Daily Brief Health Care: Huge Dental, EBOS Group , Haemonetics Corp, Merit Medical Systems, Sareum Holdings, LENSAR , Teladoc Health, Inc., Nurexone Biologic, Perrigo, SIGA Technologies and more

• HD as a leading dental materials player in China, has achieved robust topline growth over the track record period, driven by its core product lines and favorable industry tailwinds
• The company generates most of its revenue from the Chinese market, relying heavily on a distribution-led strategy for market expansion.
• Some areas of concern include signs of a slowdown in growth and potential margin compression if the shift in product mix continues.

• Ebos Group Ltd (EBO NZ) aims to raise around US$122m in order to partly fund its acquisition of SVS Veterinary Supplies (SVS).
• This will complement the company’s strategy of investing for growth and the second acquisition done in 2H25.
• In this note, we comment on the deal dynamics and run the deal through our ECM framework.

• Haemonetics Corporation reported its third-quarter fiscal 2025 financial results, indicating both strengths and challenges within its various business segments.
• The company achieved a revenue of $349 million, reflecting a 4% increase on a reported basis but remaining flat organically.
• Adjusted earnings per share improved by 14% to $1.19.

• Merit Medical Systems reported robust financial performance in the fourth quarter of 2024, displaying notable revenue and profit growth.
• The company recorded total revenue of $355.2 million for Q4, reflecting a 9% increase year-over-year on a GAAP basis and 10% on a constant currency basis.
• This exceeded Merit Medical’s growth expectations, which it had projected at 6% to 9%.

Sareum Holdings’ H125 results (to 31 December 2024) summarised a period of operational progress and an improved capital position, with successful fund-raising. Since the completion of the Phase I trial for lead asset SDC-1801 in June 2024, the focus has been on formulation optimisation and drug product manufacturing for the toxicology study, which we believe will now commence in May 2025, with completion likely in Q4 CY25 (Q2 CY25 previously). We expect this to extend the timeline for a Phase II trial start into 2026 although, with period-end cash of £4.1m, inflows from the subsequent private placement (£1.07m) and R&D credits (£0.2m), Sareum appears sufficiently funded to reach this milestone. We see the recent licence acquisition for SRA737 as a positive development as it adds another clinical-stage asset to the portfolio, which should help manage downside risks related to a more concentrated clinical pipeline.

• Lensar is being acquired by Alcon for $14/share in cash plus a CVR worth up to $2.75/share.
• The CVR payout requires Lensar’s systems to reach 614,000 procedures across 2026 and 2027, needing a 27% CAGR.
• North Run, holding 56% economic ownership, will receive CVRs only on common shares and warrants, not preferred shares.

• Teladoc Health, Inc. concluded 2024 with mixed financial and operational outcomes while emphasizing execution against its core strategic priorities.
• The company generated full-year revenue of $2.6 billion, a 1% decline compared to 2023, primarily due to challenges in its BetterHelp segment.
• However, adjusted EBITDA rose to $311 million, reflecting a 12.1% margin, supported by cost savings and productivity initiatives.

• 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 it obtained additional funding and released its 2024 financial results.

• Perrigo Company plc, a prominent consumer self-care products provider, discussed its third-quarter 2024 financial performance, offering insights into both the positives and challenges faced by the company.
• A significant focus of the call was Perrigo’s “One Perrigo” initiative aimed at streamlining operations and enhancing agility across its global platform.
• This restructuring effort includes upgrading organizational structure and technology to enhance efficiency and potential growth.

SIGA Technologies has declared a special dividend of $0.6 per share, marking a fourth straight year of dividend declarations. The outlay is at a similar level to the one paid in March 2024 ($43m based on current shares outstanding) and will be payable on 15 May 2025 to shareholders of record on 29 April. The strong end-FY24 cash position ($155.4m; no debt) suggested that a dividend payment announcement was widely anticipated, although we note that the amount was higher than the $0.5/share we had estimated. The dividend translates to a best-in-class payout ratio of c 72% (on FY24 EPS of $0.83) and a healthy dividend yield of c 10%. Given the recent market uncertainty, which has challenged capital returns, we believe this secondary income stream adds to SIGA’s appeal as an investment option among biopharma companies.