In today’s briefing:
- Mayne Pharma (MYX AU): This Is A Buy
- CSI Medical Service Index Rebalance Preview: Five Potential Changes in June
- Pre-IPO LXJ International Holdings – The Pain Points and the Outlook
- Theratechnologies Faces Potential Buyout with 75% Premium Amid Strategic Review and Multiple Bids from Future Pak
- Sysmex Corp (6869 JP): The US Tariff Wound Would Not Be Deep Enough
- Hybridan Small Cap Feast: 14/04/2025
- Ainos, Inc: Ugo Robotics Partnership Moving Rapidly with AI Nose Installed
Mayne Pharma (MYX AU): This Is A Buy
- On the 21st Feb 2025, Mayne Pharma (MYX AU), a leader in dermatology and women’s health, entered into a Scheme Implementation Deed with US-based pharmaceutical outfit, Cosette Pharmaceuticals.
- Cosette is offering A$7.40/share, a 37% premium to last close. The Offer has the backing of Mayne’s two largest shareholder, Viburnum and Bruce Mathieson, collectively holding 14.1%.
- Mayne has now revised the Scheme timeline, with completion targeted late June, early July. This is done.
CSI Medical Service Index Rebalance Preview: Five Potential Changes in June
- The review period ends on 30 April, the changes should be announced on 30 May and will be effective after the close of trading on 13 June.
- We forecast 5 potential changes for the index in June where there could be buying of 0.5-2x ADV in the adds and selling of between 0.7-3.8x ADV in the deletes.
- The forecast adds and deletes have performed in line over the last few months and there could be outperformance as we near the end of the review period and announcement.
Pre-IPO LXJ International Holdings – The Pain Points and the Outlook
- LXJ’s revenue/net profit showed an upward trend from 2022 to 24Q1-Q3, but growth momentum was decreasing. The same store sales growth dropped significantly. Profit margin is also lower than peers.
- There’re significant differences in dietary habits and tastes across China, making it difficult for LXJ to expand nationwide. So, the future growth potential may not be as good as expected.
- In December 2021, valuation of LXJ had reached RMB18 billion. Since LXJ’s revenue growth/profit margin are inferior to Xiaocaiyuan, we think the valuation of LXJ should be lower than Xiaocaiyuan.
Theratechnologies Faces Potential Buyout with 75% Premium Amid Strategic Review and Multiple Bids from Future Pak
- Future Pak’s latest offer for THTX is $3.51/share in cash plus a CVR worth up to $0.99/share.
- THTX’s Egrifta SV has gross margins around 90%, while Trogarzo, a licensed drug, has gross margins at 48%.
- Future Pak’s offer, including the CVR, values THTX at approximately 4x the gross profits from its commercialized treatments.
Sysmex Corp (6869 JP): The US Tariff Wound Would Not Be Deep Enough
- Sysmex Corp (6869 JP) earns 26% of total revenue from Americas. During 9MFY25, revenue from Americas increased 13% YoY to ¥96B.
- The U.S. President Trump has proposed 10% baseline import tariffs on medical devices. Although Trump announced a 90-day pause on most reciprocal tariffs, the respite seems to be temporary.
- Sysmex is exposed to tariff for instruments only as reagents are produced locally. Instrument sales in the Americas account for 5–6% of revenue, so tariff impact would be negligible.
Hybridan Small Cap Feast: 14/04/2025
- The UK-based biopharmaceutical Company developing regulatory approved, cannabinoid medicines to treat complex, chronic conditions, announced that trading in the Company’s ordinary shares on the OTCQB Venture Market in the US will commence today.
- There is no associated capital raise with this cross trade and the Ordinary Shares will continue to trade on the Company’s primary listing market, the Apex segment of the Aquis Stock Exchange.
- Cross trading on OTCQB allows the Company to access one of the world’s largest investment markets to expand its reach into a broader pool of investors and build brand awareness in the most important pharmaceutical market in the world.
Ainos, Inc: Ugo Robotics Partnership Moving Rapidly with AI Nose Installed
- ugo robots installed with AI Nose. Ainos and partner ugo completed the installation of AI Nose on a humanoid service robot, enhancing the functional applications of ugo’s robotics platform with AI-powered smell.
- The collaboration has advanced to the next development phase, which involves software integration before real-world deployment in active environments for AI training.
- Moving to software integration. Ainos expects integration of the backend control system and user interface design will take two to four weeks to complete.
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