Global Healthcare Analyst

Tina Banerjee

Equity Capital Markets

Simcere Pharmaceutical Group / Equity Capital Markets

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<li>
<a href="https://www.smartkarma.com/entities/simcere-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:29186:1" rel="noopener">Simcere Pharmaceutical Group (2096 HK)</a> is placing 120M shares at the price of HK$12.95 per share. The placing shares represents ~5% of the current total issued shares of the company.</li>
<li>The company intends to apply 90% of the net proceeds for the R&amp;D-related expenditures. For context, Simcere has over 60 R&amp;D pipelines of innovative drugs.</li>
<li>Considering strong growth prospect of Simcere, reasonable valuation, and upbeat investor sentiment toward Chinese pharmaceutical sector, we are bullish on the placement.   </li>
</ul>



Simcere Pharmaceutical Group (2096 HK) is placing 120M shares at the price of HK$12.95 per share. The placing shares represents ~5% of the current total issued shares of the company.
The company intends to apply 90% of the net proceeds for the R&amp;D-related expenditures. For context, Simcere has over 60 R&amp;D pipelines of innovative drugs.
Considering strong growth prospect of Simcere, reasonable valuation, and upbeat investor sentiment toward Chinese pharmaceutical sector, we are bullish on the placement.   


Simcere Pharmaceutical (2096 HK) Placement: Innovative Pipeline Enlightens Growth Prospects

Head of Research, IPOs & Placements, Aequitas Research

Sumeet Singh

Head of Research, IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

<ul>
<li>
<a href="https://www.smartkarma.com/entities/simcere-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:29186:1" rel="noopener">Simcere Pharmaceutical Group (2096 HK)</a> is looking to raise around US$200m via a top-up placement.</li>
<li>This is the first primary raising by the company since its listing. There have been a few secondary deals, with mixed results.</li>
<li>In this note, we talk about the deal dynamics and run the deal through our ECM framework.</li>
</ul>



Simcere Pharmaceutical Group (2096 HK) is looking to raise around US$200m via a top-up placement.
This is the first primary raising by the company since its listing. There have been a few secondary deals, with mixed results.
In this note, we talk about the deal dynamics and run the deal through our ECM framework.


Simcere Pharma Placement - First Primary Raising, past Deals Have Been Mixed

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<li>
<a href="https://www.smartkarma.com/entities/3sbio-inc" target="_blank" data-smartkarma-citation="entities:459:1" rel="noopener">3SBio Inc (1530 HK)</a> announced the placement of 105.2M shares for subscription at HK$29.62 per share.</li>
<li>The company intends to use 80% of the net proceeds for R&amp;D-related expenditures on innovative drug candidates and the rest 20% for working capital and other general corporate purpose.</li>
<li>The placement provides an indirect way of subscribing to Mandi shares. We reiterate our bullish stance on 3SBio with a 25-30% upside scope in the near term.</li>
</ul>



3SBio Inc (1530 HK) announced the placement of 105.2M shares for subscription at HK$29.62 per share.
The company intends to use 80% of the net proceeds for R&amp;D-related expenditures on innovative drug candidates and the rest 20% for working capital and other general corporate purpose.
The placement provides an indirect way of subscribing to Mandi shares. We reiterate our bullish stance on 3SBio with a 25-30% upside scope in the near term.


3SBio (1530 HK) Placement: 3SBio’s Pipeline Strength, An Indirect Stake in Mandi Makes It Attractive

Equity Bottom-Up

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<li>
<a href="https://www.smartkarma.com/entities/3sbio-inc" target="_blank" data-smartkarma-citation="entities:459:1" rel="noopener">3SBio Inc (1530 HK)</a> signed an outlicensing deal worth more than $6B with Pfizer for its PD-1/VEGF bispecific antibody, SSGJ-707. Since signing the deal, 3SBio shares rallied more than 55%.</li>
<li>Considering deals signed with Chinese companies for bispecific antibody drug candidates in recent times, 3SBio seems to have secured best valuation for its asset.</li>
<li>Initiation of global trial of SSGJ-707 and data readout from its ongoing China trials for additional indications, continued strong financial performance, and new approvals are upcoming catalysts.</li>
</ul>



3SBio Inc (1530 HK) signed an outlicensing deal worth more than $6B with Pfizer for its PD-1/VEGF bispecific antibody, SSGJ-707. Since signing the deal, 3SBio shares rallied more than 55%.
Considering deals signed with Chinese companies for bispecific antibody drug candidates in recent times, 3SBio seems to have secured best valuation for its asset.
Initiation of global trial of SSGJ-707 and data readout from its ongoing China trials for additional indications, continued strong financial performance, and new approvals are upcoming catalysts.


3SBio Inc (1530 HK): Licensing Deal a Market Hit; Will It Continue?

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<li>
<a href="https://www.smartkarma.com/entities/3sbio-inc" target="_blank" data-smartkarma-citation="entities:459:1" rel="noopener">3SBio Inc (1530 HK)</a> proposed to spin-off and separately list the shares of Mandi, a subsidiary of the company.</li>
<li>In 2024 and 1H25, Mandi contributed 16% and 17% of total consolidated sales respectively, while its EBITDA contribution was 14.4% (in 2024) and 11.5% (in 1H25).</li>
<li>As far as 3SBio (ex-Mandi) is concerned, marketing approvals for key pipeline product like SSGJ-608, along with indication expansion, geographical expansion of few drugs will be key in near term.</li>
</ul>



3SBio Inc (1530 HK) proposed to spin-off and separately list the shares of Mandi, a subsidiary of the company.
In 2024 and 1H25, Mandi contributed 16% and 17% of total consolidated sales respectively, while its EBITDA contribution was 14.4% (in 2024) and 11.5% (in 1H25).
As far as 3SBio (ex-Mandi) is concerned, marketing approvals for key pipeline product like SSGJ-608, along with indication expansion, geographical expansion of few drugs will be key in near term.


3SBio Inc (1530 HK): Proposed Mandi Spin Off and Listing Sensible; 3SBio Ex Mandi Formidable Enough

China

Simcere Pharmaceutical Group manufactures and supplies branded generic pharmaceuticals to the China market. The Company's products include antibiotics, anti-cancer medications and anti-stroke medications.

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Simcere Pharmaceutical Group (2096 HK)

Simcere Pharmaceutical (2096 HK) Placement: Innovative Pipeline Enlightens Growth Prospects

Simcere Pharmaceutical is placing 120M shares at the price of HK$12.95 per share. The company intends to apply 90% of the net proceeds for the R&D...

Tina Banerjee

Simcere Pharma Placement - First Primary Raising, past Deals Have Been Mixed

Simcere Pharmaceutical Group (2096 HK) is looking to raise around US$200m via a top-up placement. In this note, we talk about the deal dynamics.

Sumeet Singh

3SBio (1530 HK) Placement: 3SBio’s Pipeline Strength, An Indirect Stake in Mandi Makes It Attractive

3SBio Inc announces placement of 105.2M shares at HK$29.62/share for R&D and working capital. Placement attractive given 3SBio's pipeline...

Tina Banerjee

3SBio Inc (1530 HK): Licensing Deal a Market Hit; Will It Continue?

3SBio signed $6B outlicensing deal with Pfizer for SSGJ-707, resulting in spectacular rally in 3SBio shares. Global trial initiation of SSGJ-707...

Tina Banerjee

3SBio Inc (1530 HK): Proposed Mandi Spin Off and Listing Sensible; 3SBio Ex Mandi Formidable Enough

3SBio plan to spin-off and separately list shares of subsidiary Mandi, which contributed 17% of sales and 11.5% of EBITDA. Approvals and expansion...

Tina Banerjee

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Simcere Pharmaceutical (2096 HK) Placement: Innovative Pipeline Enlightens Growth Prospects

Simcere Pharmaceutical is placing 120M shares at the price of HK$12.95 per share. The company intends to apply 90% of the net proceeds for the R&D...

Tina Banerjee

Simcere Pharma Placement - First Primary Raising, past Deals Have Been Mixed

Simcere Pharmaceutical Group (2096 HK) is looking to raise around US$200m via a top-up placement. In this note, we talk about the deal dynamics.

Sumeet Singh

3SBio (1530 HK) Placement: 3SBio’s Pipeline Strength, An Indirect Stake in Mandi Makes It Attractive

​3SBio Inc announces placement of 105.2M shares at HK$29.62/share for R&D and working capital. Placement attractive given 3SBio's pipeline...

Tina Banerjee

3SBio Inc (1530 HK): Licensing Deal a Market Hit; Will It Continue?

​3SBio signed $6B outlicensing deal with Pfizer for SSGJ-707, resulting in spectacular rally in 3SBio shares. Global trial initiation of SSGJ-707...

Tina Banerjee

3SBio Inc (1530 HK): Proposed Mandi Spin Off and Listing Sensible; 3SBio Ex Mandi Formidable Enough

​3SBio plan to spin-off and separately list shares of subsidiary Mandi, which contributed 17% of sales and 11.5% of EBITDA. Approvals and expansion...

Tina Banerjee

3SBio Inc announces placement of 105.2M shares at HK$29.62/share for R&D and working capital. Placement attractive given 3SBio's pipeline...

3SBio signed $6B outlicensing deal with Pfizer for SSGJ-707, resulting in spectacular rally in 3SBio shares. Global trial initiation of SSGJ-707...

3SBio plan to spin-off and separately list shares of subsidiary Mandi, which contributed 17% of sales and 11.5% of EBITDA. Approvals and expansion...