IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Zhaoke Ophthalmology Pharmaceutical / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/zhaoke-ophthalmology-pharmaceutical" target="_blank" data-smartkarma-citation="entities:31495:1" rel="noopener">Zhaoke Ophthalmology Pharmaceutical (ZKO HK)</a> is an ophthalmic pharma company that has an ophthalmic drug pipeline of 13 innovative drugs and 12 generic drugs. Zhaoke has one of the most comprehensive ophthalmic drug pipelines in China, according to CIC. Zhaoke was founded by <a href="https://www.smartkarma.com/entities/lee-s-pharmaceutical-hldgs" target="_blank" data-smartkarma-citation="entities:14616:1" rel="noopener">Lee's Pharmaceutical (950 HK)</a> which is the largest shareholder. Zhaoke’s other shareholders include GIC, Hillhouse, TPG, Loyal Valley Capital, Orbimed and Aier Eye Hospital. <div class="content-highlight">Zhaoke is pre-marketing an HKEx IPO to raise $200 million, according to press reports. The pipeline includes 8 drug candidates which have the potential to be market-leading products in China. The generic pipeline includes 6 potential first-to-market generics in China. Overall, we believe that Zhaoke’s drug assets are attractive. </div>

Zhaoke Ophthalmology Pharmaceutical (ZKO HK) is an ophthalmic pharma company that has an ophthalmic drug pipeline of 13 innovative drugs and 12 generic drugs. Zhaoke has one of the most comprehensive ophthalmic drug pipelines in China, according to CIC. Zhaoke was founded by Lee's Pharmaceutical (950 HK) which is the largest shareholder. Zhaoke’s other shareholders include GIC, Hillhouse, TPG, Loyal Valley Capital, Orbimed and Aier Eye Hospital. Zhaoke is pre-marketing an HKEx IPO to raise $200 million, according to press reports. The pipeline includes 8 drug candidates which have the potential to be market-leading products in China. The generic pipeline includes 6 potential first-to-market generics in China. Overall, we believe that Zhaoke’s drug assets are attractive. 

Zhaoke Ophthalmology IPO Initiation: The Eyes Have It

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

On February 24, 2021, <a href="https://www.smartkarma.com/entities/apollomics-inc" target="_blank" data-smartkarma-citation="entities:32186:1" rel="noopener">Apollomics Inc (1435488D US)</a> applied to be listed on the main board of the Hong Kong Stock Exchange. The Company is an innovative biotechnology company focusing on the discovery and development of oncology therapies. Apollomics intends to use the proceeds of this fundraising for R&amp;D activities, preparation for registration filings, commercial process development, manufacturing registrational trial material, expansion of business and other general corporate purposes. The following mainly provided insights on its major products in the pipeline.

On February 24, 2021, Apollomics Inc (1435488D US) applied to be listed on the main board of the Hong Kong Stock Exchange. The Company is an innovative biotechnology company focusing on the discovery and development of oncology therapies. Apollomics intends to use the proceeds of this fundraising for R&amp;D activities, preparation for registration filings, commercial process development, manufacturing registrational trial material, expansion of business and other general corporate purposes. The following mainly provided insights on its major products in the pipeline.

Pre-IPO Apollomics - Concerns on Competition and Commercialization Despite Some Promising Products

Equity Bottom-Up

As a well-known clinical-stage biopharmaceutical company in China, <a href="https://www.smartkarma.com/entities/i-mab" target="_blank" data-smartkarma-citation="entities:28384:1" rel="noopener">I-Mab (IMAB US)</a> has been developing rapidly in recent years. Meanwhile, its share price skyrocketed from the issue price of $14/share in the beginning of 2020 to $46.62/share on March 26, 2021, up about 233% in more than a year and with the market value of $3.35 billion. The reason why I-MAB is worth investors' attention in 2021 is that the Company has come to a key phase from R&amp;D to commercialization. The following mainly included insights on its core products TJC4, TJ202 and TJ101.

As a well-known clinical-stage biopharmaceutical company in China, I-Mab (IMAB US) has been developing rapidly in recent years. Meanwhile, its share price skyrocketed from the issue price of $14/share in the beginning of 2020 to $46.62/share on March 26, 2021, up about 233% in more than a year and with the market value of $3.35 billion. The reason why I-MAB is worth investors' attention in 2021 is that the Company has come to a key phase from R&amp;D to commercialization. The following mainly included insights on its core products TJC4, TJ202 and TJ101.

I-Mab (IMAB US) - Insights On Core Products TJC4, TJ202 and TJ101

Shanghai Junshi Biosciences  / Equity Bottom-Up

Last month, <a href="https://www.smartkarma.com/entities/shanghai-junshi-bioscience-a" target="_blank" data-smartkarma-citation="entities:31070:1" rel="noopener">Shanghai Junshi Bioscience (688180 CH)</a> released the performance announcement in 2020. Junshi is expected to achieve the revenue in 2020 of RMB1.595 billion, up 105.77% YoY. The Company's net loss attributed to shareholders could reach RMB1.672 billion, up 123.8% YoY. Meanwhile, the R&amp;D expenses are expected to reach RMB1.824 billion in 2020, up 92.79% YoY, which even exceeded the total revenue in 2020. It is also worth mentioning that the moment of glory of Junshi seems to be when it was listed on the SSE STAR Market in July 2020, with the market value of about RMB150 billion, and then its share price went all the way down to hit the bottom in December 2020 at RMB 64.8/share. On March 19, 2021, Junshi’s market value was RMB79 billion, down about 50% since July 2020. So could Junshi turn things around?

Last month, Shanghai Junshi Bioscience (688180 CH) released the performance announcement in 2020. Junshi is expected to achieve the revenue in 2020 of RMB1.595 billion, up 105.77% YoY. The Company's net loss attributed to shareholders could reach RMB1.672 billion, up 123.8% YoY. Meanwhile, the R&amp;D expenses are expected to reach RMB1.824 billion in 2020, up 92.79% YoY, which even exceeded the total revenue in 2020. It is also worth mentioning that the moment of glory of Junshi seems to be when it was listed on the SSE STAR Market in July 2020, with the market value of about RMB150 billion, and then its share price went all the way down to hit the bottom in December 2020 at RMB 64.8/share. On March 19, 2021, Junshi’s market value was RMB79 billion, down about 50% since July 2020. So could Junshi turn things around?

Shanghai Junshi Bioscience - Here Are the Challenges

Thematic (Sector/Industry)

1. Industry viewpoints:<ul>
<li>The National Healthcare Security Administration recently released a document about the intensive procurement of high-value orthopedic consumables, so finally it is approaching.</li>
<li>The market of orthopedic implant consumables is still dominated by imported enterprises, and domestic enterprises have a certain gap in market competitiveness compared with foreign giants.</li>
<li>As the market size of China's oncology treatment industry grows, the proportion of targeted drugs and immunotherapy drugs are expected to increase in the future, and private oncology hospitals could get more development opportunities.</li>
</ul>2. Company news: News about the new equity agreement, strategic cooperation and progress of new drug from <a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a>, <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a> and <a href="https://www.smartkarma.com/entities/jhbp-cy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:29201:1" rel="noopener">JHBP (Genor) (6998 HK)</a>.3. Market review:Last week, stock price for healthcare sector in A share decreased 0.83%, while CSI 300 decreased 2.71% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:
The National Healthcare Security Administration recently released a document about the intensive procurement of high-value orthopedic consumables, so finally it is approaching.
The market of orthopedic implant consumables is still dominated by imported enterprises, and domestic enterprises have a certain gap in market competitiveness compared with foreign giants.
As the market size of China's oncology treatment industry grows, the proportion of targeted drugs and immunotherapy drugs are expected to increase in the future, and private oncology hospitals could get more development opportunities.
2. Company news: News about the new equity agreement, strategic cooperation and progress of new drug from Wuxi Biologics (2269 HK), BeiGene Ltd (6160 HK) and JHBP (Genor) (6998 HK).3. Market review:Last week, stock price for healthcare sector in A share decreased 0.83%, while CSI 300 decreased 2.71% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China

Jiangsu Hengrui Medicine Co., Ltd. develops, manufactures, and markets a variety of medicines and medicine packing materials. The Company's products include anti-tumor medicines, pain-killers, anti-infection medicines, aluminum foil, and other related products.

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Jiangsu Hengrui Medicine (600276 CH)

Zhaoke Ophthalmology IPO Initiation: The Eyes Have It

Zhaoke is pre-marketing an HKEx IPO to raise $200 million, according to press reports. Overall, we believe that Zhaoke’s drug assets are attractive.

Arun George

Pre-IPO Apollomics - Concerns on Competition and Commercialization Despite Some Promising Products

This article provided insights on its major products in the pipeline in terms of competitive landscape, strength and challenges, as well as...

Xinyao (Criss) Wang

I-Mab (IMAB US) - Insights On Core Products TJC4, TJ202 and TJ101

As I-MAB has come to a key phase from R&D to commercialization, this article analyzed both the strength and the concerns for its core products...

Xinyao (Criss) Wang

Shanghai Junshi Bioscience - Here Are the Challenges

The article analyzed the concerns and challenges that Junshi has to face in terms of PD-1, COVID-19 antibody drug, other products in the pipeline...

Xinyao (Criss) Wang

China Healthcare Weekly (Mar.19)

The article analyzed intensive procurement of high-value orthopedic consumables & its market pattern, trend of China's oncology treatment...

Xinyao (Criss) Wang

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