Daily Brief Health Care: Sawai Group Holdings, Eoflow, D.Western Therapeutics Insti, Alnylam Pharmaceuticals, Incannex Healthcare , Mettler Toledo International Inc, Cardinal Health and more

• Sawai Group Holdings (4887 JP) reported muted FY23 result, with all parameters missing guidance. Miss was due to the lower-than-expected performance in Japan, which contributed 82% of revenue.
• Sawai’s U.S. business revenue increased 22% YoY to ¥36.6B, beating guidance of ¥32.2B. The U.S. business is now back to profitability by reporting higher-than-expected operating profit of ¥930M.
• Sawai guided for 8% revenue growth in FY24. Core operating income is projected to decline due to the soaring raw material and energy prices and an increase in upfront costs.

• Back on the 25 May, healthcare company Medtronic Plc (MDT US) announced it had entered into a set of definitive agreements to acquire EOFlow (294090 KS).
• Via a three-step process – SPAs, issuance of new shares, and a Tender Offer – Medtronic will seek majority control, together with a view to delisting EOFlow.
• Completion is expected in 4Q23. Regulatory approvals –  domestic and foreign – form part of the conditions. Trading wide to terms. 

• DWTI announced that out-license partner Dutch Ophthalmic Research Center (International) B.V. (DORC) has submitted a new drug application for approval of DW1002 to the National Medical Products Administration (NMPA) of China for the indication of ILM staining in vitreoretinal surgery (May 30 local time).
• No milestone will be received as a result of this transaction, and there will be no change to the forecast of financial results for the fiscal year ending December 31, 2023.
• DWTI granted an exclusive sublicense for DW-1002 for all regions worldwide outside Japan to DORC, which has been manufacturing and selling the product in Europe and other countries since September 2010.

• The last quarter was successful for Alnylam Pharmaceuticals, with solid growth in total product sales, mainly driven by the ongoing launch of AMVUTTRA, which delivered a 48% increase compared to the same quarter last year.
• Their TTR franchise showed strong performance with solid net product revenues and patient growth, driven by the ongoing launch of AMVUTTRA.
• We give Alnylam Pharmaceuticals a ‘Buy’ rating with a revised target price.

Incannex, an Australian-based biotech, has several active studies investigating cannabinoid combinations for a range of conditions, but is also focused on assessing psilocybin for the treatment of generalized anxiety disorder (GAD). In the psychedelics space, Incannex’s ongoing Phase II trial (Psi-GAD) received an encouraging interim review in March 2023, and we see the completion of the study in Q4 CY23 as a significant catalyst. Incannex has also recently announced developments in its psychedelic clinics business through its subsidiary Clarion Clinics Group. In this note, we provide an overview of psychedelics as therapeutics, the GAD market, and Incannex’s position in the emerging field of psychedelic-based therapies. Our valuation for Incannex stands at US$750.7m or US$11.83 per ADR (vs US$745.8m or US$11.75 per ADR previously).

• It was a successful first quarter for Mettler-Toledo International, with solid sales and profit growth and an all-around beat.
• Sales growth was broad-based across various markets, driven by effective market identification and attractive growth opportunities.
• Strong execution on margin initiatives and cost control resulted in solid earnings growth despite significant currency headwinds.

• It was a successful Q3 2023 for Cardinal Health, with a solid overall performance and an all-around beat.
• The Pharma business demonstrated resilience and growth, benefiting from its critical role in the pharmaceutical supply chain and a solid customer base.
• Cardinal Health is working towards to inflation mitigation and growth initiatives to achieve its target of at least $650 million in segment profit by fiscal 2025.