HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Duality Biotherapeutics / Equity Capital Markets

<ul>
<li>Since DB-1303 has no advantage in clinical data in front of competing products, the commercialization outlook is gloomy. The priority for DB-1311 is to verify the druggability of this target.</li>
<li>Considering that the current capital market has become more and more rational toward innovative drug/biotech companies, the absence of commercialized products of Duality will obviously affect valuation expectations.</li>
<li>The post-money valuation after Series B+ financing is about US$270 million (or about RMB2 billion), which is not expensive, and there is a chance to obtain valuation premium after IPO. </li>
</ul>


Since DB-1303 has no advantage in clinical data in front of competing products, the commercialization outlook is gloomy. The priority for DB-1311 is to verify the druggability of this target.
Considering that the current capital market has become more and more rational toward innovative drug/biotech companies, the absence of commercialized products of Duality will obviously affect valuation expectations.
The post-money valuation after Series B+ financing is about US$270 million (or about RMB2 billion), which is not expensive, and there is a chance to obtain valuation premium after IPO. 


Pre-IPO Duality Biotherapeutics (PHIP Updates) - Some Points Worth the Attention

Equity Bottom-Up

<ul>
<li>Relevant departments are discussing the promotion of drugs included in VBP scope to enter retail pharmacies. However, the new business model will be detrimental to valuation performance for retail pharmacies.</li>
<li>The gap in the distribution of funds among biotech companies is rapidly widening. We suggest investors focus on leading biotech rather than take risks in areas with higher uncertainties.</li>
<li>Vesync is a good company. Due to the low liquidity, the Proposal presents a good opportunity for shareholders to exit. Considering its future growth potential, Share Alternative can be considered.</li>
</ul>


Relevant departments are discussing the promotion of drugs included in VBP scope to enter retail pharmacies. However, the new business model will be detrimental to valuation performance for retail pharmacies.
The gap in the distribution of funds among biotech companies is rapidly widening. We suggest investors focus on leading biotech rather than take risks in areas with higher uncertainties.
Vesync is a good company. Due to the low liquidity, the Proposal presents a good opportunity for shareholders to exit. Considering its future growth potential, Share Alternative can be considered.


China Healthcare Weekly (Feb.9) - Vesync Is a High-Quality Company, VBP to Cover Retail Pharmacies

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Sichuan Kelun-Biotech Biopharmaceutical / Equity Bottom-Up

Sichuan Kelun-Biotech Biopharmaceutical (6990 HK)

<ul><li>SKB378 out-licensing to Windward, a candidate co-developed with Harbour Biomed.</li><li>Kelun-Biotech and Harbour Biomed have successfully outlicensed global rights (excluding China and certain Asian markets) for their codeveloped TSLP mAb SKB378 to Windward, a newly established biotech company.</li><li>The deal is valued at up to US$970 mn plus royalties, including US$45mn in upfront and near-term payments, which will be paid in cash and equity interest in Windward’s parent company. </li></ul><p><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></p>

SKB378 out-licensing to Windward, a candidate co-developed with Harbour Biomed.Kelun-Biotech and Harbour Biomed have successfully outlicensed global rights (excluding China and certain Asian markets) for their codeveloped TSLP mAb SKB378 to Windward, a newly established biotech company.The deal is valued at up to US$970 mn plus royalties, including US$45mn in upfront and near-term payments, which will be paid in cash and equity interest in Windward’s parent company. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Kelun-Biotech (6990 HK) - Long-Acting TSLP MAb Out-Licensed Via NewCo Model

Shanghai Henlius Biotech / Equity Bottom-Up

<ul>
<li>For Fosun, every major capital operation is the result of careful consideration after a long time. If it is a deal that Mr. Guo fully supports, there’s basically no problem.</li>
<li>For the privatization, the board of directors of Henlius has no special opposition. We think that this privatization would have no impact on the operation of Henlius in the future,</li>
<li>As the phenomenon of undervaluation of Henlius is difficult to fundamentally change, the Cancellation Price is attractive for most investors. There’re risks if choosing Share Alternative. Cash Alternative is preferred. </li>
</ul>


For Fosun, every major capital operation is the result of careful consideration after a long time. If it is a deal that Mr. Guo fully supports, there’s basically no problem.
For the privatization, the board of directors of Henlius has no special opposition. We think that this privatization would have no impact on the operation of Henlius in the future,
As the phenomenon of undervaluation of Henlius is difficult to fundamentally change, the Cancellation Price is attractive for most investors. There’re risks if choosing Share Alternative. Cash Alternative is preferred. 


Shanghai Henlius Biotech (2696 HK) - Some Thoughts About the Privatization

<ul>
<li>Founder Zhu Zhongyuan is a key figure in biotech landscape.So, when Duality first started its entrepreneurial financing, the process was smooth and the starting point of Duality was not low.</li>
<li>The R&amp;D progress of Duality’s pipelines is slower than competing candidates, so they would be in a passive position after market launch. So, Duality’s valuation would be lower than Kelun Bio.</li>
<li>Duality’s pipeline still has “good stories” to tell. There’s a chance its valuation could be higher than RemeGen, whose business model/investment logic have been falsified due to weak sales data.</li>
</ul>


Founder Zhu Zhongyuan is a key figure in biotech landscape.So, when Duality first started its entrepreneurial financing, the process was smooth and the starting point of Duality was not low.
The R&amp;D progress of Duality’s pipelines is slower than competing candidates, so they would be in a passive position after market launch. So, Duality’s valuation would be lower than Kelun Bio.
Duality’s pipeline still has “good stories” to tell. There’s a chance its valuation could be higher than RemeGen, whose business model/investment logic have been falsified due to weak sales data.


Pre-IPO Duality Biotherapeutics - Has the Potential to Surpass RemeGen

China

Sichuan Kelun-Biotech Biopharmaceutical is a biopharmaceutical company focused on the research, development, manufacturing, and commercialization of innovative biological and small molecule drugs, particularly Antibody-Drug Conjugates (ADCs). It addresses unmet medical needs in oncology, autoimmune disorders, and metabolic diseases, with key products including sacituzumab tirumotecan and trastuzumab botidotin. The company is headquartered in Chengdu, Sichuan, China, and was founded in 2016.

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Sichuan Kelun-Biotech Biopharmaceutical (6990 HK)

Pre-IPO Duality Biotherapeutics (PHIP Updates) - Some Points Worth the Attention

DB-1303 face challenges in commercialization.The priority for DB-1311 is to verify the druggability. Duality’s pre-IPO valuation isn't...

Xinyao (Criss) Wang

China Healthcare Weekly (Feb.9) - Vesync Is a High-Quality Company, VBP to Cover Retail Pharmacies

Promoting VBP in retail pharmacy may harm valuation.Biotech funding gap widens, investors advised to focus on leading companies. Vesync is a good...

Xinyao (Criss) Wang

Kelun-Biotech (6990 HK) - Long-Acting TSLP MAb Out-Licensed Via NewCo Model

SKB378 out-licensing to Windward, a candidate co-developed with Harbour Biomed. Kelun-Biotech and Harbour Biomed have successfully outlicensed...

CMB International

Shanghai Henlius Biotech (2696 HK) - Some Thoughts About the Privatization

Lin Lijun/Mr.Guo both graduated from Fudan and may have known each other for a long time. The info circulating outside is Lin adds positions cus he...

Xinyao (Criss) Wang

Pre-IPO Duality Biotherapeutics - Has the Potential to Surpass RemeGen

Founder Zhu Zhongyuan's role in biotech landscape helped Duality secure a high starting point, but slower R&D progress is a concern.Potential for...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pre-IPO Duality Biotherapeutics (PHIP Updates) - Some Points Worth the Attention

​DB-1303 face challenges in commercialization.The priority for DB-1311 is to verify the druggability. Duality’s pre-IPO valuation isn't...

Xinyao (Criss) Wang

China Healthcare Weekly (Feb.9) - Vesync Is a High-Quality Company, VBP to Cover Retail Pharmacies

Promoting VBP in retail pharmacy may harm valuation.Biotech funding gap widens, investors advised to focus on leading companies. Vesync is a good...

Xinyao (Criss) Wang

Kelun-Biotech (6990 HK) - Long-Acting TSLP MAb Out-Licensed Via NewCo Model

SKB378 out-licensing to Windward, a candidate co-developed with Harbour Biomed. Kelun-Biotech and Harbour Biomed have successfully outlicensed...

CMB International

Shanghai Henlius Biotech (2696 HK) - Some Thoughts About the Privatization

Lin Lijun/Mr.Guo both graduated from Fudan and may have known each other for a long time. The info circulating outside is Lin adds positions cus he...

Xinyao (Criss) Wang

Pre-IPO Duality Biotherapeutics - Has the Potential to Surpass RemeGen

​Founder Zhu Zhongyuan's role in biotech landscape helped Duality secure a high starting point, but slower R&D progress is a concern.Potential for...

Xinyao (Criss) Wang

DB-1303 face challenges in commercialization.The priority for DB-1311 is to verify the druggability. Duality’s pre-IPO valuation isn't...

Founder Zhu Zhongyuan's role in biotech landscape helped Duality secure a high starting point, but slower R&D progress is a concern.Potential for...