Good morning,
I woke up this morning to the headline: Gilead Makes US$7.8 billion Cell Therapy Acquisition of Arcellx.
(Source, CNBC)
Huge news for the CAR-T cell therapy companies.
This essentially resets peer comparisons and upside valuations for all CAR-T platforms.
It was looking a little grim for CAR-T in 2025, with several big pharma companies exiting the space.
However, this is the second big deal this month, following Eli Lilly’s US$2.4 billion acquisition of an in vivo CAR T from Orna Therapeutics.
It looks like cell therapies are back on the menu.
Good news for Australian developers: Imugene, Arovella, Chimeric, AdAlta (and a few others…)
But first…
The Pulse Check
Radiopharm Theranostics (ASX: RAD) dosed the first patient in a Phase 1/2a radiotherapeutic trial on solid tumours. (RAD)
🪑 And they’re off…
Apiam Animal Health (ASX: AHX) will be removed from the ASX following its completed acquisition. (AHX)
A change in substantial holdings notice revealed that Peters’ Investments did not take up any of the entitlements or capital raises in Memphasys (ASX: MEM) and is now diluted down to 9%. (MEM)
🪑 Peter’s Investment holds the ~$4 million convertible note issued by the company (which is set to come due in June and exercisable at $0.024, well below the current price).
It will be interesting to see how MEM navigates this convertible note, as I believe it is currently a drag on the company’s share price.
A Japanese health ministry expert panel has approved induced pluripotent stem cell (iPS) therapies for Heart Disease and Parkinson’s - marking the first iPS cell treatment for commercial use. (Nikkei Asia)
🪑 I remember learning about stem cells over ten years ago in year 12 biology class, and they have always fascinated me. Amazing potential, hard to scale.
I also remember learning about induced pluripotent stem cells (basically turning an adult cell BACK into a stem cell)... could this be the breakthrough the industry's been waiting for?
Fortress to sell priority review voucher for US$205M. (Endpoints)
🪑 Another pricing benchmark for PRVs sold in the US - relevant for ASX-listed Island Pharmaseuticals (ASX: ILA), which is chasing a PRV through its Marburg Disease trial.
The Report Card
Nanosonics (ASX: NAN) H1 FY26 revenue of $102.2M (up 9% on pcp) with a 27% operating margin expansion. (NAN)
🪑 NAN sells cleaning and sterilisation products to hospitals.
It has had a slower-than-expected rollout of its new (higher-margin) CORIS product, which began its Controlled Market Release after the half endedwhich I think the market won’t love… but is largely priced in.
All of the revenue growth has come from its existing product. Improved margins are also a good sign, but the market is really waiting for the CORIS rollout before re-rating the stock.
Integral Diagnostics (ASX: IDX) reports a 55.6% increase in revenue to $393.5M, with profit turning positive at $9M. (IDX)
Orthocell (ASX: OCC) reports 1H FY26 revenue of $6.2M, up 48% YoY, with 63% gross profit growth to $3 million. (OCC)
🪑 With its Remplir nerve repair product now rolling out in the US, the market will begin to expect strong revenue growth.
The company has been on a downward trend since it first spiked on US approval and subsequent first sales. Traders rolling out, more patient money rolling in. Eventually, it will find a base and start to build back momentum IF it can roll out sales quickly.
M&A, Big Pharma Wants a Wife
Gilead Makes US$7.8 billion Cell Therapy Acquisition of Arcellx. (CNBC)
🪑 Another “win” for CAR-T cell therapies, and continued evidence that Big Pharma’s M&A chequebook is wide open…
Hey, big pharma. Might be time to start looking at some Australian companies??
A year and a half into its pivot to oncology, Astellas will pay US$240M in cash for Vir's prostate cancer drug. (Endpoints)
That’s it for today!
See you all tomorrow,
The Armchair Analyst
PS. Big thank you to everyone who shared the newsletter yesterday. I’m now just 24 followers from my goal of 1,000 in three months!
