Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Capital Markets

Jacobio Pharmaceuticals / Equity Capital Markets

The terms of Jacobio's listing have been announced: a price range of HKD12-14, resulting in a pre-money valuation of US$1.1-1.3 billion and proceeds of US$140-160MM. The relatively small raise and limited uptake from Cornerstone investors indicate that the company is placing more emphasis on valuation over the amount raised. 
The company has cutting-edge technology; a credible partner in <a href="https://www.smartkarma.com/entities/abbvie-inc" target="_blank" data-smartkarma-citation="entities:1135:1" rel="noopener">Abbvie Inc (ABBV US);</a> and extensive trial readouts in 2021. We like the deal in the lower half of the range, but caution that buyers need a long-term view given the long road to NDA filings and likely limited trading volume post-deal.

The terms of Jacobio's listing have been announced: a price range of HKD12-14, resulting in a pre-money valuation of US$1.1-1.3 billion and proceeds of US$140-160MM. The relatively small raise and limited uptake from Cornerstone investors indicate that the company is placing more emphasis on valuation over the amount raised. 
The company has cutting-edge technology; a credible partner in Abbvie Inc (ABBV US); and extensive trial readouts in 2021. We like the deal in the lower half of the range, but caution that buyers need a long-term view given the long road to NDA filings and likely limited trading volume post-deal. 

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Recently, <a href="https://www.smartkarma.com/entities/jacobio-pharmaceuticals" target="_blank" data-smartkarma-citation="entities:29696:1" rel="noopener">Jacobio Pharmaceuticals (1588148D CH)</a> got the approval to list on the main board of the Hong Kong Stock Exchange. Founded in 2015, Jacobio is committed to providing products and solutions to people’s health with a platform and expertise in developing allosteric inhibitors against protein tyrosine phosphatase, KRAS and transcriptional factors. In China, Jacobio is the first to explore the KARS signaling pathway and is also the leading company in this field. Since the establishment more than five years ago, Jacobio has developed rapidly and steadily, and its pipeline is very distinctive. The following provides the insights on its pipeline.

Recently, Jacobio Pharmaceuticals (1588148D CH) got the approval to list on the main board of the Hong Kong Stock Exchange. Founded in 2015, Jacobio is committed to providing products and solutions to people’s health with a platform and expertise in developing allosteric inhibitors against protein tyrosine phosphatase, KRAS and transcriptional factors. In China, Jacobio is the first to explore the KARS signaling pathway and is also the leading company in this field. Since the establishment more than five years ago, Jacobio has developed rapidly and steadily, and its pipeline is very distinctive. The following provides the insights on its pipeline.

Pre-IPO Jacobio Pharmaceuticals - Insights on Pipeline

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

<a href="https://www.smartkarma.com/entities/jacobio-pharmaceuticals" target="_blank" data-smartkarma-citation="entities:29696:1" rel="noopener">Jacobio Pharmaceuticals (1588148D CH)</a> is a clinical-stage pharma company focusing on the in-house discovery and development of innovative oncology therapies. Jacobio’s strategy of “drugging the undruggable” is based on developing clinical-stage small-molecule drug candidates to modulate enzymes by binding to their allosteric sites. Jacobio is backed by Qiming Venture Partners, Hillhouse Capital, LAV, <a href="https://www.smartkarma.com/entities/center-laboratories-inc" target="_blank" data-smartkarma-citation="entities:10778:1" rel="noopener">Center Laboratories (4123 TT)</a> and CICC Capital Management. The Series C+ round in February 2020 raised $26.0 million at a post-money valuation of $455 million. <div class="content-highlight">Jacobio is seeking to raise $300 million through a Hong Kong IPO. Jacobio is one of the few Chinese biotechs which have licensed out their drug candidates to leading global pharma companies such as <a href="https://www.smartkarma.com/entities/abbvie-inc" target="_blank" data-smartkarma-citation="entities:1135:1" rel="noopener">Abbvie Inc (ABBV US)</a>. Jacobio claims to have discovered several drug candidates with the potential to be among the first few market entrants in their respective drug classes globally. Overall, we believe that Jacobio’s clinical assets are attractive. </div>

Jacobio Pharmaceuticals (1588148D CH) is a clinical-stage pharma company focusing on the in-house discovery and development of innovative oncology therapies. Jacobio’s strategy of “drugging the undruggable” is based on developing clinical-stage small-molecule drug candidates to modulate enzymes by binding to their allosteric sites. Jacobio is backed by Qiming Venture Partners, Hillhouse Capital, LAV, Center Laboratories (4123 TT) and CICC Capital Management. The Series C+ round in February 2020 raised $26.0 million at a post-money valuation of $455 million. Jacobio is seeking to raise $300 million through a Hong Kong IPO. Jacobio is one of the few Chinese biotechs which have licensed out their drug candidates to leading global pharma companies such as Abbvie Inc (ABBV US). Jacobio claims to have discovered several drug candidates with the potential to be among the first few market entrants in their respective drug classes globally. Overall, we believe that Jacobio’s clinical assets are attractive. 

Jacobio Pharma IPO Initiation: Drugging the Undruggable

We have reviewed Jacobio's PHIP and have updated our DCF, analyzed the use of proceeds, and compiled a calendar of 2021 events. We have trimmed our NPV in light of higher expected clinical trial costs for the company's lead compounds. We will give our opinion of the deal in a future Insight once terms are announced.

We have reviewed Jacobio's PHIP and have updated our DCF, analyzed the use of proceeds, and compiled a calendar of 2021 events. We have trimmed our NPV in light of higher expected clinical trial costs for the company's lead compounds. We will give our opinion of the deal in a future Insight once terms are announced. 

Jacobio: Updated Valuation and Other Thoughts

HBM Holdings Limited / Equity Capital Markets

On November 22nd 2020 , <a href="https://www.smartkarma.com/entities/harbour-biomed-holdings-limited" target="_blank" data-smartkarma-citation="entities:29717:1" rel="noopener">Harbour Biomed (2142 HK)</a> got approved to list on the main board of the Hong Kong Stock Exchange. Harbour is a biopharmaceutical company engaged in the R&amp;D of differential antibody therapies for immune and tumor diseases, and has more than 10 potential differentiated drug candidates in a diversified and balanced pipeline. So what is Harbour's core competence that set it apart from other biopharmaceutical companies?

On November 22nd 2020 , Harbour Biomed (2142 HK) got approved to list on the main board of the Hong Kong Stock Exchange. Harbour is a biopharmaceutical company engaged in the R&amp;D of differential antibody therapies for immune and tumor diseases, and has more than 10 potential differentiated drug candidates in a diversified and balanced pipeline. So what is Harbour's core competence that set it apart from other biopharmaceutical companies?

Pre-IPO Harbour Biomed (2142.HK) - Don't Ignore The "Hidden Value"

United States

Amgen Inc. is an independent biotechnology medicines company that discovers, develops, manufactures and markets medicines for grievous illnesses. The Company focuses solely on human therapeutics and concentrates on innovating novel medicines based on advances in cellular and molecular biology.

Alnylam Pharmaceuticals Inc. is an early-stage therapeutics company. The Company is developing technology that can specifically and potently silence disease-causing genes.

CSL Limited develops, manufactures, and markets human pharmaceutical and diagnostic products derived from human plasma. The Company provides products include pediatric and adult vaccines, infection, pain medicine, skin disorder remedies, antivenoms, anticoagulants, and immunoglobulins.

Moderna, Inc. operates as a biotechnology company. The Company focuses on the discovery and development of messenger RNA therapeutics and vaccines. Moderna develops mRNA medicines for infectious, immuno-oncology, and cardiovascular diseases.

BioMarin Pharmaceutical Inc. develops and commercializes therapeutic enzyme products.  The Company has applied its proprietary enzyme technology to develop products for lysosomal storage diseases and for the treatment of serious burns. BioMarin's subsidiary provides analytical and diagnostic products and services in the area of carbohydrate biology.

Insmed, Inc. is a biopharmaceutical company focused on developing and commercializing novel, targeted inhaled therapies for patients with high unmet need battling serious orphan lung diseases.

United Therapeutics Corporation develops pharmaceuticals to treat vascular diseases such as pulmonary hypertension and peripheral vascular disease.  The Company's lead products are stable synthetic forms of prostacyclin and are delivered orally or subcutaneously.

Natera, Inc. operates as a diagnostics company. The Company provides preconception and prenatal genetic testing services. Natera also offers pre-implantation genetic diagnosis, aneuploidy screening, translocation, and single gene testing services.

Neurocrine Biosciences, Inc. is focused on the discovery and development of therapeutics for neuropsychiatric, neuroinflammatory, and neurodegenerative diseases and disorders.  The Company is developing therapeutic interventions for anxiety, depression, Alzheimer's disease, insomnia, stroke, malignant brain tumors, multiple sclerosis, obesity, and diabetes.

Sarepta Therapeutics, Inc. is a biopharmaceutical company focused on the discovery and development of unique RNA-based therapeutics for the treatment of both rare and infectious diseases. The Company offers its products to the medical industry in countries around the world.

Celltrion Inc. produces and sells biosimilar products and also provides consignm ent processing service for other companies.  The Company's main product is Abata cept which is for arthritis treatment

argenx SE operates as a biotechnology company. The Company develops antibody based therapies for the treatment of severe autoimmune diseases and cancer. argenx serves customers in the Netherlands and Belgium.

BioNTech SE provides biotechnological solutions. The Company develops various types of treatments for cancer patients' tumors. BioNTech serves customers worldwide.

Chongqing Zhifei Biological Products Company Ltd. researches, manufactures, and sells vaccines and biological products including prevention products, blood products, diagnostic reagents, and therapeutic agents.

Chongqing Zhifei Biological Products (300122 CH)

Alteogen Inc. is a pharmaceutical research company.  The Company researches and develops bio-medicines such as bio-better and bio-similar.

Genmab A/S operates as a biotechnology company. The Company creates and develops human antibody products for the treatment of life threatening and debilitating diseases. Genmab focuses on products to treat cancer, rheumatoid arthritis and other inflammatory conditions, and psoriasis. The Company develops new products through partnerships. Genmab operates in Europe and the United States.

Swedish Orphan Biovitrum AB (SOBI) operates as a bio-pharmaceutical and bio-technology company. The Company develops therapies and drugs for the treatment of haemophilia, inflammation, and genetic diseases. SOBI serves clients worldwide.

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.

Genmab A/S operates as a biotechnology company. The Company specializes in development of antibody therapeutics for the treatment of cancer. Genmab serves customers worldwide.

Biocon Ltd., is an integrated biotechnology enterprise with a presence in biopharmaceuticals, enzymes, custom research and clinical research. The Company's pharmaceutical products include statins, immunosuppressants and anti-diabetic drugs. Biocon also manufactures specialty enzymes and new enzyme applications besides providing clinical and custom research services.

AbbVie Inc. researches and develops pharmaceutical products. The Company produces pharmaceutical drugs for specialty therapeutic areas such as immunology, chronic kidney disease, Hepatitis C, women's health, oncology, and neuroscience. AbbVie also offers treatments for diseases including Multiple Sclerosis, Parkinson's, and Alzheimer's disease.

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Abbvie Inc (ABBV US)

Jacobio: Management Solves for Valuation

We think that the offer terms for Jacobio's IPO are fair, but buyers need to take a long view given the small deal size and shares' limited liquidity.

Kemp Dolliver, CFA

Pre-IPO Jacobio Pharmaceuticals - Insights on Pipeline

This article analyzed the compelling and distinctive pipeline of Jacobio Pharmaceuticals in terms of projects. Meanwhile, it also disclose the...

Xinyao (Criss) Wang

Jacobio Pharma IPO Initiation: Drugging the Undruggable

Jacobio is seeking to raise $300 million through a Hong Kong IPO. Overall, we believe that Jacobio’s clinical assets are attractive.

Arun George

Jacobio: Updated Valuation and Other Thoughts

This Insight updates our NPV (reduce by ~US$100MM) of Jacobio, analyzes the use of proceeds, and has a list of 2021 events. We will give our...

Kemp Dolliver, CFA

Pre-IPO Harbour Biomed (2142.HK) - Don't Ignore The "Hidden Value"

This article analyzed Harbour's core products, team, technology platforms, thoughts on valuation and the "hidden" value that is often easy to be...

Xinyao (Criss) Wang

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