Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Equity Capital Markets

<p>Antengene raised HKD 2,635.9 million (USD 340m) from its global offering and will list on the Hong Kong Stock Exchange on Friday November 20th.</p>
<p>In our previous note, we discussed that its ATG-010 has a small proven indication for r/r MM and r/r DLBCL (both are lymphoma), though it has the potential of indication expansion. We believe the Indication and demand for ATG-008 is bigger than ATG-010 as it is targeting liver cancer and lung cancer. Readings on efficacy also suggest that ATG-008 is promising. Both drug candidates are first-in-class. The company not only has a strong management team but also has strong investor backing, including NMC pharmaceutical company Celgene, and healthcare investors.</p>
<p>The deal has attracted a strong line-up of cornerstone investors but we note that the institutional subscription is not as strong as previous biotech deals. We think the deal is fairly valued but note unique experience of its management team warrants a premium to its fair value. </p>
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<h2>Our previous coverage on Antengene</h2>
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<p><a href="https://www.smartkarma.com/insights/antengene-pre-ipo-proven-r-d-track-record-by-founder-matters" target="_blank" rel="noopener">Antengene (德琪医药) Pre-IPO: Proven R&amp;D track record by founder matters</a></p>
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<li dir="ltr"><a href="https://www.smartkarma.com/insights/antengene-pre-ipo-thoughts-on-valuation" target="_blank" rel="noopener">Antengene (德琪医药) Pre-IPO: Thoughts on Valuation</a></li>
<li dir="ltr"><a href="https://www.smartkarma.com/insights/antengene-ipo-buy-the-team" target="_blank" rel="noopener">Antengene (德琪医药) IPO: Buy the Team</a></li>
</ul>
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Antengene raised HKD 2,635.9 million (USD 340m) from its global offering and will list on the Hong Kong Stock Exchange on Friday November 20th.
In our previous note, we discussed that its ATG-010 has a small proven indication for r/r MM and r/r DLBCL (both are lymphoma), though it has the potential of indication expansion. We believe the Indication and demand for ATG-008 is bigger than ATG-010 as it is targeting liver cancer and lung cancer. Readings on efficacy also suggest that ATG-008 is promising. Both drug candidates are first-in-class. The company not only has a strong management team but also has strong investor backing, including NMC pharmaceutical company Celgene, and healthcare investors.
The deal has attracted a strong line-up of cornerstone investors but we note that the institutional subscription is not as strong as previous biotech deals. We think the deal is fairly valued but note unique experience of its management team warrants a premium to its fair value. 


Our previous coverage on Antengene





Antengene (德琪医药) Pre-IPO: Proven R&amp;D track record by founder matters

Antengene (德琪医药) Pre-IPO: Thoughts on Valuation
Antengene (德琪医药) IPO: Buy the Team



Antengene (德琪医药) IPO Trading: Ample Potential for the Management

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<p style="text-align: justify;">On November 20, another unprofitable biopharmaceutical company, <a href="https://www.smartkarma.com/entities/antengene-corporation-limited" target="_blank" data-smartkarma-citation="entities:29705:1" rel="noopener">Antengene (6996 HK)</a>, will be listed on HKEX at a price of HK$18.08 per share. Currently, Antengene has a total of 12 innovative drugs in its pipeline. Among them, 6 drugs are basically from license-in mode while the rest are mainly self-developed. From the public information, it is still unknown that whether Antengene would use the license-in mode (like <a href="https://www.smartkarma.com/entities/everest-medicines" target="_blank" data-smartkarma-citation="entities:29224:1" rel="noopener">Everest Medicines (1952 HK)</a>) to achieve rapid financing and then develop a competitive pipeline in the future. The following is mainly to analyze the value and potential of the current pipeline, and also provide some thoughts on valuation.</p>

On November 20, another unprofitable biopharmaceutical company, Antengene (6996 HK), will be listed on HKEX at a price of HK$18.08 per share. Currently, Antengene has a total of 12 innovative drugs in its pipeline. Among them, 6 drugs are basically from license-in mode while the rest are mainly self-developed. From the public information, it is still unknown that whether Antengene would use the license-in mode (like Everest Medicines (1952 HK)) to achieve rapid financing and then develop a competitive pipeline in the future. The following is mainly to analyze the value and potential of the current pipeline, and also provide some thoughts on valuation.

Antengene - Insights on Pipeline and Valuation

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.

<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).

<p>Antengene is a China-based biotech company with a focus on in-licensed innovative oncology drugs. The company was founded by Dr Jay Mei, an ex-Celgene scientist with proven experience in drug development. The company has started book building to raise up to USD 359m to list in Hong Kong.</p><p>In our previous note, we discussed that its ATG-010 has a small proven indication for r/r MM and r/r DLBCL (both are lymphoma), though it has the potential of indication expansion. We believe the Indication and demand for ATG-008 is bigger than ATG-010 as it is targeting liver cancer and lung cancer. Readings on efficacy also suggest that ATG-008 is promising. Both drug candidates are first-in-class. The company not only has a strong management team but also has strong investor backing, including NMC pharmaceutical company Celgene, and healthcare investors.</p><p>The deal has attracted a strong line-up of cornerstone investors. We think at the high end of the price range it is fairly valued but the sentiment appears to be strong again hence we will participate in the deal. </p><div><h2>Our previous coverage on Antengene</h2></div><div><ul style="list-style-type: disc;">
<li dir="ltr"><p><a href="https://www.smartkarma.com/insights/antengene-pre-ipo-proven-r-d-track-record-by-founder-matters" target="_blank" rel="noopener">Antengene (德琪医药) Pre-IPO: Proven R&amp;D track record by founder matters</a></p></li>
<li dir="ltr"><a href="https://www.smartkarma.com/insights/antengene-pre-ipo-thoughts-on-valuation" target="_blank" rel="noopener">Antengene (德琪医药) Pre-IPO: Thoughts on Valuation</a></li>
</ul></div>

Antengene is a China-based biotech company with a focus on in-licensed innovative oncology drugs. The company was founded by Dr Jay Mei, an ex-Celgene scientist with proven experience in drug development. The company has started book building to raise up to USD 359m to list in Hong Kong.In our previous note, we discussed that its ATG-010 has a small proven indication for r/r MM and r/r DLBCL (both are lymphoma), though it has the potential of indication expansion. We believe the Indication and demand for ATG-008 is bigger than ATG-010 as it is targeting liver cancer and lung cancer. Readings on efficacy also suggest that ATG-008 is promising. Both drug candidates are first-in-class. The company not only has a strong management team but also has strong investor backing, including NMC pharmaceutical company Celgene, and healthcare investors.The deal has attracted a strong line-up of cornerstone investors. We think at the high end of the price range it is fairly valued but the sentiment appears to be strong again hence we will participate in the deal. Our previous coverage on Antengene
Antengene (德琪医药) Pre-IPO: Proven R&amp;D track record by founder matters
Antengene (德琪医药) Pre-IPO: Thoughts on Valuation


Antengene (德琪医药) IPO: Buy the Team

China

Antengene Corporation Limited operates as a specialty pharmaceutical company. The Company produces innovative drugs, selinexor, eltanexor, verdinexor, and other products. Antengene provides its services throughout China.

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Antengene (6996 HK)

Antengene (德琪医药) IPO Trading: Ample Potential for the Management

The deal has attracted a strong line-up of cornerstone investors but we note that the institutional subscription is not as strong as previous...

Ke Yan, CFA, FRM

Antengene - Insights on Pipeline and Valuation

This article analyzed the value and potential of Antengene's current pipeline, its competitors' products and also include some thoughts on valuation.

Xinyao (Criss) Wang

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

Antengene (德琪医药) IPO: Buy the Team

The deal has attracted a strong line-up of cornerstone investors. At the high end it is fairly valued but the sentiment appears to be strong again...

Ke Yan, CFA, FRM

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