The Must Read PSA Weekly Research Round-up (week to 06 June)

Reports published this week on June 2018 US Auto Sales: Japan Automakers Record Sales Gains / Automakers and Blockchain: What Can Blockchain Do for OEMs? / Mercari (4385 JP) Initiation Report – A Box of Growth / Analysts Pelham Smithers & Joel Scheiman look at the Implications of Micron’s Patent War in China / Julie Boote looks at the key changes & implications for Japanese auto manufacturers with the potential trade war / Thao Nguyen looks at Start Today’s (3092 JP) ZOZO product line

The Weekly Comment by Pelham Smithers

With around 1,000 drugs having been trialled for the treatment of Alzheimer’s Disease (AD) and only four having been approved (all with limited, if any, efficacy), there is a tendency to view any hypothesis connected to the development of this form of dementia as suspect. However, the amyloid beta pathway theory, whereby a consistently high level of amyloid results in a collapse in cognition (see chart below), is the explanation which best fits the facts, and therefore the one on which most AD research is undertaken.
Of the Eisai (4523 JP) / Biogen (BIIB US) portfolio of AD treatment assets, three are directed at the amyloid pathway, and the fourth at tau, a protein whose mutations promote abnormal hyperphosphorylation, a feature of AD patients. Two of the treatments, aducanumab and BAN2401, are amyloid beta antibodies, and as we are now becoming accustomed, both have had a mixed progress in clinical trials. However, the fact that they are still in clinical trials shows that the industry has a much better understanding not just of the approach, but of the data. The main problem with the antibody solution is the difficulty antibodies have in reaching the brain. Animal models have shown that only 0.1% of the average amyloid antibody gets into the brain. The reason why aducanumab has produced better results than others in the class is thought to be because 1.3% of aducanumab gets into the brain, ie 10x the average. However, 1.3% is still pretty low, leaving 98.7% swimming around and potentially causing systemic toxicity….

Reports / Flash Notes Published This Week: Headlines at a Glance

1. Automakers and Blockchain: What Can Blockchain Do for OEMs?
2. June 2018 US Auto Sales: Japan Automakers All Record Sales Gains
3. Mercari (4385 JP) Initiation Report – A Box of Growth

Company / Sector / Thematic Comments at a Glance

Technology: Consumer Electronics, Gaming

1. Is Sony (6758 JP) Underperforming in Movies?
2. LINE (3983 JP) or Naver (035420 KS) – Which is More Attractive?
3. GungHo Online Entertainment’s (6765 JP) Yokai Watch World vs Nintendo’s (7974 JP) Pokémon Go
4. Capcom (9697 JP) Ramps Up Marketing of CPT Japan
5. Readthrough for Panasonic (6752 JP) from Tesla (TSLA US)

Technology: SPE, Industrial Electronics

6. Implications of Micron’s Patent War in China

Technology: Crypto / Blockchain

7. Crypto Exchanges Could be Regulated Under Financial Instrument Law – FSA

Chemicals

4. Sumco (3436 JP) Takes a Double Punch
8. Hitachi Chemical (4217 JP) Was Priced for Imperfection
9. Taiyo Nippon Sanso (4091 JP) Confirms Asset Acquisition Plans
10. Kaneka (4114 JP) May be Worth Revisiting

Autos

11. Japanese Automakers to Benefit from US-EU Trade Dispute
12. China Lowers Import Tariff – Toyota (7203 JP) to Benefit
13. Mazda (7261 JP) Among Worst Hit by US Import Tariffs
14. What Is behind Solid US Auto Sales Numbers?
15. Global EV Demand Rises – Which Automaker Stands Out?

Auto Parts / Machinery

16. 10-month SPE Lows for SMC (6273 JP) and Ferrotec (6890 JP)
16. Nachi-Fujikoshi (6474 JP) Lifts All Bearings
17. Ichikoh (7244 JP) Bounce

Internet / eCommerce

18. Start Today (3092 JP) Launches Private Brand Suits / PSA’s Analyst Gets a Freebie
19. Suga Departs PeptiDream (4587 JP)

Pharma

20. Positive 18 Month Data for Eisai (4523 JP) / Biogen’s BAN-2401

Macro

21. Wage Data Continues to Improve

PSA Company Visits, Tours and Interviews

• Interviewed Ferrotec (6890 JP)
• Conference call with Kaneka (4118)
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