In today’s briefing:
- KRX New Deal Index Rebalance Preview: Review Period Nearly Complete
- An Update on Medtronic’s Tender Offer of Eoflow
- Terumo Corp (4543 JP): Strong C&V Business Momentum Continues; Profitability to Improve in FY24
- CanSino Biologics (6185.HK/688185.CH) – The Story Has Changed
- News Flash – D. Western Therapeutics Institute (4576 JP)
KRX New Deal Index Rebalance Preview: Review Period Nearly Complete
- The review period for the September rebalance ends on 31 July, the changes will be announced towards end August and implemented at the close of trading on 7 September.
- There is one change currently for each of the Secondary Battery, Bio and Game indices. Then there are a couple of changes for the Internet and BBIG indices.
- There are four stocks that will have over 2 days of ADV to trade from passive trackers and these stocks could move around announcement of the changes.
An Update on Medtronic’s Tender Offer of Eoflow
- In this insight, we provide an update of Medtronic’s tender offer of Eoflow.
- The foreign ownership of Eoflow has surged in the past two months from 6.5% on 25 May to 33.2% as of 24 July.
- We continue to believe that there is 95%+ probability of this M&A getting completed at the tender offer price of 30,000 won and Eoflow eventually becoming delisted in 2H 2023.
Terumo Corp (4543 JP): Strong C&V Business Momentum Continues; Profitability to Improve in FY24
- Terumo Corp (4543 JP) recorded highest ever revenue and operating profit in FY23, driven by continued strong growth in C&V business globally, particularly the largest U.S. market.
- C&V business should continue to be the primary driver of Terumo’s growth in FY24 also. The company has guided for C&V revenue of ¥504B in FY24, up 5% YoY.
- Terumo aims to grow profit by double-digit percentage in FY24 and improve profitability through expansion of high-margin products, more assertive pricing policies, and cost reduction measures centered on manufacturing cost.
CanSino Biologics (6185.HK/688185.CH) – The Story Has Changed
- Based on the current situation, sales of MCV4 in 2023 could still be unsatisfactory. We think MCV4 is hard to become the second growth curve of CanSino in post-COVID era.
- Whether CanSino’s zoster vaccine is able to become Best-In-Class would largely determine whether this product would truly become the next blockbuster vaccine to turn the situation around for CanSino.
- CanSino’s commercialized products cannot contribute large-scale revenue in time to prevent continuous deterioration of performance. Results in 2023 could be lower than expected, and investors are losing confidence in CanSino.
News Flash – D. Western Therapeutics Institute (4576 JP)
- DWTI announced that it has updated its development pipeline on DW-1002 licensee Dutch Ophthalmic Research Center (DORC) announcing its decision to develop MEMBRANEBLUE-DUAL® in the US for the indication of ILM and ERM membrane staining during vitreoretinal surgery.
- Since the DW-1002 single-agent formulation TissueBlueTM was launched in the US in 2020, it has been used in over 100,000 surgeries and is preferred by over 40% of U.S. retinal surgeons.
- Combination ophthalmic surgical aid MEMBRANE BLUE-DUAL® (DW-1002 Brilliant Blue G + Trypan Blue) has been used in over 500,000 surgeries in Europe since its launch in 2010.
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