Daily Brief Health Care: Chugai Pharmaceutical, Cigna Corp, Shanghai MicroPort MedBot Group and more

In today’s briefing:

TOPIX Rebalance: End-July Rebal Is $3.5bn One-Way – Some Big Sell Names
Blue Tower Asset Management Q2 2022 Commentary
MicroPort MedBot (2252.HK)- Lack an “anchor” for Valuation Due to Uncertainties in Commercialization

TOPIX Rebalance: End-July Rebal Is $3.5bn One-Way – Some Big Sell Names

The July-end TOPIX FFW Rebalance is larger than most expected, I believe.
There should be US$3.5bn one-way, with only a couple of major buy names.
Chugai Pharmaceutical (4519 JP), Canon Inc (7751 JP), Unicharm Corp (8113 JP), Kubota Corp (6326 JP), Asahi Group Holdings (2502 JP), and Shiseido (4911) are each US$170mm+ to sell.

Blue Tower Asset Management provides portfolio management services to individuals, financial advisers, and institutions.
With Q2 2022, the Blue Tower Global Value strategy composite returned 12.09% net of fees in the second quarter (12.41% gross) against a decline of -15.66% in the MSCI ACWI index.
The sanctions on Russian investments have dramatically increased the internal dispersion of our composite performance results.

To achieve massive sales expansion, surgical robots and consumables have to reduce price largely to enter NRDL reimbursement. This is at odds with expectations that they will generate high profits.
The actual market share gained and revenue generated by Medbot may fall far short of expectations, resulting in an inability to cover years of rapid growth in R&D/selling/administrative expenses.
Due to uncertainties on commercialization and profitability outlook, Medbot lacks an “anchor” for valuation.The large fluctuation in share price would continue. Surgical robots are not a good business for now.

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