Daily Brief Health Care: Jcr Pharmaceuticals, Baxter International, BB Biotech AG, Biogen Inc, Cardinal Health, Dexcom Inc, Enlivex Therapeutics , IDEXX Laboratories, Mettler Toledo International Inc, Alnylam Pharmaceuticals and more

• Jcr Pharmaceuticals (4552 JP) revenue dropped 23% to ¥33B in FY25, mainly driven by lower contractual payments and reduced renal segment revenue.
• R&D expenses surged 37% YoY to ¥15B resulting in operating loss of ¥6.65B in FY25.
• FY26 guidance signals back in black after one-time hurdles drag performance in FY25.

• Baxter International’s Q1 2025 earnings results reflect a robust performance with notable growth across its operating segments, though not without challenges reflective of the current global economic climate.
• The company reported a 5% increase in sales from continuing operations, exceeding its initial projections of 3% to 4%.
• This performance was driven by substantial contributions from all three segments: Medical Products and Therapies (MPT), Healthcare Systems and Technologies (HST), and Pharmaceuticals.

During 2024 and early this year, the biotech sector began to show signs of a structural recovery, supported by positive clinical data, regulatory approvals, lower interest rates, commercial execution and Johnson & Johnson’s acquisition of Intra-Cellular Therapies, one of BION’s core holdings. However, more recently, the sector has been hit by uncertainties about the macroeconomic outlook, US tariffs and the regulatory policies of the new US administration. This has increased market volatility, especially in the small- and mid-cap companies that BION favours, and the company’s performance has declined accordingly, even though BION’s portfolio holdings are performing well, with several delivering regulatory and clinical milestones. BION’s peers have also struggled in this challenging environment. Yet the news is not all bad. BION’s manager has taken action to protect returns by reducing the number of holdings, increasing the focus on larger-cap names and enhancing risk management. Furthermore, lower valuations have created opportunities for BION to expand exposure to high-quality companies pursuing significant market opportunities via the development of breakthrough therapies. And, most importantly, the biotech sector still has a very positive long-term outlook, with commensurate rewards for those willing to wait out near-term volatility.

• Biogen Inc. provided a mixed set of results in its first quarter of 2025, revealing both opportunities for its growing portfolio and challenges with its traditional business lines.
• Starting with the positives, the company has made significant strides with its newer products, contrasting its historically dominant but declining multiple sclerosis (MS) portfolio.
• The newer products, including rare disease drugs like ZURZUVAE, LEQEMBI, and VUMERITY, now account for approximately 45% of Biogen’s product revenue.

• Cardinal Health, Incorporated reported robust third-quarter fiscal year 2025 results, demonstrating resilience and growth across its business segments.
• The company’s performance was particularly driven by strong utilization trends and execution in its Pharmaceutical and Specialty Solutions segment, as well as growth from three other businesses grouped under “Other.” The positive financial outcomes led Cardinal Health to raise its fiscal year 2025 EPS guidance.
• 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.

• DexCom, Inc. reported its first-quarter 2025 earnings, demonstrating a commendable 14% organic revenue growth from the previous year.
• The U.S. market drove much of this growth, achieving a 15% increase in revenue, fueled by robust demand and broader access to their continuous glucose monitoring (CGM) systems.
• DexCom’s strategic focus on expanding their prescriber base and enhancing commercial reach has begun to manifest in increased customer acquisition, particularly in the type 2 diabetes sector, where their coverage has expanded significantly.

• Enlivex Therapeutics is a clinical-stage biotech company developing Allocetra, an allogeneic cell therapy for inflammatory diseases.
• Allocetra is manufactured from donor- derived mononuclear cells induced to an apoptotic state, which reprogram proinflammatory macrophages back to a homeostatic state.
• Enlivex has clinical studies in sepsis, knee OA, basal thumb OA, TMJ OA, and psoriatic arthritis.

• IDEXX Laboratories reported its first-quarter 2025 financial results, revealing a mixed performance with notable areas of strength as well as challenges.
• Overall, IDEXX achieved a 5% organic revenue growth, a figure backed by a 4.5% increase in CAG Diagnostics recurring revenues despite facing a 1.5% headwind from fewer equivalent days.
• The company’s veterinary software and diagnostic imaging revenues were particularly strong, showing a 9% organic gain, highlighting robust demand in this segment.

• Mettler-Toledo International Inc. reported its first quarter 2025 financial results, revealing both challenges and opportunities for investors considering this precision instrument and service provider.
• The company’s performance was characterized by diverse regional trends, product line variability, and external economic influences, such as global trade uncertainties and tariffs.
• Positive aspects highlighted in the earnings call include solid growth in the Laboratory segment, with Mettler Toledo benefiting from recent innovations in products like balances, titrators, and thermal analysis instruments.

• Alnylam Pharmaceuticals recently reported its first-quarter 2025 earnings, providing a comprehensive overview of the company’s financial performance, strategic initiatives, and future outlook.
• Here is a neutral analysis of the company’s investment case and key results.
• During the quarter, Alnylam achieved $469 million in net product revenues, a significant 28% growth year-over-year.