In today’s briefing:
- LG Electronics India IPO: Updates Support the Bull Case
- Pre-IPO Ganzhou Hemay Pharmaceutical – The Concerns on the Pipelines
LG Electronics India IPO: Updates Support the Bull Case
- LG Electronics India (123D IN)/LGEIL, a subsidiary of LG Electronics (066570 KS), aims to raise up to US$1.3 billion through a secondary offering.
- I previously discussed the IPO in LG Electronics India IPO: The Bull Case and LG Electronics India IPO: The Bear Case.
- In this note, I look at the recent updates outlined in the RHP. Overall, the RHP updates are supportive of the bull case.
Pre-IPO Ganzhou Hemay Pharmaceutical – The Concerns on the Pipelines
- Mufemilast will face fierce competition and price reduction due to NRDL negotiation for related indications. For autoimmune disease drugs, overseas market space and ceiling are much higher than in China.
- Hemay022’s market space is narrower than pan HER2 inhibitors and HER2 ADC. There is still uncertainty in efficacy/safety profile. Hemay022 will face challenges in terms of commercialization after market launch.
- The current valuation logic for innovative drugs in China has changed. Without decent licensing cooperation, Hemay’s valuation will be discounted. Valuation of Hemay should be lower than peers.
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