Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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.

Equity Capital Markets

Cloudbreak Pharma / Equity Capital Markets

<ul>
<li>Cloudbreak re-filed for a Hong Kong listing to raise at least USD 100 million.</li>
<li>In this note, we look at updates to the prospectus. We noted delays in its products and downward revisions of prospects.</li>
<li>We checked peer performance and have a negative readthrough for the company.</li>
</ul>


Cloudbreak re-filed for a Hong Kong listing to raise at least USD 100 million.
In this note, we look at updates to the prospectus. We noted delays in its products and downward revisions of prospects.
We checked peer performance and have a negative readthrough for the company.


Cloudbreak (拨康视云) Pre-IPO: PHIP Updates

Global Healthcare Analyst

Tina Banerjee

Thematic (Sector/Industry)

<ul>
<li>Samsung Biologics secured highest ever contract manufacturing order worth KRW2.07T ($1.4B) from a European pharmaceutical company. The cumulative order volume has now surpassed $17.6B.</li>
<li>FDA has accepted Daiichi Sankyo’s revised filing for Dato-DXd for certain types of non-small cell lung cancer (NSCLC) and Eisai’s BLA for Leqembi subcutaneous autoinjector for weekly maintenance dosing.</li>
<li>Sun Pharma is acquiring Canada-based Antibe Therapeutics, a clinical-stage biotechnological company developing novel drugs primarily focusing on reducing pain and inflammation. Biocon got FDA clearance for insulin facility in Malaysia.</li>
</ul>


Samsung Biologics secured highest ever contract manufacturing order worth KRW2.07T ($1.4B) from a European pharmaceutical company. The cumulative order volume has now surpassed $17.6B.
FDA has accepted Daiichi Sankyo’s revised filing for Dato-DXd for certain types of non-small cell lung cancer (NSCLC) and Eisai’s BLA for Leqembi subcutaneous autoinjector for weekly maintenance dosing.
Sun Pharma is acquiring Canada-based Antibe Therapeutics, a clinical-stage biotechnological company developing novel drugs primarily focusing on reducing pain and inflammation. Biocon got FDA clearance for insulin facility in Malaysia.


APAC Healthcare Weekly (Jan 19)- Samsung Biologics, Daiichi Sankyo, Eisai, Sun Pharma, Biocon

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Shenyang Xingqi Pharmaceutical / Equity Bottom-Up

<ul>
<li>The 10th national VBP has started. Kelun Pharma, Fosun Pharma and CSPC are expected to be the big pharmaceutical companies that get hit most in this VBP.</li>
<li>For biopharmaceutical companies, rather than R&amp;D technology, revenue scale is the most important moat. Accordingly, we recommend to invest medium and large biotech that are currently scaling up.</li>
<li>Xingqi’s share price decline is related to the potential lower-than-expected performance in 24Q3. Sales expansion of 0.01% atropine eye drops takes time considering the difficulty of new drug hospital admission.</li>
</ul>


The 10th national VBP has started. Kelun Pharma, Fosun Pharma and CSPC are expected to be the big pharmaceutical companies that get hit most in this VBP.
For biopharmaceutical companies, rather than R&amp;D technology, revenue scale is the most important moat. Accordingly, we recommend to invest medium and large biotech that are currently scaling up.
Xingqi’s share price decline is related to the potential lower-than-expected performance in 24Q3. Sales expansion of 0.01% atropine eye drops takes time considering the difficulty of new drug hospital admission.


China Healthcare Weekly (Oct.27)-10th National VBP, Revenue Scale Is the Only Moat, Xingqi’s Outlook

<ul>
<li>Xingqi’s 0.01% atropine sulfate eye drops got approved for marketing this March, which is expected to monopolize the domestic market for at least 2.5-3 years, and enjoy higher gross margin.</li>
<li>Peak sales of 0.01% atropine sulfate eye drops would reach RMB5 billion at least. Together with other products, Xingqi’s total revenue would reach at least RMB6 billion in the future.</li>
<li>Due to attractive dividend policy, this stock is worth holding for the long term.Xingqi’s market value could even reach RMB50 billion if the sales exclusivity period is longer than expected. </li>
</ul>


Xingqi’s 0.01% atropine sulfate eye drops got approved for marketing this March, which is expected to monopolize the domestic market for at least 2.5-3 years, and enjoy higher gross margin.
Peak sales of 0.01% atropine sulfate eye drops would reach RMB5 billion at least. Together with other products, Xingqi’s total revenue would reach at least RMB6 billion in the future.
Due to attractive dividend policy, this stock is worth holding for the long term.Xingqi’s market value could even reach RMB50 billion if the sales exclusivity period is longer than expected. 


Shenyang Xingqi Pharmaceutical (300573.CH)-Looking Forward to a Leap in Valuation and Rich Dividends

<ul>
<li>Lepu Biopharma is a biotech spin-off of A-share listed Lepu Medical. The company launched book building to raise up to USD 120m via a Hong Kong listing.</li>
<li>In our previous note, we look at the company's core products, including HX008, LP002, MRG003 and MRG002. The products have their own differentiating factors to tackle the intense competition.</li>
<li>In this note, we provide an update for the book building. We will run the deal through our ECM framework and provide an update on the deal.</li>
</ul>


Lepu Biopharma is a biotech spin-off of A-share listed Lepu Medical. The company launched book building to raise up to USD 120m via a Hong Kong listing.
In our previous note, we look at the company's core products, including HX008, LP002, MRG003 and MRG002. The products have their own differentiating factors to tackle the intense competition.
In this note, we provide an update for the book building. We will run the deal through our ECM framework and provide an update on the deal.


Lepu Biopharma (乐普生物科技) IPO: Sentiment Cooled Down

China

Zhaoke Ophthalmology Pharmaceutical operates as a pharmaceutical company. The Company engages in the business of researching, developing and commercialising ophthalmological drugs. Zhaoke Ophthalmology markets its products throughout China and ASEAN marketplace.

Zhaoke Ophthalmology Pharmaceutical (6622 HK)

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Zhaoke Ophthalmology Pharmaceutical (6622 HK)

Cloudbreak (拨康视云) Pre-IPO: PHIP Updates

Cloudbreak re-files for Hong Kong listing, facing delays and downward revisions in prospects with negative peer performance readthrough.

Ke Yan, CFA, FRM

APAC Healthcare Weekly (Jan 19)- Samsung Biologics, Daiichi Sankyo, Eisai, Sun Pharma, Biocon

APAC healthcare companies got approvals for new products as well as clinical trials. The companies continued with acquisitions and collaborations...

Tina Banerjee

China Healthcare Weekly (Oct.27)-10th National VBP, Revenue Scale Is the Only Moat, Xingqi’s Outlook

10th national VBP will impact big pharma like Kelun/Fosun/CSPC.Revenue scale is the only moat for pharma company.Xingqi's 24Q3 results may be...

Xinyao (Criss) Wang

Shenyang Xingqi Pharmaceutical (300573.CH)-Looking Forward to a Leap in Valuation and Rich Dividends

Xingqi's newly approved atropine eye drops will drive high growth/valuation expansion due to sales exclusivity period.Together with lucrative...

Xinyao (Criss) Wang

Lepu Biopharma (乐普生物科技) IPO: Sentiment Cooled Down

Downsized deal amid cooled sentiment for Chapter 18A, we think the valuation of Lepu Biopharm is not attractive for investors.

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Cloudbreak (拨康视云) Pre-IPO: PHIP Updates

​Cloudbreak re-files for Hong Kong listing, facing delays and downward revisions in prospects with negative peer performance readthrough.

Ke Yan, CFA, FRM

APAC Healthcare Weekly (Jan 19)- Samsung Biologics, Daiichi Sankyo, Eisai, Sun Pharma, Biocon

APAC healthcare companies got approvals for new products as well as clinical trials. The companies continued with acquisitions and collaborations...

Tina Banerjee

China Healthcare Weekly (Oct.27)-10th National VBP, Revenue Scale Is the Only Moat, Xingqi’s Outlook

​10th national VBP will impact big pharma like Kelun/Fosun/CSPC.Revenue scale is the only moat for pharma company.Xingqi's 24Q3 results may be...

Xinyao (Criss) Wang

Shenyang Xingqi Pharmaceutical (300573.CH)-Looking Forward to a Leap in Valuation and Rich Dividends

Xingqi's newly approved atropine eye drops will drive high growth/valuation expansion due to sales exclusivity period.Together with lucrative...

Xinyao (Criss) Wang

Lepu Biopharma (乐普生物科技) IPO: Sentiment Cooled Down

Downsized deal amid cooled sentiment for Chapter 18A, we think the valuation of Lepu Biopharm is not attractive for investors.

Ke Yan, CFA, FRM

Cloudbreak re-files for Hong Kong listing, facing delays and downward revisions in prospects with negative peer performance readthrough.

10th national VBP will impact big pharma like Kelun/Fosun/CSPC.Revenue scale is the only moat for pharma company.Xingqi's 24Q3 results may be...