HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Event-Driven

<ul>
<li>Genscript announced the deconsolidation of Legend Bio. Although it may not necessarily be directly related to a potential merger, this move is beneficial for both parties from a strategic perspective.</li>
<li>Genscript is still the largest shareholder of Legend Bio, but the negative vote against Wang Ye in October indicates that there are clear divisions among major shareholders. </li>
<li>If AquaPoint votes against Wang Ye at shareholders’ meeting, it indicates that there are also divisions among co-founders. In this case, the probability of Legend Bio being sold greatly increases.</li>
</ul>


Genscript announced the deconsolidation of Legend Bio. Although it may not necessarily be directly related to a potential merger, this move is beneficial for both parties from a strategic perspective.
Genscript is still the largest shareholder of Legend Bio, but the negative vote against Wang Ye in October indicates that there are clear divisions among major shareholders. 
If AquaPoint votes against Wang Ye at shareholders’ meeting, it indicates that there are also divisions among co-founders. In this case, the probability of Legend Bio being sold greatly increases.


Legend Biotech (LEGN.US) Offer Update - Will Deconsolidation Increase the Chances of a Merger ?

Chongqing Taiji Industry (Group) A / Event-Driven

Chongqing Taiji Industry (Group) A (600129 CH)

<ul>
<li>There are several ways for pharmaceutical companies to commercialize drugs. We analyzed the advantages and disadvantages and ranked them accordingly. Among them, out-licensing early-stage pipelines is the worst choice.</li>
<li>After 5-6 years of commercialization, China Biotech have reached the critical point of verifying the feasibility of business models. However, some companies are falling behind. We listed them below.</li>
<li>After the failure of China TCM’s privatization, CNPGC can choose to launch another privatization after 12 months. There’re also other methods to address the horizontal competition issue with Taiji Group.</li>
</ul>


There are several ways for pharmaceutical companies to commercialize drugs. We analyzed the advantages and disadvantages and ranked them accordingly. Among them, out-licensing early-stage pipelines is the worst choice.
After 5-6 years of commercialization, China Biotech have reached the critical point of verifying the feasibility of business models. However, some companies are falling behind. We listed them below.
After the failure of China TCM’s privatization, CNPGC can choose to launch another privatization after 12 months. There’re also other methods to address the horizontal competition issue with Taiji Group.


China Healthcare Weekly (Nov.10)-Biotech Model Validation, CNPGC Need to Fulfill Commitment to Taiji

China Traditional Chinese Medicine / Event-Driven

China Traditional Chinese Medicine (570 HK)

<ul>
<li>The “industry clearing”  of innovative drug companies is far longer and more brutal than imagined. But Chinese innovative drug ecosystem will ultimately usher in a better innovation pattern in the future.</li>
<li>For every innovative pharmaceutical company with ambitious goals, globalization is a “must option”. With more and more Chinese biotech achieving success, the internationalization prospects will become better and better.</li>
<li>China TCM’s privatization failure made us realize large SOEs we always believe in would violate their commitments to market/investors.Now, we need to get back to the fundamentals to minimize losses.</li>
</ul>


The “industry clearing”  of innovative drug companies is far longer and more brutal than imagined. But Chinese innovative drug ecosystem will ultimately usher in a better innovation pattern in the future.
For every innovative pharmaceutical company with ambitious goals, globalization is a “must option”. With more and more Chinese biotech achieving success, the internationalization prospects will become better and better.
China TCM’s privatization failure made us realize large SOEs we always believe in would violate their commitments to market/investors.Now, we need to get back to the fundamentals to minimize losses.


China Healthcare Weekly (Oct.20)-A Big Lesson from China TCM's Deal Break, “Must Option” of Biotech

<ul>
<li>We do not want to make a premature conclusion about this acquisition too early. For both Legend Bio and Genscript, this acquisition is worth considering, given the geopolitical risks.</li>
<li>There could be difference in expectations between buyers and sellers regarding the acquisition price. For fear of losing their jobs, Legend Bio's management may not be happy about being acquired.</li>
<li>Considering the high uncertainty, our suggestion is that investors spend more time on the fundamentals of Legend Bio, rather than just betting on the success of the acquisition.</li>
</ul>


We do not want to make a premature conclusion about this acquisition too early. For both Legend Bio and Genscript, this acquisition is worth considering, given the geopolitical risks.
There could be difference in expectations between buyers and sellers regarding the acquisition price. For fear of losing their jobs, Legend Bio's management may not be happy about being acquired.
Considering the high uncertainty, our suggestion is that investors spend more time on the fundamentals of Legend Bio, rather than just betting on the success of the acquisition.


Legend Biotech (LEGN.US) Offer Update - Is the Deal Really Dead?

<ul>
<li>The rumors we’ve heard are that the acquisition price has not yet been agreed upon. Meanwhile, the management of Legend Bio and Genscript may have different views on this takeover.</li>
<li>The deal has a 50-50 chance of success. If the deal breaks, this is however "a good news" for the investors of Genscript, whose key performance contributor is Legend Bio. </li>
<li>The commercialization potential of Carvykti has not yet been fully realized. Regardless of whether there is a takeover offer or not, Legend Bio is still considered a high quality asset.  </li>
</ul>


The rumors we’ve heard are that the acquisition price has not yet been agreed upon. Meanwhile, the management of Legend Bio and Genscript may have different views on this takeover.
The deal has a 50-50 chance of success. If the deal breaks, this is however "a good news" for the investors of Genscript, whose key performance contributor is Legend Bio. 
The commercialization potential of Carvykti has not yet been fully realized. Regardless of whether there is a takeover offer or not, Legend Bio is still considered a high quality asset.  


Legend Biotech (LEGN.US) Offer Update - The Takeover Negotiations Could Reach an Impasse?

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)

Legend Biotech (LEGN.US) Offer Update - Will Deconsolidation Increase the Chances of a Merger ?

The deconsolidation of Legend Bio may not necessarily be directly related to a potential merger, but divisions among major shareholders/co-founders...

Xinyao (Criss) Wang

China Healthcare Weekly (Nov.10)-Biotech Model Validation, CNPGC Need to Fulfill Commitment to Taiji

Out-licensing early-stage pipelines is the worst option. China Biotech at a critical point in verifying business models. CNPGC has other methods to...

Xinyao (Criss) Wang

China Healthcare Weekly (Oct.20)-A Big Lesson from China TCM's Deal Break, “Must Option” of Biotech

The break of China TCM’s privatization deal has taught us an important lesson.Globalization is a “must option”. The “industry clearing” of...

Xinyao (Criss) Wang

Legend Biotech (LEGN.US) Offer Update - Is the Deal Really Dead?

Given the geopolitical risks, this acquisition is worth considering for both Legend Bio and Genscript. However, the main obstacles are disagreement...

Xinyao (Criss) Wang

Legend Biotech (LEGN.US) Offer Update - The Takeover Negotiations Could Reach an Impasse?

Rumors swirl around acquisition price disagreement between Legend Bio and Genscrip. Deal has 50-50 chance of success. Investors still benefit if...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Legend Biotech (LEGN.US) Offer Update - Will Deconsolidation Increase the Chances of a Merger ?

The deconsolidation of Legend Bio may not necessarily be directly related to a potential merger, but divisions among major shareholders/co-founders...

Xinyao (Criss) Wang

China Healthcare Weekly (Nov.10)-Biotech Model Validation, CNPGC Need to Fulfill Commitment to Taiji

Out-licensing early-stage pipelines is the worst option. China Biotech at a critical point in verifying business models. CNPGC has other methods to...

Xinyao (Criss) Wang

China Healthcare Weekly (Oct.20)-A Big Lesson from China TCM's Deal Break, “Must Option” of Biotech

The break of China TCM’s privatization deal has taught us an important lesson.Globalization is a “must option”. The “industry clearing” of...

Xinyao (Criss) Wang

Legend Biotech (LEGN.US) Offer Update - Is the Deal Really Dead?

Given the geopolitical risks, this acquisition is worth considering for both Legend Bio and Genscript. However, the main obstacles are disagreement...

Xinyao (Criss) Wang

Legend Biotech (LEGN.US) Offer Update - The Takeover Negotiations Could Reach an Impasse?

​Rumors swirl around acquisition price disagreement between Legend Bio and Genscrip. Deal has 50-50 chance of success. Investors still benefit if...

Xinyao (Criss) Wang

Rumors swirl around acquisition price disagreement between Legend Bio and Genscrip. Deal has 50-50 chance of success. Investors still benefit if...