In today’s briefing:
- Henlius (2696 HK): Musings on the Deal Break Price
- Shanghai Henlius Biotech (2696 HK)- These Are the Reasons Why LVC May Vote Against the Privatization
- Moderna In Crisis? A Possible Wake-Up Call That Investors Have Been Dreading!
- Enjin (7370 JP): 1H FY05/25 flash update
- J Frontier Co Ltd (2934 JP): Q1 and Q2 FY05/25 flash update
- EVAX: Share Ratio Adjustment
- XFOR: Receives €28.5 Upfront for Licensing Agreement with Norgine
Henlius (2696 HK): Musings on the Deal Break Price
- Fosun Pharma’s HK$24.60 offer for Shanghai Henlius Biotech (2696 HK) is heading for a deal break. LVC has not changed its shareholding since amassing a blocking stake.
- In the absence of a last-ditch effort by Shanghai Fosun Pharmaceutical (Group) (2196 HK) to rescue the deal, the key question is the potential deal break price.
- Based on four methods, the potential deal break price is HK$17.28, 12% below the last close price of HK$19.58.
Shanghai Henlius Biotech (2696 HK)- These Are the Reasons Why LVC May Vote Against the Privatization
- Fosun hopes to privatize Henlius at a low price. As usual, it does not consider the interests of long-term investors, who may express their “dissatisfaction” by opposing the privatization.
- Lin Lijun clearly has bargaining chips. He may ask Fosun to provide a clear plan for future relisting/asset restructuring, and how the Share Alternative will be linked to this plan.
- There is a possibility this privatization may fail. Such possibility is not low, because investors will only support the privatization if they can be sure that their interests are protected.
Moderna In Crisis? A Possible Wake-Up Call That Investors Have Been Dreading!
- Moderna, Inc. is undergoing a profound transformation as it navigates a post-pandemic landscape marked by mounting caution among investors.
- After delivering record-breaking Covid-19 vaccine sales that propelled it into the spotlight during global crisis years, the biotech giant now faces significant headwinds.
- Recent updates in financial performance and strategic repositioning have underscored a shift in outlook.
Enjin (7370 JP): 1H FY05/25 flash update
- Revenue for FY05/25 was JPY2.7bn, with operating profit at JPY548mn, recurring profit at JPY548mn, and net income at JPY380mn.
- The company reorganized into three segments: PR Consulting Services, Media Platform Services, and abolished its executive officer system.
- Revenue progress for FY05/25 was 51.9% of the forecast, with operating profit at 73.8% and recurring profit at 74.6%.
J Frontier Co Ltd (2934 JP): Q1 and Q2 FY05/25 flash update
- Revenue increased by 28.5% YoY to JPY5.4bn, while operating profit decreased by 50.0% YoY to JPY18mn.
- The company transferred AIGATE career Co., Ltd., resulting in an extraordinary gain of JPY5.7mn from the sale.
- Healthcare Marketing business revenue declined YoY due to a large advertising order impact in Q1 FY05/23.
EVAX: Share Ratio Adjustment
- EVAX is a clinical stage company that has proprietary AI models designed to more efficiently and more accurately target much-needed treatments.
- The company has two streams of possible revenue: from the treatments themselves and from the licensing of the AI technology.
- The company changed the ADS ratio from 1 ADS representing 10 ordinary shares to 1 ADS from 50 ordinary shares.
XFOR: Receives €28.5 Upfront for Licensing Agreement with Norgine
- On January 13, 2025, X4 Pharmaceuticals, Inc. (XFOR) announced a licensing agreement with Norgine to commercialize mavorixafor in Europe, Australia, and New Zealand.
- X4 will receive €28.5 upfront and is eligible to receive up to €226 million in potential regulatory and commercial milestone payments along with tiered, double-digit royalties up to the mid-twenties.
- X4 will manufacture and supply mavorixafor and Norgine will reimburse X4 for CMO costs plus a low teen percentage of the CMO costs.
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