HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/remegen-ltd" target="_blank" data-smartkarma-citation="entities:29191:1" rel="noopener">Remegen Ltd (1788976D CH) </a>is an innovative bio-pharmaceutical company dedicated to the development and commercialization of first-in-class and best-in-class biological drugs. The two core products of <a href="https://www.smartkarma.com/entities/remegen-ltd" target="_blank" data-smartkarma-citation="entities:29191:1" rel="noopener">Remegen Ltd (1788976D CH)</a>  are RC18 and RC48 (Related article: <a href="https://www.smartkarma.com/compose/insight/45020/Pre-IPO%20RemeGen%20-%20Insights%20on%20Two%20Core%20Products%20RC18%20&amp;%20RC48.%20Read%20more:%20https:/skr.ma/sxMEQ" target="_blank" rel="noopener">Pre-IPO RemeGen - Insights on Two Core Products RC18 &amp; RC48. Read more: https://skr.ma/sxMEQ</a>). It is said that the Company is going to be listed on HKEX at a price of HK$52.1/share in November. In terms of valuation, is RemeGen overvalued?

Remegen Ltd (1788976D CH) is an innovative bio-pharmaceutical company dedicated to the development and commercialization of first-in-class and best-in-class biological drugs. The two core products of Remegen Ltd (1788976D CH)  are RC18 and RC48 (Related article: Pre-IPO RemeGen - Insights on Two Core Products RC18 &amp; RC48. Read more: https://skr.ma/sxMEQ). It is said that the Company is going to be listed on HKEX at a price of HK$52.1/share in November. In terms of valuation, is RemeGen overvalued? 

A Different Angle - RemeGen Vs Akeso (Insights on Valuation)

Thematic (Sector/Industry)

1. Industry viewpoints: <ul>
<li>China’s new intensive procurement policy has finally been applied to high-value medical consumables. Thus, related medical device companies are facing new challenges.</li>
<li>
With the increase of patients' affordability and doctors' cognition and acceptance of minimally invasive surgery, it is expected that MISIA market will have greater growth potential in the near future. 
</li>
<li>In recent years, China cancer drug market has grown rapidly. With large growth potential in this market and more favorable policy, more innovative cancer drugs will be approved in China</li>
</ul>2. Company newsNews of Jiangsu Hengrui Medicine, Dingdang Kuaiyao and AstraZeneca China on the cooperation of new drugs and the progress of new funding.3. Market reviewLast week, stock price for healthcare sector in A share decreased 6.24%, while CSI 300 decreased 1.53% over the same period of time.

1. Industry viewpoints: 
China’s new intensive procurement policy has finally been applied to high-value medical consumables. Thus, related medical device companies are facing new challenges.

With the increase of patients' affordability and doctors' cognition and acceptance of minimally invasive surgery, it is expected that MISIA market will have greater growth potential in the near future. 

In recent years, China cancer drug market has grown rapidly. With large growth potential in this market and more favorable policy, more innovative cancer drugs will be approved in China
2. Company newsNews of Jiangsu Hengrui Medicine, Dingdang Kuaiyao and AstraZeneca China on the cooperation of new drugs and the progress of new funding.3. Market reviewLast week, stock price for healthcare sector in A share decreased 6.24%, while CSI 300 decreased 1.53% over the same period of time.

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Everest Medicines / Equity Capital Markets

The valuation of pre-revenue biotechnology companies is, at best, an imprecise exercise. The traditional valuation tools (DCF, peer company comparisons, M&amp;A valuations) still apply, but require some modifications to reflect the unique circumstances. One tool is to consider the company's valuation in the context of the "step-up" from its last funding round to the pre-money valuation for the IPO. This Insight analyzes this data for pre-revenue biotechnology companies that have listed under the HKEX's "Biotech Chapter" and how investors can use this data to frame their analysis of these deals.

The valuation of pre-revenue biotechnology companies is, at best, an imprecise exercise. The traditional valuation tools (DCF, peer company comparisons, M&amp;A valuations) still apply, but require some modifications to reflect the unique circumstances. One tool is to consider the company's valuation in the context of the "step-up" from its last funding round to the pre-money valuation for the IPO. This Insight analyzes this data for pre-revenue biotechnology companies that have listed under the HKEX's "Biotech Chapter" and how investors can use this data to frame their analysis of these deals.

Jacobio Pharmaceuticals / Equity Capital Markets

Jacobio Pharmaceuticals Group is a pre-revenue pharmaceutical company focused on “drugging the undruggable” targets to treat cancer. The company's pipeline is cutting edge and early stage, but comes with relatively high risk. A license and collaboration agreement with multinational <a href="https://www.smartkarma.com/entities/abbvie-inc" target="_blank" data-smartkarma-citation="entities:1135:1" rel="noopener">Abbvie Inc (ABBV US)</a> provides validation and non-dilutive funding. The management team is experienced and accomplished. The venture investors are credible; and the patent estate has a long life.This Insight provides an overview of the business, including some initial thoughts on valuation. We will provide an update with more definitive views on valuation in a future Insight.

Jacobio Pharmaceuticals Group is a pre-revenue pharmaceutical company focused on “drugging the undruggable” targets to treat cancer. The company's pipeline is cutting edge and early stage, but comes with relatively high risk. A license and collaboration agreement with multinational Abbvie Inc (ABBV US) provides validation and non-dilutive funding. The management team is experienced and accomplished. The venture investors are credible; and the patent estate has a long life.This Insight provides an overview of the business, including some initial thoughts on valuation. We will provide an update with more definitive views on valuation in a future Insight.

1.Industry viewpoints
<ul>
<li>China's biopharmaceutical market is still in its early days, but it has a strong growth potential.</li>
<li>Q3 earning season kicks off.</li>
<li>Favorable policies may still not ensure the golden time for the industry of Chinese traditional medicine.</li>
</ul>
2.Company news
News of Shanghai Henlius Biotech, Innovent Biologics and BeiGene on the progress of new drugs and amended agreement.
3.Market review
Last week, stock price for healthcare sector rose 2.86%, while CSI 300 rose 2.04% over the same period of time.
4.Risk Disclosure 
Policy risk, R&amp;D risk, company risk and COVID-19 risk

1.Industry viewpoints

China's biopharmaceutical market is still in its early days, but it has a strong growth potential.
Q3 earning season kicks off.
Favorable policies may still not ensure the golden time for the industry of Chinese traditional medicine.

2.Company news
News of Shanghai Henlius Biotech, Innovent Biologics and BeiGene on the progress of new drugs and amended agreement.
3.Market review
Last week, stock price for healthcare sector rose 2.86%, while CSI 300 rose 2.04% over the same period of time.
4.Risk Disclosure 
Policy risk, R&amp;D risk, company risk and COVID-19 risk

China

BeiGene, Ltd. operates as a commercial stage biopharmaceutical company. The Company focuses on discovery, development, and commercialization of molecularly targeted and immuno-oncology drugs for the treatment of cancer. BeiGene serves patients worldwide.

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BeiGene (6160 HK)

A Different Angle - RemeGen Vs Akeso (Insights on Valuation)

In this article, by comparing RemeGen and Akeso's pipelines from different aspects to provide referable and helpful insights about the valuation...

Xinyao (Criss) Wang

China Healthcare Weekly (Oct.23)

This article summarized important new China healthcare policy released last week, major industry viewpoints, company news and market review for...

Xinyao (Criss) Wang

What HKEX Biotech "Step-Ups" Can Tell Us

This Insight explains the concept of valuation "step-ups" for pre-revenue biotechnology companies listing on the HKEX and how to use this data to...

Kemp Dolliver, CFA

Jacobio Pharma: Focus on Novel Targets

An in-depth overview of the proposed listing of Jacobio Pharmaceuticals using a framework that touches on the science, market opportunity,...

Kemp Dolliver, CFA

China Healthcare Weekly (Oct.9)

This insight summarized the important industry viewpoints, news of listed healthcare companies and capital market review for the last week of China...

Xinyao (Criss) Wang

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