Healthcare

• Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK)’s IFA opines that the consortium’s HK$9.25 privatisation offer is fair and reasonable. The vote is on 10 November. 
• I previously argued that the vote carries risk due to a solid interim, the imminent surgical robot growth story, unfavourable AGM voting patterns, and emerging retail opposition.
• However, the risk has been lowered due to Bin Yuan and LYFE no longer being shareholders, along with the peer derating. At the last close, the gross/annualised spread is 3.7%/22.0%.

• Kuros Biosciences is rapidly transitioning into a high-growth, profitable medical device company, driven by the commercial success of its MagnetOs bone graft portfolio.
• Compelling Level 1 clinical data for MagnetOs, demonstrating superiority over the current gold standard (autograft) in challenging spinal fusion procedures, serves as a powerful commercial driver and solidifies its competitive advantage.
• Having recently achieved its first operating profit and positive EBITDA, the company is at a financial inflection point, with a clear path to sustained profitability and cash flow generation, significantly de-risking the investment profile.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Key points (machine generated)

• CNC has withdrawn financial guidance due to a $1.8 billion shortfall from the Affordable Care Act and rising Medicaid costs, causing stock price to drop to $32.
• Market perception indicates a permanent earnings impairment at 4.5 times the projected adjusted EPS of $7.17 for 2024, but EPS could rebound to at least $7.06 in 18 to 24 months.
• CNC, the largest managed care organization for U.S. government-sponsored health insurance, serves 27.9 million members and has shifted its capital allocation strategy towards share repurchases since 2022.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Acotec Scientific is a leading domestic player in China’s drug-coated balloon (DCB) market, poised to benefit from the growing prevalence of vascular diseases and the increasing adoption of minimally invasive procedures.
• The company has demonstrated a strong growth trajectory, with robust revenue and net income increases, and is expanding its product pipeline and international presence, notably through a strategic partnership with Boston Scientific.
• Key risks revolve around China’s volume-based procurement (VBP) policy, which exerts significant pricing pressure, and increasing competition from both domestic and international medical device manufacturers.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• The performance fluctuations of Cofoe in recent years are mainly due to the fade of COVID-19 dividend, excessive dependence on marketing/online channels, and insufficient investment in its own R&D.
• Yuyue’s internationalization is more mature as products are more recognized by overseas customers. Yuyue has been able to achieve internationalization through independent branding/OBM, while Cofoe is lagging behind.
• The model of “emphasizing marketing over R&D” is hard to last. We think reasonable valuation of Cofoe could be lower than Yuyue and may also be lower than Winner Medical.

• 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 that tests on its signature product, ExePTEN, showed that it produced a reproducible, dose-dependent therapeutic effect in an eye model of glaucoma.

• Duality Biotherapeutics (9606 HK)‘ s raised around US$200m in its Hong Kong listing in April 2025. The lockup on its cornerstone and pre-IPO investors is set to expire today.
• Duality is a biopharma company focused primarily on the independent discovery and development of antibody-drug conjugate (ADC) assets.
• In this note, we will talk about the lockup dynamics and possible placement.

• Context: The Fisher & Paykel Health (FPH AU) vs. ResMed Inc (RMD AU) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long Fisher & Paykel Health (FPH AU) and short ResMed Inc (RMD AU) targets a 7% return. However, ResMed is more attractively valued on PEG ratio basis.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Mani Inc (7730 JP) FY25 revenue increased 5% YoY to ¥29.9B while Operating margin deteriorated to 27.3%, down 210bps. Dental segment reported the worst margin decline from 18.7% to 11.7%.
• The company said that the impact voluntary recall of dia-burs in China has subsided in FY25, and expects a full recovery in sales from FY26.
• FY26 guidance expect revenue rise 9% to ¥32.8B with impact of recalls subsiding. Profits and margins are also expected to witness a significant uptick.

• On the 12th August, Hangzhou Kangji Medical (9997 HK) announced an Offer, by way of a Scheme, from a consortium led by TPG and Qatar Investment Authority, together with the founders.
• The HK$9.25/share consideration price (declared final), was an lacklustre 9.9% premium to last close. But pitched around a four-year high. 
• The Scheme Document is now out, with a Court Meeting on the 10th November and expected payment around the 16th December – in line with my expectations.

• Innovative Niche Player: CleanSpace is a designer and manufacturer of advanced Powered Air Purifying Respirators (PAPRs), distinguished by its patented, compact, and ergonomic all-in-one design that eliminates the need for cumbersome belt-and-hose units common among competitors.
• Financial Turnaround in Progress: The company is demonstrating a significant operational recovery, with strong revenue growth of 26% in FY25, expanding gross margins to nearly 75%, and achieving positive EBITDA and operating cash flow in the second half of FY25. It is on a trajectory to reach sustained breakeven.
• Strategic Growth Focus: Having pivoted from a pandemic-driven healthcare focus back to its core industrial market, CleanSpace is pursuing growth through geographic expansion in the US, Europe, and Asia, alongside new product launches and growing its recurring revenue from consumables, which now account for 47% of sales.

This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

• Recent gains wiped out as large advertising budget cuts operating and net profit, diverting attention from unique technology and long-term potential.  Gross margin steady at about 80%.
• M&A could add 50% to sales, but details won’t be available until a deal is made.  Sales of functional food ingredients, supplements, personal care products and textiles continue to rise.  
• Pharmaceuticals and agricultural bio-stimulants should make significant contributions to the company’s business in the next several years. Buy into current weakness for long-term growth.

• Fujian Haixi Pharmaceuticals has filed for HK IPO to raise up to HK$994M. The company plans to sell 11.5M H shares at HK$ 86.40 per share.
• The company intends to use IPO proceeds for R&D to advance the clinical pipeline, mainly innovative drug candidates, and enhancing commercialization capabilities and expanding market presence.
• Haixi Pharma has 15 NMPA-approved generic drugs, out of which 13 products have been commercialized.  Five generic drug candidates are expected to be approved for marketing by 2025 or 2026.

• Hospital operation is an asset-heavy industry with large balance of fixed assets and intangible assets. So, there is a situation of expense “front-loading” and profit “back-loading” in Puxiang.
• Puxiang’s single-digit net profit margin is unsatisfactory. Net profit CAGR is much lower than revenue CAGR. Considering VBP and DRGs/DIP, Puxiang’s future net profit performance is unsettling.
• Due to concerns on profitability and future growth outlook, we think valuation of Puxiang should be lower than Topchoice, Aier, Hygeia, Jinxin, but could be higher than China Resources Medical

• The 11th national VBP has optimized the selection of price difference control “anchor points”, which is an important signal, implying that future VBP will follow the general direction of “anti-involution”.
• As long as there’s no significant difference in pipeline data, buyers are more concerned about the speed of R&D progress and may not necessarily dwell on potential advantages and disadvantages.
• Hengrui’s innovative drug revenue was slightly lower-than-expected. The Company’s 2025 employee stock ownership plan has lowered the compound growth target for innovative drugs from 30% to 25%.

• ImmuneOnco Biopharmaceuticals (Shanghai) (IOB HK) announced the placement of 24.2M shares for subscription at HK$14.5 per share.
• The company intends to use most of the net proceeds for further research and development of drug candidates IMM01, IMM2510 and IMM27M.
• The current market price of the stock makes the placement offer unattractive. Concerns remain with no drugs commercialized yet and the only possible commercialization expected to happen not before 2027.

• Levels of certain harmful particles typically returned to pre-treatment levels 1-3 weeks after treatment ended, suggesting a potential benefit to patients while being treated the study is designed to examine whether an increased number of Hemopurifier treatments can help extend positive patient responses.
• The company’s goal is to build its database supporting development of the Hemopurifier as an oncology treatment and this data appears to support that goal.
• It will be important to monitor whether these observations are reproducible as the study progresses, as it is early in the clinical trial to draw definitive conclusions and the data from Cohort 1 is not statistically significant.

• Levels of certain harmful particles typically returned to pre-treatment levels 1-3 weeks after treatment ended, suggesting a potential benefit to patients while being treated the study is designed to examine whether an increased number of Hemopurifier treatments can help extend positive patient responses.
• The company’s goal is to build its database supporting development of the Hemopurifier as an oncology treatment and this data appears to support that goal.
• It will be important to monitor whether these observations are reproducible as the study progresses, as it is early in the clinical trial to draw definitive conclusions and the data from Cohort 1 is not statistically significant.

• On September 29, 2025, Dogwood Therapeutics, Inc. announced it had secured a worldwide, royalty free license to develop SP16 for the treatment of cancer related pain and chemotherapy induced neuropathy symptoms from Serpin Pharma.
• A Phase 1b study of SP16 in Chemotherapy Induced Peripheral Neuropathy (CIPN) that is fully funded by the National Cancer Institute is scheduled to begin patient enrollment in the first half of 2026.
• This deal expands Dogwood’s research pipeline and complements the ongoing development of Halneuron , which is currently in a Phase 2b clinical trial for Chemotherapy Induced Neuropathic Pain (CINP).

• The Hang Seng Index is the benchmark index for Hong Kong stocks. It follows a highly-subjective selection process which makes it difficult to predict index changes.
• In this insight, we take a look at a group of names with reasonably high likelihood of being involved in index changes during the next review in December 2025.
• The index changes are expected to be confirmed on 21st November 2025.

• SEBI has approved IHH Healthcare’s open offer for acquisition of up to 26% stake in Fortis Healthcare (FORH IN). If materializes, this should uplift IHH’s holding in Fortis to 57%.
• In 2018, Fortis’ original open offer price was INR170 per share, and the offer size was INR33B. Currently, Fortis share is trading at INR1,054, up more than 6x since 2018.
• IHH will make appropriate announcement ‘in a timely manner’, which should provide clarity on open offer pricing. Unless an attractive revised price is announced, the shareholders acceptance will be limited.

• Rubicon Research Limited (1453591D IN) is looking to raise about US$155m in its India IPO.
• RR’s has shown strong FY25–1Q26 growth, driven by expanding product launches, ANDA approvals, and higher US market penetration, while margins improved with operating leverage and lower R&D intensity.
• In our earlier notes, we have looked at the company’s past performance. In this note, we talk about the RHP updates, peer comp and implied valuations in the price range.

• Earlier this year, Genesis Capital secured ~89..27% in Pacific Smiles (PSQ AU), an operator of dental centers, via a A$1.90/share tendering Offer. Co-founder Alison Hughes resolutely maintained her 10.01% stake.
• PSQ has now announced Genesis has returned to the well with a A$2.20/share unconditional Offer. 
• That’s a solid 37.5% premium to last close. And within the IE’s revised fair value range of A$2.13-A$2.56/share, who declared termns fiar and reasonable. 

• Sirius Therapeutics, a China-based clinical-stage biopharma company, is looking to raise at least USD 100 million via a Hong Kong listing. GS, Haitong, and HSBC are the joint sponsors.
• In this note, we look at the company’s core products, SRSD107, and the key product SRSD216.
• We also look at the company’s pre-IPO investors and management team.

• On the 12th November 2024, Sihuan Pharmaceutical (460 HK) proposed spinning-off the shares of Xuanzhu Biopharm on the main board of Hong Kong.
• Xuanzhu Biopharmaceutical‘s prospectus is now out. Shares are priced at HK$11.60/share, backing out a market cap of ~HK$6bn vs. Sihuan Pharma’s HK$17.4bn market cap. Trading commences on the 15th October.
• Sihuan Pharma will hold 49.1% post IPO. Its share price is up 189% YTD. Looks frothy. Then again, so does Hong Kong’s IPO market.

• WuXi AppTec (2359 HK) is looking to raise US$308m via selling some of its stake in WuXi XDC Cayman (2268 HK).
• The deal is a small one, representing 4.5 days of the stock’s three month ADV, and 2.3% of total shares outstanding.
• In this note, we will talk about the placement and run the deal through our ECM framework.

Key points (machine generated)

• Modern Dental (3600) manufactures and distributes dental prosthetics with a potential for over 15% CAGR from a share price of HKD 4.35.
• The company generates approximately 75% of its revenue from developed markets despite its primary manufacturing facility being in Shenzhen, China.
• Modern Dental is well-positioned to benefit from the growing global reputation of Chinese manufacturers for quality and competitive pricing.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Our base case valuation of Aimedbio is implied market cap of 882 billion won or target price of 13,256 won per share over a one year view in 2026. 
• This represents 21% upside over a one year period. Our cumulative sales and operating profit estimates from 2025 to 2029 are 11.4% and 48.3% lower than the company’s estimates, respectively.
• Aimedbio is not an easy company to value. Core investment thesis of the company is that it has an excellent technologies for antibody-based therapeutics, primarily antibody-drug conjugates (ADCs).

• Expected to price at near 12% discount to Embla despite superior fundamentals, higher margins, and strong recurring revenue quality.  
• Balanced B2B/B2C mix drives sustainable mid-single-digit growth and ongoing margin expansion.
• IPO proceeds to reduce leverage to 2.5x EBITDA, though low float and KGaA structure may cap valuation upside.

• Eurofins Scientific presented its half-year 2025 financial performance, providing insights into the company’s current standing and strategic advances.
• The report indicates both progress and challenges in Eurofins’ operations and outlook.
• Positively, the company achieved its targets for revenue growth, margin improvement, and robust earnings per share growth for the half-year.

• Xuanzhu Biopharmaceutical has filed for IPO to raise up to HK$781M. The company plans to sell 67.3M shares at HK$11.6 per share.
• Xuanzhu Biopharmaceutical is an innovation-driven biopharmaceutical company focused on developing treatment options in the fields of digestive diseases, oncology and non-alcoholic steatohepatitis (NASH).
• 2026 will be an inflection point for the company with all three core products fully commercialized, but will not be enough for the company to establish a sustainable market play.

• Aimedbio is getting ready to complete its IPO in KOSDAQ in November 2025. The IPO price range is from 9,000 won to 11,000 won per share.
• According to the bankers’ IPO price range, the expected market cap after the IPO is from 599 billion won to 732 billion won.
• Aimedbio has advanced multiple antibody-drug conjugates (ADC) candidates into preclinical and early clinical stages.

• GICS reclassification. Our update report dated August 18, 2025, assumed coverage of Ainos under the WTR Technology research platform.
• While remaining dedicated to advancing its core therapeutic program VELDONA, the report discusses Ainos’ prioritized strategic focus on the development of and commercialization pathway for its proprietary digital AI-powered olfaction platform, Al Nose.
• Effective October 1, 2025, Ainos has been reclassified under the Global Industry Classification Standard (GICS®), developed and administered by S&P Dow Jones Indices and MSCI, from the biotechnology sector to Technology Hardware, Storage & Peripherals (Code 45202030). 

• bioMérieux’s first half of 2025 financial results present a mixed bag of performance indicators that provide a complex picture for potential investors.
• On the positive side, the company reported a robust 9.4% organic sales growth, largely driven by double-digit expansions in key growth areas, including respiratory panels and nonrespiratory panels under the BIOFIRE brand.
• This expansion was complemented by significant strides in profitability, with a 24% increase in like-for-like operating profit, culminating in an 18.2% profit margin compared to 16.4% at the end of 2023.

Percheron Therapeutics has reported final results from the Phase I dose escalation study of HMBD-002, its monoclonal antibody targeting VISTA, a novel immune checkpoint protein. The data confirmed the compound’s favourable safety and tolerability profile (maximum tolerated dose not reached with <10% of patients experiencing grade 3 or greater adverse events), with early signs of disease control in advanced solid tumours. The trial was not designed or sufficiently powered to demonstrate efficacy; however, evidence of stable disease (28% of cases) in an otherwise heavily pre-treated patient population (median four to five prior lines of treatment) supports Percheron’s move towards Phase II development in CY26. We expect the announcement on the Phase II design and target indications, due in Q4 CY25, as the next big catalyst for the company.

Recce has reached a key milestone with the start of patient dosing in its Phase III Indonesian-focused study of the topical gel formulation (R327G) of its lead anti-infective therapeutic drug candidate, RECCE® 327 (R327), for the treatment of diabetic foot infections (DFIs). DFIs are the leading cause of limb morbidity in diabetic patients and an area of unmet need, as currently available topical drugs have limited effectiveness. Positive Phase III results could lead to Recce’s earliest commercialisation opportunity, through a launch of R327G in South-East Asia in the DFI indication in H2 CY26. We now determine an rNPV valuation of A$600.2m (or A$2.24 per share), versus A$615.1m (or A$2.51 per share) previously.

• Remegen (9995 HK) recorded revenue of RMB 1.1B, a 48% rise YoY, driven by robust sales growth of telitacicept (treatment of autoimmune diseases) and disitamab vedotin (treatment of solid tumors).
• Remegen entered into a license agreement with Vor Biopharma (telitacicept global rights) and Santen (RC28-E rights in China and other few countries). Upfront payments to reflect in revenues in 2H25.  
• Vor Biopharma is conducting a global multi-center Phase III clinical trial (first patient enrolled in August 2024, in U.S) of telitacicept for the treatment of patients with myasthenia gravis (gMG).

• Xuanzhu, a China-based commercial stage biopharm, launched its IPO to raise at least USD 100 million via a Hong Kong listing.
• In our previous note, we have examined the company’s core product, including XBP-3571, XZP-3287, and XZP-3621, and its management team and investor backing.
• In this note, we look at the deal term. We think the valuation is demanding and lacks institutional interest.

• Maplight Therapeutics set terms for its IPO and can debut on the Nasdaq as early as October 27th. 
• Maplight is offering 17.25 million shares at $17.00 with the lead underwriters on the transaction being Morgan Stanley, Jefferies, Leerink and Stifel. 
• The company’s decision to wait through the 20-day effectiveness period amid the government shutdown underscores both patience and confidence in its investor base.

Key points (machine generated)

• Owlet, founded in 2011 by Kurt Workman, has grown from grassroots support to $100 million in revenue by 2021.
• The company faced challenges including an FDA warning and near delisting but is positioned for a resurgence as of July 2025.
• Owlet offers innovative digital solutions for newborn monitoring, despite a 95% decline in stock value from its peak.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Cryosite Limited (ASX:CTE) is an Australian company specialising in temperature-controlled storage and logistics solutions for the life sciences and pharmaceutical industries, in particular for clinical trials and biological materials.
• It’s positioned to capitalise on the explosive growth in cell and gene therapies (CGT), mRNA-based medicines, and biological sample management.
• Founded in 2000 as Australia’s first private cord blood bank, the company has evolved into a specialised end-to-end provider of outsourced storage and logistics services, with a focus on compliance, safety and efficiency.

Key points (machine generated)

• CVS Group PLC is a leading veterinary services provider in the U.K., focusing on consolidating independent practices.
• A formal market investigation by the U.K. Competition and Markets Authority, set for March 2024, has led to a significant drop in investor confidence and stock price.
• Despite a strong revenue growth rate, the stock trades at a lower multiple due to concerns over potential regulatory impacts on the company’s strategy.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• FONAR received a non-binding takeover bid at $17.25/share from a consortium led by its CEO/chairman, with a 7% spread.
• Mayne Pharma’s Nextstellis approved for Australia’s PBS, potentially weakening Cosette’s argument in their ongoing trial.
• Smart Share Global’s management rejected Hillhouse’s higher $1.77/ADS offer, opting for a $1.25/ADS management buyout.

• Arrowhead Pharmaceuticals recently reported its financial and operational performance for its fiscal Q3 2025, highlighting both opportunities and challenges within the business and market environment.
• The company’s results reflect a dynamic phase of development across its RNAi-based therapeutics pipeline, milestones in partnerships, and forward momentum in commercialization efforts.
• Here is an analysis of the quarter’s outcomes, presented in a balanced manner.

• The progress made by the operational expansion is evidenced by these finals to June 2025, which report a 46% increase in Revenue to £0.83m.
• The loss before tax decreased 32% to £0.457m and year end cash is £0.461m.
• We assume the accelerating trading momentum its maintained, suggesting a 10-12month cash runway at the lower burn rate.

• UMP Healthcare (722 HK) reported soft results for FY25, with revenues/core net profits down 3%/10% YoY, due to a weak consumer spending environment in Hong Kong. 
• Cost-Cutting initiatives helped boost EBITDA margins, with PBT remaining flat despite a decline in revenue; however, a higher effective tax rate resulted in lower profits.
• The company has HKD 330 million in net cash, representing more than 80% of its market capitalization, with a trailing P/E multiple of 12.4x and a dividend yield of 6.7%. 

Key points (machine generated)

• Sanofi is acquiring Vigil Neuroscience for $8 per share, with an additional $2 contingent value right (CVR) based on VG-3927’s commercial sale by 2035.
• Vigil Neuroscience is currently priced at $7.98, presenting a low-risk opportunity for investors to benefit from the CVR as the deal is expected to close soon.
• The CVR’s payout is uncertain due to VG-3927’s early clinical trial status for Alzheimer’s disease, despite Sanofi’s strong financial position and minimal regulatory hurdles.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• I 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: Smart Share Global (EM US), Mayne Pharma (MYX AU), ENN Energy (2688 HK), Soft99 Corp (4464 JP), I Net Corp (9600 JP), Daiseki Eco. Solution (1712 JP).
• Lowest spreads: Bright Smart Securities (1428 HK), Pacific Industrial (7250 JP), Humm Group (HUM AU), Mandom Corp (4917 JP), Seven West Media (SWM AU), Ainsworth Game Technology (AGI AU).

• Saint Bella (2508 HK) achieved 1H25 revenue of RMB 449.5M (up 26% YoY) driven by higher sales from postpartum business (up 25% YoY) as number of postpartum centers increased.
• The company opened 36 stores in 1H25 and average contract value of postpartum recovery sales at all service brands witnessed rise (Bella Isla saw highest increase, up 36% YoY).
• With no major growth hurdles visible for Saint Bella, secular demand in place and with consistent capacity additions it is worth to buy the stock at this point of time.

Key points (machine generated)

• Opus Genetics is a clinical-stage gene therapy company founded in 2021, focusing on inherited retinal diseases.
• The lead program, OPGx-LCA5, is in a Phase I/II study showing vision improvements, with preliminary pediatric data expected in Q3 2025.
• Opus is also developing OPGx-BEST1 for retinal diseases, with a Phase I/II trial starting in late 2025, and has a speculative risk/reward profile.

This article is sourced from an online content aggregator through publicly available sources and is displayed below for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Acadia Healthcare faces mounting pressure from Khrom Capital Management LLC, a 5.5% shareholder, which has launched an activist campaign urging the company to explore strategic alternatives, including a potential sale.
• This comes amid prolonged underperformance, a burdensome debt profile, and investor dissatisfaction.
• In a strongly worded letter to Acadia’s board, Khrom pointed to a 71% stock price decline over the past three years and echoed calls from another activist, Engine Capital, which recently took a 3% stake.

• Mufemilast will face fierce competition and price reduction due to NRDL negotiation for related indications. For autoimmune disease drugs, overseas market space and ceiling are much higher than in China.
• Hemay022’s market space is narrower than pan HER2 inhibitors and HER2 ADC. There is still uncertainty in efficacy/safety profile. Hemay022 will face challenges in terms of commercialization after market launch.
• The current valuation logic for innovative drugs in China has changed. Without decent licensing cooperation, Hemay’s valuation will be discounted. Valuation of Hemay should be lower than peers.

• In a bold strategic step, Halozyme Therapeutics announced its agreement to acquire Boston-based drug delivery innovator Elektrofi for $750 million in cash, with up to $150 million more in milestone payments tied to three product approvals.
• The acquisition is expected to close in Q4 2025 and is being financed through a mix of cash reserves and debt, raising Halozyme’s net leverage to approximately 2x net debt-to-EBITDA.
• The move complements Halozyme’s existing ENHANZE platform with Elektrofi’s Hypercon technology, which enables ultra-high biologic concentrations of 400–500 mg/mL—4–5x above current industry norms—allowing for subcutaneous administration of large-molecule drugs in smaller volumes.