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

Connect Biopharma / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/connect-biopharma-holdings-l" target="_blank" data-smartkarma-citation="entities:32187:1" rel="noopener">Connect Biopharma (CNTB US)</a> is a global clinical-stage biopharmaceutical company developing therapies for the treatment of T cell-driven inflammatory diseases. Connect has a pipeline of four drug candidates. The two most advanced clinical-stage programs, CBP-201 and CBP-307, are potentially differentiated product candidates against validated targets.</p><p>Connect has launched a Nasdaq IPO to raise net proceeds of $135 million at the mid-point of the IPO price range of $15.00 and $17.00 per ADS. At the mid-point of the IPO price range, Connect will command a market cap of $863 million.</p><div class="content-highlight"><p>Connect specialises in designing and developing product candidates that modulate the immune system, with a particular focus on T cells. CBP-201, the lead product candidate, has the potential to bring improved therapeutic benefit to atopic dermatitis (AD) patients than the current standard of care. CBP-307 has the potential to deliver best-in-class lymphocyte recovery times in combination with a well-tolerated safety profile for the treatment of UC (ulcerative colitis) and CD (Crohn’s disease). Overall, we believe that the prospects of Connect’s clinical-stage drug assets are favourable. We will discuss the rNPV of the assets in our next note.</p></div>

Connect Biopharma (CNTB US) is a global clinical-stage biopharmaceutical company developing therapies for the treatment of T cell-driven inflammatory diseases. Connect has a pipeline of four drug candidates. The two most advanced clinical-stage programs, CBP-201 and CBP-307, are potentially differentiated product candidates against validated targets.Connect has launched a Nasdaq IPO to raise net proceeds of $135 million at the mid-point of the IPO price range of $15.00 and $17.00 per ADS. At the mid-point of the IPO price range, Connect will command a market cap of $863 million.Connect specialises in designing and developing product candidates that modulate the immune system, with a particular focus on T cells. CBP-201, the lead product candidate, has the potential to bring improved therapeutic benefit to atopic dermatitis (AD) patients than the current standard of care. CBP-307 has the potential to deliver best-in-class lymphocyte recovery times in combination with a well-tolerated safety profile for the treatment of UC (ulcerative colitis) and CD (Crohn’s disease). Overall, we believe that the prospects of Connect’s clinical-stage drug assets are favourable. We will discuss the rNPV of the assets in our next note.

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Zhaoke Ophthalmology Pharmaceutical / Equity Capital Markets

<p>Zhaoke Ophthalmology is a pre-revenue pharmaceutical company specializing in ophthalmic drugs for the China market. The company has filed an Application Proof to list on the HKEX, and is a carve-out of <a href="https://www.smartkarma.com/entities/lee-s-pharmaceutical-hldgs" target="_blank" data-smartkarma-citation="entities:14616:1" rel="noopener">Lee'S Pharmaceutical Hldgs (950 HK)</a> , which owns 34% of the shares. This Insight discusses the product pipelines (both innovative and generic), funding, and valuation (particularly in the context of the parent company).  We tag this Insight as Bullish for now.</p>

Zhaoke Ophthalmology is a pre-revenue pharmaceutical company specializing in ophthalmic drugs for the China market. The company has filed an Application Proof to list on the HKEX, and is a carve-out of Lee'S Pharmaceutical Hldgs (950 HK) , which owns 34% of the shares. This Insight discusses the product pipelines (both innovative and generic), funding, and valuation (particularly in the context of the parent company).  We tag this Insight as Bullish for now.

Zhaoke Ophthalmology: Bringing Focus to China

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<div>
<p>A group of shareholders plans to raise around US$200m via selling a 4.6% stake in <a href="https://www.smartkarma.com/entities/i-mab" target="_blank" data-smartkarma-citation="entities:28384:1" rel="noopener">I-Mab (IMAB US).</a></p>
<p>We have previously covered the IPO in:</p>
</div><div><ul style="list-style-type: disc;">
<li><a href="https://www.smartkarma.com/insights/i-mab-pre-ipo-strong-management-and-investor-backing-with-differentiated-products" target="_blank" rel="noopener">I-Mab (天境生物) Pre-IPO: Strong management and investor backing with differentiated products</a></li>
<li><a href="https://www.smartkarma.com/insights/i-mab-ipo-everest-deal-a-valuation-booster" target="_blank" rel="noopener">I-Mab (天境生物) IPO: Everest Deal a Valuation Booster</a></li>
<li><a href="https://www.smartkarma.com/insights/i-mab-ipo-trading-tiny-float-and-undemanding-valuation" target="_blank" rel="noopener">I-Mab (天境生物) IPO Trading: Tiny Float and Undemanding Valuation</a></li>
</ul></div><div><p>In this insight, we will talk about updates since then and run the deal through our ECM framework.</p></div>


A group of shareholders plans to raise around US$200m via selling a 4.6% stake in I-Mab (IMAB US).
We have previously covered the IPO in:

I-Mab (天境生物) Pre-IPO: Strong management and investor backing with differentiated products
I-Mab (天境生物) IPO: Everest Deal a Valuation Booster
I-Mab (天境生物) IPO Trading: Tiny Float and Undemanding Valuation
In this insight, we will talk about updates since then and run the deal through our ECM framework.

I-Mab Placement - Heading in the Right Direction

AlphaSituations-Event/Catalyst Driven Research, AlphaSituations

Robert Sassoon

AlphaSituations-Event/Catalyst Driven Research

AlphaSituations

Since its establishment, AlphaSituations has delivered a track record of outperformance with a hit rate of winners of more than 70% of its portfolio of ideas generating annualized average returns of 20%. In January 2022, AlphaSituations was contracted by Water Tower Research, an investor engagement and stakeholder communication platform to provide coverage of Special Situations

Event-Driven

<p>Contingent value rights, or CVRs, are  arguably the rarest security class on a stock exchange, but have become more prevalent, particularly as part of the make-up in Biopharma merger transaction terms in the last few years. While these instruments do offer advantages to asset acquirers, we demonstrate below that CVR recipients rarely benefit.</p>

Contingent value rights, or CVRs, are  arguably the rarest security class on a stock exchange, but have become more prevalent, particularly as part of the make-up in Biopharma merger transaction terms in the last few years. While these instruments do offer advantages to asset acquirers, we demonstrate below that CVR recipients rarely benefit.

MergerTalk: Contingency Value Rights - A Track Record Found Wanting

Equity Bottom-Up

<p>BeiGene has outlicensed ex-China rights to its PD-1 tislelizumab to Novartis on favorable terms, validating the competitive position of this compound in a crowded market. Further, the agreement marks a growing trend of Chinese companies outlicensing products to multinationals, which can have a leveraged benefit on their P&amp;Ls and valuations.</p>

BeiGene has outlicensed ex-China rights to its PD-1 tislelizumab to Novartis on favorable terms, validating the competitive position of this compound in a crowded market. Further, the agreement marks a growing trend of Chinese companies outlicensing products to multinationals, which can have a leveraged benefit on their P&amp;Ls and valuations.

BeiGene: Novartis Grabs Tislelizumab Rights

United States

AbbVie Inc. researches and develops pharmaceutical products. The Company produces pharmaceutical drugs for specialty therapeutic areas such as immunology, chronic kidney disease, hepatitis C, women's health, oncology, and neuroscience. AbbVie also offers treatments for diseases including multiple sclerosis, parkinson's, and alzheimer's disease.

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AbbVie (ABBV UN)

Connect Biopharma IPO: Potent Medicine

Connect has launched a Nasdaq IPO to raise net proceeds of $135m at the mid-point of the IPO price range. Overall, we believe that the prospects of...

Arun George

Zhaoke Ophthalmology: Bringing Focus to China

Zhaoke Ophthalmology is a pre-revenue pharmaceutical company specializing in ophthalmic drugs for China that has filed to list on the HKEX. Lee's...

Kemp Dolliver, CFA

I-Mab Placement - Heading in the Right Direction

A group of shareholders plans to raise around US$200m via selling a 4.6% stake in I-Mab (IMAB US). We have previously covered the IPO as well.

Sumeet Singh

MergerTalk: Contingency Value Rights - A Track Record Found Wanting

CVRs have seen more usage in biopharma deals in the last few years, but is that a trend for investors to get excited about?

Robert Sassoon

BeiGene: Novartis Grabs Tislelizumab Rights

BeiGene's deal with Novartis for PD-1 tislelizumab validates its competitive position, and marks a rising trend of Chinese companies licensing...

Kemp Dolliver, CFA

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