In today’s briefing:
- Aussie Pharma: Path Cleared For Wesfarmers As Woolies Walks.
- Gaush Meditech (高视医疗科技) Pre-IPO: Need a Very Convincing Story
- Takeda: Excessive Reaction to Recent Setback in Trials; Drop in Share Price Offer Attractive Entry
- Bloomage Biotechnology (688363.CH) Vs Imeik Technology (300896.CH) – The Logic and the Outlook
Aussie Pharma: Path Cleared For Wesfarmers As Woolies Walks.
- Woolworths Ltd (WOW AU)‘s surprise takeover Offer for Australian Pharmaceutical Industries (API AU) last month is surpassed by its surprise decision to walk away.
- This leaves Wesfarmers Ltd (WES AU) in the driving seat – provided the ACCC is satisfied competition is not impeded.
- The cash consideration of $1.55 under Wesfarmers’ Offer will be reduced by any permitted dividend. A final fully franked dividend of A$0.02/share has been paid.
Gaush Meditech (高视医疗科技) Pre-IPO: Need a Very Convincing Story
- Gaush Meditech is a leading distributor of ophthalmic medical device in China. The company is looking to raise up to USD 200m via a Hong Kong listing.
- We look at the company’s key segments and products. The company’s story of being a comprehensive distributor and R&D does not impress us.
- The company is mainly held by the founder’s family. We think the company should be valued as a distributor and not innovative medical device company.
Takeda: Excessive Reaction to Recent Setback in Trials; Drop in Share Price Offer Attractive Entry
- Takeda is currently trading at JPY3,175 per share, slightly above its all-time low of JPY3,105 per share. Shares are currently at a 27% discount to its peak in March 2021.
- The company has been divesting its non-core assets and reorganising its business around five core areas: GI, Rare Diseases, Plasma-Derived Therapies, Oncology, Neurosciences and Others.
- Takeda’s share price started plunging after the suspension of a phase 2 study of TAK-994 in October 2021 following the emergence of a safety signal.
Bloomage Biotechnology (688363.CH) Vs Imeik Technology (300896.CH) – The Logic and the Outlook
- There’re many uncertainties about Imeik’s development strategy, resilience in front of risks and corresponding business performance, which could make it difficult for the market to calmly view the next fluctuation.
- Despite lower profit margin, Bloomage is more R&D oriented and characterized by integration of industrial chain,enabling it to establish wider moat and move forward more stably in the long term.
- Our view is that Bloomage Biotechnology Corporation-A (688363 CH) is expected to have more potential and imagination space than Imeik Technology Development (300896 CH) in the future.
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