HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<p>In August, 2021, after <a href="https://www.smartkarma.com/entities/remegen-co-ltd" target="_blank" data-smartkarma-citation="entities:29191:1" rel="noopener">Remegen Co Ltd (9995 HK)</a> announced that the Company and Seagen Inc. had entered into an exclusive worldwide licensing agreement to develop and commercialize disitamab vedotin (RC48), the share price of RemeGen rose to HK$145.50/share, its second-highest ever. Meanwhile, in June, RemeGen submitted a prospectus to the SSE STAR Market, which was its second IPO application after its listing on the HKEX in November 2020. In September, RemeGen completed its reply to the first round enquiry by Shanghai Stock Exchange. Although RemeGen always seems to inadvertently bring "stimulation" to the market, from this enquiry and the business analysis, we could still find some concerns that worth investors’ attention. </p>

In August, 2021, after Remegen Co Ltd (9995 HK) announced that the Company and Seagen Inc. had entered into an exclusive worldwide licensing agreement to develop and commercialize disitamab vedotin (RC48), the share price of RemeGen rose to HK$145.50/share, its second-highest ever. Meanwhile, in June, RemeGen submitted a prospectus to the SSE STAR Market, which was its second IPO application after its listing on the HKEX in November 2020. In September, RemeGen completed its reply to the first round enquiry by Shanghai Stock Exchange. Although RemeGen always seems to inadvertently bring "stimulation" to the market, from this enquiry and the business analysis, we could still find some concerns that worth investors’ attention. 

Remegen Co Ltd (9995.HK) - Insights About the First Round Enquiry by Shanghai Stock Exchange

<p>On June 9, 2021, China National Medical Products Administration (NMPA) announced that it had conditionally approved the listing of <a href="https://www.smartkarma.com/entities/remegen-co-ltd" target="_blank" data-smartkarma-citation="entities:29191:1" rel="noopener">Remegen Co Ltd (9995 HK)</a>'s RC48, which is the first ADC product independently developed by a domestic pharmaceutical company. Meanwhile, in March this year, RemeGen's another core product RC18 also received conditional marketing approval in China for the treatment of SLE. The approval of the two core products not only means that 2021 officially becomes the first year of RemeGen's commercialization, but more importantly, it is a milestone to confirm the feasibility of RemeGen's antibody and fusion protein platform and antibody-drug conjugate (ADC) platform. This article mainly analyzed the outlook of these two drugs, the pipeline and the concerns of RemeGen.</p>

On June 9, 2021, China National Medical Products Administration (NMPA) announced that it had conditionally approved the listing of Remegen Co Ltd (9995 HK)'s RC48, which is the first ADC product independently developed by a domestic pharmaceutical company. Meanwhile, in March this year, RemeGen's another core product RC18 also received conditional marketing approval in China for the treatment of SLE. The approval of the two core products not only means that 2021 officially becomes the first year of RemeGen's commercialization, but more importantly, it is a milestone to confirm the feasibility of RemeGen's antibody and fusion protein platform and antibody-drug conjugate (ADC) platform. This article mainly analyzed the outlook of these two drugs, the pipeline and the concerns of RemeGen.

RemeGen Co Ltd (9995.HK) - Here Are the Strength and Concerns After Commercialization

<p>Recently, according to the official website, <a href="https://www.smartkarma.com/entities/everest-medicines-ltd" target="_blank" data-smartkarma-citation="entities:29224:1" rel="noopener">Everest Medicines (1952 HK)</a> announced that its sacituzumab govitecan-hziy (SG, Trodelvy) was granted Priority Review by the Center for Drug Evaluation (CDE) of the China National Medical Products Administration (NMPA). This marks another progress following the Company's announcement that the NMPA accepted its Biologics License Application (BLA) for SG for the treatment of adult patients with unresectable locally advanced or metastatic triple-negative breast cancer (TNBC) who have received two or more prior systemic therapies, at least one of them for metastatic disease. The BLA submission of Trodelvy, the core product candidate of Everest Medicines, was substantially earlier than the Company's previous guidance and our expectations, so it is expected that Trodelvy would contribute sales revenue much earlier, and the Company’s commercialization prospect has reshaped.</p>

Recently, according to the official website, Everest Medicines (1952 HK) announced that its sacituzumab govitecan-hziy (SG, Trodelvy) was granted Priority Review by the Center for Drug Evaluation (CDE) of the China National Medical Products Administration (NMPA). This marks another progress following the Company's announcement that the NMPA accepted its Biologics License Application (BLA) for SG for the treatment of adult patients with unresectable locally advanced or metastatic triple-negative breast cancer (TNBC) who have received two or more prior systemic therapies, at least one of them for metastatic disease. The BLA submission of Trodelvy, the core product candidate of Everest Medicines, was substantially earlier than the Company's previous guidance and our expectations, so it is expected that Trodelvy would contribute sales revenue much earlier, and the Company’s commercialization prospect has reshaped.

Everest Medicines (1952.HK) - The Commercialization Prospect Has Reshaped

Equity Capital Markets

<p>On April 28, <a href="https://www.smartkarma.com/entities/lepu-biopharma-co-ltd" target="_blank" data-smartkarma-citation="entities:33231:1" rel="noopener">Lepu Biopharma (LBP HK)</a>, a subsidiary of <a href="https://www.smartkarma.com/entities/lepu-medical-technology-a" target="_blank" data-smartkarma-citation="entities:16654:1" rel="noopener">Lepu Medical Technology A (300003 CH)</a>, submitted its application to the main board of the Hong Kong Stock Exchange for listing. Actually, many companies in the medical device industry are good at capital operation, such as M&amp;A or spin-off and listing, which has been reflected in the leading medical device companies such as <a href="https://www.smartkarma.com/entities/shenzhen-mindray-bio-medic-a" target="_blank" data-smartkarma-citation="entities:28017:1" rel="noopener">Shenzhen Mindray Bio-Medical Electronics (300760 CH)</a> and <a href="https://www.smartkarma.com/entities/microport-scientific-corp" target="_blank" data-smartkarma-citation="entities:4487:1" rel="noopener">Microport Scientific (853 HK)</a>. However, Lepu Medical is the only one that enters the fields of both drugs and preparations, and according to the pipeline, the focus is not only on generic drugs, but also on biological drugs of higher competitive dimension (e.g. Lepu Biopharma is in this field.). It is also worth mentioning that this is the second company of Lepu factions to be listed in Hong Kong. The first one was <a href="https://www.smartkarma.com/entities/pw-medtech-group-ltd" target="_blank" data-smartkarma-citation="entities:9891:1" rel="noopener">Pw Medtech (1358 HK)</a> (Zhang yue’e is Pu Zhongjie’s wife) and the share price has been very weak since its listing. So can Lepu Biopharma have a better performance?</p>

On April 28, Lepu Biopharma (LBP HK), a subsidiary of Lepu Medical Technology A (300003 CH), submitted its application to the main board of the Hong Kong Stock Exchange for listing. Actually, many companies in the medical device industry are good at capital operation, such as M&amp;A or spin-off and listing, which has been reflected in the leading medical device companies such as Shenzhen Mindray Bio-Medical Electronics (300760 CH) and Microport Scientific (853 HK). However, Lepu Medical is the only one that enters the fields of both drugs and preparations, and according to the pipeline, the focus is not only on generic drugs, but also on biological drugs of higher competitive dimension (e.g. Lepu Biopharma is in this field.). It is also worth mentioning that this is the second company of Lepu factions to be listed in Hong Kong. The first one was Pw Medtech (1358 HK) (Zhang yue’e is Pu Zhongjie’s wife) and the share price has been very weak since its listing. So can Lepu Biopharma have a better performance?

Pre-IPO Lepu Biopharma - There Are Still Many Uncertainties

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.

Zhaoke Ophthalmology Pharmaceutical / Equity Capital Markets

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<p><a href="https://www.smartkarma.com/entities/zhaoke-ophthalmology-pharmaceutical" target="_blank" data-smartkarma-citation="entities:31495:1" rel="noopener">Zhaoke Ophthalmology Pharmaceutical (6622 HK)</a> is an ophthalmic pharma company that has an ophthalmic drug pipeline of 13 innovative drugs and 12 generic drugs. Zhaoke was founded by <a href="https://www.smartkarma.com/entities/lee-s-pharmaceutical-hldgs" target="_blank" data-smartkarma-citation="entities:14616:1" rel="noopener">Lee's Pharmaceutical (950 HK)</a> which is the largest shareholder. </p>
<p>Zhaoke has launched an HKEx IPO to raise net proceeds of HK$1,857.8 million ($239 million) at the mid-point of the IPO price range of HK$15.38-16.80 per share.</p>
</div><div><p>Eight cornerstone investors have agreed to invest about $55 million in the IPO (21.51% of the offer shares at the mid-point of the IPO price range). The cornerstone investors are CaaS Capital, GIC, Golden Valley, Jennison Associates, Mass Ave, Matthews Asia, OrbiMed Funds and VMS Investment.</p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/zhaoke-ophthalmology-ipo-initiation-the-eyes-have-it" target="_blank" data-smartkarma-citation="insights:50243" rel="noopener">Zhaoke Ophthalmology IPO Initiation: The Eyes Have It</a>, we stated that the prospects of Zhaoke’s drug assets are favourable. Overall, our valuation analysis suggests that the IPO price range is attractive. </p></div></div></div>


Zhaoke Ophthalmology Pharmaceutical (6622 HK) is an ophthalmic pharma company that has an ophthalmic drug pipeline of 13 innovative drugs and 12 generic drugs. Zhaoke was founded by Lee's Pharmaceutical (950 HK) which is the largest shareholder. 
Zhaoke has launched an HKEx IPO to raise net proceeds of HK$1,857.8 million ($239 million) at the mid-point of the IPO price range of HK$15.38-16.80 per share.
Eight cornerstone investors have agreed to invest about $55 million in the IPO (21.51% of the offer shares at the mid-point of the IPO price range). The cornerstone investors are CaaS Capital, GIC, Golden Valley, Jennison Associates, Mass Ave, Matthews Asia, OrbiMed Funds and VMS Investment.In Zhaoke Ophthalmology IPO Initiation: The Eyes Have It, we stated that the prospects of Zhaoke’s drug assets are favourable. Overall, our valuation analysis suggests that the IPO price range is attractive. 

Zhaoke Ophthalmology IPO: Valuation Insights

China

TOT Biopharm International Company Limited operates biopharmaceutical company. The Company focuses on development and commercialisation of tumor drugs and therapies. TOT Biopharm International serves clients in China.

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TOT Biopharm International (1875 HK)

Remegen Co Ltd (9995.HK) - Insights About the First Round Enquiry by Shanghai Stock Exchange

This article mainly analyzed RemeGen in terms of its reply to Shanghai Stock Exchange’s first round enquiry, the core products, the pipeline, the...

Xinyao (Criss) Wang

RemeGen Co Ltd (9995.HK) - Here Are the Strength and Concerns After Commercialization

This article mainly analyzed RemeGen in terms of its commercialization of the two core products RC48 and RC18, and the concerns on its pipeline.

Xinyao (Criss) Wang

Everest Medicines (1952.HK) - The Commercialization Prospect Has Reshaped

After the BLA submission of Trodelvy, the commercialization prospect of Everest Medicines has reshaped. This article mainly analyzed the business...

Xinyao (Criss) Wang

Pre-IPO Lepu Biopharma - There Are Still Many Uncertainties

This article analyzed Lepu Biopharma in terms of its core product candidates in the pipeline, the challenges, concerns and future outlook for this...

Xinyao (Criss) Wang

Zhaoke Ophthalmology IPO: Valuation Insights

Zhaoke has launched an HKEx IPO to raise net proceeds of $239m at the mid-point of the IPO price range of HK$15.38-16.80 per share. Overall, we...

Arun George

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