Daily Brief Health Care: Shanghai Henlius Biotech , CVS Group PLC, Anthem Biosciences, Medy Tox Inc, Angiodynamics Inc, Merit Medical Systems, Perrigo, Revance Therapeutics, Teladoc Health, Inc., Cardinal Health and more

• The vote on Fosun Pharma’s HK$24.60 offer for Shanghai Henlius Biotech (2696 HK) is on 22 January. The gross spread ballooned today due to LVC’s amassing a blocking stake.
• There are valid arguments for LVC to block the vote or to support the offer. LVC’s trading behaviour over the coming days will point to its voting intentions. 
• I continue to believe that LVC will support the offer. At the current price and for a 15 February payment, the gross/annualised spread is 9.1%/160%.

• CVS Group plc (“CVSG”) has seen its share price take a hit recently, but the decline seems to stem from two short-term issues rather than any real damage to the business fundamentals.

• The first blow came in March 2024 when the UK’s Competition and Markets Authority (CMA) unexpectedly announced a nationwide review of veterinary services for household pets.

• These investigations typically last 12 to 18 months, so we’re looking at a resolution by late 2025 with a mid term resolution being around the corner mid-year.

• Anthem Biosciences (1234D IN) is looking to raise up to US$397m in its upcoming India IPO. The deal will be run by JMF, Citi, JP Morgan and Nomura.
• It is a Contract Research, Development, and Manufacturing Organization (CRDMO) with fully integrated operations spanning drug discovery, development, and manufacturing.
• As a one-stop service provider, ABS serves a range of customers, including innovator-focused emerging biotech companies and large pharmaceutical organizations globally.

• Dongbang Medical is getting ready to complete its IPO in Korea in February 2025. The IPO price range is from 9,000 won to 10,500 won. 
• According to the bankers’ valuation, the expected market cap of the comps ranges from 191 billion won to 223 billion won.
• Dongbang Medical specializes in the manufacturing and distribution of acupuncture needles, various cosmetic devices, and other medical devices. 

• I am taking several off the list, first one being Angiodynamics (ANGO) written up here .
• It jumped in the past week on a slightly improved forecast to a high of $13. I wrote it up at $6.9.
• I think fair value is around $12-15 or so, so no longer all that interesting.

• Merit Medical Systems Inc. reported its third-quarter financial results for 2024, showcasing an increase in revenue.
• The company achieved revenues of $339.8 million, marking a year-over-year growth of 7.8% on a GAAP basis and 7.9% on a constant currency basis.
• This exceeded the upper limit of the projected growth range of 6.4% to 7.8% they communicated during their previous quarter’s call.

• Perrigo has reported its financial results for the third quarter of 2024, offering insights into both its achievements and challenges during this period.
• On the positive side, Perrigo made significant progress in several strategic areas.
• Their Project Energize initiative, aimed at enhancing efficiencies, has yielded approximately $95 million in gross savings year-to-date.

• Crown Labs’ initial $6.66 bid for Revance was reduced to $3.1, while Teoxane offered $3.6, sparking potential bidding war.
• Daxxify, a Botox competitor, remains a key asset; recent Chinese market approval offsets minor setbacks in Australia/New Zealand.
• Scenarios include a bidding war, Teoxane’s bid prevailing, Crown’s bid succeeding, or both suitors withdrawing, impacting RVNC’s liquidity.

• Teladoc Health’s third quarter of 2024 demonstrated a mixed bag of performance, with both positive strides and notable challenges.
• The company’s consolidated revenue for the quarter was $641 million, reflecting a 3% decrease year-over-year.
• Despite the revenue decline, the company maintained its adjusted EBITDA at $83.3 million with a margin of 13%, although this represents a 6% decrease from the previous year.

• Cardinal Health is a wholesale drug and medical supplies distributor competing in the industry
• The company is focusing on transitioning to higher-margin services for growth and profitability
• Strong performance under CEO Jason Hollar with double-digit EPS growth, share repurchases, and three-year growth targets, despite challenges like generic price fluctuations

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.