (SNGX) announced financial results for the second quarter of 2024 and provided a business update.
• The company is on track to initiate the confirmatory Phase 3 trial of HyBryte (synthetic hypericin) in the treatment of patients with early stage cutaneous T cell lymphoma (CTCL) in the second half of 2024.
• In support of this, the company recently announced positive clinical results from a comparability study between HyBryte and Valchlor , which showed a three-fold higher response rate over a 12-week treatment period and a more favorable safety profile for HyBryte.

• On August 9, 2024, Soligenix, Inc. (SNGX) announced financial results for the second quarter of 2024 and provided a business update.
• The company is on track to initiate the confirmatory Phase 3 trial of HyBryte (synthetic hypericin) in the treatment of patients with early stage cutaneous T cell lymphoma (CTCL) in the second half of 2025.
• In support of this, the company recently announced positive clinical results from a comparability study between HyBryte and Valchlor , which showed a three-fold higher response rate over a 12-week treatment period and a more favorable safety profile for HyBryte.

• On August 8, 2024, Virios Therapeutics, Inc. (VIRI) announced financial results for the second quarter of 2024 and provided a business update.
• The company recently announced that the Phase 2a clinical trial of IMC-2 (valacycovir+celecoxib) has completed enrollment and we anticipate topline results from the trial in October 2024.
• Ongoing blinded safety analysis of the Phase 2a study indicates that study drug has been well tolerated with no serious adverse events reported.

• On August 8, 2024, X4 Pharmaceuticals, Inc. (XFOR) announced financial results for the second quarter of 2024 and provided a business update.
• Following the commercial launch of XOLREMDI (mavorixafor) in April 2024 the company recorded the first commercial sales of the drug, which totaled approximately $0.6 million in the second quarter of 2024.
• We anticipate the full data set from the Phase 2 trial of mavorixafor in chronic neutropenia (CN) to be presented in November 2024.

• Back in April 2022, Australia’s largest private hospital operator Ramsay Health Care (RHC AU) announced an unsolicited, non-binding Offer from KKR at A$88.00/share. Arguably, KKR dodged a bullet.
• RHC’s share price took another leg down last week after RHC announced weaker-than-expected FY24 earnings; plus a write-down of its European/UK ops. RHC is now ~50% adrift of KKR’s NBIO.
• Not altogether surprisingly, various media sources are reporting private equity outfits are (again) running a diagnostic check on RHC. 

• Biogen recently reported its earnings for the second quarter of 2024.
• The company, a leading biotechnology entity known for its pioneering work in neuroscience, highlighted a period of transformative growth and strategic reshuffling under President and CEO Chris Viehbacher.
• Central to the earnings discussion was Biogen’s emphasis on accelerating new product launches, optimizing existing portfolios, and expanding through strategic acquisitions, notably the addition of HI-Bio.

• Alfresa Holdings (2784 JP) reported just 2% YoY revenue growth to ¥722B in Q1FY25. However, with 24bps gross profit margin expansion to 6.98%, operating and net profits outpaced revenue growth.
• Alfresa reiterated H1FY25 and FY25 guidance. This calls for mixed financial performance in Q2FY25, with topline growth and bottomline deterioration. Decline in profit is mainly due to higher SG&A expenses.
• Anticipating lower profit this fiscal, the company has guided for dividend of ¥63 per share, compared with ¥70 per share paid in FY24.

• Innovent’s 24H1 product revenue exceeded RMB3.7 billion.Due to anti-corruption campaign, newly marketed PD-1s are unable to be admitted to the hospitals normally, which indirectly promotes the sales performance of sintilimab.
• 2024 full-year product revenue is estimated to reach RMB7.7 billion. IBI363 has the potential to be blockbuster variety in global markets, which may put Innovent’s valuation on a new level.
• Innovent is undervalued if market value is below RMB38.5 billion.If mazdutide is able to contribute RMB10 billion sales, Innovent’s market value would reach about RMB90-100 billion (based on 5 P/S).

• Moderna reported its Quarterly Earnings recently and managed a decent performance.
• Positives from the quarter included advancements in Moderna’s respiratory vaccine portfolio, particularly with mRNA-1273, its COVID-19 vaccine, and new RSV vaccine, mRESVIA.
• Notably, mRNA-1273 continues to be a significant product in combating COVID-19 with substantial hospitalization rates reported from the CDC for the ’23/’24 season.

• Singapore-based Evo Commerce, an omnichannel retailer offering supplements and personal care products directly to consumers, has raised US$2.1 million in a fresh investment round.
• Existing investor Shanghai-based IJK Capital Partners led the round.
• Chen Capital (Min-Liang Tan’s family office), Reuben Lai (former MD of the Grab Financial Group), Octave Wellbeing Economy Fund, Orvel Ventures, Straits Angels, and Ascend Angels participated.

• Mettler-Toledo International Inc. recently announced its second-quarter 2024 financial results, revealing a mix of strengths and challenges that characterized the period.
• The company’s performance demonstrated its strategic flexibility in adapting to varied global market conditions, with a particular focus on enhancing operational efficiencies and optimizing its Spinnaker sales and marketing program.
• During the quarter, Mettler-Toledo reported sales of $943.8 million, which represented a 2% decline in local currencies and a 4% decrease on a U.S. dollar basis, largely due to currency headwinds.

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

• ResMed recently reported its fourth quarter results for the fiscal year 2024, providing a comprehensive update on its performance across various business segments.
• The company demonstrated robust growth attributed to increased demand and operational excellence, with a focus on innovations in sleep apnea, digital health solutions, and home medical equipment software.
• Financially, ResMed achieved a 9% increase in revenue year-over-year, amounting to $1.22 billion for the quarter.

• 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 released its 2Q2024 earnings results and showed solid cash on hand.
• The company also recently announced data from its Phase 1 clinical study of its Gemini treatment.