Daily Brief Health Care: Sonoscape Medical Corp, Jiangsu Hengrui Medicine, Sagility India, Xuanzhu Biopharmaceutical, Axbio International, Sareum Holdings, OSE Immuno, CareCloud , Lantern Pharma , Mira Pharmaceuticals and more

• The ChiNext index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
• The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
• In this insight, we have presented our final expectations for the upcoming index rebal event. We expect 9 ADDs/DELs for the ChiNext index and 5 ADDs/DELs for the ChiNext 50.

• Jiangsu Hengrui Medicine (600276 CH), a leading Chinese pharmaceutical company, has filed its PHIP for an H Share listing to raise US$2 billion.     
• Jiangsu Hengrui Pharmaceuticals (JHR HK) ranked first among Chinese pharma companies in revenue from NME drugs in 2023 and the number of commercialised NME drugs in 2024.
• The investment case rests on its product portfolio, strong revenue growth, rising profitability, cash generation, strong balance sheet and undemanding valuation. 

• Sagility India (2058883D IN) (Sagility) raised around US$250m in its India IPO in Nov 2024. The lockup on its pre-IPO investors is set to expire soon.
• Sagility is a pure-play healthcare focused solutions and services provider to Payers (U.S. health insurance companies), and Providers (primarily hospitals, physicians, and diagnostic and medical devices companies).
• In this note, we will talk about the lockup dynamics, possible placement and updates since our last note.

• The main purpose for Sihuan to acquire Combio is to form a strong innovative drug business Xuanzhu and then make large capital gains from the subsequent spin-off and listing.
• All the three Core Products need to face fierce competition, and their clinical data do not show obvious advantages to competing products, making them hard to stand out.
• Based on the announcement on Nov.12, 2024, valuation of Xuanzhu was RMB8.5 billion. However, due to the lack of competitive pipelines and weak commercialization prospects, we think Xuanzhu is overvalued.

• Axbio, a China-based technology company, is looking to raise at least USD 100 million via a Hong Kong listing. CICC and SPDB are the joint sponsors.
• In this note, we took a quick look at the core products and key products, as well as its management team.
• Although there are interesting takes from the prospectus, we are not convinced on the prospect of the deal yet.

• Progress is reported on Sareum’s most advanced assets which are the foundation of its near-term clinical strategy and development priorities.
• The October 2024 and March 2025 funding enables both simultaneous pipeline work, as well as new opportunities in the constantly evolving therapeutic landscape for kinase inhibitors.
• Preclinical studies have been carried out to evaluate the potential of the TYK2/JAK1 inhibitors for autoimmune diseases in central nervous system indications (CNS).

OSE Immunotherapeutics has presented new data for lusvertikimab in ulcerative colitis (UC), with encouraging results from the extension period of the Phase II CoTikiS trial. The key takeaway was that over 90% of patients who achieved a clinical response during the initial 10-week timeframe maintained symptomatic remission through the 24-week extension period. Furthermore, 61% of participants who did not achieve remission during induction achieved it after the extension (on the 850mg dose, the higher of the two tested doses). The safety of lusvertikimab was also confirmed across the 34-week treatment period. In our view, these results demonstrate the potential of lusvertikimab to provide durable responses for UC, thereby strengthening the candidate’s data package.

• Key 1Q25 takeaways include: 1) Artificial Intelligence (AI) remains at the forefront of management’s strategic vision to transform the broader healthcare journey through RCM automation, enhanced patient engagement, and real-time analytics, with the launch of CCLD’s “AI Center of Excellence” 2) by leveraging CCLD’s data, domain expertise, and offshore resources competitive advantages, senior executives plan to incorporate proprietary AI solutions across operations, products, and services to manage workflows more efficiently 3) management maintains ample liquidity to fund M&A transactions, with incremental deals typically accretive starting 90 days following closings reflecting lower CACs and meaningful cost savings and 4) we look for CCLD’s earnings power to ramp up, as the company’s differentiated value proposition increasingly resonates with healthcare providers and patients, and ongoing expense management and AI-derived operating efficiencies increasingly drive margin expansion.

• Zacks Small-Cap Research Note for Lantern Pharma, Inc. (LTRN)

• MIRA Pharmaceuticals(MIRA) Company Sponsored Research Report