Daily Brief Health Care: Centene Corp, Cigna Group, Elevance Health , Gossamer Bio Inc, Hansoh Pharmaceutical Group , Kaken Pharmaceutical, Medicus Pharma , Molina Healthcare and more

• Centene Corporation has reported its third-quarter financial results for 2024, showcasing a nuanced performance that reflects both strengths and ongoing challenges within its operations.
• The company achieved an adjusted diluted EPS of $1.62, which exceeded prior expectations.
• This outperformance was partly due to tax benefits projected for later in the year being realized earlier, as well as some accelerated income tax benefits.

• Cigna Group’s third-quarter 2024 earnings was decent and revealed shareholders’ net income of $739 million or $2.63 per share for the quarter.
• Notably, this figure was affected by a significant non-cash after-tax net realized investment loss of $1 billion related to VillageMD, resulting in a write-down of assets and an impairment charge.
• This has been excluded from adjusted operating income and earnings per share.

• Elevance Health’s third-quarter earnings reveal a mixed performance influenced by elevated medical costs, particularly in the Medicaid sector.
• The adjusted diluted earnings per share came in at $8.37, slightly below the company’s expectations, attributed primarily to elevated medical costs in the Medicaid business.
• Consequently, Elevance Health has revised its full-year guidance downward to an adjusted EPS of approximately $33.

• Gossamer Bio is developing seralutinib for PAH in Phase 3 clinical trials
• Recent changes in C-suite, insider stock purchases, and partnerships with pharmaceutical companies
• Company has ample cash and near-term catalysts for high upside potential in treating PAH, a serious hemodynamic disorder.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Hansoh’s 24H1 results beat the expectations. Product revenue (excluding BD cooperation revenue) would achieve double-digit growth in 2024 full year, among which revenue of Ameile would maintain 20%+ YoY growth.
• Total product revenue would be about RMB14-14.5 billion in the future. Based on P/S of 5, market value is RMB70-72.5 billion, which is the lower end of market value range.
• There is still certain gap in terms of R&D capability/globalization outlook between Hansoh and those leading biotech in China. So, we think valuation of Hansoh would be lower than them.

• Kaken Pharmaceutical (4521 JP) reported 42% YoY jump in revenue during H1FY25 on one-time upfront payment, while operating profit also witnessed hefty growth of 255% YoY.
• Top selling products are impacted by NHI drug price revision and increasing competition. The company has reiterated FY25 guidance. Profitability is expected to deteriorate sequentially in H2.
• The respite from one time receipt will not compensate for the revenue loss from the negative impact from NHI drug price revision and generic competition for top selling products.

• Medicus Pharma Ltd. (TSXV:MDCX) is focused on acquiring or partnering with life-science companies that are developing novel therapeutics for unmet healthcare needs that are already in the clinical trial stage.
• Management plans fast-track these specific therapies through FDA clinical trials toward commercialization.
• The company’s first acquisition was SkinJect, which has a novel, patented transdermal patch for the treatment of BCC.

• Molina Healthcare’s recent earnings report for the third quarter of 2024 reflects a mixed performance with certain financial achievements offset by ongoing challenges.
• The company reported adjusted earnings per share of $6.01, aligning with expectations, on $9.7 billion of premium revenue.
• Despite facing upward pressure on medical costs, resulting in a consolidated medical care ratio (MCR) of 89.2%, Molina Healthcare maintained a robust adjusted pre-tax margin of 4.5% (3.4% after tax), demonstrating a balanced business portfolio.