Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

Boryung Pharmaceutical / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/boryung-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:19265:1" rel="noopener">Boryung Pharmaceutical (003850 KS)</a> is acquiring cytotoxic anti-cancer drug Taxotere (docetaxel) from <a href="https://www.smartkarma.com/entities/sanofi" target="_blank" data-smartkarma-citation="entities:4564:1" rel="noopener">Sanofi (SAN FP)</a> for €175M (~KRW288B), inclusive of potential milestone payments worth €14M.</li>
<li>Post acquisition, Boryung aims to enhance the therapeutic value of Taxotere to include formulation improvements, combination strategies, and research into new indications. Currently, oncology contributes 20%+ of total revenue.</li>
<li>Over the last six months, Boryung shares remained almost flat, reflecting lack of any strong catalyst. Acquisition of Taxotere is not going to change the situation overnight.</li>
</ul>



Boryung Pharmaceutical (003850 KS) is acquiring cytotoxic anti-cancer drug Taxotere (docetaxel) from Sanofi (SAN FP) for €175M (~KRW288B), inclusive of potential milestone payments worth €14M.
Post acquisition, Boryung aims to enhance the therapeutic value of Taxotere to include formulation improvements, combination strategies, and research into new indications. Currently, oncology contributes 20%+ of total revenue.
Over the last six months, Boryung shares remained almost flat, reflecting lack of any strong catalyst. Acquisition of Taxotere is not going to change the situation overnight.


Boryung Pharmaceutical (003850 KS): New Drug Acquisition Fans High Oncology Aspiration

Korea/Asia, Events, IPOs, Douglas Research Advisory

Douglas Kim

Korea/Asia, Events, IPOs

Douglas Research Advisory

Equity Capital Markets

Myungin Pharmaceutical / Equity Capital Markets

<ul>
<li>Myungin Pharm's IPO price has been confirmed at 58,000 won, which is at the high end of the IPO price range.</li>
<li>A total of 2,028 domestic and foreign institutional investors participated in the IPO demand forecast. The demand ratio was 488.9 to 1.</li>
<li>Our base case valuation of Myungin Pharm is market cap of 1.2 trillion won, and target price of 80,349 won per share, which is 39% higher than the IPO price.</li>
</ul>


Myungin Pharm's IPO price has been confirmed at 58,000 won, which is at the high end of the IPO price range.
A total of 2,028 domestic and foreign institutional investors participated in the IPO demand forecast. The demand ratio was 488.9 to 1.
Our base case valuation of Myungin Pharm is market cap of 1.2 trillion won, and target price of 80,349 won per share, which is 39% higher than the IPO price.


Myungin Pharmaceutical IPO Bookbuilding Analysis

APAC IPOs & Placements, Aequitas Research

Nicholas Tan

APAC 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.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/myungin-pharmaceutical" target="_blank" data-smartkarma-citation="entities:45685:1" rel="noopener">Myungin Pharmaceutical (MYUNGIN KS)</a> is looking to raise up to US$142m in its upcoming Korean IPO.</li>
<li>It specializes in central nervous system (CNS) therapeutics and boasts an extensive product line-up of over 200 CNS products. </li>
<li>In this note, we examine the IPO dynamics, and look at the firm’s valuation.</li>
</ul>



Myungin Pharmaceutical (MYUNGIN KS) is looking to raise up to US$142m in its upcoming Korean IPO.
It specializes in central nervous system (CNS) therapeutics and boasts an extensive product line-up of over 200 CNS products. 
In this note, we examine the IPO dynamics, and look at the firm’s valuation.


Myungin Pharm Pre-IPO: Discount to Peers; Potential Succession Planning

<ul>
<li>Our base case valuation of Myungin Pharm is target price of 80,349 won per share, which is 39% higher than the high end of the IPO price range. </li>
<li>Given solid upside, we have a Positive View of Myungin Pharm. Our target price is based on EV/EBITDA of 6.4x using our estimated EBITDA of 110.4 billion won in 2025.  </li>
<li>We believe Myungin Pharm should deserve a premium valuation multiple than its peers mainly due to higher sales growth, operating margin, and ROE but lower debt ratio. </li>
</ul>


Our base case valuation of Myungin Pharm is target price of 80,349 won per share, which is 39% higher than the high end of the IPO price range. 
Given solid upside, we have a Positive View of Myungin Pharm. Our target price is based on EV/EBITDA of 6.4x using our estimated EBITDA of 110.4 billion won in 2025.  
We believe Myungin Pharm should deserve a premium valuation multiple than its peers mainly due to higher sales growth, operating margin, and ROE but lower debt ratio. 


Myungin Pharmaceutical IPO Valuation Analysis

<ul>
<li>Myungin Pharmaceutical is getting ready to complete its IPO in KOSPI in September. The IPO price range is from 45,000 won to 58,000 won. </li>
<li>The total offering amount ranges from 153 billion won ($111 million) to 197 billion won ($143 million). The book building for the institutional investors lasts from 9 to 15 September. </li>
<li>Using EBITDA of 104.5 billion won and EV/EBITDA of 7.9x and IPO discount ranges of 32.2% to 47.4%, this resulted in IPO price range of 45,000 won to 58,000 won. </li>
</ul>


Myungin Pharmaceutical is getting ready to complete its IPO in KOSPI in September. The IPO price range is from 45,000 won to 58,000 won. 
The total offering amount ranges from 153 billion won ($111 million) to 197 billion won ($143 million). The book building for the institutional investors lasts from 9 to 15 September. 
Using EBITDA of 104.5 billion won and EV/EBITDA of 7.9x and IPO discount ranges of 32.2% to 47.4%, this resulted in IPO price range of 45,000 won to 58,000 won. 


South Korea

Boryung Pharmaceutical Co., Ltd. produces over-the-counter medical drugs. The Company specializes in producing medicines in the fields of hypertension treatment and anti-viral.

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Boryung Pharmaceutical (003850 KS)