In today’s briefing:
- HLB Merger Arb Setup: How Cancellation Risk Could Lead to Extra Profits
- Daiichi Sankyo (4568 JP): Strong FY25 Result; Guidance Initiated for FY26; ¥200B Buyback Announced
- BioMérieux: Expansion of BIOFIRE Instrument Placements to Maintain A Stable Revenue Stream…
- Chugai Pharmaceutical (4519 JP): Hemlibra, Actemra, And Alecensa Shine In 1Q25; Guidance Reiterated
- Eurofins Scientific: Initiation of Coverage- Is the Market Missing a Hidden Growth Revival Story?
- Sartorius Stedim Biotech – Innovation & Product Launches As A Key Driver Of Its Growth Strategy!
HLB Merger Arb Setup: How Cancellation Risk Could Lead to Extra Profits
- We go long on HLB LS, short on HLB Inc, and close the short once HLB LS converts. If the deal falls through, there’s potential for extra profits.
- The view that the merger’s worse for HLB LS is gaining support, making it likely the spread could go negative, though there’s risk, the chances are pretty high.
- The 4% spread is the floor for arb profit, and cancellation risk could add extra gains. This angle deserves serious consideration right now.
Daiichi Sankyo (4568 JP): Strong FY25 Result; Guidance Initiated for FY26; ¥200B Buyback Announced
- Daiichi Sankyo (4568 JP) reported strong FY25 results, with revenue and operating profit increasing 18% and 57%, YoY, to ¥1,886B and ¥332B, respectively. Performance was mainly driven by Enhertu (+45%).
- The company expects FY26 revenue to increase 6% YoY to ¥2,000B. Core operating profit and operating profit are expected to increase 12% and 5%, YoY, respectively to ¥350B.
- The company has announced a ¥200B buyback plan to acquire a maximum of 80M shares from May 1, 2025 to March 24, 2026.
BioMérieux: Expansion of BIOFIRE Instrument Placements to Maintain A Stable Revenue Stream…
- During the recent financial year, bioMérieux reported strong financial results with several highlights and areas of concern.
- The company achieved significant progress in its GO•28 strategic plan, demonstrating robust sales growth, profitability improvement, and advancements in sustainability efforts.
- However, challenges remain in certain segments, such as declining sales in specific divisions and the potential impact of recent acquisitions.
Chugai Pharmaceutical (4519 JP): Hemlibra, Actemra, And Alecensa Shine In 1Q25; Guidance Reiterated
- Chugai Pharmaceutical (4519 JP) reported 22% YoY rise in core revenue in 1Q25, as overseas sales grew 55% YoY while domestic market remain subdued.
- Hemlibra drove overseas sales. Actemra and Alecensa witnessed growth in both overseas and domestic markets.
- Chugai reiterated 2025 guidance of revenue and net profit growth of 2% and 3%. The progress has been satisfactory with major line items achieving 24–25% of the full-year guidance numbers.
Eurofins Scientific: Initiation of Coverage- Is the Market Missing a Hidden Growth Revival Story?
- Eurofins Scientific S.E. presented its fiscal year 2024 performance, outlining both achievements and areas of focus for future development.
- The results reveal a nuanced performance with some segments outperforming, while others faced challenges.
- On a positive note, Eurofins reported robust financial growth, with revenues increasing by 6.7% and an adjusted EBITDA margin of 22.3%, representing a 180 basis point improvement year-on-year.
Sartorius Stedim Biotech – Innovation & Product Launches As A Key Driver Of Its Growth Strategy!
- The earnings of Sartorius Stedim Biotech for the first quarter of 2025 presents a mixed yet intriguing scenario for potential investors.
- The company reported a notable 6.5% increase in sales revenue in constant currencies, with the growth predominantly driven by a robust performance in its recurring consumables business.
- The Bioprocess Solutions division, in particular, saw a 10% increase in sales revenue, benefiting from strong double-digit growth in consumables while the equipment business remained subdued.
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