HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

On September 3, 2021, <a href="https://www.smartkarma.com/entities/jw-therapeutics" target="_blank" data-smartkarma-citation="entities:29679:1" rel="noopener">JW Therapeutics (2126 HK) </a>announced that its CAR-T product JWCAR029 (relma-cel) got the approval from the NMPA for market launch, which became the second CAR-T product approved in China after Fosun Kite’s Yescarta and the sixth CAR-T product approved globally. On September 6, the Company’s share price was up about 28%, but pulled back afterwards. This insight mainly analyzed the CAR-T product JWCAR029, the commercialization outlook and the related concerns.

On September 3, 2021, JW Therapeutics (2126 HK) announced that its CAR-T product JWCAR029 (relma-cel) got the approval from the NMPA for market launch, which became the second CAR-T product approved in China after Fosun Kite’s Yescarta and the sixth CAR-T product approved globally. On September 6, the Company’s share price was up about 28%, but pulled back afterwards. This insight mainly analyzed the CAR-T product JWCAR029, the commercialization outlook and the related concerns. 

JW Therapeutics (2126.HK) - Concerns on Commercialization

Thematic (Sector/Industry)

Industry Viewpoints:<ul>
<li>Eight departments jointly issued the pilot plan for deepening the price reform of medical services.</li>
<li>New document was released to regulate the medical beauty advertisement.</li>
<li>With labels such as "whitening", "keeping healthy" and "anti-aging", related functional food has captured the "health anxiety" of young people. </li>
</ul>Company News:News about the updated progress on new drugs of <a href="https://www.smartkarma.com/entities/jw-therapeutics" target="_blank" data-smartkarma-citation="entities:29679:1" rel="noopener">JW Therapeutics (2126 HK)</a>, <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a>, Gloria Biosciences,<a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK) </a>and <a href="https://www.smartkarma.com/entities/jacobio-pharmaceuticals" target="_blank" data-smartkarma-citation="entities:29696:1" rel="noopener">Jacobio Pharmaceuticals (1167 HK)</a>. Market Review:Last week, stock price for healthcare sector in A share decreased 2.03%, while CSI 300 increased 0.33% over the same period of time.Risk Disclosure: Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry Viewpoints:
Eight departments jointly issued the pilot plan for deepening the price reform of medical services.
New document was released to regulate the medical beauty advertisement.
With labels such as "whitening", "keeping healthy" and "anti-aging", related functional food has captured the "health anxiety" of young people. 
Company News:News about the updated progress on new drugs of JW Therapeutics (2126 HK), Innovent Biologics Inc (1801 HK), Gloria Biosciences,BeiGene Ltd (6160 HK) and Jacobio Pharmaceuticals (1167 HK). Market Review:Last week, stock price for healthcare sector in A share decreased 2.03%, while CSI 300 increased 0.33% over the same period of time.Risk Disclosure: Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China Healthcare Weekly (Sep.3) - Price Reform of Medical Services, Medical Beauty, Functional Food

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

CARSgen Therapeutics / Equity Capital Markets

Carsgen is a China and US-based clinical stage biopharmaceutical company focused on CAR-T therapies. The company has four CAR-T products and one monoclonal antibody in the clinical stage.  The company is looking to raise up to USD 300m via a Hong Kong listing.The company has many selling points, including the potentially best-in-class BCMA target for the indication of r/r MM, and its advancement in two targets for the CAR-T therapy, namely CLDN18.2 and GPC3. It has its own technologies that improved the safety for CAR-T technology and also demonstrated preliminary efficacy in the solid tumor which was challenging for the CAR-T therapy. Having looked at numbers from its clinical trials for CT053, we are of the view that this is a promising therapy for r/r MM but the market will be mostly in the US where the company has started clinical trial. As the company is leading in the CLDN18.2 and GPC3, there might be upside if the target is proven to work for CAR-T therapy. The company has a strong management team with academic experiences. Its pre-IPO investors are strong but are mainly domestic institutions. In this note, we will provide our thoughts on the company's valuation.

Carsgen is a China and US-based clinical stage biopharmaceutical company focused on CAR-T therapies. The company has four CAR-T products and one monoclonal antibody in the clinical stage.  The company is looking to raise up to USD 300m via a Hong Kong listing.The company has many selling points, including the potentially best-in-class BCMA target for the indication of r/r MM, and its advancement in two targets for the CAR-T therapy, namely CLDN18.2 and GPC3. It has its own technologies that improved the safety for CAR-T technology and also demonstrated preliminary efficacy in the solid tumor which was challenging for the CAR-T therapy. Having looked at numbers from its clinical trials for CT053, we are of the view that this is a promising therapy for r/r MM but the market will be mostly in the US where the company has started clinical trial. As the company is leading in the CLDN18.2 and GPC3, there might be upside if the target is proven to work for CAR-T therapy. The company has a strong management team with academic experiences. Its pre-IPO investors are strong but are mainly domestic institutions. In this note, we will provide our thoughts on the company's valuation.

CARsgen (科济药业) Pre-IPO: Thoughts on Valuation

The new IPO regulations of the HKEX accelerate the listing of many unprofitable domestic biopharmaceutical companies, which help them to raise funds for the clinical progress and R&amp;D. At the same time, these companies also hope to seize the huge unmet medical market with the advantage of taking the first step. Among them, there are companies focusing on the CAR-T therapy. For example, on February 26, 2021, according to the disclosure of the HKEX, <a href="https://www.smartkarma.com/entities/carsgen-therapeutics-ltd" target="_blank" data-smartkarma-citation="entities:32213:1" rel="noopener">CARSgen Therapeutics (1186504D CH)</a> submitted the application for listing. The following mainly analyzed the Company’s major product candidates and the concerns.

The new IPO regulations of the HKEX accelerate the listing of many unprofitable domestic biopharmaceutical companies, which help them to raise funds for the clinical progress and R&amp;D. At the same time, these companies also hope to seize the huge unmet medical market with the advantage of taking the first step. Among them, there are companies focusing on the CAR-T therapy. For example, on February 26, 2021, according to the disclosure of the HKEX, CARSgen Therapeutics (1186504D CH) submitted the application for listing. The following mainly analyzed the Company’s major product candidates and the concerns.

Pre-IPO CARsgen Therapeutics - Insights on Pipeline and Challenges

Carsgen is a China and US-based clinical-stage biopharmaceutical company focused on CAR-T therapies. The company has four CAR-T products and one monoclonal antibody in the clinical stage.  The company is looking to raise up to USD 300m via a Hong Kong listing.The company has many selling points, including the potentially best-in-class BCMA target for the indication of r/r MM, and its advancement in two targets for the CAR-T therapy, namely CLDN18.2 and GPC3. It has its own technologies that improved the safety for CAR-T technology and also demonstrated preliminary efficacy in the solid tumor which was challenging for the CAR-T therapy. Having looked at numbers from its clinical trials for CT053, we are of the view that this is a promising therapy for r/r MM but the market will be mostly in the US where the company has started clinical trial. As the company is leading in the CLDN18.2 and GPC3, there might be upside if the target is proven to work for CAR-T therapy.The company has a strong management team with academic experiences. Its pre-IPO investors are strong but are mainly domestic institutions.

Carsgen is a China and US-based clinical-stage biopharmaceutical company focused on CAR-T therapies. The company has four CAR-T products and one monoclonal antibody in the clinical stage.  The company is looking to raise up to USD 300m via a Hong Kong listing.The company has many selling points, including the potentially best-in-class BCMA target for the indication of r/r MM, and its advancement in two targets for the CAR-T therapy, namely CLDN18.2 and GPC3. It has its own technologies that improved the safety for CAR-T technology and also demonstrated preliminary efficacy in the solid tumor which was challenging for the CAR-T therapy. Having looked at numbers from its clinical trials for CT053, we are of the view that this is a promising therapy for r/r MM but the market will be mostly in the US where the company has started clinical trial. As the company is leading in the CLDN18.2 and GPC3, there might be upside if the target is proven to work for CAR-T therapy.The company has a strong management team with academic experiences. Its pre-IPO investors are strong but are mainly domestic institutions. 

CARsgen (科济药业) Pre-IPO: Scientific Bet on New CAR-T Targets

China

JW (Cayman) Therapeutics Co. Ltd operates as a clinical stage therapy platform company. The Company offers developing, manufacturing and commercializing breakthrough cell-based immunotherapies forhematological cancers and solid tumors. JW (Cayman) Therapeutics provides services in China.

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JW Therapeutics (2126 HK)