Daily Brief Health Care: Siloam International Hospitals, Grifols SA, Suraksha Diagnostic, Changchun BCHT Biotechnology C, Corvel Corp, BrainAurora Medical Technology, Medicus Pharma and more

• Siloam International Hospitals continues to establish a track record of improving returns through greater cost efficiencies and higher treatment intensity, focusing on the CONGO range of treatments.
• The company has seen strong growth in inpatient and outpatient admissions, with a growing portion coming through digital channels, and an increase in average revenue per operating bed.
• Siloam has maintained a beneficial payee mix and continues to expand its new hospitals in a measured way, helping to underpin future growth. Valuations remain attractive on 7.9x FY2025E EV/EBITDA.

• On November 27, Brookfield withdrew its €6.45 billion takeover bid for Grifols, citing valuation disagreements, shareholder resistance, and financing challenges after months of negotiation.
• Grifols’ shareholders sought valuations near €14 per share, far above Brookfield’s offer, other challenges included regulatory hurdles requiring 75% approval and financing constraints due to rising interest rates.
• The failed bid underscores Grifols’ focus on recovery, leveraging its plasma-derived therapies market position while addressing high leverage, cash flow concerns, and governance to restore investor confidence.

• Suraksha Diagnostic (1481262D IN) offers a one-stop integrated solution for pathology and radiology testing, and medical consultation services in Eastern and North Eastern states of India.
• The IPO comprises only an offer for sale of up to 19M equity shares, with no fresh issue. Suraksha Diagnostic has set price band of INR420–441 per share.
• The floor price of the IPO reflects fair value of the company and discounts all near-term growth catalyst. We would advise not to subscribe the issue for listing gain.

• The WTR Sustainable Index was up 3.3% W/W versus the S&P 500 Index (up 1.7%), the Russell 2000 Index (up 4.5%) and the Nasdaq Index (up 1.9%).
• Energy Technology (14.0% of the index) was up 7.3%, while Industrial Climate and Ag Technology (48.3% of the index) was up 3.4%, ClimateTech Mining was up 1.6%, and Advanced Transportation Solutions (20.3% of index) was up 2.2%.
• Top 10 Performers: HLGN, WAVE, HYLN, ACHR, AMY, AMYZF, AMMP, CLIR, FCEL, GWTI

• CorVel is recommended as a short in a diversified short portfolio due to concerns including a low EBITDA growth rate and a high EBITDA multiple of 42x.
• The company’s impressive outperformance against NASDAQ in recent years may be unsustainable given its current valuation.
• Potential issues such as the impact of higher unemployment on workers’ compensation claims and the possibility of reduced claims due to injury prevention measures add to the author’s bearish stance on CRVL.

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.

• Although DTx is considered a promising field, the industry is still in the early stages of trial and error development, and there is still a long distance from mature commercialization.
• BrainAurora’s revenue YoY growth rate declined significantly. Considering the small revenue scale and slowdown in revenue growth, is it possible for BrainAurora to experience stagnant growth in the near future?
• BrainAurora’s products haven’t been widely recognized in China’s hospitals/medical system, nor has it established a solid profit model.High valuation isn’t justified. We doubt if this field could bring good return.

• Medicus Pharma Ltd. (TSXV:MDCX) is focused on acquiring or partnering with life-science companies that are developing novel therapeutics for unmet healthcare needs that are already in the clinical trial stage.
• Management plans fast-track these specific therapies through FDA clinical trials toward commercialization.
• The company’s first acquisition was SkinJect, which has a novel, patented transdermal patch for the treatment of BCC.