Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<p>Member of the Hang Seng Composite Index (HSCI) are included in the Southbound Stock Connect program if their market cap exceeds HK$5bn. However, Secondary Listings and Biotech stocks that listed under Chapter 18A of the Listing Rules were excluded from the Stock Connect program.</p><p>This headline "*H.K. TO INCLUDE SECONDARY-LISTED COS IN STOCK CONNECT: SING TAO" could drive stocks that are HSCI members but not a part of Stock Connect higher. If Chapter 18A listed Biotech stocks are added to Stock Connect, they could run even more.</p><p>In this Insight, we take a look at stocks that are a part of the HSCI or are expected to join the HSCI in the next review and could be eligible to be included in the Stock Connect program.</p>

Member of the Hang Seng Composite Index (HSCI) are included in the Southbound Stock Connect program if their market cap exceeds HK$5bn. However, Secondary Listings and Biotech stocks that listed under Chapter 18A of the Listing Rules were excluded from the Stock Connect program.This headline "*H.K. TO INCLUDE SECONDARY-LISTED COS IN STOCK CONNECT: SING TAO" could drive stocks that are HSCI members but not a part of Stock Connect higher. If Chapter 18A listed Biotech stocks are added to Stock Connect, they could run even more.In this Insight, we take a look at stocks that are a part of the HSCI or are expected to join the HSCI in the next review and could be eligible to be included in the Stock Connect program.

Stock Connect - Secondary Listings and Biotech Stocks to Become Eligible?

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

<div><p><a href="https://www.smartkarma.com/entities/antengene-corporation-limited" target="_blank" data-smartkarma-citation="entities:29705:1" rel="noopener">Antengene (6996 HK)</a> is a biopharmaceutical company with a focus on discovering, developing and commercialising global first-in-class, only-in-class and/or best-in-class therapies. Antengene has launched a Hong Kong IPO to raise net proceeds of HK$2,467.2 million ($318 million) at the mid-point of the IPO price range of HK$15.80-18.08 per share.</p></div><div><p>Ten cornerstone investors have agreed to invest about $179.4 million in the IPO (53.25% of the offer shares at the mid-point of the IPO price range). Cornerstone investors include Fidelity, GIC, BlackRock, Hillhouse Capital, Boyu Capital, Cormorant Asset Management, Hillhouse Capital, Sequoia Capital, CRF Investment, Laurion Capital and Octagon Capital.</p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/antengene-ipo-initiation-hunting-for-a-cure" target="_blank" data-smartkarma-citation="insights:44855" rel="noopener">Antengene IPO Initiation: Hunting for a Cure</a>, we stated that the prospectus Antengene’s core drug assets are favourable. Overall, a strong cornerstone investor lineup and our valuation analysis suggest that the IPO price range is attractive. </p></div></div></div>

Antengene (6996 HK) is a biopharmaceutical company with a focus on discovering, developing and commercialising global first-in-class, only-in-class and/or best-in-class therapies. Antengene has launched a Hong Kong IPO to raise net proceeds of HK$2,467.2 million ($318 million) at the mid-point of the IPO price range of HK$15.80-18.08 per share.Ten cornerstone investors have agreed to invest about $179.4 million in the IPO (53.25% of the offer shares at the mid-point of the IPO price range). Cornerstone investors include Fidelity, GIC, BlackRock, Hillhouse Capital, Boyu Capital, Cormorant Asset Management, Hillhouse Capital, Sequoia Capital, CRF Investment, Laurion Capital and Octagon Capital.In Antengene IPO Initiation: Hunting for a Cure, we stated that the prospectus Antengene’s core drug assets are favourable. Overall, a strong cornerstone investor lineup and our valuation analysis suggest that the IPO price range is attractive. 

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

<p>This Insight is a brief follow-up to our prior Insight <a href="https://www.smartkarma.com/insights/antengene-gunning-to-move-up-in-line" target="_blank" data-smartkarma-citation="insights:44790" rel="noopener">Antengene: Gunning To Move Up in Line</a> which discusses the company in greater detail. In brief, we would take the deal. The offering puts a pre-money valuation of the company at the low end of the US$1-2 billion range mentioned in our prior Insight. In addition, the results of the SEAL trial tops up the market opportunity for ATG-010 (XPOVIO).</p>

This Insight is a brief follow-up to our prior Insight Antengene: Gunning To Move Up in Line which discusses the company in greater detail. In brief, we would take the deal. The offering puts a pre-money valuation of the company at the low end of the US$1-2 billion range mentioned in our prior Insight. In addition, the results of the SEAL trial tops up the market opportunity for ATG-010 (XPOVIO).

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<p><a href="https://www.smartkarma.com/entities/remegen-ltd" target="_blank" data-smartkarma-citation="entities:29191:1" rel="noopener">Remegen Ltd (1788976D CH) </a>is an innovative bio-pharmaceutical company dedicated to the development and commercialization of first-in-class and best-in-class biological drugs. The two core products of <a href="https://www.smartkarma.com/entities/remegen-ltd" target="_blank" data-smartkarma-citation="entities:29191:1" rel="noopener">Remegen Ltd (1788976D CH)</a>  are RC18 and RC48 (Related article: <a href="https://www.smartkarma.com/compose/insight/45020/Pre-IPO%20RemeGen%20-%20Insights%20on%20Two%20Core%20Products%20RC18%20&amp;%20RC48.%20Read%20more:%20https:/skr.ma/sxMEQ" target="_blank" rel="noopener">Pre-IPO RemeGen - Insights on Two Core Products RC18 &amp; RC48. Read more: https://skr.ma/sxMEQ</a>). It is said that the Company is going to be listed on HKEX at a price of HK$52.1/share in November. In terms of valuation, is RemeGen overvalued? </p>

Remegen Ltd (1788976D CH) is an innovative bio-pharmaceutical company dedicated to the development and commercialization of first-in-class and best-in-class biological drugs. The two core products of Remegen Ltd (1788976D CH)  are RC18 and RC48 (Related article: Pre-IPO RemeGen - Insights on Two Core Products RC18 &amp; RC48. Read more: https://skr.ma/sxMEQ). It is said that the Company is going to be listed on HKEX at a price of HK$52.1/share in November. In terms of valuation, is RemeGen overvalued? 

A Different Angle - RemeGen Vs Akeso (Insights on Valuation)

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<p>Antengene Corporation, which has filed for an HKEX listing, is a pre-revenue pharmaceutical company focused a combinatory (drug combinations) to treat cancer. The company's pipeline primarily features late-stage, in-licensed products (one approved in the US) supplemented by several internally-developed, pre-clinical compounds. The management team comes from <a href="https://www.smartkarma.com/entities/celgene-corp" target="_blank" data-smartkarma-citation="entities:7410:1" rel="noopener">Celgene Corp (CELG US)</a> and other MNCs and has experience developing oncology products. The venture investors are credible; and the patent estate has a long life.</p>
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<p>This Insight provides an overview of the business, including some initial thoughts on valuation (US$1-1.5 billion), and a list of questions for management. We will provide an update in a future Insight.</p>
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Antengene Corporation, which has filed for an HKEX listing, is a pre-revenue pharmaceutical company focused a combinatory (drug combinations) to treat cancer. The company's pipeline primarily features late-stage, in-licensed products (one approved in the US) supplemented by several internally-developed, pre-clinical compounds. The management team comes from Celgene Corp (CELG US) and other MNCs and has experience developing oncology products. The venture investors are credible; and the patent estate has a long life.


This Insight provides an overview of the business, including some initial thoughts on valuation (US$1-1.5 billion), and a list of questions for management. We will provide an update in a future Insight.


China

Akeso Inc. operates operatesa s a biotech company. The compnay develops treatments and therapies for various types of diseases. Akeso serves cutomers worldwide

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Akeso Biopharma Inc (9926 HK)

Stock Connect - Secondary Listings and Biotech Stocks to Become Eligible?

A rule change that admits Secondary listings and Chapter 18A listed Biotech stocks to the Southbound Stock Connect could see Alibaba, JD and...

Brian Freitas

Antengene IPO: Valuation Insights

Antengene has launched an HK IPO to raise net proceeds of $318 million at the mid-point of the price range. Overall, strong cornerstones and our...

Arun George

Antengene: We Like the Deal

This Insight recommends participating in the IPO of Antengene considering the proposed valuation and market opportunity.

Kemp Dolliver, CFA

A Different Angle - RemeGen Vs Akeso (Insights on Valuation)

In this article, by comparing RemeGen and Akeso's pipelines from different aspects to provide referable and helpful insights about the valuation...

Xinyao (Criss) Wang

Antengene: Gunning To Move Up in Line

This Insight provides an in-depth review of pre-revenue biotechnology Antegene that plans to list on the HKEX. We discuss the pipeline, market...

Kemp Dolliver, CFA

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