Daily Brief Health Care: Paramount Bed Holdings Co Lt, Nanosonics Ltd, Laurus Labs, Sainte Nutritional, Celltrion Inc and more

• In a fairly common pattern, the founding family (38% ownership) of Paramount Bed Holdings Co Lt (7817 JP) have launched an MBO. 
• It is too cheap at 4.2x adjusted EV/EBITDA (one could argue it is 5.0x but they also have net receivables) for such a ubiquitous brand and growth. 
• Soft99 Corp (4464 JP) may have been a one-off. Maybe not. People may look at this situation through that lens. It deserves that look. 

• Paramount Bed Holdings Co Lt (7817 JP) has recommended an MBO at JPY3,530, a 32.2% premium to the last close price. The offer represents a ten-year high. 
• The offer is below the midpoint of the special committee IFA’s DCF valuation range and its requested price. Hibiki has previously suggested an intrinsic value of JPY4,929.  
• The setup shares several traits with the Mandom MBO, and has the potential for a bump, particularly if an activist emerges as a substantial shareholder or agitates for better terms.   

• Nanosonics is poised for significant growth with the upcoming US launch of its new Coris® endoscope cleaning system in Q1 FY26, targeting a substantial new market segment beyond its established Trophon® franchise.
• The company operates a highly attractive ‘razor and blade’ business model, with a large installed base of its Trophon® ultrasound probe disinfection units driving recurring high-margin consumable sales.
• While the growth outlook is strong, the stock trades at premium valuation multiples, and faces key risks including competition, execution on the Coris® launch, and potential reliance on partners for new product success.

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• Laurus Labs is shifting from ARV APIs to high-growth areas like CDMO and biotech, diversifying its revenue base for long-term stability.
• Heavy investments in complex, high-margin businesses reduce dependence on volatile ARV markets, ensuring sustainable and more profitable future growth.
• Though returns dipped initially, strong CDMO performance shows the strategy is working, making Laurus Labs a model of successful pharma transformation.

• Allergy prevention and treatment products are core business. Although proportion of allergic children is increasing, it’s not enough to offset the decline in demand caused by the decrease in newborns.
• Due to fierce market competition and inadequate adult FSMP education, the non-infant FSMP market is not easy to operate. The acceleration of registration for FSMP will lead to fierce competition.
• Our 2025 forecast is revenue could be up 20% YoY, reaching RMB1 billion.Valuation of Sainte Nutritional should be higher than peers due to higher profit margin and performance growth rate.

• Celltrion Inc (068270 KS) is acquiring Eli Lilly’s New Jersey biopharmaceutical production plant for KRW460B. It also plans to expand capacity of the plant, with an additional investment of KRW700B.  
• With this acquisition, Celltrion has completely eliminated U.S. tariff risks and secured a unified local supply chain encompassing production and sales of its flagship products.
• Celltrion has signed a CMO agreement with Eli Lilly, which will secure additional revenue stream for the company and accelerate the return on investment.