Daily Brief Health Care: Tsumura & Co, Mayne Pharma, Eli Lilly & Co, Gilead Sciences, D.Western Therapeutics Institute Inc., Lantheus Holdings, Nurexone Biologic, IDEXX Laboratories and more

• Tsumura & Co (4540 JP) shocked everyone a year ago when they announced an immediate large price hike across the board for its kampo medicines. The stock was +35% immediately.
• It did not fall back. Now the stock is up 60% from a year ago and earnings are too. It’s still <10x PER. Now we get a ¥10bn secondary offering.
• It’s 12 days of ADV but not super heavy, and there is a buyback on the back end.

• Mayne Pharma (MYX AU), a leader in dermatology and women’s health, has entered into a Scheme Implementation Deed with US-based pharmaceutical outfit, Cosette Pharmaceuticals.
• Cosette is offering A$7.40/share, a 37% premium to last close. Apart from Mayne’s shareholder approval, the Offer requires FIRB signing off. 
• The Offer also has the backing of Mayne’s two largest shareholder, Viburnum and Bruce Mathieson, collectively holding 14.1%. Implementation is expected late May, early June 2025. This is done.

• Development of medicine for weight loss and diabetes has evolved over time, with newer drugs like Tirzepatide showing dual actions for weight loss and metabolic benefits
• These drugs have potential to impact behaviors like smoking, alcohol consumption, and potentially drug addiction, but further studies are needed
• Blue sky scenario for future impact includes potential for weight management to become a choice rather than an affliction, and reduction in downstream diseases of obesity like cardiovascular risk and kidney disease, which account for a significant portion of healthcare costs

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• Gilead Sciences Inc. delivered a strong performance in the fourth quarter and full year 2024, with significant revenue growth driven by its core business areas despite facing some industry-specific and macroeconomic challenges.
• Positives from the earnings results include a robust increase in product sales, excluding Veklury (remdesivir), demonstrating an 8% year-over-year growth, reaching $26.8 billion.
• The primary driver was the HIV portfolio, which exceeded expectations with an 8% growth to $19.6 billion for the year, led by the leading HIV treatment, Biktarvy, which saw a 13% increase in sales.

• DWTI announced that ophthalmic surgical aid product “DW-1002” has been approved by the National Medical Products Administration (NMPA) in China for the indication of staining of the internal limiting membrane (ILM) during vitreous surgery, as reported by the Company’s sublicensee Dutch Ophthalmic Research Center International B.V. (DORC).
• This drug is already being sold in 76 countries and regions around the world, including Europe and the United States, and sales are progressing favorably.
• The graph below shows the annual trend of DW-1002 royalty income to DWTI from DORC. In China, it is scheduled to be launched under the product name ILM-BlueⓇ

• Lantheus is a leader in radiopharmaceutical offerings in oncology & precision diagnostics.
• It offers a portfolio of diagnostic & therapeutic products directly & via partnerships & licensing.
• The primary revenue driver is Pylarify, a PET tracer for PSMA-expressing prostate cancer.

• NurExone (OTC-NRXBF) is a preclinical stage biotech company that is developing a breakthrough treatment for spinal cord injuries that has the potential to dramatically improve lives.
• The technology involved also has the potential to more efficiently get other treatments to the needed area.
• The company’s stock has performed exceptionally well in Canada and is expanding its presence in the US.

• IDEXX Laboratories,  a $35 billion company, is a global leader in veterinary diagnostics, selling and developing the tools that help vets diagnose and treat animals.
• IDEXX operates a highly recurring, subscription-like business model, particularly in its Companion Animal Group (CAG), which accounts for over 90% of its revenue.
• IDEXX is a cash-generating, high-return compounder at the center of a booming industry and stock looks undervalued right now.