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

Simcere (先声制药) IPO Trading: Mind the Sentiment Changes

Simcere (先声制药) Pre-IPO: PHIP Updates and Peer Comparison

Simcere (先声制药) Pre-IPO: Long History but Products Concentrated

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

Simcere Pharmaceutical Group / Equity Capital Markets

Simcere Pharma has a long history dating back to 1995 and was previously listed in the US. The company started booking building to raise up to USD 461m in its Hong Kong listing.In our previous note, we looked at the company's key segments and existing drugs. We are of the view that the majority of the company's existing products were generic drugs in the oncology, CNS and autoimmune segments. Three core products accounted for more than 50% of sales in 2019. The company's earning growth in the past three years is commendable given the competition from other domestic generics. We also looked at the company's innovative product pipeline. We are of the view that a majority of innovative products in the clinical stage of near commercialization are just improvement over existing products and there is a lack of innovation. The company is mainly held by the founders' family members with the remaining stakes owned by employee incentive schemes and domestic private equity investors.  In this note, we review the company's 1H20 numbers and value the company at HKD 12.99/share. We think the company is fairly valued but will participate in the deal given the likely strong sentiment as the deal is backed by decent cornerstone investors.<h2>Our previous coverage on Simcere</h2><ul>
<li dir="ltr"><a href="https://www.smartkarma.com/insights/simcere-pre-ipo-long-history-but-products-concentrated" target="_blank" rel="noopener">Simcere (先声制药) Pre-IPO: Long history but products concentrated</a></li>
<li dir="ltr"><a href="https://www.smartkarma.com/insights/simcere-pre-ipo-phip-updates-and-peer-comparison" target="_blank" rel="noopener">Simcere (先声制药) Pre-IPO: PHIP updates and peer comparison</a></li>
</ul>

Simcere Pharma has a long history dating back to 1995 and was previously listed in the US. The company started booking building to raise up to USD 461m in its Hong Kong listing.In our previous note, we looked at the company's key segments and existing drugs. We are of the view that the majority of the company's existing products were generic drugs in the oncology, CNS and autoimmune segments. Three core products accounted for more than 50% of sales in 2019. The company's earning growth in the past three years is commendable given the competition from other domestic generics. We also looked at the company's innovative product pipeline. We are of the view that a majority of innovative products in the clinical stage of near commercialization are just improvement over existing products and there is a lack of innovation. The company is mainly held by the founders' family members with the remaining stakes owned by employee incentive schemes and domestic private equity investors.  In this note, we review the company's 1H20 numbers and value the company at HKD 12.99/share. We think the company is fairly valued but will participate in the deal given the likely strong sentiment as the deal is backed by decent cornerstone investors.Our previous coverage on Simcere
Simcere (先声制药) Pre-IPO: Long history but products concentrated
Simcere (先声制药) Pre-IPO: PHIP updates and peer comparison


Simcere (先声制药) IPO: Fairly Valued for a Generic Player