Daily Brief Health Care: PegBio, Hinge Health, Elevation Oncology , Mckesson Corp, Kaken Pharmaceutical, Lantern Pharma , Oryzon Genomics, Physiomics, Rani Therapeutics Holdings , SBC Medical Group Holdings and more

• PegBio, a China-based near commercial stage biotech company, launched its IPO to raise up to US$39m via a Hong Kong listing.
• We have previously covered the company’s fundamentals and valuation. We highlight issues of the company.
• In this note, we look at the deal term. We think the valuation is demanding, but the company managed to get support from local government facilitate its listing.

• The venture-capital backed company set terms for its IPO and will be seeking a valuation cut of more than 50% from its 2021 peak.
• Their revenue was $123.8 million and $82.7 million for the three months ended March 31, 2025 and 2024, respectively, representing a year-over-year growth rate of 50%.
• This IPO has gained a substantial amount of orders as the underwriters are classifying the books as multiple-times oversubscribed. 

• Elevation Oncology’s market cap is $16.5m, trading at a 50% discount to its mid-year cash guidance of $30m-$35m.
• The company has no debt, $0.5m in payables, $3.7m in accrued expenses, and guided mid-year cash of $30m+.
• Potential upside of 30%-60% is based on liquidation or buyout scenarios, considering working capital liabilities and cash burn.

• Before I dig into my regular update, I want to share one chart that caught my eye this week.

• Colin King did a nice job modeling out Lionsgate RemainCo Stub / Starz valuation from last May to now.

• Interesting to see that at one point it was trading at a negative $1 price.

• Kaken Pharmaceutical (4521 JP) witnessed 31% YoY revenue growth in FY25 to ¥94 billion on the back of flurry of one-time upfront payments, resulting in surge in profits too.
• Kaken’s major drug Clenafin saw revenue drop of 2% YoY to ¥17 billion on patent cliff, while Artz revenue grew 6% YoY to ¥19 billion.
• For FY26, Kaken expects revenue to fall 6% to ¥88 billion. No respite from immediate pangs of revenue loss from NHI drug price revision and generic competition for top-selling products.

• Lantern Pharma uses AI & data to identify drug responders, uncover mechanism of action & rescue failed drugs.
• It is developing LP-300 for non- & never smoker NSCLC in the Harmonic trial.
• Secondary candidates include LP-100 for mCRPC and LP-184 and LP-284, which are in clinical development for multiple biomarker-defined tumors and hematological cancers, respectively.

Q125 saw Oryzon make significant headway towards Phase III for vafidemstat in BPD and clinical advancement for iadademstat across multiple early-stage studies. Operating performance was unsurprising, with opex rising slightly (+5.6% y-o-y to €3.4m) as the company continues to prepare for submitting the vafidemstat Phase III study protocol to the FDA (expected in Q225). The liquidity position has improved materially so far in Q2, supported by a €30m equity raise and another €13.3m in grant income. We estimate that pro forma gross funds (c €47m, including end-Q125 cash of €3.8m) will provide runway through 2027, excluding the BPD trials, which we model will be funded by a licensing partner. We adjust our launch timelines for the iadademstat programmes based on current visibility, with our valuation shifting modestly to €862.4m (€885.1m previously). We adjust our per-share valuation to €11.0 from €13.5, reflecting the increased number of shares outstanding following the equity raise.

• Good Morning, Physiomics PLC (PYC) announced a contract with a new UK client.
• We have published research on this which is attached and a snapshot of the research is below.
• The third new client in two months is announced as a contract is awarded for a project involving rheumatoid arthritis, which is a new therapeutic area for the Company.

• Rani is a clinical-stage biotherapeutics company developing the ingestible robotic RaniPill (RP) that enables oral delivery of biologics & other large molecules.
• Its pipeline features clinical assets RT-102 (teriparatide for osteoporosis) & RT-111 (ustekinumab for psoriasis).
• Both programs have completed Ph1 trials characterizing safety tolerability & pharmaco-kinetics.

• SBC has implemented strategic price revisions to drive customer growth & has revised its franchise fee structure to ramp as franchisees ramp their services, customer bases & revenue.
• Additional initiatives include enhanced focus on a broader range of market niches, new service offerings, leveraging a multi-branded approach to expanding service offerings and expanding its footprint domestically & internationally.
• SBC also recently authorized a share repurchase program of up to US$5m, with buybacks potentially beginning this month.