Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

An inquisitive investment analyst with background in both finance and computing. Covering ECM research, biotech, market data analytics.

Asia Pac IPO & Placement Research, China biotech

ECM Weekly (20 December 2020) - Yidu Tech, Home First Finance, IQiyi, Xinyi Solar, IDP Education

ECM Weekly (10 January 2021) - RLX Technology, Roiserv, Yidu Tech, and Placements

ECM Weekly (17 January 2021) - RLX Tech, Kuaishou, PTT Retail, MicroPort CardioFlow, New Horizon

Jacobio (加科思药业)  IPO: Faith on Founder

Jacobio (加科思药业) Pre-IPO: Right Team but Long Time to Market

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Jacobio Pharmaceuticals / Equity Capital Markets

<p>Jacobio raised HKD 1,263 million (USD 163m) from its global offering and will list on the Hong Kong Stock Exchange on Monday, December 21st.</p>
<p>In our previous discussion, we had highlighted that the company's  SHP2 inhibitors show a synergistic effect with PD-1 and KRAS inhibitors in pre-clinical studies but not efficacy as monotherapy in clinical trials. The out-licensing agreement to AbbVie, with a total payment of up to USD 855m plus sales royalties, is significant for a China biotech company. Its BET inhibitor (JAB-8263) is also in the early stage of clinical development which demonstrated strong affinity and anti-tumor activities as compared to benchmark products. We think both the management team and investor backing is strong. Besides the efficacy of the JAB-3068, we are concerned about the long lead time to commercialization which is as late as 2025.</p>
<p>In this note, we will talk about the strong sentiment. However, as the deal is fairly valued, we think there will be little valuation upside based on its core asset, particularly as it has not demonstrated a strong efficacy for SHP2 despite it being innovative targets for cancer therapy. In addition, it will take years for the core drug candidates to hit the market. </p>
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<h2>Our previous coverage on Jacobio</h2>
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<li dir="ltr">
<p><a href="https://www.smartkarma.com/insights/jacobio-pre-ipo-right-team-but-long-time-to-market" target="_blank" rel="noopener">Jacobio (加科思药业) Pre-IPO: Right team but long time to market</a></p>
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<li dir="ltr"><a href="https://www.smartkarma.com/insights/jacobio-ipo-faith-on-founder" target="_blank" rel="noopener">Jacobio (加科思药业)  IPO: Faith on Founder</a></li>
</ul>
</div>

Jacobio raised HKD 1,263 million (USD 163m) from its global offering and will list on the Hong Kong Stock Exchange on Monday, December 21st.
In our previous discussion, we had highlighted that the company's  SHP2 inhibitors show a synergistic effect with PD-1 and KRAS inhibitors in pre-clinical studies but not efficacy as monotherapy in clinical trials. The out-licensing agreement to AbbVie, with a total payment of up to USD 855m plus sales royalties, is significant for a China biotech company. Its BET inhibitor (JAB-8263) is also in the early stage of clinical development which demonstrated strong affinity and anti-tumor activities as compared to benchmark products. We think both the management team and investor backing is strong. Besides the efficacy of the JAB-3068, we are concerned about the long lead time to commercialization which is as late as 2025.
In this note, we will talk about the strong sentiment. However, as the deal is fairly valued, we think there will be little valuation upside based on its core asset, particularly as it has not demonstrated a strong efficacy for SHP2 despite it being innovative targets for cancer therapy. In addition, it will take years for the core drug candidates to hit the market. 

Our previous coverage on Jacobio




Jacobio (加科思药业) Pre-IPO: Right team but long time to market

Jacobio (加科思药业)  IPO: Faith on Founder



Jacobio (加科思药业)  IPO Trading: Not for the Impatient