Pan-Asia Catalysts/Events, Quiddity Advisors

David Blennerhassett

Pan-Asia Catalysts/Events

Quiddity Advisors

Event-Driven

On the 22 April this year, the FDA granted <a href="https://www.immunomedics.com/news-and-events/fda-grants-accelerated-approval-for-immunomedics-trodelvy-in-previously-treated-metastatic-triple-negative-breast-cancer" target="_blank" rel="noopener">accelerated approval</a> for Trodelvy, <a href="https://www.smartkarma.com/entities/immunomedics-inc" target="_blank" data-smartkarma-citation="entities:13913:1" rel="noopener">Immunomedics Inc (IMMU US)</a>'s first-in-class antibody-drug conjugate (ADC), for the treatment of patients with metastatic triple-negative breast cancer (mTNBC). Shares gained 19% to US$26.18/share, taking the one year gain to 57%.
(Triple-negative breast cancer is cancer that tests negative for estrogen receptors, progesterone receptors, and excess HER2 protein.)
On the <a href="https://www.immunomedics.com/news-and-events/immunomedics-announces-positive-results-from-phase-3-ascent-study-of-trodelvytm" target="_blank" rel="noopener">6 July</a>, Immunomedics reported that the phase 3 ASCENT study stopped early due to compelling efficacy after meeting primary and key secondary endpoints - Trodelvy "has set a new benchmark in scientific and clinical innovation for patients with mTNBC by offering a novel alternative to the common drugs currently in clinical practice". Shares cleared US$40/share and largely traded flat for the next 9 weeks.
On the 13 September, <a href="https://www.smartkarma.com/entities/gilead-sciences-inc" target="_blank" data-smartkarma-citation="entities:973:1" rel="noopener">Gilead Sciences (GILD US)</a> announced it had entered into a definitive agreement pursuant to which Gilead will acquire Immunomedics for $88.00/share in cash, a 108% premium to last close, in a US$20bn deal.
The tender offer is not subject to any financing condition with ~US$15bn of the funding from existing cash and ~US$6bn in newly issued debt.
Conditions to the tender offer are limited - valid tendering of 50% + one share, no MACs, and the waiting period applicable to the Offer under the HSR Act having expired or been terminated. 
The close of the tender is expected in 4Q20, subject to regulatory approval and other customary closing conditions.  Immunomedics' board unanimously supports the Offer.
Provided the Offer completes, a second-stage merger will be undertaken, which will dispense with the requirement for consent from Immunomedics shareholders.  Immunomedics will cease to be listed once the merger is consummated.
This looks done. As always, more below the fold.

On the 22 April this year, the FDA granted accelerated approval for Trodelvy, Immunomedics Inc (IMMU US)'s first-in-class antibody-drug conjugate (ADC), for the treatment of patients with metastatic triple-negative breast cancer (mTNBC). Shares gained 19% to US$26.18/share, taking the one year gain to 57%.
(Triple-negative breast cancer is cancer that tests negative for estrogen receptors, progesterone receptors, and excess HER2 protein.)
On the 6 July, Immunomedics reported that the phase 3 ASCENT study stopped early due to compelling efficacy after meeting primary and key secondary endpoints - Trodelvy "has set a new benchmark in scientific and clinical innovation for patients with mTNBC by offering a novel alternative to the common drugs currently in clinical practice". Shares cleared US$40/share and largely traded flat for the next 9 weeks.
On the 13 September, Gilead Sciences (GILD US) announced it had entered into a definitive agreement pursuant to which Gilead will acquire Immunomedics for $88.00/share in cash, a 108% premium to last close, in a US$20bn deal.
The tender offer is not subject to any financing condition with ~US$15bn of the funding from existing cash and ~US$6bn in newly issued debt.
Conditions to the tender offer are limited - valid tendering of 50% + one share, no MACs, and the waiting period applicable to the Offer under the HSR Act having expired or been terminated. 
The close of the tender is expected in 4Q20, subject to regulatory approval and other customary closing conditions.  Immunomedics' board unanimously supports the Offer.
Provided the Offer completes, a second-stage merger will be undertaken, which will dispense with the requirement for consent from Immunomedics shareholders.  Immunomedics will cease to be listed once the merger is consummated.
This looks done. As always, more below the fold. 

Asian Insight Provider - Actionable ideas, CrossASEAN Research

Henry Soediarko

Asian Insight Provider - Actionable ideas

CrossASEAN Research

At CrossASEAN Research we strive to produce unbiased and differentiated on the ground insights on companies across South East Asia. Our Research is produced for the most part after face to face meetings and conversations with company management to dig deep into the long term vision and strategy of the companies we cover. We seek to deliver investable and actionable themes on sectors and markets across SE Asia, often in collaboration with other Insight Providers across the region, pooling the vast experience of the analysts within the Smartkarma Ecosystem. We also offer bespoke work and tailor made trips for our clients. 

Insights across South East Asia

Equity Bottom-Up

The management has confirmed that the wholesale price for ginger (a key ingredient and natural immunity booster is well known in Indonesia) is much more manageable compared to the retail price that has gone through the roof as demand surges. 
With a lasting COVID-19 pandemic in the country,  <a href="https://www.smartkarma.com/entities/industri-jamu-dan-farmasi-sd-mncl-tbk-pt" target="_blank" data-smartkarma-citation="entities:6033:1" rel="noopener">Sido Muncul (SIDO IJ)</a> is the beneficiary of the increased demand for an immunity booster therefore if there will be an increase in the raw material cost, the revenue growth could negate that and translate into some earnings growth. 
SIDO has outperformed <a href="https://www.smartkarma.com/entities/jakarta-stock-exchange-composite-index" target="_blank" data-smartkarma-citation="entities:22914:1" rel="noopener">Jakarta Stock Exchange Composite Index (JCI INDEX)</a> post initial COVID-19 event, and while it may seem that the Index is cheaper relative to SIDO, the index constituents have to deal with the economic reality post-COVID-19 while SIDO is a beneficiary.

The management has confirmed that the wholesale price for ginger (a key ingredient and natural immunity booster is well known in Indonesia) is much more manageable compared to the retail price that has gone through the roof as demand surges. 
With a lasting COVID-19 pandemic in the country,  Sido Muncul (SIDO IJ) is the beneficiary of the increased demand for an immunity booster therefore if there will be an increase in the raw material cost, the revenue growth could negate that and translate into some earnings growth. 
SIDO has outperformed Jakarta Stock Exchange Composite Index (JCI INDEX) post initial COVID-19 event, and while it may seem that the Index is cheaper relative to SIDO, the index constituents have to deal with the economic reality post-COVID-19 while SIDO is a beneficiary. 

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

Burning Rock Biotech / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/burning-rock-biotech" target="_blank" data-smartkarma-citation="entities:28970:1" rel="noopener">Burning Rock Biotech (BNR US)</a> is a precision oncology and early cancer detection company. It is China’s number one NGS-based cancer therapy selection company with a 26.7% market share as measured by the number of patients tested in 2019, according to CIC. Burning Rock is backed by Sequoia Capital (9.1% stake), CMB International (8.8%), GIC (6.1%), OrbiMed and LAV Biosciences Fund (an affiliate of Lilly Asia Ventures). Burning Rock has filed for a Nasdaq IPO with a placeholder $100 million raise. <div class="content-highlight">Unlike IPO hopeful <a href="https://www.smartkarma.com/entities/dada-nexus" target="_blank" data-smartkarma-citation="entities:28961:1" rel="noopener">Dada Nexus (DADA US)</a>, Burning Rock was negatively impacted by the corona pandemic which resulted in a weak 1Q20. The bulls can argue with some merit that the 1Q20 performance is a one-off. On balance, we think that Burning Rock's fundamentals are sound and subject to valuation, will prove attractive to investors despite the negative sentiment around Chinese ADRs.</div>

Burning Rock Biotech (BNR US) is a precision oncology and early cancer detection company. It is China’s number one NGS-based cancer therapy selection company with a 26.7% market share as measured by the number of patients tested in 2019, according to CIC. Burning Rock is backed by Sequoia Capital (9.1% stake), CMB International (8.8%), GIC (6.1%), OrbiMed and LAV Biosciences Fund (an affiliate of Lilly Asia Ventures). Burning Rock has filed for a Nasdaq IPO with a placeholder $100 million raise. Unlike IPO hopeful Dada Nexus (DADA US), Burning Rock was negatively impacted by the corona pandemic which resulted in a weak 1Q20. The bulls can argue with some merit that the 1Q20 performance is a one-off. On balance, we think that Burning Rock's fundamentals are sound and subject to valuation, will prove attractive to investors despite the negative sentiment around Chinese ADRs.

Burning Rock Biotech IPO Initiation: Burning Ambitions

<a href="https://www.smartkarma.com/entities/innocare-pharma-ltd" target="_blank" data-smartkarma-citation="entities:28355:1" rel="noopener">InnoCare Pharma Ltd (1576300D CH)</a> is a pre-revenue biotech company with a focus on research and development, manufacturing and commercialisation of best-in-class and/or first-in-class drugs for the treatment of cancer and autoimmune diseases. InnoCare is backed by Vivo Capital (8.5% shareholder) and GIC (5.7% shareholder). It is seeking to raise $200 million in a Hong Kong IPO. <div class="content-highlight">The core products are orelabrutinib (BTK inhibitor), ICP-192 (pan-FGFR inhibitor) and ICP-105 (FGFR4 inhibitor). Overall, we believe that the key products have good prospects. </div>

InnoCare Pharma Ltd (1576300D CH) is a pre-revenue biotech company with a focus on research and development, manufacturing and commercialisation of best-in-class and/or first-in-class drugs for the treatment of cancer and autoimmune diseases. InnoCare is backed by Vivo Capital (8.5% shareholder) and GIC (5.7% shareholder). It is seeking to raise $200 million in a Hong Kong IPO. The core products are orelabrutinib (BTK inhibitor), ICP-192 (pan-FGFR inhibitor) and ICP-105 (FGFR4 inhibitor). Overall, we believe that the key products have good prospects. 

InnoCare Pharma IPO Initiation: Promising Prognosis

<a href="https://www.smartkarma.com/entities/alphamab-co-ltd" target="_blank" data-smartkarma-citation="entities:28213:1" rel="noopener">Alphamab Co Ltd (1728643D CH)</a> is a pre-revenue biotech company with a focus on research and development, manufacturing and commercialisation of biologics for oncology. It has launched a Hong Kong IPO to raise up to HK$1.83 billion ($234 million). <div class="content-highlight">The core product is KN046, and along with KN026 are the two drug candidates which are likely to be launched in the next 3-4 years. Overall, we believe that the key products have strong prospects and Alphamab’s cash burn is manageable. </div>

Alphamab Co Ltd (1728643D CH) is a pre-revenue biotech company with a focus on research and development, manufacturing and commercialisation of biologics for oncology. It has launched a Hong Kong IPO to raise up to HK$1.83 billion ($234 million). The core product is KN046, and along with KN026 are the two drug candidates which are likely to be launched in the next 3-4 years. Overall, we believe that the key products have strong prospects and Alphamab’s cash burn is manageable. 

Alphamab Oncology IPO Initiation: Clear Diagnosis

United Kingdom

AstraZeneca PLC is a Swedish-British multinational pharmaceutical and biotechnology company focused on the discovery, development, manufacture, and commercialization of prescription medicines. The company specializes in therapeutic areas including oncology, cardiovascular, renal and metabolism, respiratory and immunology, rare diseases, and vaccines. AstraZeneca was founded in 1999 through the merger of Sweden's Astra AB and the UK's Zeneca Group PLC, and its headquarters are located in Cambridge, UK.

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AstraZeneca (AZN SS)

Gilead/Immunomedics: Bosom Buddies

Back in April, The FDA recently approved Trodelvy (sacituzumabgovitecan-hziy), an antibody-drug conjugate (ADC), for the treatment of patients...

David Blennerhassett

Sido Muncul (SIDO): Immunity Booster

The management has confirmed that the wholesale price for ginger (a key ingredient and natural immunity booster is well known in Indonesia) is much...

Henry Soediarko

Burning Rock Biotech IPO Initiation: Burning Ambitions

Burning Rock Biotech (BNR US) is a precision oncology and early cancer detection company. It is China’s number one NGS-based cancer therapy...

Arun George

InnoCare Pharma IPO Initiation: Promising Prognosis

InnoCare Pharma Ltd (1576300D CH) is a pre-revenue biotech company with a focus on research and development, manufacturing and commercialisation of...

Arun George

Alphamab Oncology IPO Initiation: Clear Diagnosis

Alphamab Co Ltd (1728643D CH) is a pre-revenue biotech company with a focus on research and development, manufacturing and commercialisation of...

Arun George

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