Daily Brief Health Care: Terumo Corp, Sinopharm Group Co Ltd H, Shield Therapeutics, OSE Immuno, Teva Pharmaceutical Sp Adr and more

• Terumo Corp (4543 JP) was able to hang in well after the announcement, up until the day or two before pricing date, then the shares were walloped into Pricing. 
• After pricing, they have fallen and erased most of the discount. That’s an opportunity. 
• The shares have underperformed Peers, and there is flow to come. This deal was, as advertised, smaller than it first appeared. 

• 2024 would be the low point in performance/valuation of Sinopharm. Due to the low base in 2024, revenue/net profit in 2025 is expected to rebound (e.g. high single-digit positive growth).
• Declining financial cost ratio is key driving force for profitability.Since the Fed would cut interest rate, a low interest rate environment helps Sinopharm reduce financial costs, thereby increasing profit margin.
• Since China hopes to establish a valuation system with Chinese characteristics, it would help drive up valuation of SOEs.Thus, there’s valuation repair opportunity for Sinopharm (e.g. P/E return to 8).

• Shield is a commercial-stage pharma company delivering specialty products that address the unmet medical need of patients with iron deficiency (ID).
• Since its July 2021 US launch, Shield and Viatris have increased physician awareness of the differentiating characteristics of ACCRUFeR® as an oral ID drug, in order to generate sales traction.
• 1H’24 results have confirmed that sales continue to progress well, while costs have been closely controlled.

OSE Immunotherapeutics has announced the initiation of its Phase III registrational study (Artemia) for lead cancer vaccine Tedopi, with the trial launching in the US, Canada, Europe and the UK. Artemia is a confirmatory pivotal trial designed to assess the efficacy and safety of Tedopi as a monotherapy versus the standard of care (SoC) in HLA-A2 positive patients with metastatic non-small cell lung cancer (NSCLC) and secondary (acquired) resistance to immune checkpoint inhibitors (ICIs). The primary endpoint is overall survival (OS) and we expect top-line results in 2027. If the data are positive, this should support a regulatory registration in the second-line setting in Europe and North America.

Lucror Analytics’ ESG Scores are based on a 3-tiered scale and are adjusted for Controversies (if applicable).
We assess Teva’s ESG as “Adequate”, in line with its “Adequate” Environmental and Social scores. The company has “Strong” Governance. Controversies are “Material”, but Disclosure is “Strong”.