In today’s briefing:
- Sigma Healthcare (SIG AU): Shareholders Approve Merger; Passives Could Start Buying in Two Weeks
- Maze Therapeutics Inc. (MAZE): Kidney Disease Biotech IPO Garnering Attention from Sector Investors
- Sigma Healthcare (SIG AU): Shareholders Approves CWG Merger
- Metsera Inc (MTSR): Obesity Drug Biotech Order Book Is “Hot”; Set for Friday IPO Debut
- Is It Time to Go Long Novo Nordisk (NVO US)?
- LNTH: Evergreen Acquisition Promotes Future Innovation
Sigma Healthcare (SIG AU): Shareholders Approve Merger; Passives Could Start Buying in Two Weeks
- Sigma Healthcare (SIG AU) and Chemist Warehouse (CWG) shareholders have approved the merger with 99.86% and 100% of the votes cast in favour.
- The Second Court Hearing is on 3 February and the merger will be implemented on 12 February, which is when the passive buying could commence.
- Sigma Healthcare has continued to trade higher on a record margin and sales expansion for CWG and expected passive buying that could top A$3bn over the next few months.
Maze Therapeutics Inc. (MAZE): Kidney Disease Biotech IPO Garnering Attention from Sector Investors
- The company is performing an abbreviated four-day roadshow and has gained momentum with interest from sector-dedicated investors.
- According to our sources, the deal was considered oversubscribed at launch from a mix of new and existing investors.
- Typically, the biotech IPOs that are eager to come out of the gates in January have fared overwhelmingly better than those that trickle out later in the year.
Sigma Healthcare (SIG AU): Shareholders Approves CWG Merger
- Sigma Healthcare (SIG AU) announced that more than 99% of the shareholders cast vote in favor of the merger with CWG. The merger now remains subject to court approval.
- The court hearing is scheduled on February 3, 2025. If the Court approves the merger, it is expected that implementation of the merger scheme will occur on February 12, 2025.
- CWG continued healthy performance, with double-digit like-for-like retail network sales growth and 400bps EBIT margin expansion in H1FY25. We are bullish on the long-term growth prospect of the merged entity.
Metsera Inc (MTSR): Obesity Drug Biotech Order Book Is “Hot”; Set for Friday IPO Debut
- The GLP-1 market has experienced a recent boom and Metsera is capitalizing on this with a well-times IPO.
- According to our sources, the deal is well-oversubscribed with the books closing Wednesday at 4pm for a Friday debut.
- The company is seeking a mega valuation of$1.8b if priced at the high-end of the range. An IPO valuation at these levels would put the company in “rare-company”.
Is It Time to Go Long Novo Nordisk (NVO US)?
- GLP-1s are “a solution” for obesity and not “the solution”. There are over 100 GLP-1s in development and this space could become very commoditised.
- Its valuation has certainly become a lot more palatable, and Novo Nordisk is now trading on a FPE of 24.
- Lilly’s Zepbound is the preferred GLP-1: Given the better tolerance, and superior results, Zepbound is chosen over Wegovy.
LNTH: Evergreen Acquisition Promotes Future Innovation
- Zacks Small-Cap Research Note for Lantheus Holdings, Inc. (LNTH)
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