In today’s briefing:
- Mayne Pharma (MYX AU): Twists and Turns as Cosette Chases a Get-Out-Of-Jail-Free Card
- Kelun-Biotech Placement – Recent Run-Up Makes Its Tricky
- Caris Life Sciences, Inc. (CAI): Peeking at the Prospectus of an AI TechBio IPO
- Jiangsu Hengrui Medicine (600276 CH): ADC Drug Approval Presents Long-Term Opportunity
- Pre-IPO Annoroad Gene Technology – The Outlook Is Not Optimistic
Mayne Pharma (MYX AU): Twists and Turns as Cosette Chases a Get-Out-Of-Jail-Free Card
- Mayne Pharma (MYX AU) disclosed that Cosette served a scheme termination notice. Mayne maintains that a material adverse clause was not breached and considers the termination notice invalid.
- The Cosette MAC breach claims likely hinge on establishing that forecasts provided during due diligence are materially lower than the unaudited management accounts. Precedents do not favour Mayne.
- While the last close price (A$4.48) is below the undisturbed price (HK$5.41), there remains downside. My estimated deal break valuation range is A$3.26-A$4.00.
Kelun-Biotech Placement – Recent Run-Up Makes Its Tricky
- Sichuan Kelun-Biotech Biopharm (6990 HK) is looking to raise up to US$200m from a primary placement. The offering is priced at HK$ 330.2-341, a 5-8% discount to last close.
- The company plans to use the proceeds for research and development, clinical trials of its core products and as working capital.
- In this note, we will talk about the placement and run the deal through our ECM framework.
Caris Life Sciences, Inc. (CAI): Peeking at the Prospectus of an AI TechBio IPO
- Sixth Street Partners is a significant investor in Caris Life Sciences and has been involved in multiple funding rounds since 2018.
- The company has more than 100 biopharma partners, such as Moderna, AbbVie, Xencor, and Merck KGaA.
- For the three months ended March 31, 2025 and 2024, they generated total revenue of $120.9 million and $80.7 million, respectively. The company also has significant net losses.
Jiangsu Hengrui Medicine (600276 CH): ADC Drug Approval Presents Long-Term Opportunity
- Jiangsu Hengrui Medicine (600276 CH) received conditional marketing approval for its self-developed Class 1 innovative drug, Trastuzumab Rezetecan for Injection (SHR-A1811).
- In 1Q25, Jiangsu Hengrui reported revenue growth of 20% YoY to RMB 7.2B. Innovative drugs and Licensing should help keep this momentum in near future.
- The near-term trigger for the stock would be a further marketing approval from the US FDA.
Pre-IPO Annoroad Gene Technology – The Outlook Is Not Optimistic
- Annoroad has its competitiveness in the industry, but in a complex market environment, the comprehensive product lines may not necessarily bring high performance growth and large revenue scale.
- The prenatal testing business is not easy. VBP is headwind.After Illumina was listed on “Unreliable Entity List”, it’s uncertain whether NextSeq 550AR sequencer can continue to be sold in China.
- Taking into account the future growth uncertainty/centralized procurement/competitive pressure/lack of deep layout of the entire industry chain/policy risks, it’s already good to have a valuation of RMB2-3.5 billion after IPO
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