Health Care Archives | Page 54 of 137 | Smartkarma

• QuantumPharm (QUP HK) raised US$126m from its Hong Kong IPO.
• QuantumPharm is a R&D platform, utilizing quantum physics-based first-principles calculation, advanced AI, high-performance cloud computing, and scalable and standardized robotic automation to provide drug and material science R&D solutions.
• We have covered various aspects of the deal in our previous note. In this note, we will talk about the demand and trading dynamics.

• Medtide (1268709D CH) is looking to raise at least US$100m in its upcoming HK IPO. The deal will be run by Morgan Stanley and Citic Securities.
• Medtide is the third largest peptide-focused contract research, development and manufacturing organization (CRDMO) worldwide in terms of sales revenue in 2023, according to F&S. 
• Its full-cycle services range from early-stage discovery, pre-clinical research and clinical development to commercial-stage production.

• Telix Pharmaceuticals (TLX AU) is looking to raise around US$190m in its US ADS listing. The bookrunners on the deal are Jefferies, Morgan Stanley, Truist Securities, and William Blair.
• TLX is a commercial-stage biopharmaceutical company focused on the development and commercialization of therapeutic and diagnostic radiopharmaceuticals.
• In this note, we talk about the updates since our last note and current deal dynamics.

• Around RMB5 billion generic drugs would be included in VBP in 2024/2025 (e.g. sevoflurane/Ioversol/butorphanol tartrate). So, the assumption that all the negative effects of VBP have cleared up isn’t correct.
• Hengrui’s innovative drugs would lose growth momentum after they reach peak sales. It’s difficult for Hengrui to maintain its scale expansion or achieve the over 20% YoY revenue growth.
• Hengrui’s PE would fall below 30 (or even below 20) in the future, which means its valuation would start to enter a downward trend. Current high valuation cannot be justified.

• Longeveron is focusing on using its primary treatment, Lomecel-B, to fight a rare pediatric heart birth defect that devastates families.
• The company announced the completion of an encouraging meeting with investigators involved in the ongoing trial of Lomecel-B for the treatment of HLHS.
• Additionally, the LGVN announced it has signed its first contract for the use of its state-of-the-art manufacturing facility.

• Grifols facing controversy over high debt, aggressive accounting practices, and financial sustainability doubts
• Despite challenges, Grifols is a major player in blood plasma-derived therapies market and has improved margins
• Company generated over EUR700m in free cash flow in 2020, expected to return to positive cash flow in 2025 with decreased costs and slowed growth investments; recent asset sale to reduce debt and new CEO joining to work towards stable financial future

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• SHC is a provider of medical device and pharmaceutical sterilization services with potential for significant upside
• Operates in a duopoly market with high barriers to entry and strong customer retention
• Stock is currently undervalued, providing investors with a timely opportunity to capitalize on the company’s potential

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• Adaptimmune Therapeutics plc (NASDAQ: ADAP) is a biopharmaceutical company focused on designing, developing, and delivering innovative cell therapies.
• The company’s unique T-cell receptor (TCR) platform engineers T-cells to target and destroy cancers across multiple solid tumor types.
• The company was founded in 2008 and is headquartered in Abingdon, United Kingdom, and Philadelphia, PA.

• Aesthetic laser maker Jeisys Medical (287410 KS) has announced French PE outfit Archimed SAS is seeking to delist the company.
• Archimed intends to acquire 72% of Jeisys at ₩13,000, a 20.82% premium to undisturbed. Archimed has also inked agreements with founders/directors for 26.44%, taking its possible % acquisition to 98.44%. 
• A Korean medical device maker – not another Eoflow (294090 KS)?! Jeisys did face a patent infringement case from Syneron Medical (ELOS US) in 2018; but since resolved. 

• Today after the close, SBI Holdings (8473 JP) – which currently owns 32.4% of Medical Data Vision (3902 JP) – announced it would buy another 1.91mm shares over 7mos.
• This market purchase would lift them to ~37.4% by year-end. Interestingly, they plan to go through the one-third level without a Tender Offer. But their buying history hasn’t been great. 
• SBI bought 20% in 2020. It fell by half. They bought another 5%. Then it dropped 50%, so they bought another 5%. Now -25% so they are buying another 5%.

• Some shareholders have confirmed to be acting in concert at the Court Meeting, but long-term investors may vote against the privatization because they are not satisfied with the Cancellation Price.
• The success rate of SciClone’s privatization is lower than that of China TCM and L’Occitane. If fails, there’s a high probability that the share price will fall back to HK$14/share.
• The current share price cannot provide decent returns. Together with exchange rate risk, potential failure risks, etc., there’s no need for investors to take risks at this share price level.

• Hugel Inc (145020 KS) got favorable preliminary ruling in US for its litigation with Medytox. The ruling revealed that the competitor’s claim of strain theft by Hugel is baseless.  
• In March, Hugel received FDA approval for BTX product, Letybo in US. The company plans to launch Letybo in 2H24, while final ruling for the litigation is scheduled in October.
• As BTX and HA filler grew steadily in domestic and overseas markets, 1Q24 sales grew 15% YoY to KRW74.3B, achieving the highest ever performance in the first quarter.

• BrainStorm Cell Therapeutics Inc. (Nasdaq: BCLI, Biotech) is focused on developing autologous mesenchymal stem cell (MSC) therapies for the treatment of neurodegenerative diseases (NDDs) – BCLI’s primary target is the fatal amyotrophic lateral sclerosis (ALS/MND/Lou Gehrig’s).
• Post hoc analysis of BCLI’s PIII trial data shows BCLI’s NurOwn® (debamestrocel, MSC-NTF), has statistically significant clinical effects on early-stage ALS sufferers and that placebo trialists deteriorate faster.
• Peer reviewed research (Mar 2024) indicated that BCLI’s NurOwn® has a positive impact on NfL biomarkers for ALS.

• SCLX is filling a much-needed area of the health care sector, that of developing non-opioid pain relief products.
• The company already has commercialized products that are proven to improve patients’ lives.
• The company recently added to its important line on non-opioid drugs by announcing the FDA approved the commercial manufacturing of Gloperba and that the product is being stocked in many national pharmacy chains and independent pharmacies.

• On 10 June, it was announced that France’s Archimed Group is conducting a tender offer of 55.72 million shares of Jeisys Medical (287410 KS) (72% of outstanding shares). 
• The tender offer period will run from 10 June to 22 July. The tender offer price is 13,000 won.
• Archimed also signed a contract to purchase the entire stake (23.2%) held by Kang Don-Hwan (Chairman of Jeisys Medical) and (3.2%) held by a Director Myung-Hoon Lee.

• Concord Biotech Ltd (CONCORDB IN) reported 19% revenue growth in FY24. EBITDA and PAT grew at a faster pace of 26% and 28%, YoY, respectively.  
• With focus on deeper market penetration, acquiring new customers, and introducing new products in niche categories, Concord is well-positioned for 25% revenue CAGR in 3–5 years.
• Despite a huge run-up from the IPO price, Concord shares are trading at forward P/E of 38.9x, which is lower than peers.

• Regenerative medicine remains an extremely exciting area of healthcare with vast investment potential.
• In spite of the usual setbacks in valuation and strategy, the sub-sector has pivoted and the market remains innovative and attracts investment capital.
• Rather than replace entire tissues, which is a complex activity, we believe the immediate future for stem cells is more likely to be in the successful stimulation of the bodies on repair mechanisms.

• BioLineRx is a commercial stage biopharmaceutical company with a development portfolio advancing motixafortide, a platform molecule targeting indications in stem cell mobilization (SCM) & in the treatment of advanced pancreatic cancer.
• The candidate is approved in the US for SCM and is undergoing studies for use in gene therapy and in pancreatic cancer.
• Partner Gloria Biosciences is developing motixafortide in Asia & is expected to be conducting bridging studies in the near term for SCM and longer-term studies for other indications.

• Archimed aims to acquire 72% of Jeisys Medical’s shares, totaling 55,724,838 shares. The tender offer runs from the 10th of this month to the 22nd of the following month.
• If tendered shares fall short of the 18,013,879 minimum, Archimed refrains from purchases. If exceeded, Archimed buys all, eliminating allocation risk.
• With over 70% substantial volume and a large portion held by local retail investors, surpassing the 26% threshold seems feasible.

• One interesting interpretation of the new Akeso-summit cooperation is that it aims to pave the way for potential acquisition of Summit by MNC. The climax of the story hasn’t arrived.
• Jacobio is a good target for potential M&A and licensing deals. So, this company has considerable potential returns and also strong safety margin, which is worth taking a gamble on.
• There’re concerns that Genscript could face US scrutiny due to alleged ties with Chinese government. Share price rebound may not last considering geopolitical conflicts and CXO industry downturn in 24H1.

• Tempus AI, a healthcare IT company and provider of next-gen diagnostics, is expected to IPO next week. The company plans to raise $411M at the high end of the range.
• The most recent S-1/A puts the expected price range per share at $35 to $37, implying a market cap of ~$6B at the midpoint.
• Tempus AI provides personalized cancer care and brings AI to healthcare at scale. They train LLMs to develop AI applications and have the largest public genomic data sets in oncology

• Centene Corporation reported its first quarter 2024 results, highlighting several positive developments and strategic maneuvers aimed at sustaining and enhancing its business operations.
• The company achieved a higher-than-expected adjusted EPS of $2.26, prompting an upward revision in its full-year 2024 EPS guidance to over $6.80.
• This performance signals a robust start to the year, attributed partly to significant operational improvements and strategic realignments.

• QuantumPharm (QUP HK) is looking to raise US$144m from its Hong Kong IPO.
• QuantumPharm is a R&D platform, utilizing quantum physics-based first-principles calculation, advanced AI, high-performance cloud computing, and scalable and standardized robotic automation to provide drug and material science R&D solutions.
• In our previous notes, we looked at the firm’s past performance and PHIP updates. In this note, we share our thoughts on valuations. 

• Agilent Technologies was found to have declining earnings in Quarter 2 of 2024.
• Despite a drop in revenue, orders grew compared to the previous seven quarters, and earnings per share did surpass expectations.
• The company faced a difficult market environment but showed signs of future recovery at a slower pace than initially predicted.

OSE Immunotherapeutic’s FY24 has started off with a series of major wins, significantly bolstering the company’s clinical pipeline and liquidity. We believe the partnership with AbbVie (announced in February) for OSE-230, targeting chronic inflammation, the €8.4m public funding for Tedopi secured in April and the recent expansion of its R&D agreement with Boehringer Ingelheim (BI) are all positive endorsements of OSE’s discovery platform. Moreover, we expect the c €91m in non-dilutive inflows from these announced deals to extend OSE’s cash runway into 2027 (previously 2026), an important consideration given the still tight biotech funding environment. While some optimism from these announcements is already reflected in the share price (up 88% ytd), our revised valuation for OSE (€19/share) indicates potential for further upside with the upcoming milestones, including the Phase III initiation for lead asset Tedopi and Phase II readouts for Lusvertikimab, both anticipated imminently.

• Veeva Systems had a solid start to the year with first-quarter results that exceeded the company’s guidance.
• The total revenue during the quarter reached $650 million, and the non-GAAP operating income was $261 million.
• Despite facing macroeconomic headwinds, the company managed to execute well and deliver customer success.

• A high disease burden, high demand for chronic treatment, and an ageing population makes China an excellent opportunity for an established pharma company.
• With 1/3 of the market cap in cash, a healthy payout ratio, and a FPE of under 8, CMS is one of the bargain beneficiaries in the Chinese healthcare space.
• The founder/CEO recently purchased 8m shares. He last bought shares in 2020-2021. The share price almost tripled afterwards.

• Alkem Laboratories Ltd (ALKEM IN) reports 1% revenue growth in Q4FY24. However, gross margin improved significantly backed by lower raw material cost and lower intensity of price erosion in U.S.
• For FY25, the company has guided for 10% YoY revenue growth, which is at par with the last five year’s average growth.
• Alkem expects to maintain FY25 gross margin and EBITDA margin at the current level. As API prices have become mostly stable, there is limited room for further margin expansion.

• IN8Bio is a clinical-stage, oncology-focused biotechnology company using ?d T cells against solid and hematological tumors.
• Its pipeline is built on the DeltEx platform & drug resistant immunotherapy (DRI) technology which have produced clinical candidates targeting leukemia & GBM.
• INB-100 is evaluating leukemia in a Ph1 study, while INB-200 & INB-400 are Ph1 and Ph2 assets evaluating GBM.

• Quipt is the 5th largest home medical equipment provider in the US, specializing in respiratory equipment and consumables for patients in a home setting.
• The company operates out of 125 locations in 26 states, with dual listings in Canada and the US.
• Despite a 26% increase in share count and $70 million rise in debt, Quipt’s stock price has fallen by 4% due to concerns about potential competition from GLP-1s and a Civil Investigative Demand regarding possible false claims to government healthcare programs.

This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

• The approval/filing process of China TCM’s privatization is complicated and would take some time, but there’re almost no cases of disapproval. It also depends on the adequacy of materials submitted.
• Due to the extension of time for the despatch of Scheme Document, this process would be delayed for more months.But we should receive clear information by October at the latest.
• For arbitrageurs, China TCM is an investment opportunity of high success rate, which becomes more attractive if HK stock market is depressed.It’s better suited to idle funds considering potential risks/returns.

• On May 28, 2024, MediciNova, Inc. (MNOV) announced that two abstracts regarding MN-001 (tipelukast) and MN-002 were presented as posters at the 92nd European Atherosclerosis Society (EAS) 2024 Congress.
• The poster on MN-001 discussed the objectives and design of the ongoing Phase 2 clinical trial enrolling patients with Type 2 diabetes, dyslipidemia, and NAFLD, which has now enrolled a total of 33 patients.
• The other presentation regarded the mechanism of action of MN-001/MN-002 in lipid metabolism.

• Organovo is a biotech company that has 3D technology enabling the company to produce various human tissues, allowing the company to target diseases and accelerate the drug development process.
• The company released its annual report that showed good cash balances, and also recently released positive Phase 2 results for one of its primary treatments-FXR314.
• These results are very encouraging and bolster our belief in the future prospects for ONVO.

Oryzon Genomics has announced the publication of the final ALICE trial results in the recognised peer-reviewed journal The Lancet Haematology. The Phase IIa trial investigated iadademstat (Oryzon’s lead oncology LSD1 inhibitor) in combination with azacitidine for the treatment of acute myeloid leukaemia (AML) in newly diagnosed elderly/unfit patients. The trial demonstrated strong efficacy signals, with an objective response rate (ORR) of 81.5%, with three patients still on treatment through compassionate use and in complete remission after four years from the start of treatment. A Phase Ib, investigator-sponsored, dose-finding study evaluating iadademstat (in combination with azacitidine and venetoclax) in the first-line setting is expected to start recruitment by mid-2024. We note that the company’s near-term focus is the Phase Ib FRIDA study (in patients with advanced AML with an FLT3 mutation), from which interim data is expected imminently.

• We have already discussed our flow expectations for the mainstream indices in the CSI family such as CSI300/500, SSE50/100, and the STAR50/100 for the June 2024 index rebal event.
• In this insight, we take a look at our flow expectations for the ADDs/DELs involved in the rebalance of some of the lesser known indices in the CSI family.
• The indices covered in this insight are All Share Brokerage, China Internet, Medical Devices, National Defense, and Livestock Breeding indices.

• We have always been concerned about QuantumPharm’s business model. It is relatively difficult for a service provider like QuantumPharm to scale up revenue by just relying on charging service fees.
• For AI pharmaceutical companies, how to make money is a pain point for entire industry. Just focusing on preclinical stages would limit profitability.We haven’t seen any certainty of achieving breakeven.
• Increasing competition would bring more challenges for QuantumPharm. Post-investment valuation in 2021 was too expensive.If its future performance falls short of expectations, then sooner or later the valuation will collapse.