Daily Brief Health Care: Natera Inc, Sagility India, Eli Lilly & Co, LIVSMED, Actinogen Medical, Xuanzhu Biopharmaceutical, Dr. Reddy’s Laboratories, Alnylam Pharmaceuticals, Dexcom Inc, Biogen Inc and more

• Natera is a leader in the high-growth cell-free DNA (cfDNA) testing market, with a strong portfolio spanning women’s health (Panorama), oncology (Signatera), and organ health (Prospera).
• The company is experiencing rapid revenue growth, driven by the strong uptake of its Signatera test for cancer monitoring, and is demonstrating significant operational leverage with improving gross margins and a clear trajectory towards positive free cash flow.
• While the company’s proprietary SNP-based technology provides a competitive advantage, Natera faces significant risks related to reimbursement uncertainty, intense competition, and the need to achieve sustained profitability after a history of net losses.

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• Promoter entity EQT, via Sagility BV is looking to raise up to US$402m via selling a 16.4% stake in Sagility India (SAGILITY IN). 
• The deal comprises a base deal of 10% of outstanding shares, with an option to upsize it by another 6.4% of shares outstanding. 
• In this note, we run the deal through our ECM framework and comment on deal dynamics.

• Eli Lilly and Company delivered a robust financial and operational performance in the third quarter of 2025.
• The company reported a 54% increase in revenue year-over-year, driven by strong sales of key drugs like Mounjaro and Zepbound.
• These products showed significant market penetration, particularly in the U.S., where Lilly has captured a dominant share of the incretin analogs market.

• Our base case valuation of Livsmed is target price of 88,294 won per share, representing a 61% upside from the high end of the IPO price range. 
• At our base case valuation, Livsmed’s market cap would be 2.3 trillion won. At this level, the probability of Livsmed being included in KOSDAQ150 index is very high in 2026.
• LivsMed is a medical device maker of advanced, articulating laparoscopic instruments that offer robotic-style dexterity and tactile feedback at a fraction of the capital cost of robotic surgical platforms.

Actinogen Medical reported that the independent Data Monitoring Committee (DMC) of the company’s pivotal Phase IIb/III XanaMIA study in patients with mild-to-moderate Alzheimer’s disease (AD) has met for the first time, and it has recommended that the study continues without modifications. The DMC has reviewed all available safety data to date from 153 XanaMIA study participants and has determined that no study modifications are indicated. This suggests that the drug continues to be well-tolerated and that its safety profile remains very favourable, which could be a key differentiator (provided it receives eventual regulatory approval), given well-recognised safety concerns with anti-amyloid treatments in AD. Actinogen plans to report a pre-planned interim efficacy (futility) analysis in early Q1 CY26 and final top-line study data in mid-Q4 CY26.

• Xuanzhu Biopharmaceutical is a clinical-stage biopharmaceutical company spun off from its controlling shareholder, Sihuan Pharmaceutical, with a pipeline focused on oncology, digestive diseases, and metabolic diseases.
• The company faces significant challenges, including intense competition for its core products, doubts about its commercialization capabilities highlighted by a previously failed IPO attempt, and a valuation considered demanding by market analysts.
• Future prospects are heavily reliant on the successful clinical development and approval of its pipeline assets, particularly in expanding indications for its commercialized products and advancing earlier-stage candidates.

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• Dr. Reddy’s Laboratories (DRRD IN) reported 14% YoY growth in net profit in Q2FY26, on 10% YoY growth in revenue. Declining contribution from North America is adversely affecting margin.
• With lenalidomide benefit fading away, DRL’s North America business revenue has become stagnant. During Q2FY26, North America recorded revenue of INR32B, down 13% YoY and 5% QoQ.
• NRT portfolio and domestic business cannot be strong revenue and margin drivers. DRL is relying on semaglutide and abatacept as major drivers, which will be reflected not before FY28.

• Alnylam Pharmaceuticals’ third quarter of 2025 highlighted a significant period of growth and strategic execution for the company.
• This growth is seen across various aspects of their business model, including commercial performance, pipeline advancements, and financial outcomes.
• However, it is also a period marked by substantial commitments to future success, which carry their own set of risks and uncertainties.

• DexCom Inc.’s latest financial performance for the third quarter of 2025 revealed a mixture of strengths and challenges, reflected in both strategic updates and financial metrics.
• The company reported a 22% increase in worldwide revenue, reaching $1.21 billion compared to $994 million in the same quarter last year.
• This growth was driven by strong performance in both the U.S. and international markets, particularly due to expanded continuous glucose monitoring (CGM) access and the broadening of their customer base across the type 2 diabetes population.

• Biogen’s third-quarter 2025 earnings call reflected a blend of strategic advancements and ongoing challenges as the company navigates its growth trajectory.
• The results presented a landscape where Biogen continues to grapple with its legacy multiple sclerosis (MS) portfolio’s pressures while harnessing new growth avenues primarily through its launch products.
• The company exhibited a substantial 67% year-over-year growth in revenues from its launch products, including LEQEMBI, SKYCLARYS, and ZURZUVAE.