Health Care Archives | Page 128 of 137 | Smartkarma

Apr 12

Health Care: PHC Holdings, Virtus Health, Asymchem Laboratories and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

PHC Holdings IPO Lock-Up – Stock Might Be Cheap but It’s Stuck with a US$1bn Overhang
The Panel Joins CapVest In Virtus’ Corner
CapVest Fights Back with Revised Offers for Virtus
Asymchem Laboratories (6821.HK/002821.CH) – Concerns on Future Growth Momentum

PHC Holdings IPO Lock-Up – Stock Might Be Cheap but It’s Stuck with a US$1bn Overhang

By Sumeet Singh

PHC Holding had raised US$645m in its Japan IPO in Oct 2021, after the deal was downsized and priced at the low-end.
PHC is engaged in the development, manufacturing and sale of healthcare devices and services. The company has three main segments: Diabetes Management; Healthcare Services; and Diagnosis/Life Science.
The pre-IPO shareholders will be released from the lockup today on 11th Apr 2022. Its largest shareholder is KKR, who still owns a 39% stake in the company.

The Panel Joins CapVest In Virtus’ Corner

By David Blennerhassett

CapVest has bumped its Scheme Offer for Virtus Health (VRT AU) to A$8.15/share. More importantly, it has increased the Takeover Offer price to A$8.10/share.
Separately, the Takeovers Panel has made interim orders prohibiting BGH from acquiring on market any Virtus shares above its Bid Price.
Virtus’s Board has unanimously determined that CapVest’s revised Offer is superior to BGH’s Bid.

CapVest Fights Back with Revised Offers for Virtus

Including the A$0.12 permitted dividend (paid on 14 April), CapVest’s revised scheme offer is A$8.27 and the off-market takeover offer is A$8.22. The new offer addresses the capital return issue.
Despite today’s interims orders from the takeover panel, CapVest’s scheme transaction still has virtually no chance of getting up due to BGH’s 19.99% stake.
BGH’s like-for-like off-market offer price of A$8.12 per share is 1.2% below CapVest’s off-market offer, suggesting that there is more life to this takeover tussle for Virtus Health (VRT AU).

Asymchem Laboratories (6821.HK/002821.CH) – Concerns on Future Growth Momentum

By Xinyao (Criss) Wang

The three large orders for COVID-19 small molecule drugs are mostly one-off revenues, and after 2022, Asymchem Laboratories (6821 HK)‘s performance could decline from a high base.
In essence, Asymchem mainly relies on cost advantage of large-scale capacity to obtain orders.Without core leading technology in frontier of medicine, Asymchem is difficult to enjoy sustainable industry development dividend.
Overall, Asymchem’s moat is not strong enough, and the certainty of the Company’s long-term performance growth is also not high. It could be a short-term trade rather than long-term hold.

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Apr 11

Health Care: Simcere Pharmaceutical Group, Zai Lab Ltd and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Simcere Pharmaceutical (2096 HK): Double-Digit Topline Growth; Margin Deteriorating Spoils the Party
Zai Lab Ltd (ZLAB.US/9688.HK) – Will Zai Lab Go into a Vicious Circle?

Simcere Pharmaceutical (2096 HK): Double-Digit Topline Growth; Margin Deteriorating Spoils the Party

By Tina Banerjee

Simcere Pharmaceutical Group (2096 HK) reported an 11% y/y revenue growth to RMB5 billion, mainly driven by 54% y/y revenue growth from innovative pharmaceuticals.
However, gross margin contracted 160 basis point to 78.4%, reflecting pricing headwind. Heavy R&D and selling and distribution expenses are taking toll on operating profit.
During 2021, Simcere has added six registered clinical trials for phase 3, two trails for phase 2, three trails for phase 1, and obtained 12 clinical trial approvals for drugs.

Zai Lab Ltd (ZLAB.US/9688.HK) – Will Zai Lab Go into a Vicious Circle?

By Xinyao (Criss) Wang

Due to its early involvement in license-in mode, Zai Lab could in-license many high-quality candidates at a low price in the early stage, thus leading to today’s achievements.
However, the increasingly low cost performance of in-licensed products has made the capital “reconsider”, because it is increasingly difficult to maintain high growth as before based on license-in mode.
Zai Lab could be a good short-term trade,especially when it reaches licensing deals or launch new products,but doubts about long-term prospects could discourages investors from holding it for long term.

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Apr 10

Health Care: Hansoh Pharmaceutical and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Hansoh Pharmaceutical (3692 HK): Bottom-Fishing Idea; Market Is Overlooking Innovative Portfolio

Hansoh Pharmaceutical (3692 HK): Bottom-Fishing Idea; Market Is Overlooking Innovative Portfolio

By Tina Banerjee

Hansoh Pharmaceutical (3692 HK) is increasingly focusing on innovative drug, with revenue from such drugs contributing 42% of total revenue in 2021. R&D accounted for 18% of revenue in 2021.
Thus far, in this year, Hansoh received approval for one more new rare-disease drug. Its rich pipeline has 25+ clinical programs of innovative drugs.
With its proven execution on innovative portfolio, sound financial positions, and recent business collaboration effort to enrich the pipeline, Hansoh seems to be an undervalued business.

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Apr 09

Health Care: BNC Korea, Global Cord Blood and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

BNC Korea (256840 KS): Late Mover in COVID Pill; 2021 Operating Loss and Russia Exposure Add to Woe
Global Cord Blood (CO US): Gloomy Regulatory and Business Environment Explain Cheap Valuation

BNC Korea (256840 KS): Late Mover in COVID Pill; 2021 Operating Loss and Russia Exposure Add to Woe

By Tina Banerjee

BNC Korea (256840 KS), with its partnered COVID-19 pill will be a late entrant in the space, as two more COVID-19 pills are already approved in South Korea.
The company reported operating loss of KRW11 billion in 2021 and 99% of its export comes from Russia and CIS countries.
Since my bearish note published on the company in October 2021, shares have declined 50%. I am still not upbeat on the growth prospect of the company.

Global Cord Blood (CO US): Gloomy Regulatory and Business Environment Explain Cheap Valuation

By Tina Banerjee

Global Cord Blood (CO US) is facing regulatory and business environment uncertainty. China has not released any update on the new licenses of the country’s new cord blood bank.
The company is seeing slower than expected business recovery and new subscriber addition is decelerating since Q1 FY22, mainly due to COVID-related restrictions.
China’s birth rate dropped to a record low in 2021, thereby indicating sluggishness in the total addressable market of Global Cord.

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Apr 08

Health Care: Virtus Health and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Virtus: BGH’s Less Than Friendly Offer

Virtus: BGH’s Less Than Friendly Offer

By David Blennerhassett

Fertility specialist Virtus Health (VRT AU) has received a revised unconditional Offer from local Aussie PE outfit BGH which just eclipses CapVest’s Offer.
BGH’s $8.00/share Offer is A$0.02/share above CapVest’s takeover A$7.98/share offer – the one with a minimum acceptance condition of 50% – now the A$0.12/share dividend has gone ex.
CapVest still has the superior A$8.13/share Scheme Offer on the table, yet BGH’s 20% stake suggests the outcome for such an Offer is no certainty. CapVest does have matching rights.

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Apr 07

Health Care: Takeda Pharmaceutical, Virtus Health, Medlive Technology, Eli Lilly & Co and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Takeda Strengthens Rare Disease Portfolio Through Tie-Ups with Gene Therapy Developers
BGH Returns with an A$8.00 Off-Market Takeover Bid for Virtus
Medlive Technology (2192.HK) – The Logic Has Shaken
Buy Global LargeCap Pharma: LLY, AZN, NOVO.B-DK, ROG-CH, BMY, BAYN-DE, UCB-BE, IPN-FR, 4528-JP, TEVA

Takeda Strengthens Rare Disease Portfolio Through Tie-Ups with Gene Therapy Developers

By Shifara Samsudeen, ACMA, CGMA

Takeda Pharmaceutical (4502 JP) has been aggressively expanding its rare disease portfolio following recent hiccups in its development pipeline through Tie-Ups with different gene therapy developers.
Rare diseases biz is the second largest business segment for Takeda generating about 17.1% of total revenues for the company.
Takeda’s share price started plunging after suspending a phase 2 study of TAK-994 in October 2021 and price started moving up since January and we think there is further upside.

BGH Returns with an A$8.00 Off-Market Takeover Bid for Virtus

BGH announced an unconditional off-market takeover offer at A$8.00 cash per share along with intention for on-market purchases equal to, below, or higher than the offer price.
CapVest’s scheme transaction while superior has virtually no chance of getting up. CapVest’s off-market transaction is less appealing due to the uncertain outcome of the ATO ruling.
The last close price of A$8.15 is higher than both BGH and CapVest’s off-market offers which suggest both would need to raise their bid.

Medlive Technology (2192.HK) – The Logic Has Shaken

By Xinyao (Criss) Wang

The revenue YoY growth, net profit YoY growth and net profit margin reached a new low in 2021. The performance of Medlive cannot meet the market’s expectations of high growth.
The medical knowledge solutions is the cornerstone business and vital to the attractiveness of platform for users. However, this business is not strong enough to make the outlook certain.
In the fierce competition, more efforts are needed on how to convert physician resources into business value continuously. Due to unreliable logic, we are conservative about Medlive at current stage.

Buy Global LargeCap Pharma: LLY, AZN, NOVO.B-DK, ROG-CH, BMY, BAYN-DE, UCB-BE, IPN-FR, 4528-JP, TEVA

US cap-weighted Health Care (ETF: XLV-US) remains in a 4.5-month RS uptrend relative to the S&P 500, and we have the Sector on watch for a potential upgrade to overweight.
The VanEck Pharmaceutical ETF (PPH-US) recently broke out topside a 9-month base and RS displays a bullish reversal. Zooming-out, we can see a 6+ year base breakout.
Buy: Eli Lilly (LLY-US), Astrazeneca (AZN-US), Novo Nordisk (NOVO.B-DK), Roche (ROG-CH), Bristol-Myers Squibb (BMY-US), Bayer AG (BAYN-DE), UCB S.A. (UCB-BE), Ipsen SA (IPN-FR), ONO Pharmaceutical (4528-JP), and Teva Pharmaceutical (TEVA-US)

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Apr 06

Health Care: Medlive Technology, iShares Russell 2000 ETF, Ebos Group Ltd, Torii Pharmaceutical and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Medlive – High Conviction Update 2022
Bifurcation Continues; Banks, Semiconductors, Small-Caps, Homebuilders Remain Concerns
EBOS Group (EBO NZ): Strong Industry Positioning and Acquisitions to Drive Growth
Japan’s Governance: Articles About Torii Pharmaceutical’s AGM (2)

Medlive – High Conviction Update 2022

By Shifara Samsudeen, ACMA, CGMA

Medlive’s shares are currently trading at HK$8.15 per share and lost almost 70% YTD which we think was due to the ongoing regulatory crackdown on tech platforms in China.
Medlive’s 2021 revenues grew 33.2% YoY to RMB284m while adjusted OP grew 19.0% YoY to RMB123m. Shares reacted negatively due to slowdown in top line growth.
Medlive is currently trading at FY2 EV/Revenue of 0.97x compared to 34.3x when we last wrote. We think shares are extremely cheap and offers a good entry point.

Bifurcation Continues; Banks, Semiconductors, Small-Caps, Homebuilders Remain Concerns

The bifurcation between large-cap growth and small-caps that we discussed last week has continued, where small-caps have generally not been participating in the rally.
As we said last week, this bifurcation can continue, but it is not the type of breadth that supports a sustainable new bull market.
We need to see the Russell 2000 (IWM) stay above $209 in order to have confidence that the bottom is in. Meanwhile, stick with the commodity and defensive Sectors.

EBOS Group (EBO NZ): Strong Industry Positioning and Acquisitions to Drive Growth

By Tina Banerjee

Ebos Group Ltd (EBO NZ)’s proposed acquisition of LifeHealthcare has been cleared by Australian Competition Commission, paving the timely closure of the transaction by the end of FY22.
EBOS has achieved another record result in H1FY22, headlined by double digit revenue and earnings growth, due to continued strong growth trajectory of both healthcare and animal care segments.
EBOS shares gained 5% since I published bullish insight on December 16. I am still optimistic on the long-term growth prospect of the company.

Japan’s Governance: Articles About Torii Pharmaceutical’s AGM (2)

By Aki Matsumoto

Torii Pharmaceutical rejected a shareholder proposal at its AGM to prohibit “revolving door” appointments of people from JT to the board of directors and to disclose the cost of capital.
The Company disclosed the propriety of opposing these shareholder proposals, but this was not understood to be a sufficient explanation.
Will the Company eventually terminate its parent-subsidiary listing if it does not meet the prime market listing criteria for governance?

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Apr 05

Health Care: Wuxi Biologics and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Wuxi Biologics (2269.HK) 2021 Results – The Highlights and the Concerns

Wuxi Biologics (2269.HK) 2021 Results – The Highlights and the Concerns

By Xinyao (Criss) Wang

The continuous increase of backlog and CMO projects would provide high visibility and certainty for the growth of Wuxi Biologics (2269 HK) in 2022.
Given the complex international relations, it is possible that the US may add WuXi Biologics to any sanctions list again in the future, which means large stock price volatility.
There could be some short-term rally, but due to the lack of clear positive “signals” in the industry, we do not think it means a complete “reversal” for WuXi Biologics.

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Apr 04

Health Care: Innovent Biologics Inc, Vertex Pharmaceuticals and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Innovent Biologics Inc (1801.HK) – Capable of Surviving “this Winter”
Vertex Pharmaceuticals (VRTX US): No Longer Remains a ‘Cystic Fibrosis Only’ Play

Innovent Biologics Inc (1801.HK) – Capable of Surviving “this Winter”

By Xinyao (Criss) Wang

The biggest characteristic of Innovent Biologics Inc (1801 HK) is its strong ability of resources integration. Besides, when it comes to execution, clinical efficiency and R&D productivity, Innovent deserves credit.
If having 10 big commercialized drugs are the threshold for becoming a biopharma, Innovent’s upgrade from biotech to biopharma is almost complete.
Innovent has enough cash flow over the next few years to support development, and may even turn losses into profits. So, we think that Innovent could get through “this winter”.

Vertex Pharmaceuticals (VRTX US): No Longer Remains a ‘Cystic Fibrosis Only’ Play

By Tina Banerjee

Vertex Pharmaceuticals (VRTX US) is expanding its pipeline beyond its existing forte of cystic fibrosis, which enhances its long-term visibility.
Gene editing treatment CTX001 for treating sickle cell disease and beta thalassemia is Vertex’s most advanced program outside of CF. With its initial label approval, CTX001 has multi-billion-dollar opportunity.
A war chest of $7.5 billion and stable revenue flow from cystic fibrosis drugs should enable the company to pursue for the next leg of growth.

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Apr 03

Health Care: Shanghai Junshi Bioscience Co. Ltd. and more

By Smartkarma Daily Briefs | Daily Briefs, Healthcare

In today’s briefing:

Shanghai Junshi Bioscience (1877 HK): Uncertainties Prevailing Ahead of First U.S. Drug Approval

Shanghai Junshi Bioscience (1877 HK): Uncertainties Prevailing Ahead of First U.S. Drug Approval

By Tina Banerjee

Shanghai Junshi Bioscience Co. Ltd. (1877 HK)’s oncology drug candidate toripalimab marketing application is currently under priority review by the FDA, with a target action date of April 30, 2022.
However, FDA may reject toripalimab application, as it is predominantly based on China clinical trial data. Toripalimab may also face delay in FDA decision due to delayed regulatory inspection.
PD-1 drug market in the U.S. is intensely competitive, making the commercialization prospect of a new drug quite difficult. Toripalimab reported muted performance in China due to pricing headwind.

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