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

Shanghai HeartCare Medical Technology / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/shanghai-heartcare-medical-technology-corporation-limited" target="_blank" data-smartkarma-citation="entities:32192:1" rel="noopener">Shanghai HeartCare Medical Technology (HMT HK)</a> is a China-based neuro-interventional medical device manufacturer with a product portfolio that spans the treatment and prevention of ischemic stroke to the treatment of haemorrhagic stroke. HeartCare’s product portfolio consists of a total of 23 commercialised products and product candidates, including four ischemic stroke treatment devices with NMPA approval.HearCare’s shareholders include <a href="https://www.smartkarma.com/entities/shanghai-fosun-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:8045:1" rel="noopener">Shanghai Fosun Pharmaceutical (Group) (2196 HK)</a>, Temasek, Lake Bleu Capital, <a href="https://www.smartkarma.com/entities/china-international-capital-corporation-ltd" target="_blank" data-smartkarma-citation="entities:1071:1" rel="noopener">China International Capital Corporation (3908 HK)</a> and Canada Pension Plan Investment Board (through a special purpose vehicle). HeartCare is set to pre-market an HKEx IPO to raise $300 million this quarter, according to press reports. <div class="content-highlight">HeartCare only started to generate revenue in 1Q20 through the commercialisation of two products (SupSelek and ExtraFlex). Captor thrombectomy device, a core product, was commercialised in December 2020 and Fullblock balloon guiding catheter received NMPA approval in December 2020. HeartCare aims to commercialise nine currently late-stage product candidates in 2021 and ten currently earlier-stage product candidates between 2022 and 2025. With a strong near-term commercialisation pipeline, HeartCare has shifted from a concept to a revenue-generating stock. Overall, we believe that HeartCare’s product portfolio is attractive. </div>

Shanghai HeartCare Medical Technology (HMT HK) is a China-based neuro-interventional medical device manufacturer with a product portfolio that spans the treatment and prevention of ischemic stroke to the treatment of haemorrhagic stroke. HeartCare’s product portfolio consists of a total of 23 commercialised products and product candidates, including four ischemic stroke treatment devices with NMPA approval.HearCare’s shareholders include Shanghai Fosun Pharmaceutical (Group) (2196 HK), Temasek, Lake Bleu Capital, China International Capital Corporation (3908 HK) and Canada Pension Plan Investment Board (through a special purpose vehicle). HeartCare is set to pre-market an HKEx IPO to raise $300 million this quarter, according to press reports. HeartCare only started to generate revenue in 1Q20 through the commercialisation of two products (SupSelek and ExtraFlex). Captor thrombectomy device, a core product, was commercialised in December 2020 and Fullblock balloon guiding catheter received NMPA approval in December 2020. HeartCare aims to commercialise nine currently late-stage product candidates in 2021 and ten currently earlier-stage product candidates between 2022 and 2025. With a strong near-term commercialisation pipeline, HeartCare has shifted from a concept to a revenue-generating stock. Overall, we believe that HeartCare’s product portfolio is attractive. 

Shanghai HeartCare Medical IPO Initiation: Surviving Strokes

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Microport Cardioflow Medtech / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/microport-cardioflow-medtech-corporation" target="_blank" data-smartkarma-citation="entities:31084:1" rel="noopener">MicroPort CardioFlow (1844972D HK)</a> has filed a PHIP in conjunction with its planned listing on the HKEX. This Insight discusses the incremental disclosures; developments in the TAVR market; and the nascent TMV opportunity. We tag this Insight as Bullish pending announcement of the offering's terms.

MicroPort CardioFlow (1844972D HK) has filed a PHIP in conjunction with its planned listing on the HKEX. This Insight discusses the incremental disclosures; developments in the TAVR market; and the nascent TMV opportunity. We tag this Insight as Bullish pending announcement of the offering's terms. 

MicroPort CardioFlow: PHIP Updates and More on TMV

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

On October 16, 2020, the government released a new policy for the intensive procurement of coronary stents, which kicked off the nationwide intensive procurement for high-value medical consumables. According to the policy, The amount of coronary stents purchased in the first year was around 1,074,000, accounting for about 70% of the national annual consumption of coronary stents. The results of this policy have a strong reference for the future expansion of high-value medical consumables' intensive procurement. On November 5, the policy was formally implemented and the result was released.

On October 16, 2020, the government released a new policy for the intensive procurement of coronary stents, which kicked off the nationwide intensive procurement for high-value medical consumables. According to the policy, The amount of coronary stents purchased in the first year was around 1,074,000, accounting for about 70% of the national annual consumption of coronary stents. The results of this policy have a strong reference for the future expansion of high-value medical consumables' intensive procurement. On November 5, the policy was formally implemented and the result was released.

Insights on China Healthcare Policy: New Intensive Procurement Policy for High-Value Medical Devices

1. Industry viewpoints: <ul>
<li>China’s new intensive procurement policy has finally been applied to high-value medical consumables. Thus, related medical device companies are facing new challenges.</li>
<li>
With the increase of patients' affordability and doctors' cognition and acceptance of minimally invasive surgery, it is expected that MISIA market will have greater growth potential in the near future. 
</li>
<li>In recent years, China cancer drug market has grown rapidly. With large growth potential in this market and more favorable policy, more innovative cancer drugs will be approved in China</li>
</ul>2. Company newsNews of Jiangsu Hengrui Medicine, Dingdang Kuaiyao and AstraZeneca China on the cooperation of new drugs and the progress of new funding.3. Market reviewLast week, stock price for healthcare sector in A share decreased 6.24%, while CSI 300 decreased 1.53% over the same period of time.

1. Industry viewpoints: 
China’s new intensive procurement policy has finally been applied to high-value medical consumables. Thus, related medical device companies are facing new challenges.

With the increase of patients' affordability and doctors' cognition and acceptance of minimally invasive surgery, it is expected that MISIA market will have greater growth potential in the near future. 

In recent years, China cancer drug market has grown rapidly. With large growth potential in this market and more favorable policy, more innovative cancer drugs will be approved in China
2. Company newsNews of Jiangsu Hengrui Medicine, Dingdang Kuaiyao and AstraZeneca China on the cooperation of new drugs and the progress of new funding.3. Market reviewLast week, stock price for healthcare sector in A share decreased 6.24%, while CSI 300 decreased 1.53% over the same period of time.

Index Rebal Trades & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal Trades & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

This is the largest healthcare sector M&amp;A Deal announced so far in 2020. Earlier this year, in March, <a href="https://www.smartkarma.com/entities/thermo-fisher-scientific-inc" target="_blank" data-smartkarma-citation="entities:7375:1" rel="noopener">Thermo Fisher Scientific Inc (TMO US)</a> agreed to acquire <a href="https://www.smartkarma.com/entities/qiagen-nv" target="_blank" data-smartkarma-citation="entities:26865:1" rel="noopener">QIAGEN NV (QIA GY)</a> in a deal that originally valued the company at an EV of ~US$11bn. Last month, the Offer <a href="https://corporate.qiagen.com/newsroom/press-releases/2020/20200716_amended_offer" target="_blank" rel="noopener">was bumped</a> from the original offer price of €39.00 to €43.00 and the minimum acceptance threshold was reduced from 75% to 66.67%. Although the COVID-19 pandemic resulted in a slowdown in Deals in the early part of the year, M&amp;A activity in the medical devices space seems to be picking up again.More recently, on 2nd August 2020, Germany-based medtech company <a href="https://www.smartkarma.com/entities/siemens-healthineers-ag" target="_blank" data-smartkarma-citation="entities:29221:1" rel="noopener">Siemens Healthineers AG (SHL GR)</a> announced they would acquire US-based medical-devices maker <a href="https://www.smartkarma.com/entities/varian-medical-systems-inc" target="_blank" data-smartkarma-citation="entities:7308:1" rel="noopener">Varian Medical Systems (VAR US)</a> in an all-cash deal that valued the company at ~US$16.4bn. The Deal is conditional on the receipt of Varian shareholder approval and regulatory approvals. The Offer Price is $177.50 per share and the transaction is expected to close in the first half of calendar year 2021. As always, there is more below the fold.

This is the largest healthcare sector M&amp;A Deal announced so far in 2020. Earlier this year, in March, Thermo Fisher Scientific Inc (TMO US) agreed to acquire QIAGEN NV (QIA GY) in a deal that originally valued the company at an EV of ~US$11bn. Last month, the Offer was bumped from the original offer price of €39.00 to €43.00 and the minimum acceptance threshold was reduced from 75% to 66.67%. Although the COVID-19 pandemic resulted in a slowdown in Deals in the early part of the year, M&amp;A activity in the medical devices space seems to be picking up again.More recently, on 2nd August 2020, Germany-based medtech company Siemens Healthineers AG (SHL GR) announced they would acquire US-based medical-devices maker Varian Medical Systems (VAR US) in an all-cash deal that valued the company at ~US$16.4bn. The Deal is conditional on the receipt of Varian shareholder approval and regulatory approvals. The Offer Price is $177.50 per share and the transaction is expected to close in the first half of calendar year 2021. As always, there is more below the fold. 

Varian-Siemens Deal: DAX Promotion on the Cards for the Acquirer

United States

Medtronic, PLC develops therapeutic and diagnostic medical products. The Company's principal products include those for bradycardia pacing, tachyarrhythmia management, atrial fibrillation management, heart failure management, heart valve replacement, malignant and non-malignant pain, and movement disorders. Medtronic's products are sold worldwide.

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Medtronic (MDT UN)

Shanghai HeartCare Medical IPO Initiation: Surviving Strokes

HeartCare is set to pre-market an HKEx IPO to raise $300 million this quarter, according to press reports. Overall, we believe that HeartCare’s...

Arun George

MicroPort CardioFlow: PHIP Updates and More on TMV

MicroPort CardioFlow plans an HKEX listing. This Insight discusses updated disclosures in its PHIP filing; developments in the TAVR market; the...

Kemp Dolliver, CFA

Insights on China Healthcare Policy: New Intensive Procurement Policy for High-Value Medical Devices

The article analyzed potential impact of China's new intensive procurement policy on high-value medical devices. If interested in investing China...

Xinyao (Criss) Wang

China Healthcare Weekly (Oct.23)

This article summarized important new China healthcare policy released last week, major industry viewpoints, company news and market review for...

Xinyao (Criss) Wang

Varian-Siemens Deal: DAX Promotion on the Cards for the Acquirer

This is the largest healthcare sector M&A Deal announced so far in 2020. Earlier this year, in March, Thermo Fisher Scientific Inc (TMO US)...

Janaghan Jeyakumar, CFA

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