In today’s briefing:
- Karuna Therapeutics Inc (KRTX.US) – This Company Is Worth Bristol Myers Squibb Paying a High Premium
- Karuna Therapeutics (KRTX US): BMS Acquisition Offers Decent Short-Term Trading Opportunity
- Agilent Technologies: Stabilization Of Demand In China & 5 Other Major Drivers
- Henry Schein Inc: Investment in Future Growth and Specialty Business Outlook! – Major Drivers
- Intra-Cellular Therapies Inc.: Initiation Of Coverage – 6 Major Drivers
- MariMed, Inc. – Poised for Growth in 2024
- Penumbra Inc: Initiation Of Coverage – A Tale Of Cautious Innovation! – Major Drivers
Karuna Therapeutics Inc (KRTX.US) – This Company Is Worth Bristol Myers Squibb Paying a High Premium
- Due to large patient population and strong clinical demand for new therapies, the future commercialization prospects of effective drugs in the field of schizophrenia would be relatively certain and promising.
- Our forecast on the peak sales of KarXT is about US$10 billion. In other words, at this peak sales level, BMS is able to recover the US$14 billion in cost.
- Karuna’s P/B is much higher than peers. If investors already have Karuna in portfolio, they may consider taking profits in time.But another rally is possible when KarXT is officially approved.
Karuna Therapeutics (KRTX US): BMS Acquisition Offers Decent Short-Term Trading Opportunity
- Bristol Myers Squibb Co (BMY US) is acquiring Karuna Therapeutics Inc (KRTX US) for $330/share in cash for equity value of ~$14B. The transaction is expected to close in 1H24.
- Karuna’s lead asset, KarXT has FDA action date of September 26, 2024 for the treatment of schizophrenia in adults. KarXT has peak annual sales potential of $6–7B.
- Considering strong clinical efficacy and favorable risk profile of KarXT, the deal seems to be fairly valued. Current market price of Karuna shares of $318.41 represents absolute spread of ~3.6%.
Agilent Technologies: Stabilization Of Demand In China & 5 Other Major Drivers
- Agilent Technologies Q1 2024 earnings were decent.
- Mike McMullen, the outgoing President and CEO of Agilent, announced his retirement and new CEO-elect, Padraig McDonnell took charge of the company.
- Agilent reported Q1 revenue of $1.66 billion, which represents a decrease of 6.4% against the same period the previous year.
Henry Schein Inc: Investment in Future Growth and Specialty Business Outlook! – Major Drivers
- Henry Schein’s financial results for the fourth quarter and full year of 2023 demonstrated a robust recovery from a significant cybersecurity incident, showcasing the resilience of their business model and the steadfast loyalty of their customers.
- Notably, Henry Schein reported strong growth in its technology and value-added services businesses, a key strategic focus for the company.
- Global sales of implants and biomaterials also showed significant growth, largely driven by strategic acquisitions that expanded the company’s offering and market presence.
Intra-Cellular Therapies Inc.: Initiation Of Coverage – 6 Major Drivers
- This is our first report on biopharma major, Intra-Cellular Therapies.
- The company reported solid progress in its Q4 and FY2023 results, marking a year characterized by steady growth across the company.
- Central to the year’s success was the establishment of CAPLYTA as a vital treatment option for bipolar depression and schizophrenia.
MariMed, Inc. – Poised for Growth in 2024
- MariMed reported 4Q revenue of $38.9 million, which was exactly in line with our estimate.
- This represents a 0.26% increase Q/Q and an 8.66% improvement Y/Y. Gross margins were 44.47%, a gain of 1.80% sequentially and 0.34% Y/Y.
- Revenue was helped by a full contribution from the Thrive Dispensary in Casey, Illinois and beginning operations at the Mt. Vernon, Illinois manufacturing facility.
Penumbra Inc: Initiation Of Coverage – A Tale Of Cautious Innovation! – Major Drivers
- This is our first report on Penumbra, a global healthcare major.
- The company reported its fourth quarter and annual earnings on its conference call.
- The company made a revenue of USD 284.7 million in Q4, marking a year-over-year increase of 28.7%, while their annual revenues for 2023 reached USD 1,058.5 million, a 25% increase compared to 2022.
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