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

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

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

Burning Rock Biotech / Equity Capital Markets

Burning Rock, a leading precision oncology player in China, is aiming to raise USD 100 million via a listing in the US. The company is the number one next generation sequencing (NGS) based cancer therapy selection company with a 26.7% share in China by patients tested in 2019.While the company derives most of its revenues from the central lab model, its in-hospital model which is characterized by recurring sales of reagent test kits is also growing rapidly. However, looking at the company's disclosure in the IPO prospectus, we think there is a lack of details for the technical specifications of its core products. In addition, we believe that the potential market estimates provided in the prospectus are too aggressive given that the test kits, particularly the big panels, are unlikely to be included in the reimbursement plan in the foreseeable future and hence remain a luxury product. We are of the view that the company has quality pre-IPO investors and management team. The company was valued at USD 814 million in the pre-IPO round. We will provide our thoughts on valuation in our next note.

Burning Rock, a leading precision oncology player in China, is aiming to raise USD 100 million via a listing in the US. The company is the number one next generation sequencing (NGS) based cancer therapy selection company with a 26.7% share in China by patients tested in 2019.While the company derives most of its revenues from the central lab model, its in-hospital model which is characterized by recurring sales of reagent test kits is also growing rapidly. However, looking at the company's disclosure in the IPO prospectus, we think there is a lack of details for the technical specifications of its core products. In addition, we believe that the potential market estimates provided in the prospectus are too aggressive given that the test kits, particularly the big panels, are unlikely to be included in the reimbursement plan in the foreseeable future and hence remain a luxury product. We are of the view that the company has quality pre-IPO investors and management team. The company was valued at USD 814 million in the pre-IPO round. We will provide our thoughts on valuation in our next note.

Burning Rock (燃石医学) Pre-IPO: Leading Precision Oncology Player but Short of Disclosure

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/burning-rock-biotech" target="_blank" data-smartkarma-citation="entities:28970:1" rel="noopener">Burning Rock Biotech (BNR US)</a> is a precision oncology and early cancer detection company. It is China’s number one NGS-based cancer therapy selection company with a 26.7% market share as measured by the number of patients tested in 2019, according to CIC. Burning Rock is backed by Sequoia Capital (9.1% stake), CMB International (8.8%), GIC (6.1%), OrbiMed and LAV Biosciences Fund (an affiliate of Lilly Asia Ventures). Burning Rock has filed for a Nasdaq IPO with a placeholder $100 million raise. <div class="content-highlight">Unlike IPO hopeful <a href="https://www.smartkarma.com/entities/dada-nexus" target="_blank" data-smartkarma-citation="entities:28961:1" rel="noopener">Dada Nexus (DADA US)</a>, Burning Rock was negatively impacted by the corona pandemic which resulted in a weak 1Q20. The bulls can argue with some merit that the 1Q20 performance is a one-off. On balance, we think that Burning Rock's fundamentals are sound and subject to valuation, will prove attractive to investors despite the negative sentiment around Chinese ADRs.</div>

Burning Rock Biotech (BNR US) is a precision oncology and early cancer detection company. It is China’s number one NGS-based cancer therapy selection company with a 26.7% market share as measured by the number of patients tested in 2019, according to CIC. Burning Rock is backed by Sequoia Capital (9.1% stake), CMB International (8.8%), GIC (6.1%), OrbiMed and LAV Biosciences Fund (an affiliate of Lilly Asia Ventures). Burning Rock has filed for a Nasdaq IPO with a placeholder $100 million raise. Unlike IPO hopeful Dada Nexus (DADA US), Burning Rock was negatively impacted by the corona pandemic which resulted in a weak 1Q20. The bulls can argue with some merit that the 1Q20 performance is a one-off. On balance, we think that Burning Rock's fundamentals are sound and subject to valuation, will prove attractive to investors despite the negative sentiment around Chinese ADRs.

Burning Rock Biotech IPO Initiation: Burning Ambitions

China

Burning Rock Biotech Limited operates as a biotech company. The Company discovers and develops diagnositcs solutions for precision medicine in oncology. Burning Rock Biotech serves customers in China.

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Burning Rock Biotech (BNR US)

Burning Rock (燃石医学) Pre-IPO: Leading Precision Oncology Player but Short of Disclosure

Burning Rock, a leading precision oncology player in China, is aiming to raise USD 100 million via a listing in the US. The company is the number...

Ke Yan, CFA, FRM

Burning Rock Biotech IPO Initiation: Burning Ambitions

Burning Rock Biotech (BNR US) is a precision oncology and early cancer detection company. It is China’s number one NGS-based cancer therapy...

Arun George

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