In today’s briefing:
- Sun Pharma’s Halol Hurdles; No Major Impact on Operations
- Pre-IPO Butong Group (PHIP Updates) – Some Points Worth the Attention
- Alphamab Oncology (9966 HK): Phase III Candidates Hold Opportunity Beyond KN035 (Envafolimab)
- Kestra Medical Technologies (KMTS) Six Month Summary: Steady Rebound Amid Sector Volatility
Sun Pharma’s Halol Hurdles; No Major Impact on Operations
- Sun Pharma’s innovative medicines like Ilumya, Cequa, Winlevi, and Leqselvi are driving strong growth, now contributing 20% of revenues. But the Halol plant remains under USFDA restrictions, blocking new approvals.
- Specialty medicines such as Ilumya are fueling profitable growth, but continued compliance issues at Halol damage regulatory confidence and delay approvals for new products in the US market.
- Sun Pharma’s growth is supported by its specialty portfolio and strong India presence, but improving Halol’s compliance record is essential to rebuild trust and unlock higher market valuations.
Pre-IPO Butong Group (PHIP Updates) – Some Points Worth the Attention
- BUTONG adopt a marketing-driven model, which lacks underlying innovation in products, may be effective during market expansion, but is prone to the problem of sluggish growth during valuation transition period.
- If the approach of promoting expansion by relying on high growth of low-profit business continues, profit space will be suppressed,which isn’t friendly to the narrative of capital market after IPO.
- 2025-2027 revenue growth could be 30%, 25%, 20% respectively. Considering the high growth in the short term as well as the concerns, P/E of 20-25x could be a comfortable range
Alphamab Oncology (9966 HK): Phase III Candidates Hold Opportunity Beyond KN035 (Envafolimab)
- Alphamab Co Ltd (9966 HK) ‘s NDA of KN026 (anbenitamab) in combination with chemotherapy for the treatment of patients with HER2+ gastric or gastroesophageal junction cancer was accepted by NMPA.
- Alphamab has four major products at this moment, one of them commercialized (KN035) and the rest (KN026, JSKN003 and KN046) in the advanced stages of trial or regulatory approval.
- In 1H25, company reported an increase of 84% YoY in revenue mainly driven by licensing income. The strong Phase III line up provides a fair bit of revenue visibility.
Kestra Medical Technologies (KMTS) Six Month Summary: Steady Rebound Amid Sector Volatility
- The company, which debuted in March 2025 with 11.9 million shares priced at $17.00—above its $14–$16 range—opened at $22.95 for a 35% gain.
- Following its debut, Kestra Medical Technologies (KMTS US) hit an early post-IPO high of $26.15 but traded as low as $13.25 in the summer.
- The stock has jumped in the last month on the heels of strong first-quarter financial results, where the company not only beat revenue expectations but also raised full-year guidance.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
