HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<p>Recently, <a href="https://www.smartkarma.com/entities/transcenta-holding-limited" target="_blank" data-smartkarma-citation="entities:33523:1" rel="noopener">Transcenta Holding (THL HK)</a> has passed the listing hearing of the HKEX and is expected to be listed on the main board in the near future. Transcenta is a clinical stage global biopharmaceutical company that integrates the capacities of discovery, research, development, manufacturing and business development, with nine product candidates in the pipeline, eight of which are oncology drug candidates. This insight mainly analyzed the important product candidates (such as MSB2311, TST001, TST005 and MSB0254) in the pipeline and related concerns. </p>

Recently, Transcenta Holding (THL HK) has passed the listing hearing of the HKEX and is expected to be listed on the main board in the near future. Transcenta is a clinical stage global biopharmaceutical company that integrates the capacities of discovery, research, development, manufacturing and business development, with nine product candidates in the pipeline, eight of which are oncology drug candidates. This insight mainly analyzed the important product candidates (such as MSB2311, TST001, TST005 and MSB0254) in the pipeline and related concerns. 

Pre-IPO Transcenta Holding - Insights on Pipeline and the Concerns

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

CARsgen Therapeutics / Equity Capital Markets

<p>CARsgen raised HKD 2,940 million (USD 379m) from its global offering and will list on the Hong Kong Stock Exchange on Friday, June 17th.</p>
<p>In our previous note, we discussed that 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.</p>
<p>In this note, we look at the updates since our last note. Past deals with similar book coverage didn't do well on the first day in general despite a strong liquidity. Share allocations for institutional investors were concentrated. As such we do not expect a pop on debut but we think it can still trade higher in the days after. </p>

CARsgen raised HKD 2,940 million (USD 379m) from its global offering and will list on the Hong Kong Stock Exchange on Friday, June 17th.
In our previous note, we discussed that 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 look at the updates since our last note. Past deals with similar book coverage didn't do well on the first day in general despite a strong liquidity. Share allocations for institutional investors were concentrated. As such we do not expect a pop on debut but we think it can still trade higher in the days after. 

CARsgen (科济药业) IPO Trading: Not Likely a Pop on Debut

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/carsgen-therapeutics-ltd" target="_blank" data-smartkarma-citation="entities:32213:1" rel="noopener">CARSgen Therapeutics (2171 HK)</a> is a biopharma focused on innovative CAR-T cell therapies for the treatment of haematological malignancies and solid tumours. CARsgen opines that it is a key player in the field of CAR-T cell therapies. Pre-IPO investors include Hillhouse Capital, <a href="https://www.smartkarma.com/entities/zhejiang-jolly-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:7333:1" rel="noopener">Zhejiang Jolly Pharmaceutical (300181 CH)</a>, KTB Network, <a href="https://www.smartkarma.com/entities/tasly-pharmaceutical-group-co-ltd" target="_blank" data-smartkarma-citation="entities:9569:1" rel="noopener">Tasly Pharmaceutical Group (600535 CH)</a>, Loyal Valley Capital, Shiyu Investment Management and Lilly Asia Ventures.</p></div><div><p>CARsgen has launched an HKEx IPO to raise net proceeds of HK$2,795 million ($360 million) at the mid-point of the IPO price range of HK$29.60-32.80 per share.</p></div><div><p>Nine cornerstone investors have agreed to invest about $230 million in the IPO (60.38% of the offer shares at the mid-point of the IPO price range). The cornerstone investors are LAV Group, New China Capital Management, CloudAlpha Capital Management, Orient Asset Management, WT Asset Management, GF Fund, Dymon Asia, IvyRock and China Southern Asset Management. </p></div><div><div>
<p>In <a href="https://www.smartkarma.com/insights/carsgen-therapeutics-ipo-initiation-choosing-therapies-a-la-car-t" target="_blank" data-smartkarma-citation="insights:52072" rel="noopener">CARsgen Therapeutics IPO Initiation: Choosing Therapies À La CAR-T</a>, we stated that the promising prospects for the lead product, a credible management team and a good shareholder register make the IPO worth a closer look. </p>
<div class="content-highlight"><p>Our SoTP value is HK$31.74 per share which is a 2% upside to the mid-point of the IPO price range. Due to the limited upside to our SoTP valuation, we think that the IPO price range is full. Overall, while we like CARsgen's fundamentals, due to the full IPO price range, lack of blue-chip cornerstone support and the current weak market sentiment on IPOs, we are inclined to wait on the sidelines for a more attractive entry point. </p></div>
</div></div>

CARSgen Therapeutics (2171 HK) is a biopharma focused on innovative CAR-T cell therapies for the treatment of haematological malignancies and solid tumours. CARsgen opines that it is a key player in the field of CAR-T cell therapies. Pre-IPO investors include Hillhouse Capital, Zhejiang Jolly Pharmaceutical (300181 CH), KTB Network, Tasly Pharmaceutical Group (600535 CH), Loyal Valley Capital, Shiyu Investment Management and Lilly Asia Ventures.CARsgen has launched an HKEx IPO to raise net proceeds of HK$2,795 million ($360 million) at the mid-point of the IPO price range of HK$29.60-32.80 per share.Nine cornerstone investors have agreed to invest about $230 million in the IPO (60.38% of the offer shares at the mid-point of the IPO price range). The cornerstone investors are LAV Group, New China Capital Management, CloudAlpha Capital Management, Orient Asset Management, WT Asset Management, GF Fund, Dymon Asia, IvyRock and China Southern Asset Management. 
In CARsgen Therapeutics IPO Initiation: Choosing Therapies À La CAR-T, we stated that the promising prospects for the lead product, a credible management team and a good shareholder register make the IPO worth a closer look. 
Our SoTP value is HK$31.74 per share which is a 2% upside to the mid-point of the IPO price range. Due to the limited upside to our SoTP valuation, we think that the IPO price range is full. Overall, while we like CARsgen's fundamentals, due to the full IPO price range, lack of blue-chip cornerstone support and the current weak market sentiment on IPOs, we are inclined to wait on the sidelines for a more attractive entry point. 


CARsgen Therapeutics IPO: Valuation Insights

<p><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> is a biopharma focused on innovative CAR-T cell therapies for the treatment of haematological malignancies and solid tumours. CARsgen opines that is a key player in the field of CAR-T cell therapies. CARsgen is pre-marketing an HKEx IPO to raise proceeds of $400-500 million, according to press reports. </p><p>Five CAR-T products, <em>Kymriah, Yescarta, Tecartus, Breyanzi</em> and <em>Abecma</em>, have been approved by the FDA for marketing in the US. However, there is no CAR-T cell therapy approved by the NMPA for marketing in China. The total revenue of <em>Kymriah, Yescarta</em> and <em>Tecartus</em> in 2020 was $1.1 billion (source: Frost &amp; Sullivan) which highlights the market opportunity. </p><div class="content-highlight"><p>CARsgen has developed a pipeline of 11 product candidates, including six at the clinical stage. CARsgen owns the global rights to its product candidates and technologies, all of which are developed in-house. The sole core product candidate is CT053. Overall, we believe that the promising prospects for the lead product, a credible management team and a good shareholder register make the IPO worth a closer look. </p></div>

CARSgen Therapeutics (1186504D CH) is a biopharma focused on innovative CAR-T cell therapies for the treatment of haematological malignancies and solid tumours. CARsgen opines that is a key player in the field of CAR-T cell therapies. CARsgen is pre-marketing an HKEx IPO to raise proceeds of $400-500 million, according to press reports. Five CAR-T products, Kymriah, Yescarta, Tecartus, Breyanzi and Abecma, have been approved by the FDA for marketing in the US. However, there is no CAR-T cell therapy approved by the NMPA for marketing in China. The total revenue of Kymriah, Yescarta and Tecartus in 2020 was $1.1 billion (source: Frost &amp; Sullivan) which highlights the market opportunity. CARsgen has developed a pipeline of 11 product candidates, including six at the clinical stage. CARsgen owns the global rights to its product candidates and technologies, all of which are developed in-house. The sole core product candidate is CT053. Overall, we believe that the promising prospects for the lead product, a credible management team and a good shareholder register make the IPO worth a closer look. 

CARsgen Therapeutics IPO Initiation: Choosing Therapies À La CAR-T

<p>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.</p><p>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. </p><p>In this note, we will provide our thoughts on the company's valuation.</p>

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

China

Legend Biotech Corporation operates as a biopharmaceutical company. The Company engages in discovery and development of novel cell therapies for oncology and other indications. Legend Biotech serves customers in the State of New Jersey.

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Legend Biotech Corp (LEGN US)

Pre-IPO Transcenta Holding - Insights on Pipeline and the Concerns

The article mainly analyzed Transcenta Holding in terms of its important product candidates MSB2311, TST001, TST005 and MSB0254,including the...

Xinyao (Criss) Wang

CARsgen (科济药业) IPO Trading: Not Likely a Pop on Debut

We look at the updates of CARsgen since our last note. Past deals with similar book coverage didn't do well on the first day in general despite a...

Ke Yan, CFA, FRM

CARsgen Therapeutics IPO: Valuation Insights

Due to the full IPO price range, lack of blue-chip cornerstone support and the current weak market sentiment on IPOs, we are inclined to wait on...

Arun George

CARsgen Therapeutics IPO Initiation: Choosing Therapies À La CAR-T

CARsgen is pre-marketing an HKEx IPO to raise proceeds of $400-500m. The promising prospects for the lead product, credible management and a good...

Arun George

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

In this insight, we provide a risk-adjusted NPV based valuation for the company's key product CT035 and the SOTP valuation for the company.

Ke Yan, CFA, FRM

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