In today’s briefing:
- Kangji Medical (9997 HK): Precondition Satisfied for the Light Scheme Offer
- WuXi XDC Cayman (2268 HK) Placement: Capex to Accelerate Growth Momentum
- Myungin Pharm Pre-IPO: Domestic Leader, Partial Monetization for Founders
- Genfleet (劲方医药) Pre-IPO: Thoughts on Valuation
- 3SBio Inc (1530 HK): NDA Approvals Awaited Amid Sales Decline; Upfront Payment To Boost 2H25
- LB Pharmaceuticals Inc. (LBRX): Peeking at the IPO Prospectus of Schizophrenia Product Candidate Bio
- Pre-IPO Shanghai Forest Cabin Biological-Tech – The Business Model and the Concerns Behind
Kangji Medical (9997 HK): Precondition Satisfied for the Light Scheme Offer
- The precondition for Hangzhou Kangji Medical Instrument Co., Ltd. (9997 HK)’s scheme privatisation from a consortium is satisfied. The offer, which has been declared final, is at HK$9.25 per share.
- The key condition will be approval by at least 75% disinterested shareholders (<10% of all disinterested shareholders rejection). Crucially, the blocking stake is below the substantial disclosure threshold.
- Despite the recent derating of peers, the vote risk remains medium-to-high due to a solid interim, the imminent surgical robot growth story, unfavourable AGM voting patterns, and emerging retail opposition.
WuXi XDC Cayman (2268 HK) Placement: Capex to Accelerate Growth Momentum
- WuXi XDC Cayman (2268 HK) is placing up to 22M shares at the placing price of HK$58.85 per share to raise a maximum gross proceed of HK$1,311M under general mandate.
- The company will also issue ~24M shares to its controlling shareholder Wuxi Biologics at HK$58.85 per share for a total consideration of ~HK$1,420M, subject to independent shareholders’ approval.
- 90% of the proceeds will be used for further expansion of the company’s production capacity in relation to clinical and commercial manufacturing for bioconjugates, drug substances, and drug products.
Myungin Pharm Pre-IPO: Domestic Leader, Partial Monetization for Founders
- Myungin Pharmaceutical (MYUNGIN KS) is looking to raise up to US$142m in its upcoming Korean IPO.
- Myungin Pharm specializes in central nervous system (CNS) therapeutics, with an extensive product line-up of over 200 CNS products.
- In this note, we provide updates on the firm’s past performance.
Genfleet (劲方医药) Pre-IPO: Thoughts on Valuation
- Genfleet, a China-based clinical-stage biotech, is looking to raise USD 250 million via a Hong Kong listing. The sole book runner is CITIC.
- In our previous insight, we looked at the company’s core products and its management team, as well as investor backing.
- In this note, we will provide an rNPV-based valuation for the company.
3SBio Inc (1530 HK): NDA Approvals Awaited Amid Sales Decline; Upfront Payment To Boost 2H25
- 3SBio Inc (1530 HK) witnessed a revenue decline of 1% in 1H25. Company’s core product Tpiao’s sales decreased 4% to RMB 2.4B (54% of total) impacted by lower volume.
- Phase III clinical trial of SSS06 (anemia in chronic renal failure), 608 (psoriasis), and 613 (acute gouty arthritis) is complete. NDAs for the same are under review by NMPA.
- 3SBio shares are trading at forward P/E of 11.5x, lower than peers. We feel that there is still upside potential left in the stock.
LB Pharmaceuticals Inc. (LBRX): Peeking at the IPO Prospectus of Schizophrenia Product Candidate Bio
- Their product candidate, LB-102, is a Phase 3-ready oral, small molecule for the treatment of acute schizophrenia, defined as a sudden and severe episode of psychotic symptoms.
- The largest holder is Deep Track Biotechnology Master Fund, Ltd., controlling 16.7 million shares, or 19.6% of the company.
- There has not been a biotech IPO since Aardvark Therapeutics in mid February. This biotech may be more well-received given that its lead product candidate is in Phase III.
Pre-IPO Shanghai Forest Cabin Biological-Tech – The Business Model and the Concerns Behind
- FOREST CABIN holds a leading position in camellia oil segmentation, with mid-to-high end positioning and high gross profit margin. But high operating cost will put pressure on net profit margin.
- Considering the risk of recession/depression, consumption downgrade and reducing non-rigid spending will be the main theme in short term. 50% YoY revenue growth in 2024 is likely to be unsustainable.
- Valuation of FOREST CABIN could be lower than peers. Stock price performance would highly depend on market sentiment, company growth trend, and visibility of profitability at the time of listing.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Data and News
- ✓ Events & Webinars
