Daily Brief Health Care: Hangzhou Kangji Medical Instrument Co., Ltd., Kuros Biosciences, Centene Corp, Acotec Scientific Holdings, Cofoe Medical Technology, Nurexone Biologic, Duality Biotherapeutics, Fisher & Paykel Healthcare Cor, Mani Inc and more

• Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK)’s IFA opines that the consortium’s HK$9.25 privatisation offer is fair and reasonable. The vote is on 10 November. 
• I previously argued that the vote carries risk due to a solid interim, the imminent surgical robot growth story, unfavourable AGM voting patterns, and emerging retail opposition.
• However, the risk has been lowered due to Bin Yuan and LYFE no longer being shareholders, along with the peer derating. At the last close, the gross/annualised spread is 3.7%/22.0%.

• Kuros Biosciences is rapidly transitioning into a high-growth, profitable medical device company, driven by the commercial success of its MagnetOs bone graft portfolio.
• Compelling Level 1 clinical data for MagnetOs, demonstrating superiority over the current gold standard (autograft) in challenging spinal fusion procedures, serves as a powerful commercial driver and solidifies its competitive advantage.
• Having recently achieved its first operating profit and positive EBITDA, the company is at a financial inflection point, with a clear path to sustained profitability and cash flow generation, significantly de-risking the investment profile.

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Key points (machine generated)

• CNC has withdrawn financial guidance due to a $1.8 billion shortfall from the Affordable Care Act and rising Medicaid costs, causing stock price to drop to $32.
• Market perception indicates a permanent earnings impairment at 4.5 times the projected adjusted EPS of $7.17 for 2024, but EPS could rebound to at least $7.06 in 18 to 24 months.
• CNC, the largest managed care organization for U.S. government-sponsored health insurance, serves 27.9 million members and has shifted its capital allocation strategy towards share repurchases since 2022.

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• Acotec Scientific is a leading domestic player in China’s drug-coated balloon (DCB) market, poised to benefit from the growing prevalence of vascular diseases and the increasing adoption of minimally invasive procedures.
• The company has demonstrated a strong growth trajectory, with robust revenue and net income increases, and is expanding its product pipeline and international presence, notably through a strategic partnership with Boston Scientific.
• Key risks revolve around China’s volume-based procurement (VBP) policy, which exerts significant pricing pressure, and increasing competition from both domestic and international medical device manufacturers.

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• The performance fluctuations of Cofoe in recent years are mainly due to the fade of COVID-19 dividend, excessive dependence on marketing/online channels, and insufficient investment in its own R&D.
• Yuyue’s internationalization is more mature as products are more recognized by overseas customers. Yuyue has been able to achieve internationalization through independent branding/OBM, while Cofoe is lagging behind.
• The model of “emphasizing marketing over R&D” is hard to last. We think reasonable valuation of Cofoe could be lower than Yuyue and may also be lower than Winner Medical.

• NurExone (OTC-NRXBF) is a preclinical stage biotech company that is developing a breakthrough treatment for spinal cord injuries that has the potential to dramatically improve lives.
• The technology involved also has the potential to more efficiently get other treatments to the needed area.
• The company announced that tests on its signature product, ExePTEN, showed that it produced a reproducible, dose-dependent therapeutic effect in an eye model of glaucoma.

• Duality Biotherapeutics (9606 HK)‘ s raised around US$200m in its Hong Kong listing in April 2025. The lockup on its cornerstone and pre-IPO investors is set to expire today.
• Duality is a biopharma company focused primarily on the independent discovery and development of antibody-drug conjugate (ADC) assets.
• In this note, we will talk about the lockup dynamics and possible placement.

• Context: The Fisher & Paykel Health (FPH AU) vs. ResMed Inc (RMD AU) price-ratio has deviated more than two standard deviations from its one-year average, presenting a potential relative value opportunity.
• Highlights: Going long Fisher & Paykel Health (FPH AU) and short ResMed Inc (RMD AU) targets a 7% return. However, ResMed is more attractively valued on PEG ratio basis.
• Why Read: Essential for quantitative traders seeking mean-reversion opportunities, with detailed execution framework, risk management protocols, and historical simulation showing the statistical basis for this relative value play.

• Mani Inc (7730 JP) FY25 revenue increased 5% YoY to ¥29.9B while Operating margin deteriorated to 27.3%, down 210bps. Dental segment reported the worst margin decline from 18.7% to 11.7%.
• The company said that the impact voluntary recall of dia-burs in China has subsided in FY25, and expects a full recovery in sales from FY26.
• FY26 guidance expect revenue rise 9% to ¥32.8B with impact of recalls subsiding. Profits and margins are also expected to witness a significant uptick.