In today’s briefing:
- China Healthcare Weekly (March.3) – TCM New Policy, Pfizer to Acquire Seagen, Haohai Biological
- Abbott Laboratories: Major Drivers
- Veeva Systems Inc.: Major Drivers
- Eli Lilly and Company: Collaboration With Entos Pharma & Other Drivers
- Merck & Co. Inc.: Licensing Agreement With Kelun Biotech & Other Drivers
China Healthcare Weekly (March.3) – TCM New Policy, Pfizer to Acquire Seagen, Haohai Biological
- The General Office of the State Council issued favorable policy for TCM industry. However, TCM still has to face VBP, therefore Zhangzhou Pientzehuang Pharmaceutical Co. (600436 CH) and Gushengtang are our top picks..
- Pfizer is in talks to acquire Seagen in a deal worth over US$30 billion, but we remain conservative about whether this transaction would ultimately bring expected contributions to Pfizer.
- Haohai’s business model fails to bring ideal performance. Increasing competition/declining gross margin cast doubts on the outlook of medical aesthetics business. We’re not optimistic about its potential valuation upside.
Abbott Laboratories: Major Drivers
- Abbott saw another highly successful quarter and managed an all-around beat as routine testing trends and hospital-based procedures continued to improve progressively in several areas.
- In the quarter, the sales growth was impacted negatively by a year-over-year decline in the Covid test sales.
- With the recovery of the manufacturing brand, production of its non-WIC brands has increased.
Veeva Systems Inc.: Major Drivers
- Veeva Systems finished the year on a strong note with both, its revenues as well as earnings exceeding the expectations of analysts as well as the management.
- The management claims that it was a watershed year for clinical data management, with significant momentum in emergent areas like Safety, Link, and Compass.
- We give Veeva Systems a ‘Hold’ rating with a revised target price.
Eli Lilly and Company: Collaboration With Entos Pharma & Other Drivers
- Eli Lilly had a mixed result in the last quarter as the company failed to meet the revenue expectations of Wall Street, largely on account of the forex headwinds and the influence of Alimta LOE in the U.S.
- The pharma major did manage an earnings beat.
- The company has a strong pipeline and received FDA approval for donanemab in early symptomatic Alzheimer’s disease and pirtobrutinib in mantle cell lymphoma.
Merck & Co. Inc.: Licensing Agreement With Kelun Biotech & Other Drivers
- Merck has delivered a strong quarterly result to end 2022 and surpassed the analyst consensus estimates in terms of revenues as well as earnings.
- The top-line performance was driven by strength across the company’s key pillars, hospitals, vaccines, and oncology, and a significant contribution from LAGEVRIO.
- The animal health business of Merck delivered strong operational growth.
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