In today’s briefing:
- [Japan M&A] CareNet (2150 JP) – Opaque LBO/MBO Garners New Attention from Existing Shareholder
- CareNet (2150 JP): Kaname Capital Is Potentially a Headache for EQT
- Xtalpi Placement: Opportunistic Raise but Thematically Hot, past Deals Did Well
- Akeso Biopharma (9926 HK) Placement – We Are Now at a Critical Point
- Innovent Biologics (1801 HK) – Time to Take Profits (Bearish)
- GenFleet Therapeutics (劲方医药) Pre-IPO: Leadership in KRAS G12D Target
- Akeso Inc (9926 HK): Pipeline Prospects Shine on Positive Trial Results; Placement Looks Attractive
- Viatris Inc.: Will Its Efforts Towards Cost Management Result In Near-Term Margin Expansion?
- Globus Medical: Nevro Acquisition & Integration Strategy Is a Key Component Influencing Its Future Growth!
- Elanco’s Ascend Initiative: Can AI & Digitization Help Improve Their Profitability?
[Japan M&A] CareNet (2150 JP) – Opaque LBO/MBO Garners New Attention from Existing Shareholder
- When EQT launched its deal for Carenet Inc (2150 JP) two weeks ago, I thought it opaque, and light, and strangely lacking in information which should be there.
- It has not gotten clearer, though three days ago, the largest foreign shareholder as of the announcement reported they had lowered their position by 3.77% (4.22% of votes).
- Then yesterday, someone else reported they had gone above 5%. The data implied in that filing suggests this may have legs. I’d buy through terms.
CareNet (2150 JP): Kaname Capital Is Potentially a Headache for EQT
- Kaname Capital reported a 5.80% ownership ratio in Carenet Inc (2150 JP). Most of the shares were purchased on August 18 and 19, i.e., after the announcement of the offer.
- Kaname has a recent history of agitating for a bump in the Proto Corp (4298 JP) tender offer. Kaname failed to prevent Proto from being privatised.
- EQT will initially take a wait-and-see approach. If Kaname acquires a 10% stake, EQT will start to worry, but it has several options to respond.
Xtalpi Placement: Opportunistic Raise but Thematically Hot, past Deals Did Well
- XtalPi Holdings (2228 HK) is looking to raise up to US$300m in a primary placement.
- The deal is a small one in ADV terms, at 1.6 days, despite leading to a 5.7% increase in shares outstanding.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Akeso Biopharma (9926 HK) Placement – We Are Now at a Critical Point
- OS benefit has been observed in HARMONi-A study, which however is just a small part of the PD-1/VEGF commercial landscape. The main battlefield is still the head-to-head trial against Keytruda.
- We think the current high valuation of Akeso has begun to price in the successful HARMONi-2 results to some extent, which however is not a done deal.
- Investors may need to be cautious about this placement, especially when the founders of Akeso actually chose to reduce their positions. Market cooling down may not be far off.
Innovent Biologics (1801 HK) – Time to Take Profits (Bearish)
- Innovent Biologics published strong results that were ahead of expectations.
- Despite the upgrades, Innovent’s plus 300 PE multiple will only unwind to 53 at the end of 2027.
- Gauging from the disappointing results and poor share price performance from the two GLP-1 majors, the outlook for GLP-1s has deteriorated.
GenFleet Therapeutics (劲方医药) Pre-IPO: Leadership in KRAS G12D Target
- GenFleet, a China-based near-commercial stage biotech company, is looking to raise around USD 250 million via a Hong Kong listing. CITIC Securities is the sole sponsor.
- In this note, we look at the company’s core products, GFH925 and GFH375.
- We also look at the company’s pre-IPO investors and management team.
Akeso Inc (9926 HK): Pipeline Prospects Shine on Positive Trial Results; Placement Looks Attractive
- Akeso Biopharma Inc (9926 HK) announced the placement of 23.6M shares for subscription at HK$149.54 per share.
- The company intends to use most of the placement proceeds for R&D of innovative pipeline, platform, building of infrastructure and facilities, and commercialization of existing approved products.
- Expanded indications of cadonilimab and ivonescimab, the successive positive data readouts, approvals, and continuous commercialization expansion efforts into global markets augur well.
Viatris Inc.: Will Its Efforts Towards Cost Management Result In Near-Term Margin Expansion?
- Viatris delivered a strong second quarter for 2025, despite some notable challenges.
- The company achieved 3% divestiture-adjusted operational revenue growth, propelled by strong performance in Europe and Greater China.
- Viatris’s diversified global business allowed it to overcome disruptions such as the impact from its Indore manufacturing facility, which negatively affected revenues.
Globus Medical: Nevro Acquisition & Integration Strategy Is a Key Component Influencing Its Future Growth!
- Globus Medical’s recent earnings report presents a complex landscape shaped by its strategic acquisitions and ongoing efforts to streamline and integrate its expansive portfolio.
- The company reported second-quarter sales of $745 million, marking an 18.4% increase over the previous year.
- This growth was partly attributable to the recent acquisition of Nevro, which contributed $94.6 million in revenue.
Elanco’s Ascend Initiative: Can AI & Digitization Help Improve Their Profitability?
- Elanco Animal Health’s earnings for the second quarter of 2025 reveal a nuanced landscape of growth and challenges.
- On the positive side, Elanco experienced strong growth in its organic constant currency, posting an 8% increase and exceeding guidance across revenue, adjusted EBITDA, and adjusted EPS.
- This growth was largely fueled by the success in the U.S. Pet Health sector, which surged by 11%, marking the eighth consecutive quarter of underlying growth.
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