Daily Brief Equity Bottom-Up: Jiangsu Hengrui Medicine (600276 CH) Signs Deal With Merck For a New Class of Cardiovascular Drug and more

• Jiangsu Hengrui Medicine (600276 CH) and Merck entered into an exclusive license agreement for HRS-5346, an investigational oral small-molecule drug. The collaboration positions Merck to challenge two other pharma giants.
• Hengrui has granted Merck exclusive rights to develop, manufacture, and commercialize HRS-5346 worldwide for an upfront payment of $200M. Hengrui is also eligible to receive milestone payments up to $1.77B.
• Hengrui reported strong 19% YoY revenue growth during 9MFY25 to RMB 20B, while profits rose 6% YoY to RMB 5B. The company will report full-year 2024 result on March 31.

• Transformers & Rectifiers (India) Ltd (TRIL IN)  is a prominent player in the manufacturing of transformers and reactors with the largest private sector facility in India producting diverse product range
• With three transformer manufacturing facilities, the company has embarked on a capex spree, with planned additions of ~30,000-35,000 MVA. 
• Taking about forensics, the company has faced concerns with regarding liquidity, issuance of a stop-deal notice and stop payment by a major customer, write offs, etc.

• Tesla’s highly anticipated trial launch of its Full Self-Driving (FSD) system in China has suffered a setback, as some users report not receiving the feature update due to a delay in regulatory approval.
• Tesla China said Monday that it is working to secure government approval for both software and hardware under new national guidelines issued by China’s Ministry of Industry and Information Technology and the State Administration for Market Regulation.
• The company said the trial will resume once all preparations are complete.

• Walgreens Boots Alliance has seen their stock price decimated over the last decade due to competition from E-commerce retailers like Amazon.
• Sycamore Partners is taking Walgreens Boots private in a $24 billion leveraged buyout, their first foray into the healthcare sector.
• Major private equity firms have been cautious of retail buyouts due to potential bad publicity and shifting priorities towards other investments.

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• The Wendy’s Company reported its fiscal 2024 fourth quarter and full-year results, highlighting a range of strategic initiatives and financial metrics.
• The company experienced a 5.4% increase in global system-wide sales on a constant currency basis during the fourth quarter, driven largely by same-restaurant sales growth in the U.S. and internationally.
• This was bolstered by innovative menu offerings and strategic partnerships, such as the collaboration with Paramount on SpongeBob’s 25th anniversary, which contributed significantly to sales.

• US and China are fiercely competing in the development of humanoid robots, with China’s DeepSeek V3 setting new standards in AI technology on Apple’s Mac Studio.
• A Dell executive cautions against the hype surrounding AI, emphasizing the critical need for a strategic approach and proposing a two-question reality check at the AI EXPO 2025.
• Vietnam responds to US trade surplus and tariff concerns by reducing tariffs and approving StarLink, showcasing the country’s efforts to address economic challenges.

• Qualys, Inc., a pioneer in software-as-a-service (SaaS) security, recently shared its fourth-quarter 2024 financial results and strategic updates, marking its 25th anniversary.
• The company’s CEO, Sumedh Thakar, emphasized the transformation and rebranding efforts that have strengthened Qualys’ position in the cybersecurity sector.
• Their platform, initially focused on vulnerability scanning, has evolved into a comprehensive risk analytics and quantification solution, leveraging AI to provide an integrated risk management workflow for customers.

• Brad Jacobs’ company QXO acquired Beacon Roofing for $11 billion in all cash deal
• Beacon Roofing is a distributor specializing in roofing and waterproofing products.

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• Rava has enlisted Blackstone MDs to spearhead growth in Japan, highlighting their intent to expand operations in the region.
• GreenFort and Gaw have partnered to explore land lease opportunities in Australia, with a focus on showcasing their collaboration on MTD TV.
• SC Capital, based in Singapore, has successfully closed their sixth APAC fund at $900M, demonstrating their commitment to making opportunistic investments in the region.

• Consumer discretionary wallets for alcoholic beverages are less than 2% and affected by economic pressures
• Gen Z is moderating their alcohol consumption but still engaging in zebra striping behavior
• Socializing dynamics are shifting towards more at-home and third space occasions, leading to the rise of RTDs and diverse formats in the industry

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only.