In today’s briefing:
- Simcere Pharmaceutical (2096 HK) Placement: Innovative Pipeline Enlightens Growth Prospects
- Molbio Diagnostics Limited Pre-IPO Tearsheet
- ARWR: Signs Collaboration Agreement with Novartis with 200 Million Upfront
- Asahi Intecc (7747 JP): Strong FY25 Result; FY26 Guidance Initiation; New Business Plan Announced
- Pre-IPO GenFleet Therapeutics (PHIP Updates) – Some Points Worth the Attention
Simcere Pharmaceutical (2096 HK) Placement: Innovative Pipeline Enlightens Growth Prospects
- Simcere Pharmaceutical Group (2096 HK) is placing 120M shares at the price of HK$12.95 per share. The placing shares represents ~5% of the current total issued shares of the company.
- The company intends to apply 90% of the net proceeds for the R&D-related expenditures. For context, Simcere has over 60 R&D pipelines of innovative drugs.
- Considering strong growth prospect of Simcere, reasonable valuation, and upbeat investor sentiment toward Chinese pharmaceutical sector, we are bullish on the placement.
Molbio Diagnostics Limited Pre-IPO Tearsheet
- Molbio Diagnostics Limited (1788863D IN) is looking to raise about US$229m in its upcoming India IPO. The deal will be run by Kotak, IIFL, Jefferies and Motilal.
- Molbio specializes in point-of-care molecular diagnostics. The company sells hardware devices such as the Polymerase Chain Reaction (PCR) analyzers and consumable test kits tailored to detect specific diseases.
- As of FY25, its revenue base remains primarily domestic, with ~80% of revenue from India and the rest from Nigeria, Bangladesh, and Indonesia. The company manufactures its products in India.
ARWR: Signs Collaboration Agreement with Novartis with 200 Million Upfront
- On September 2, 2025, Arrowhead Pharmaceuticals, Inc. (ARWR) announced a global license and collaboration agreement with Novartis for ARO-SNCA, the preclinical siRNA therapy targeting alpha-synuclein for the treatment of various synucleinopathies (e.g., Parkinson’s Disease), along with additional collaboration targets that will utilize Arrowhead’s TRiM platform.
- Arrowhead will receive an upfront payment of $200 million and is eligible to receive up to $2 billion in potential milestone payments plus royalties on commercial sales.
- In addition, on September 3, 2025, Ionis Pharmaceuticals, Inc. (IONS) announced positive topline results from the Phase 3 CORE and CORE2 studies of olezarsen in patients with severe hypertriglyceridemia (sHTG), in which reductions of fasting triglycerides of up to 72% and an 85% reduction in acute pancreatitis events were seen.
Asahi Intecc (7747 JP): Strong FY25 Result; FY26 Guidance Initiation; New Business Plan Announced
- Asahi Intecc (7747 JP) reported 12% YoY revenue growth in FY25, driven by the continued strong trajectory of medical division. FY25 gross profit margin improved to 67.7% (FY24: 64.2%).
- The company expects 9% YoY revenue growth to ¥131B in FY26, while gross profit margin is expected to contract 140bps to 66.3% due to the impact of the U.S. tariffs.
- The company has set a goal of achieving revenue of ¥180B and operating profit margin of 28% in FY30. Strengthening profitability of existing businesses will help to meet this target.
Pre-IPO GenFleet Therapeutics (PHIP Updates) – Some Points Worth the Attention
- GenFleet’s R&D strategy is to layout around the RAS signaling pathway to construct a “RAS therapy matrix” covering multiple RAS mutation types.However, there’re barriers to the development of RAS-targeted therapies.
- The factors that suppress valuation include intense competition and potential patent risks. GenFleet’s independent commercialization capability has not been verified. So, a valuation of RMB3-4 billion is a reasonable range.
- Considering the sustained popularity of innovative drug IPOs in the Hong Kong stock market, post-IPO valuation of GenFleet depends more on market sentiment, not fundamentals.
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