Global Healthcare Analyst

Tina Banerjee

Thematic (Sector/Industry)

<ul>
<li>Fosun Pharmaceutical’s marketing application of acute lymphoblastic leukemia drug was accepted by the NMPA. CSPC Pharma obtained approval to conduct clinical trial for Leqembi biosimilar in China.</li>
<li>Celltrion is acquiring Eli Lilly’s New Jersey biopharmaceutical production plant for KRW460B. Lotus Pharmaceutical is acquiring Alvogen US, a privately held, fully integrated pharmaceutical company.</li>
<li>Glenmark Pharmaceutical entered into an exclusive license and collaboration agreement with Hengrui Pharma for Trastuzumab Rezetecan, a next-generation HER2-targeting antibody drug conjugate (ADC) for an upfront payment of $18M.</li>
</ul>


Fosun Pharmaceutical’s marketing application of acute lymphoblastic leukemia drug was accepted by the NMPA. CSPC Pharma obtained approval to conduct clinical trial for Leqembi biosimilar in China.
Celltrion is acquiring Eli Lilly’s New Jersey biopharmaceutical production plant for KRW460B. Lotus Pharmaceutical is acquiring Alvogen US, a privately held, fully integrated pharmaceutical company.
Glenmark Pharmaceutical entered into an exclusive license and collaboration agreement with Hengrui Pharma for Trastuzumab Rezetecan, a next-generation HER2-targeting antibody drug conjugate (ADC) for an upfront payment of $18M.


APAC Healthcare Weekly (September 28) – Fosun Pharma, CSPC Pharma, Celltrion, Lotus Pharma, Glenmark

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Index Rebalance

Orient Overseas (International) / Index Rebalance

<ul>
<li>The review period for the March review of the HSCI ends on 31 December. There are expected to be a lot more inclusions than deletions at the review.</li>
<li>There are quite a few stocks that should be included following their listing over the last couple of months while others are now potential inclusions after passing the velocity test.</li>
<li>Quite a few of the potential deletions from the HSCI and Stock Connect have large holdings via Southbound Stock Connect and these stock could see some selling.</li>
</ul>


The review period for the March review of the HSCI ends on 31 December. There are expected to be a lot more inclusions than deletions at the review.
There are quite a few stocks that should be included following their listing over the last couple of months while others are now potential inclusions after passing the velocity test.
Quite a few of the potential deletions from the HSCI and Stock Connect have large holdings via Southbound Stock Connect and these stock could see some selling.


HSCI Index Rebalance and Stock Connect: More Inclusions than Exclusions in March

Equity Analyst, LightStream Research

Shifara Samsudeen, FCMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

Shanghai MicroPort MedBot / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/shanghai-microport-medbot-group-co-ltd" target="_blank" rel="noopener">Shanghai MicroPort MedBot Group (MMG HK)</a> is a surgical robot company which designs, develops and commercialises surgical robots to assist in performing complex surgical procedures. MicroPort’s product line-up includes three flagship products Toumai (Laparoscopic Surgical Robot), DFVision (3D Electronic Laparoscope) and Honghu (orthopaedic surgical robot) and all three are admitted to the NMPA’s innovative medical device special review and approval procedure (known as Green Path). Toumai and Honghu are currently at the registration approval stage while Honghu has received the NMPA approval recently, and these three products should offer immediate revenue opportunity for the company.The company priced its IPO at HK$43.20 per share, at the upper end of the IPO price range of HK$39.60-43.20 per share and raised net proceed of approx. HK$1,457.4m at a market capitalisation of HK$41.2bn and a post-money Enterprise Value of HK$38.5bn. According to the company, both its HK offering, and international offering were significantly oversubscribed by approx. 164x and 16x respectively.In our previous two insights on the company’s IPO, we discussed the company’s core products and product portfolio, outlook, key financials and the company’s IPO valuation.

Shanghai MicroPort MedBot Group (MMG HK) is a surgical robot company which designs, develops and commercialises surgical robots to assist in performing complex surgical procedures. MicroPort’s product line-up includes three flagship products Toumai (Laparoscopic Surgical Robot), DFVision (3D Electronic Laparoscope) and Honghu (orthopaedic surgical robot) and all three are admitted to the NMPA’s innovative medical device special review and approval procedure (known as Green Path). Toumai and Honghu are currently at the registration approval stage while Honghu has received the NMPA approval recently, and these three products should offer immediate revenue opportunity for the company.The company priced its IPO at HK$43.20 per share, at the upper end of the IPO price range of HK$39.60-43.20 per share and raised net proceed of approx. HK$1,457.4m at a market capitalisation of HK$41.2bn and a post-money Enterprise Value of HK$38.5bn. According to the company, both its HK offering, and international offering were significantly oversubscribed by approx. 164x and 16x respectively.In our previous two insights on the company’s IPO, we discussed the company’s core products and product portfolio, outlook, key financials and the company’s IPO valuation.

Microport MedBot IPO:  Thoughts on First Day Trading

MicroTech Medical (Hangzhou) / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/microtech-medical-hangzhou-co-ltd" target="_blank" data-smartkarma-citation="entities:33367:1" rel="noopener">MicroTech Medical Hangzhou (2235 HK)</a> provides diabetes treatment and diabetes monitoring medical devices in China and globally. MicroTech’s core product, a semi-disposable patch insulin pump (known as Equil) is the only patch insulin pump available in China whereas the competitor products are tube insulin pumps. The company also has a CGMS product (Continuous Glucose Monitoring System), AiDEX G7 which is the second commercialised calibration-free real-time CGMS in the world. AiDEX G7 has received the CE Marking in the EU in September 2020 and the product has been certified by the NMPA to be eligible for Special Approval Procedures of Innovative Medical Devices promulgated by the NMPA.MicroTech has priced its IPO at HK$30.50 per share, slightly below the upper end of the indicative IPO price range of HK$27.70-31.15 per share. At the offer price of HK$30.50 per share, the company raised net proceeds of HK$1,815.1m at a market capitalisation of HK$12.9bn and a post-money enterprise value of HK$10.5bn. According to the company, its Hong Kong offering was oversubscribed by about 6.79x while the international offering was oversubscribed by about 4.9x.In our previous two insights on the company’s IPO, we discussed the company’s core products and product portfolio, market potential for its products and the company’s valuation.

MicroTech Medical Hangzhou (2235 HK) provides diabetes treatment and diabetes monitoring medical devices in China and globally. MicroTech’s core product, a semi-disposable patch insulin pump (known as Equil) is the only patch insulin pump available in China whereas the competitor products are tube insulin pumps. The company also has a CGMS product (Continuous Glucose Monitoring System), AiDEX G7 which is the second commercialised calibration-free real-time CGMS in the world. AiDEX G7 has received the CE Marking in the EU in September 2020 and the product has been certified by the NMPA to be eligible for Special Approval Procedures of Innovative Medical Devices promulgated by the NMPA.MicroTech has priced its IPO at HK$30.50 per share, slightly below the upper end of the indicative IPO price range of HK$27.70-31.15 per share. At the offer price of HK$30.50 per share, the company raised net proceeds of HK$1,815.1m at a market capitalisation of HK$12.9bn and a post-money enterprise value of HK$10.5bn. According to the company, its Hong Kong offering was oversubscribed by about 6.79x while the international offering was oversubscribed by about 4.9x.In our previous two insights on the company’s IPO, we discussed the company’s core products and product portfolio, market potential for its products and the company’s valuation.

MicroTech Medical IPO: Thoughts on First Day Trading

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.

MicroTech raised HKD 1,815 million (USD 233m) from its global offering and will list on the Hong Kong Stock Exchange on Tuesday, October 18th.
In our previous note, we discussed that the company's core product insulin patch pump system (Equil) has received NMPA approval in 2018 and EU's CE marking in 2017. It has design features that are more appealing than both the tubed players as well as the patch pump competitors. Having said that, we note that the insulin pump market is competitive and the company's sales data after product launch is far from being ideal. The company's pre-IPO investor is decent. The management team has relevant product development experience but is not considered a superstar team. We also provide a forecast for the company's main products and our thoughts on the pre-money valuation.
In this note, we look at the updates since our last note. We re-iterate our view that the valuation is rich for its products with the key challenge being the affordability in China and competition globally.

MicroTech raised HKD 1,815 million (USD 233m) from its global offering and will list on the Hong Kong Stock Exchange on Tuesday, October 18th.
In our previous note, we discussed that the company's core product insulin patch pump system (Equil) has received NMPA approval in 2018 and EU's CE marking in 2017. It has design features that are more appealing than both the tubed players as well as the patch pump competitors. Having said that, we note that the insulin pump market is competitive and the company's sales data after product launch is far from being ideal. The company's pre-IPO investor is decent. The management team has relevant product development experience but is not considered a superstar team. We also provide a forecast for the company's main products and our thoughts on the pre-money valuation.
In this note, we look at the updates since our last note. We re-iterate our view that the valuation is rich for its products with the key challenge being the affordability in China and competition globally.

MicroTech (微泰医疗) IPO Trading: Rich Valuation Outweigh Selling Point

China

MicroTech Medical (Hangzhou) Co., Ltd. is a Chinese company specializing in the research, development, manufacturing, and commercialization of medical devices and consumables for diabetes management. Its key products include blood glucose monitoring systems (BGMS), continuous glucose monitoring systems (CGMS), and insulin pump systems. The company was founded in 2011 and is headquartered in Hangzhou, China.

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MicroTech Medical (Hangzhou) (2235 HK)

APAC Healthcare Weekly (September 28) – Fosun Pharma, CSPC Pharma, Celltrion, Lotus Pharma, Glenmark

CSPC Pharma got trial approval for Leqembi biosimilar. Celltrion is acquiring Lilly’s plant. Lotus Pharmaceutical is acquiring Alvogen US. Hengrui...

Tina Banerjee

HSCI Index Rebalance and Stock Connect: More Inclusions than Exclusions in March

We expect there will be a lot more inclusions than exclusions at the March rebalance of the HSCI. The changes to the index will result in changes...

Brian Freitas

Microport MedBot IPO: Thoughts on First Day Trading

Microport MedBot priced its IPO at HK$43.20 per share and we believe there is very limited upside to the company's shares as our SOTP valuation...

Shifara Samsudeen, FCMA, CGMA

MicroTech Medical IPO: Thoughts on First Day Trading

MicroTech priced its IPO at HK$30.50 per share which significantly overvalues the shares. We expect the company's shares to open poorly at its...

Shifara Samsudeen, FCMA, CGMA

MicroTech (微泰医疗) IPO Trading: Rich Valuation Outweigh Selling Point

We reviewed the latest update prior to trading tomorrow and re-iterate our view that the valuation of MicroTech is rich for its products and expect...

Ke Yan, CFA, FRM

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