Daily Brief Health Care: Mayne Pharma, Sichuan Kelun-Biotech Biopharm, Apollo Hospitals Enterprise and more

In today’s briefing:

Merger Arb Mondays (09 June) – Mayne, Tam Jai, OneConnect, Toyota Industries, Makino, Fuji Corp
Sichuan Kelun-Biotech Biopharm (6990.HK) Placement – Thoughts The Pipeline and Valuation Outlook
Apollo Hospitals (APHS IN): Positive Outlook; Expansion on Track; Growth Momentum to Continue

Merger Arb Mondays (09 June) – Mayne, Tam Jai, OneConnect, Toyota Industries, Makino, Fuji Corp

Kelun Bio announced US$250 million placement, making it the largest follow-on offering in the biopharma industry in HK market over the past 12 months, but HK$331.8/share Placing Price is expensive.
SKB264 has demonstrated the ability to compete head-to-head with the world’s best therapies in TNBC and NSCLC. It is reasonable for Kelun Bio’s valuation to be higher than Akeso.
We recommend to buy when market value falls in the range of US$2.5-5.25 billion.If SKB264 fails to deliver good clinical data in future critical clinical trials, valuation would face pullback.

Apollo Hospitals Enterprise (APHS IN) reported strong FY25 result, with 14% revenue growth and a massive 61% jump in net profit. EBITDA margin improved to 13.9% (FY24: 12.5%).
Overall margin expansion is mainly driven by AHLL (margin up 140bps YoY to 9.9%) and Apollo HealthCo (margin at 1.8% vs loss in FY24).
AHEL plans to add 4,300 beds over the next three to four years, with 2,000 beds expected to become operational in FY26.

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