Daily Brief Health Care: Eoflow, Innovent Biologics Inc, Bumrungrad Hospital Pub Co, Tenax Therapeutics , Quoin Pharmaceuticals , Basilea Pharmaceutica Ag, Cytokinetics Inc, Grifols SA, Arrowhead Pharmaceuticals and more

• Eoflow announced Insulet had filed an injunction on 3 July against Eoflow and Menarini requesting a ban on the manufacture, sale, distribution, and use of EOPatch in 17 European countries.
• Given that Eoflow should have reported this event earlier, this is likely to result in further loss of confidence on Eoflow by many investors in the near term. 
• If Eoflow is able to complete its rights offering (albeit lower amount than proposed), this could boost its chances to become a formidable competitor to Insulet on a global basis. 

• Dupert, a drug for the special treatment of non-small cell cancer has been approved by the NMPA.
• In 2022, China recorded the highest number of new cancer cases, and their exceptional high incidence of smoking is of particular concern.
• Innovent’s portfolio of nine oncology drugs is very attractive in the biggest cancer market.

• Bumrungrad Hospital Pub Co (BH TB) has reported mixed performance in 2Q24, with revenue growing 3% YoY to THB6,331M. However, bottomline growth outpaced the revenue growth.
• We are cautiously optimistic about the future growth prospect of the company as well as valuation multiple expansion prospect due to intensifying competition in attracting international patients.
• In recent times, revenue contribution from international patients has not changed much and is hovering around a range of 53–55%, significantly lower than pre-COVID time’s range of 64–67%.

• Tenax has licensed the calcium sensitizer/K-ATP activator levosimendan and is pursuing approval for an indication in Group 2 Pulmonary Hypertension in the US and Canada.
• The drug has been approved in over 60 countries with 35 published trials supporting its safety and efficacy and has over 1 million patient exposures.
• In January 2018 Tenax announced a new indication for Levo and met with the FDA to confirm trial design.

• With a strategy to design products to treat multiple indications, QNRX intends to study QRX003 for several conditions & build a database supporting its efficacy and safety as a treatment for a range of dermatological conditions.
• The company plans to begin a clinical study of QRX003 in Peeling Skin Syndrome (PSS), a rare autosomal disease that has no approved treatment.
• By developing its assets for multiple indications, QNRX aims to increase the potential for an expedited regulatory pathway, attain economies of scale on R&D, sales & marketing and other costs and potentially broaden the target market if/when commercial sales launch.

The uptrend in Cresemba sales in Asia-Pacific and China triggered the receipt of Basilea’s third milestone payment of US$1.25m from Pfizer for the region (in addition to the March and May 2024 milestones). Asia-Pacific and specifically China have strategic importance as China comprises c 20% of the market opportunity for Cresemba. In-market sales for Cresemba remain robust globally and revenues have grown 24% y-o-y to US$489m during the 12 months ending March 2024. We expect Basilea to receive over CHF35m in milestones in H224 and for its overall activity to intensify in the next few weeks with the launch of the first Phase III fosmanogepix trial (in candidemia and invasive candidiasis) and the expected finalisation of a Zevtera US commercial partner, both significant inflection points.

• Cytokinetics recently reported their Second Quarter 2024 Earnings, marked by progression in their clinical development programs, particularly focusing on their pipeline’s most advanced candidates, aficamten and omecamtiv mecarbil, in various heart-related conditions.
• This update provides insights crucial for evaluating the health of the company’s R&D efforts, potential market reach, and overall strategic trajectory, with implications for investment considerations.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Arrowhead Pharmaceuticals recently discussed its fiscal 2024 third-quarter performance and provided updates on its drug pipeline and commercial strategies, suggesting a pivotal phase in its growth trajectory.
• As the pharmaceutical company aims to augment its pipeline to include around 20 clinical or marketed products by 2025, it focuses heavily on the development and potential market launch of its flagship product, plozasiran, targeting familial chylomicronemia syndrome (FCS) and other conditions associated with high triglycerides.
• Baptista Research looks to evaluate the different factors that could influence the company’s price in the near future and attempts to carry out an independent valuation of the company using a Discounted Cash Flow (DCF) methodology.

• Bloomberg reported that Brookfield (BN CN) is seeking bank backing for up to €9.5 billion in debt to facilitate a potential take-private acquisition of Grifols SA (GRF SM).
• Considering a €10.18/share possible offer price (institutionals are seeking €12), the A shares are trading at a 7.3% gross spread and are pricing a 62.5% possibility of deal completion.
• The preferreds trading at 17.5% discount vs ordinary shares should be favored in case of takeover, with Long B shares/short A shares my preferred way to get involved.

• On August 8, 2024, Arrowhead Pharmaceuticals, Inc. (ARWR) announced financial results for the third quarter of fiscal year 2024 that ended June 30, 2024 and provided a business update.
• Arrowhead recently presented preclinical data on ARO-INHBE and introduced ARO-ALK7 at its summer seminar on obesity/metabolic disorders.
• We anticipate both programs entering the clinic in 2025.