In today’s briefing:
- STCube: Rights Offering Capital Raise of 89 Billion Won
- Prodia (PRDA IJ) – New Outlets and Esoteric Testing Driving Growth
- Telix Pharmaceuticals (TLX AU): Illuccix Continues to Drive Growth in 1H24; More Products to Come
- CING: Initiating Coverage – Precision Timed Release Delivers Active-Day Coverage
- RVPH: August OLE Update
- Wuxi Biologics (2269.HK) 24H1 – The Best Semi-Annual Report for the Next Three Years?
STCube: Rights Offering Capital Raise of 89 Billion Won
- STCube announced it plans to increase capital by 89 billion won (13 billion won through a third party rights offering and 75.7 billion won through shareholder preferred capital increase).
- We have a positive view of STCube’s capital raise and there could be some alpha generating returns in our view.
- The fact that the company’s share price surged nearly 5x from the last rights offering in May 2022 (to October 2022) is likely to positively impact capital raise this time.
Prodia (PRDA IJ) – New Outlets and Esoteric Testing Driving Growth
- Prodia (PRDA IJ) is starting to see its growth strategy gain traction with a QoQ increase in 2Q2024 revenues driven by more esoteric testing and promotions driving growth.
- The company has started to roll out physical outlets more aggressively, especially points of collection, with new clinical labs also providing a wider array of tests including genomic testing.
- Prodia continues to drive its omnichannel strategy through U by Prodia and its ProdiaLink for Doctors, with capex for Prodia Digital in decline. Valuations remain extremely attractive versus Indian comparables.
Telix Pharmaceuticals (TLX AU): Illuccix Continues to Drive Growth in 1H24; More Products to Come
- Telix Pharmaceuticals (TLX AU) announced 65% YoY revenue growth to A$364M and reversed a loss with A$29.7M net profit in 1H24.
- The U.S. sales from Illuccix was the main driver with a 64% YoY increase in revenue to A$359M (~$243M), reflecting continued growth in sales volume and market share gains.
- Telix reaffirms its full year 2024 revenue guidance of $490–$510M (A$745–776M), up 48–54% YoY. R&D expenditure guidance for 2024 remains at 40–50% increase on 2023.
CING: Initiating Coverage – Precision Timed Release Delivers Active-Day Coverage
- Cingulate is developing its Precision Timed Release (PTR) technology to deliver ADHD drugs to improve onset & efficacy of previously approved products.
- The company licensed rights to manufacturing a 3-layer tablet that releases dexmethylphenidate (CTx-1301) over the active day.
- CTx-1301 provides immediate onset, eliminates the need for a booster dose, reduces diversion & simplifies dosing among other benefits.
RVPH: August OLE Update
- Reviva is a research and development pharmaceutical company with two portfolio compounds targeting nine indications.
- The candidates address multiple related mental disorders, rare diseases & other categories of un met need.
- Reviva’s lead indication in schizophrenia with brilaroxazine (RP5063) completed its 1st Phase III trial & began its 2nd in 2Q:24.
Wuxi Biologics (2269.HK) 24H1 – The Best Semi-Annual Report for the Next Three Years?
- WuXi Bio’s 24H1 performance is disappointing. Since XDC has become new growth driver for WuXi Bio, why continue to invest in WuXi Bio instead of directly investing in WuXi XDC?
- Production capacity expansion is aggressive, with high personnel salaries/cost pressure. Without sustained growth in high-margin orders, WuXi Bio’s profitability will continue to decline. Gross margin may not bounce back quickly.
- The mid-to-late stage order increment in US would be dominated by Japanese/Korean CXO. Without a definitive long-term logic, valuation cannot return to previous highs. Any rebound is difficult to sustain.
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