H&E Daily "RDOR: New R$1bn buyback (+); RDOR/FLRY/HAPV: Wage floor for p..."

Research evidence excerpt

H&E Daily "RDOR: New R$1bn buyback (+); RDOR/FLRY/HAPV: Wage floor for p..."

100k. Management outlines that now the main risk facing the company is the new

sector regulation recently initiated by ANS (more here).

UBS's view: Figures outlines the relevance of the discount cards market in BZ which,

by the company’s estimates, serves around 60mn customers. For health plan

operators (SulA/SAUD/HAPV), ANS' move to regulate discount cards could be

broadly positive in our view, as it reduces competitive asymmetries in low-cost

access products and brings greater clarity to the entry-level healthcare segment.

For the regulated players, the initiative could both ease pressure from informal

substitutes and create optional growth levers, allowing incumbents, under a clearer

rulebook, to selectively offer discount-type products as a funnel for customer

acquisition and future upselling into full plans, albeit with non-trivial

cannibalization risks if segmentation is poorly executed.

SulA/SAUD/HAPV: locally developed CAR-T therapy expected to be incorporated

into SUS - cost risk to be monitored in private sector

In a recent interview, the Ministry of Health, Mr. Alexandre Padilha, highlighted that

CAR-T therapy for blood cancers is expected to reach SUS within one year. Brazil’s

locally developed therapy is expected to reduce treatment costs, at R$500k per

patient vs. R$2.5mn for imported alternatives. The program has received R$100mn

in public funding and is advancing into its final clinical stage. Conditional on ANVISA

approval after 1 year of follow-up, incorporation into the SUS is expected within

roughly the next 12 months.

UBS's view: Cost risk to be monitored to health plan operators (SulA/SAUD/HAPV).

Given the high technological complexity, current CAR-T therapies carry very