In today’s briefing:
- Eiken Chemical (4549) | Activists, Alchemy, and the Pursuit of Profit
- Pre-IPO PegBio Co., Ltd. – This GLP-1 Biotech Has Gloomy Outlook
Eiken Chemical (4549) | Activists, Alchemy, and the Pursuit of Profit
- Two activist investors are now on the shareholder registry of Eiken Chemical.
- Eiken has proactively announced a share buyback to return excess cash holdings.
- Eiken has a quality underlying business which generates solid FCF yield. Expect higher shareholder returns in the future.
Pre-IPO PegBio Co., Ltd. – This GLP-1 Biotech Has Gloomy Outlook
- PB-119 (T2DM) has the fastest R&D progress, but this is a highly competitive market.China’s diabetes drug market is dominated by traditional drugs. It’s not easy for PegBio to break through.
- Since the future competitive landscape of GLP-1s (obesity) would present a very different situation.If PB-119 fails to have better weight loss effect, it would be eliminated due to fierce competition.
- PegBio’s IPO on SSE STAR Market was rejected. We’re not optimistic about its future commercialization performance. Together with cash-flow issues, we doubt whether PegBio would bring expected returns to investors.
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