In today’s briefing:
- Suncorp (SUN AU): Tokio Marine’s Rumoured Preferred Acquisition Target
- TherapeuticsMD Strategic Review: Potential Upside Amid Litigation and Royalty Valuation Discrepancies with Mayne Pharma
- SkyCity Entertainment (SKC AU): Two NBIOs. Two Rejections
- Omniscient Neurotechnology Pty Limited: Making Brain Data Actionable at Scale
Suncorp (SUN AU): Tokio Marine’s Rumoured Preferred Acquisition Target
- The FT reports that Tokio Marine Holdings (8766 JP) has identified Suncorp (SUN AU) as its preferred acquisition target. Tokio Marine has previously flagged an interest in Australia.
- A potential acquisition would likely require approvals from FIRB, APRA and the ACCC. While the process can be lengthy, the approvals should be forthcoming.
- My analysis suggests a potential offer price range of A$20.00 to A$21.50 per share, a 3.3% to 11.0% premium to the last close of A$19.37.
TherapeuticsMD Strategic Review: Potential Upside Amid Litigation and Royalty Valuation Discrepancies with Mayne Pharma
- TherapeuticsMD trades at a 50%+ discount to its royalty-based asset value, with Rubric Capital holding a 25.5% stake.
- TXMD’s strategic review aims to unlock asset value, hindered by high G&A expenses and Mayne Pharma litigation.
- Mayne Pharma values TXMD royalties significantly higher than TXMD’s estimates, suggesting potential undervaluation of assets.
SkyCity Entertainment (SKC AU): Two NBIOs. Two Rejections
- Rumours swirled this morning that Oaktree Capital Management was running a ruler over gaming/hospitality play SkyCity Entertainment (SKC AU).
- In response to media speculation, SkyCity announced it had received two NBIOs in May: one at NZ$0.70/share from Oaktree; and one at NZ$0.75/share from “another party”.
- The AFR reckons the mystery buyer is Sam Arnaout’s Iris Capital, the owner of Casino Canberra and Alice Spring’s Lasseters Hotel Casino. SkyCity rejected both Offers.
Omniscient Neurotechnology Pty Limited: Making Brain Data Actionable at Scale
- Making brain data actionable at scale. Founded in 2019 by neurosurgeon Dr. Michael Sughrue and data scientist Dr. Stephane Doyen and led by the former CEO of Facebook Australia and New Zealand, Omniscient commercializes connectomic analysis and visualization, turning scans from MRI machines hospitals already own into patient-specific views of brain wiring and network activity.
- Quicktome received its first FDA clearance in 2021 for turning diffusion MRI into maps of the brain’s white-matter wiring and in 2023 became the first FDA-cleared platform to generate motor, language, and vision correlation maps from resting-state functional (fMRI); it has been used in ~20,000 processed cases at ~100 US hospitals and clinics.
- Neurosurgery alone could become a multi-hundred-million-dollar business.
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