Core Insights - Ligand Pharmaceuticals will participate in the Oppenheimer 36th Annual Healthcare Life Sciences Conference on February 25, 2026, with CEO Todd Davis and CFO Tavo Espinoza attending a fireside chat [1] - The company will also host one-on-one meetings with investors during the conference, encouraging interested parties to contact their Oppenheimer representative for arrangements [2] Company Overview - Ligand Pharmaceuticals is a biopharmaceutical company focused on supporting the clinical development of high-value medicines through financing and licensing technologies [3] - The company's business model aims to create a diversified portfolio of biotech and pharmaceutical product revenue streams while maintaining a low corporate cost structure [3] - Ligand's strategy includes funding mid- to late-stage drug development programs in exchange for economic rights, purchasing royalty rights, and licensing technology to assist partners in drug discovery and development [3] - The company operates two royalty-generating technology platforms: Captisol®, which enhances drug solubility and stability, and NITRICIL™, which allows for tunable dosing and adjustable drug release profiles [3] - Ligand has established partnerships with leading pharmaceutical companies such as Amgen, Merck, Pfizer, Jazz, Gilead Sciences, and Baxter International [3]

Core Viewpoint - Artisan Mid Cap Value Fund's performance in Q3 2025 was below the benchmark, with returns of approximately 0.97% compared to the Russell Midcap Value Index's 6.18% return, attributed to broader market conditions and specific sector challenges [1] Fund Performance - The Investor Class fund ARTQX returned 0.97%, Advisor Class fund APDQX returned 0.98%, and Institutional Class fund APHQX returned 0.97% in Q3 2025 [1] - The overall equity markets rallied, driven by strong corporate earnings, rising AI capital expenditures, and expectations of economic support from US fiscal policy and lower interest rates [1] Company Focus: Align Technology, Inc. - Align Technology, Inc. (NASDAQ:ALGN) experienced a one-month return of -1.05% and a 52-week loss of 28.71%, with a market capitalization of $11.31 billion as of January 2, 2026 [2] - The company is recognized for its Invisalign clear aligners and iTero intraoral scanners, but faced underperformance in Q3 due to high expectations and disappointing quarterly results [3] Sector Analysis - The health care sector was a significant source of underperformance for the fund, with Align Technology being one of the major detractors alongside Centene and Baxter International [3] - The health care sector has struggled due to policy uncertainty, leading to reduced investor interest [3] Investment Strategy - The fund initiated a position in Align Technology at $150 per share, following a market sell-off due to tariff concerns, viewing it as a high-quality business with long-term potential [3] - Despite recent challenges, the company is seen as a market leader in clear aligners, with expectations that it can continue to capture market share in the orthodontics space [3]

Fund Performance - Artisan Mid Cap Value Fund's Investor Class fund ARTQX returned 0.97%, Advisor Class fund APDQX posted a return of 0.98%, and Institutional Class fund APHQX returned 0.97% in Q3 2025, compared to a 6.18% return for the Russell Midcap Value Index [1] Market Context - Equity markets continued to rally in Q3 2025 as investors overlooked tariff concerns, driven by strong corporate earnings, rising AI capital expenditures, and hopes for economic support from US fiscal policy and lower interest rates [1] Centene Corporation Overview - Centene Corporation (NYSE:CNC) is a healthcare enterprise that provides services to under-insured and uninsured families and commercial organizations, with a one-month return of 10.30% and a 52-week loss of 33.35% [2] - As of January 2, 2026, Centene's stock closed at $41.78 per share, with a market capitalization of $20.536 billion [2] Performance Analysis of Centene Corporation - The portfolio's stock selection was broadly negative across sectors in Q3 2025, with the healthcare sector being a significant source of underperformance, particularly due to Centene Corporation, Align Technology, and Baxter International [3] - Centene's shares declined after the company withdrew its 2025 guidance due to higher-than-expected market acuity on the ACA marketplaces and elevated Medicaid cost trends, compounded by a declining trend in Medicaid enrollment [3] - The end of the pandemic-era policy prohibiting disenrollment from Medicaid has led to millions losing coverage, and new work requirements from the Big Beautiful Bill (BBB) set to take effect on January 1, 2027, are expected to create additional headwinds for Medicaid enrollment [3] - Although Centene can reprice risk annually, the multitude of challenges it faces, including changes from the BBB, will likely delay recovery, prompting the fund to exit its position in Centene [3]

Summary of MedTech Industry Outlook for 2026 Industry Overview - The MedTech industry is experiencing increased stock-specific volatility and performance dispersion, which is expected to continue into 2026 [1][3][20] - Major product cycles and a supportive hospital spending environment, combined with trough valuations compared to the S&P, create a favorable setup for the industry [1][3] Key Insights - **Growth Projections**: Organic growth is estimated at +6-7% driven by innovation cycles in large markets such as concomitant PFA/LAA, RDN, TMTT, leadless pacing, and diabetes devices [3][8] - **Margin Improvement**: Margins are expected to improve due to a favorable mix shift and normalized cost/pricing dynamics [3][8] - **Hospital Spending**: Capital spending in hospitals is projected to grow by +4.1% in 2026, consistent with the previous year's growth of +4.0% [4][62] - **Reimbursement Challenges**: 34% of hospital executives cited reimbursement pressure as the biggest challenge for the upcoming year, an increase from 25% the previous year [3][70] Market Dynamics - **Volatility and Stock Picking**: The high degree of volatility, particularly around earnings, has made stock picking challenging and is likely to persist into 2026 [3][9] - **Investment Sentiment**: Despite macroeconomic uncertainties, hospitals are still inclined to invest in new equipment, with over 70% considering purchases across various categories [66][69] Competitive Landscape - **Robotic Systems**: There is a notable emphasis on robotic systems in capital budgets, with companies like ISRG and SYK gaining market share in soft-tissue and orthopedic robotics, respectively [9][10] - **Emerging Technologies**: New growth verticals such as Renal Denervation and next-gen Neuromodulation are expected to contribute to future growth [38] Analyst Ratings and Recommendations - **Upgrades**: Companies like DexCom (DXCM) and Bausch + Lomb (BLCO) have been upgraded to Overweight due to strong pipelines and operational improvements [10][11] - **Cautions**: Inspire Medical Systems (INSP) has been downgraded to Equal-weight due to slowing growth and increased competition [12][14] Conclusion - The MedTech industry is positioned for growth in 2026, supported by favorable hospital spending trends and innovation in product offerings. However, challenges such as reimbursement pressures and market volatility remain significant factors to monitor [3][10][75]

Core Insights - Solventum has appointed Heather Knight as Chief Commercial Officer, effective November 10, 2025, to oversee global commercial and R&D operations across its MedSurg, Dental Solutions, and Health Information Systems segments [1][3] - Ms. Knight has over 30 years of leadership experience in the MedTech industry, previously serving as COO at Baxter International and holding various leadership roles at Medtronic, Covidien, Tyco Healthcare, and Kendall [2] - The appointment aims to enhance Solventum's go-to-market strategy and drive profitable growth as the company transitions into a standalone entity [3] Company Strategy - The appointment of Ms. Knight reflects Solventum's commitment to building a high-performing organization and progressing towards becoming a leading global MedTech company [3] - The alignment of the go-to-market strategy under one leader is expected to improve coordinated execution and leverage the company's size and scale [3] - Ms. Knight expressed enthusiasm about joining Solventum during a pivotal time in the execution of the company's multi-year strategic plan [3] Leadership Changes - Chris Barry, the Executive Vice President and Group President of MedSurg, will depart Solventum effective December 31, 2025, following Ms. Knight's appointment [3][4] - Mr. Hanson acknowledged Chris Barry's contributions and leadership in the MedSurg segment, ensuring a seamless transition [4] Financial Guidance - The leadership change does not impact Solventum's financial guidance, with the next update expected during the third quarter results announcement in early November [4]

Core Viewpoint - Ligand Pharmaceuticals has successfully completed an offering of 0.75% convertible senior notes due 2030, raising a total of $460 million, with net proceeds of approximately $445.1 million after fees and expenses [1][2]. Group 1: Offering Details - The offering consisted of $460 million in convertible senior notes, including an additional $60 million purchased by initial purchasers [1]. - The net proceeds from the offering were approximately $445.1 million, which will be used for various corporate purposes [2]. Group 2: Use of Proceeds - Ligand allocated approximately $45.9 million of the net proceeds to cover costs associated with convertible note hedge transactions [2]. - The company repurchased 102,034 shares of its common stock for about $15.0 million at a price of $147.01 per share [2]. - Remaining net proceeds are expected to be used for general corporate purposes [2]. Group 3: Financial Instruments - Ligand entered into convertible note hedge transactions to mitigate potential dilution of its common stock upon conversion of the notes [3]. - The company also issued warrants to purchase common stock, with an initial strike price of $294.02 per share, representing a 100% premium over the last reported price [3].

Core Insights - Ligand Pharmaceuticals' partner Pelthos Therapeutics has launched ZELSUVMI™, the first FDA-approved at-home treatment for molluscum contagiosum, leading to a $5 million milestone payment for Ligand [1][2] Company Overview - Ligand Pharmaceuticals is a biopharmaceutical company focused on supporting the clinical development of high-value medicines through financing and licensing technologies [4] - The company aims to create a diversified portfolio of biotech and pharmaceutical revenue streams while maintaining a low corporate cost structure [4] - Ligand partners with leading pharmaceutical companies to leverage their expertise in late-stage development, regulatory management, and commercialization [4] Product Details - ZELSUVMI™ (berdazimer) is a nitric oxide-releasing topical gel indicated for treating molluscum contagiosum in patients aged one year and older [3] - It is the first and only approved topical prescription medication that can be applied at home, outside of a medical setting [3] - The product was developed using Ligand's proprietary NITRICIL™ technology platform [3] Financial Aspects - Following the merger between Pelthos Therapeutics and Channel Therapeutics, Ligand now owns 56% of Pelthos [2] - Ligand is entitled to a 13% royalty on worldwide sales of ZELSUVMI and can earn up to an additional $5 million in commercial sales milestones [2]

Baxter International on Monday named Andrew Hider, chief executive of Canadian automation solutions firm ATS Corp., its new CEO. Shares of both companies fell. https://t.co/1rZzEcpFZD ...

Core Viewpoint - Ligand Pharmaceuticals is celebrating significant milestones, including the ringing of The Nasdaq Opening Bell, which reflects the company's transformation into a profitable and infrastructure-light organization focused on biopharmaceuticals [2][3]. Company Overview - Ligand Pharmaceuticals is a biopharmaceutical company that supports the clinical development of high-value medicines through financing and licensing technologies [3]. - The company's business model aims to create a diversified portfolio of revenue streams from biotech and pharmaceutical products while maintaining a low corporate cost structure [3]. - Ligand partners with leading pharmaceutical companies to leverage their expertise in late-stage development, regulatory management, and commercialization [3]. Recent Developments - The company has made significant progress over the past few years, focusing on acquiring and generating royalties from a diverse portfolio of biopharmaceutical products [2]. - Ligand operates two infrastructure-light royalty-generating technology platforms: Captisol® and NITRICIL™ [3]. - Captisol® optimizes drug solubility and stability, while NITRICIL™ allows for tunable dosing and adjustable drug release profiles [3]. Future Commitment - Ligand is committed to building on its recent momentum and supporting partners in developing breakthrough medicines for patients, aiming to create long-term value for shareholders [2].