Daily Brief Health Care: Legend Biotech Corp, Cmg Pharmaceutical, Sysmex Corp, Encube Ethicals Limited, argenx, Curis Inc, Laboratory Corporation of America Holdings, Guardant Health , Madrigal Pharmaceuticals Inc, MetaVia and more

• 2Q26 profitability on track, with Carvykti sales up 50% YoY and operating margin of 15%. 1Q26 marks Legend’s first quarter of company-wide profitability on both IFRS and adjusted basis
• LEGN 2H26 catalysts: 1) continued QoQ Carvykti growth (growing portion from 2-4L patients); 2) adjusted net income profitability; 3) IND submission for LB2501 (4Q26); 4) presenting additional in vivo data
• See inside for 2Q26 results call takeaways, management financial outlook/guidance, and LEGN quarterly P&L analysis

• On 12 August, the KRX designated 36 companies as administrative issues for potential delisting for failing to meet share price and market capitalization standards. 
• They could potentially be delisted. There are potential trading opportunities among these 36 stocks.
• The key is to be on the lookout for companies with decent balance sheets that are willing to improve their corporate governance.

• Sysmex Corp (6869 JP) has reported stellar performance for Q1FY27, with double-digit growth across key parameters. Revenue increased 24% YoY to ¥131B, mainly driven by hematology sales.
• Challenging market environment continues in China, with the region reporting 34% YoY decline in revenue on a local currency basis. However, this remains in-line with initial assumptions.
• In addition to strong business progress in the Americas, taking into account recent foreign exchange trends, Sysmex revised upward its earnings forecasts for H1 and FY27.

• The upcoming ₹3,000 crore IPO is a 100% Offer for Sale (OFS), meaning the company will receive zero fresh capital proceeds. This directly invalidates assumptions of an IPO-funded capital expenditure cycle, shifting the analytical focus to how Encube Ethicals Limited (EEL) deploys its strong organic free cash flow to fund expansions in Indore and specialized blocks in Goa.
• EEL has reached a 12.18% volume market share in the US topical generics market as of FY26, but sustaining its high margins (35.88% EBITDA in FY26) will be challenging. The company faces head-to-head competition on key molecules like Clindamycin and Permethrin against Taro, Padagis, and Glenmark, alongside ongoing high double-digit pricing erosion driven by the consolidated bargaining power of US Group Purchasing Organizations (GPOs).
• The company’s structural re-rating is driven by its India Branded Formulations business, which grew at a 20.28% CAGR from FY24 to FY26. Anchored by the Soframycin brand acquired from Sanofi in FY22, this segment gives EEL a high-margin B2C hedge that justifies its targeted $2.2 billion-plus valuation, a premium that pure-play CDMOs cannot easily command.

• Dominant Immunology Innovator: argenx has established itself as a leader in severe autoimmune diseases, driven by its first-in-class FcRn blocker, VYVGART. The product’s rapid commercial success in generalized myasthenia gravis (gMG), immune thrombocytopenia (ITP), and chronic inflammatory demyelinating polyneuropathy (CIDP) has transformed the company into a profitable, commercial-stage entity with a multi-billion dollar revenue stream.
• ‘Pipeline-in-a-Product’ Strategy: The core value driver is VYVGART’s potential for label expansion into numerous other IgG-mediated autoimmune diseases. This strategy mitigates single-product risk and offers significant, long-term growth optionality. The company is actively pursuing more than 10 additional indications for efgartigimod.
• Emerging Competitive and Valuation Risks: While argenx enjoys a first-mover advantage, the competitive landscape for FcRn inhibitors is intensifying, with major pharmaceutical players like Johnson & Johnson and UCB entering the market. The company’s premium valuation reflects high growth expectations, creating a high bar for continued clinical and commercial execution.

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• Curis, Inc. is a biotechnology company developing emavusertib, an orally available small molecule inhibitor of IRAK4 and FLT3, evaluated in clinical studies for PCNSL and CLL.
• Emavusertib received Orphan Drug Designation from FDA for PCNSL, AML, MDS and from EC for PCNSL, showing a 100% ORR in 5 BTK-naïve patients.
• As of March 31, 2026, cash and cash equivalents were $15,001, with an accumulated deficit of $1.3 billion, raising substantial doubt about going concern.

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• Labcorp Holdings reported its financial results for the second quarter of 2026, demonstrating modest growth and operational improvements amid a dynamic healthcare testing environment.
• The company’s consolidated revenue increased by approximately 6% to $3.7 billion compared to the prior year, driven by both organic growth and contributions from acquisitions.
• Adjusted earnings per share (EPS) rose nearly 15% to $4.99, supported by margin expansion and operating efficiencies.

• Guardant Health reported its second quarter 2026 financial results highlighting broad-based growth across all key segments: Oncology, Biopharma & Data, and Screening.
• Total revenue reached $335 million, up 44% year-over-year, with Oncology revenue at $219 million (38% growth), Biopharma & Data at $61 million (9% growth), and Screening revenue rising significantly to $53 million from $15 million a year ago.
• The company demonstrated accelerated test volume growth, particularly in its Oncology business, where volumes increased 63% year-over-year to approximately 104,000 tests, supported by expansions in products such as Guardant360 Liquid (over 30% volume growth), Guardant360 Tissue, and Reveal, the latter growing over 100% driven by minimal residual disease (MRD) and therapy monitoring adoption.

• Madrigal Pharmaceuticals reported strong growth in its second quarter of 2026, driven primarily by its liver-directed once-daily oral medication, Rezdiffra, approved for the treatment of Metabolic dysfunction-associated steatohepatitis (MASH).
• Net sales of Rezdiffra reached $364 million, up 71% year-over-year, with more than 49,000 active patients on therapy at quarter-end—a figure that more than doubled compared to the prior year.
• This patient growth continued into the third quarter, surpassing 50,000 patients early in July 2026.

• On August 6, 2026, MetaVia, Inc. (MTVA) announced financial results for the second quarter of 2026 and provided a business update.
• The company recently announced the completion of the dose titration portion for all enrolled active patients in Part 3 of the Phase 1 trial of DA-1726 for the treatment of obesity.
• Part 3 of the Phase 1 trial consists of two 16-week titration cohorts, with Part 3A patients being titrated from 16 mg to 48 mg and Part 3B patients being titrated from 16 mg to 32 mg to 64 mg.