Vi e w p o i n t | 07 Jan 2026 04:18:39 ET │ 31 pages China Healthcare 2026 Outlook: Rally Started by Speculators, But Buoyed by Fundamentals CITI'S TAKE We believe speculators fueled the 1H25 rally, but improvement in fundamentals in 2H25, characterized by corrections and proven sciences, is what drew long-term investors back. Starting 2026, we see supportive policies, innovation, and commercial insurance expansion creating all- rounded sustainability for growth of the healthcare industry (HC). Business De ...

In the coming quarter, we expect to introduce a new revenue stream through data-licensing, which will have a significant positive impact on our revenue, margins and enterprise value. Regarding Corellia, our wholly-owned drug development subsidiary, we remain highly enthusiastic about the targets and compounds we have developed using our proprietary data. We are actively engaged in discussions to raise capital for the company. As with all of our cost centers, we are mindful of the impact on our bottom-line r ...

Core Insights - Drug Pharmacokinetics and Pharmacodynamics (PKPD) is increasingly critical in drug discovery, prompting Viva Biotech to develop an integrated pharmacology platform that supports a wide range of drug modalities from in vitro ADME assays to in vivo PK and efficacy studies [1] Group 1: Pharmacology Platform - Viva Biotech's pharmacology platform encompasses various drug modalities, including small molecules, PROTACs, peptides, and antibodies, facilitating comprehensive drug development processes [1][6] - The platform employs a consistent analytical framework for evaluating pharmacokinetics across different modalities, enabling effective comparison and decision-making [2][3] Group 2: Antibody Programs - For antibody programs, Viva Biotech utilizes an engineered hFcRn/B2M–MDCK Transwell system to assess antibody transcytosis, which correlates strongly with clinical antibody half-life data, thus aiding in early candidate ranking [4] - The platform supports the evaluation of Fc-engineering variants and Fc fusion proteins, providing a cost- and time-efficient approach for in vitro PK screening [4] Group 3: Mechanistic Bioassays - The integration of DMPK decisions with mechanistic bioassays enhances the actionability of drug development, with Viva Biotech offering a portfolio that includes immune-cell activation assays and tumor efficacy evaluations [5] - In vivo capabilities include tumor efficacy assessments using various models, supporting comprehensive evaluations of exposure, target engagement, and functional outcomes [5] Group 4: Company Experience and Integration - With over a decade of experience in early drug discovery, Viva Biotech has strengthened its DMPK and pharmacology capabilities through facility expansion and integration with disease-focused studies across multiple therapeutic areas [6] - The company has established a comprehensive DMPK platform that connects structure-based discovery with various stages of drug development, supporting data-driven decisions throughout the preclinical phase [6]

The scale of IQVIA Holdings ( IQV ) in healthcare information, real-world evidence collection, and AI-enabled trials and commercialization make it much more than a large CRO. Other CROs compete for share within the contract researchDubai-based investor focused on building a resilient, income-generating portfolio with a long-term growth mindset. My approach is primarily long-only, blending dividend-paying equities, REITs, and other income strategies with selective growth opportunities. I believe in disciplin ...

Group 1 - IQVIA Holdings is positioned as a leader in healthcare information, real-world evidence collection, and AI-enabled trials and commercialization, distinguishing itself from traditional contract research organizations (CROs) [1] - The company operates in a competitive landscape where other CROs are vying for market share, but IQVIA's scale and capabilities provide a significant advantage [1] Group 2 - The investor profile mentioned indicates a focus on building a resilient, income-generating portfolio with a long-term growth mindset, blending dividend-paying equities, REITs, and selective growth opportunities [1] - The investment strategy emphasizes disciplined, fundamentals-driven investing, prioritizing capital preservation while compounding returns over time [1]

Summary of Fortrea Holdings FY Conference Call (December 03, 2025) Company Overview - **Company**: Fortrea Holdings (NasdaqGS:FTRE) - **Industry**: Health Care Services, specifically focusing on Contract Research Organization (CRO) services Key Points and Arguments Leadership Transition - CEO Anshul Thakral has been with Fortrea for approximately four months and is actively engaging with the organization and clients to understand the business better [8][10][13] - The executive team and employees have responded positively to the leadership transition, facilitating a smoother integration process [8][10] Market Environment - The broader pharmaceutical budget environment is characterized as neutral to positive, with large companies reactivating their R&D pipelines [19][21][22] - Small to mid-sized companies are experiencing improved funding levels compared to the previous year, although not at 2018 levels [22][23] Business Strategy - Fortrea is focusing on growth through new customer introductions rather than solely on diversification of existing customer relationships [44][45] - The company is gearing up for potential partnerships and has successfully protected existing large partnerships while adding mid-sized ones [33][36] Competitive Positioning - Fortrea differentiates itself by offering tailored services to both large and small pharmaceutical companies, leveraging its size as a strategic advantage [40][41] - The company is revamping its operating model to ensure small biotech clients do not get lost in the bureaucracy, emphasizing a flexible staffing approach [57][60] Therapeutic Areas and Clinical Trials - Oncology remains the largest therapeutic area for Fortrea, aligning with market trends [67] - The company is not heavily reliant on government-funded studies, which has led to fewer cancellations and a more stable operational environment [66] Technology and Innovation - Fortrea is implementing new technology systems, including an AI-powered CRA Mobile App, to enhance workflow efficiency and quality [74][75][78] - The focus is on continuous improvement and leveraging technology to drive operational excellence [81][90] Financial Performance and Cost Management - The company is on track for $150 million in gross savings, with $90 million in net actual savings achieved in the year [119] - There is a focus on optimizing margins and ensuring that revenue growth is coupled with cost discipline [118][119] Pricing Strategy - Pricing dynamics differ between FSP (Functional Service Provider) and FSO (Full-Service Outsourcing) segments, with price being more critical in the FSP market [105][106] - Fortrea maintains a disciplined pricing strategy, avoiding aggressive pricing that could compromise margins [106][108] Future Outlook - The company is cautious about providing guidance for 2026 but acknowledges the potential for low single-digit growth, which could lead to margin expansion [121][122] - Fortrea is focused on building a resilient commercial organization that can adapt to changing market conditions and customer needs [91][92] Additional Important Insights - The company is actively engaging in M&A activities and licensing deals within the biotech sector, indicating a positive outlook for future growth [24][26] - Fortrea's clinical pharmacology business is seen as a unique offering that enhances its competitive advantage across other business lines [99][100] This summary encapsulates the key insights from the Fortrea Holdings FY Conference Call, highlighting the company's strategic direction, market positioning, and operational focus.

Summary of Charles River Laboratories FY Conference Call Company Overview - **Company**: Charles River Laboratories (NYSE: CRL) - **Date**: December 03, 2025 - **Key Speaker**: Jim Foster, Chairman, President, and CEO Key Industry Insights Book to Bill Ratio - The book to bill ratio has shown sequential improvement since the beginning of Q3 2025, with positive momentum noted despite potential holiday impacts on demand [2][4][10] - Biotech funding has significantly improved, marking the second-best month in history for biotech funding last month, which is expected to invigorate demand [9][10] Biotech and Pharma Demand - Biotech demand has been the primary headwind for the company over the past 18 months, closely tied to access to capital [10] - Pharma demand remains stable, with companies focusing on cost reduction and optimizing portfolios in light of an impending patent cliff [15][16] - Decision-making timelines have improved, with increased proposal volumes and reduced cancellations in both biotech and pharma segments [18] Hiring and Operational Strategy - The company plans to add personnel in its lab services despite a modest decline in revenue, indicating strong demand in associate laboratory work [19][21] - Incremental costs of $70 million are anticipated, driven by labor, procurement efficiency, offshoring, and automation efforts [27][28] Divestiture and Portfolio Management - Charles River plans to divest approximately 7% of revenue from non-core assets, driven by a thorough portfolio review [29][30] - The divestiture aims to alleviate headwinds from underperforming businesses and will be used for potential M&A, stock buybacks, or debt repayment [32][33] Market Opportunities - The company is exploring opportunities in bioanalysis, particularly in large molecule and clinical sample bioanalysis, which are high-margin areas [36][37] - There is a focus on expanding capabilities in non-animal in vitro technologies and geographic expansion, particularly in China, where the market is seen as increasingly innovative [39][42][50] Financial Performance and Guidance - The company has raised guidance multiple times due to operating well above its plan, indicating strong demand in certain segments [23] - The manufacturing segment, particularly in cell and gene therapy, is seen as promising despite challenges, with a focus on maintaining quality and regulatory compliance [79][85] Regulatory Environment - The FDA has provided new guidelines regarding long-term non-human primate (NHP) studies for monoclonal antibodies, which may influence client behavior but is not expected to significantly change safety testing protocols [61][62][68] Future Outlook - The company aims to complete divestitures and pursue M&A opportunities in 2026, focusing on core business efficiency and geographic expansion [100][102] - There is a strong belief in the growth potential of the biotech industry, with a commitment to maintaining a competitive edge through quality science and strategic investments [102] Conclusion - Charles River Laboratories is navigating a complex landscape with a focus on improving operational efficiency, expanding its service offerings, and strategically managing its portfolio to capitalize on growth opportunities in the biotech and pharma sectors [102]

Summary of Key Points from China Healthcare Conference and Tour Industry Overview - **Industry**: China Healthcare - **Focus**: Innovation, Globalization, and Recovery in Medical Technology (Medtech) Core Insights 1. **Innovation Hub**: China is establishing itself as a global innovation hub, particularly in novel modalities such as IO bispecific, ADC, and siRNA [1][2] 2. **Medtech Globalization**: Leading Chinese medical equipment companies are moving beyond simple exports to establish localized production and direct sales networks [1][3] 3. **IVD Market Recovery**: The domestic In-Vitro Diagnostics (IVD) market is showing signs of bottoming out, with hospitals incentivized to switch to cost-effective domestic solutions due to pricing pressures [1][4] 4. **CXO Sector Performance**: Strong orders in the CXO sector are sustained, with potential price recovery in domestic clinical CROs expected to improve gross margins in 2026 [1][5] Company-Specific Highlights 1. **Abbisko (2256.HK)** - Focus on clinical progress of irpagratinib and ABSK043, with a strong pipeline that remains undervalued in the market [15] - Irpagratinib's Phase 3 study for HCC is on track, and ABSK043 shows promise in combination therapies [16][17] 2. **Huadong Medicine (000963.SZ)** - Innovative drugs contributed Rmb1,675 million in sales for 9M25, up 62% YoY, with a focus on oncology and metabolic diseases [19] - Ongoing discussions for potential out-licensing of GLP-1 candidates and ADC [20] 3. **MicroPort MedBot (2252.HK)** - YTD overseas orders exceeded 70, indicating rapid commercialization in international markets [23] - Targeting cash flow breakeven in 2026, with a focus on increasing revenue from high-margin consumables [24][25] 4. **Shanghai Fosun Pharma (2196.HK)** - Optimistic about the inclusion of CAR-T therapy Yescarta in the innovative drug catalog of commercial insurance, expected to accelerate coverage [28] - Increasing R&D investment by 20% YoY, focusing on new modalities like radiopharmaceuticals [30] 5. **Henlius (2696.HK)** - HLX43 shows promising data in NSCLC, with plans for multiple registrational trials [31][33] - Developing a new platform for radiopharmaceuticals and small nucleic acids [32] 6. **Shenzhen Mindray (300760.SZ)** - Aiming to double its current 10% market share in IVD within three years, leveraging comprehensive lab solutions [37] - Global strategy focuses on localization and diversification of manufacturing [38] 7. **Tigermed (3347.HK)** - Positive revenue growth guidance for 2025, with strong orders in Phase 1/2 trials [40][42] - Expanding overseas operations, with significant growth in the US and Japan [43] 8. **United Imaging (688271.SS)** - Achieving robust growth in developed markets, with a CAGR of 50% for overseas markets expected [44][48] - Strong positioning in high-end MRI and molecular imaging sectors [47] Additional Insights - **siRNA Modality**: The siRNA field is at an inflection point, attracting significant interest from multinational corporations due to its long-dosing interval potential [2][9] - **Market Dynamics**: The domestic IVD market is experiencing a structural shift favoring domestic leaders, with hospitals seeking cost-effective solutions [4][14] - **Globalization Trends**: Chinese medtech firms are successfully executing globalization strategies, with significant growth in emerging markets [3][13] This summary encapsulates the key takeaways from the China Healthcare Conference and Tour, highlighting the industry's focus on innovation, globalization, and recovery, along with specific insights into leading companies within the sector.

Company Overview - ICON has a new management team with Barry Balfe recently assuming the CEO role and Nigel Clerkin as the CFO, indicating a potential shift in strategic direction [2] Industry Context - The presentation is part of the Jefferies London Healthcare Conference, highlighting the importance of investor engagement in the healthcare sector [1]

Group 1 - David Windley from Jefferies LLC has over 25 years of experience covering Contract Research Organizations (CROs) [1] - Charles River Laboratories is represented by COO Birgit Girshick and lead IR Todd Spencer at the event [2]