HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>We analyzed the COVID-19 product BRII-196/BRII-198 in terms of its strength compared with peers, the outlook, and the valuation upside potential of <a href="https://www.smartkarma.com/entities/brii-biosciences" target="_blank" data-smartkarma-citation="entities:33014:1" rel="noopener">Brii Biosciences (2137 HK)</a> accordingly.</li>
<li>We also analyzed the concerns after the pandemic is under control, and provided our advices for investors about the valuation at that time.</li>
<li>Brii is a company with the potential of “zero to one”, but its valuation would increase exponentially only if its candidates are superior to similar products of leading global giants.</li>
</ul>


We analyzed the COVID-19 product BRII-196/BRII-198 in terms of its strength compared with peers, the outlook, and the valuation upside potential of Brii Biosciences (2137 HK) accordingly.
We also analyzed the concerns after the pandemic is under control, and provided our advices for investors about the valuation at that time.
Brii is a company with the potential of “zero to one”, but its valuation would increase exponentially only if its candidates are superior to similar products of leading global giants.


Brii Biosciences (2137.HK) - With the Potential of “Zero to One”

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

Clover Biopharmaceuticals / Equity Capital Markets

<p>Clover Biopharmaceuticals raised HKD 1,870 million (USD 240m) from its global offering and will list on the Hong Kong Stock Exchange on Friday, November 5th.</p>
<p>In our previous note, we discussed that the company developed a trimer tag platform that makes use of human collagen to trimerize targeted protein with an expected favorable safety profile. The company has completed a Phase 2/3 clinical trial for the COVID-19 vaccine (SCB-2019) which will be the main revenue driver for the company in the next two years as it will supply vaccines through the COVAX program. We also look at its two clinical-stage candidates, namely SCB-313 and SCB-808. The company is interesting and investors should follow the deal. We also provided our forecast for its SCB-2019 and SCB-313. We note that the company's valuation is largely anchored on the sales of its COVID-19 vaccine. Its SCB-313 is also interesting given the prevalence of the targeted indication. </p>
<p>In this note, we look at the updates since our last note. While the debut performance is likely to be poor, we would like to accumulate the stock at HKD 10.35/share.</p>

Clover Biopharmaceuticals raised HKD 1,870 million (USD 240m) from its global offering and will list on the Hong Kong Stock Exchange on Friday, November 5th.
In our previous note, we discussed that the company developed a trimer tag platform that makes use of human collagen to trimerize targeted protein with an expected favorable safety profile. The company has completed a Phase 2/3 clinical trial for the COVID-19 vaccine (SCB-2019) which will be the main revenue driver for the company in the next two years as it will supply vaccines through the COVAX program. We also look at its two clinical-stage candidates, namely SCB-313 and SCB-808. The company is interesting and investors should follow the deal. We also provided our forecast for its SCB-2019 and SCB-313. We note that the company's valuation is largely anchored on the sales of its COVID-19 vaccine. Its SCB-313 is also interesting given the prevalence of the targeted indication. 
In this note, we look at the updates since our last note. While the debut performance is likely to be poor, we would like to accumulate the stock at HKD 10.35/share.

Clover (三叶草生物) IPO Trading: Level for Accumulation

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.

<div><p><a href="https://www.smartkarma.com/entities/clover-biopharmaceuticals-ltd" target="_blank" data-smartkarma-citation="entities:33029:1" rel="noopener">Clover Biopharmaceuticals (2197 HK)</a> is a global clinical-stage biotechnology company dedicated to developing novel vaccines and biologic therapeutic candidates for infectious diseases as well as cancer and autoimmune diseases. The two core products are SCB-2019 (CpG 1018/Alum) and SCB-808. SCB-2019 (CpG 1018/Alum) is a protein-based COVID-19 vaccine candidate which may be commercially launched as early as year-end 2021. SCB-808 is a potentially differentiated Enbrel (etanercept) biosimilar. </p></div><div><p>Clover has launched an HKEx IPO to raise net proceeds of HK$1,837.2 million ($236 million) at the mid-point of the IPO price range of HK$12.80-13.50 per share. </p></div><div><p>Nine cornerstone investors have agreed to invest about $138.5 million in the IPO (54.6% of the offer shares at the mid-point of the IPO price range). Four out of the nine cornerstones are existing investors. They are Hillhouse, Orbimed, Temasek and Oceanpine Capital. The five cornerstones which are not existing shareholders are Rock Springs Capital, Athos Capital, Springhill Fund, Superstring Capital and Toroa.</p></div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/clover-biopharmaceuticals-ipo-needling" target="_blank" data-smartkarma-citation="insights:59421" rel="noopener">Clover Biopharmaceuticals IPO: Needling</a>, we stated that while there are numerous COVID-19 vaccine candidates, SCB-2019 (CpG 1018/Alum) is one of the select COVID-19 vaccine candidates to have received grant funding of up to $360.5 million from Coalition for Epidemic Preparedness Innovations (CEPI). Clover has also secured an advanced purchase agreement to supply up to 414 million SCB-2019 vaccine doses (of which 65 million are committed doses) to the COVAX Facility for global allocation. We concluded that Clover is worth a closer look. Our valuation analysis suggests that the IPO price range is attractive.  </p></div></div>

Clover Biopharmaceuticals (2197 HK) is a global clinical-stage biotechnology company dedicated to developing novel vaccines and biologic therapeutic candidates for infectious diseases as well as cancer and autoimmune diseases. The two core products are SCB-2019 (CpG 1018/Alum) and SCB-808. SCB-2019 (CpG 1018/Alum) is a protein-based COVID-19 vaccine candidate which may be commercially launched as early as year-end 2021. SCB-808 is a potentially differentiated Enbrel (etanercept) biosimilar. Clover has launched an HKEx IPO to raise net proceeds of HK$1,837.2 million ($236 million) at the mid-point of the IPO price range of HK$12.80-13.50 per share. Nine cornerstone investors have agreed to invest about $138.5 million in the IPO (54.6% of the offer shares at the mid-point of the IPO price range). Four out of the nine cornerstones are existing investors. They are Hillhouse, Orbimed, Temasek and Oceanpine Capital. The five cornerstones which are not existing shareholders are Rock Springs Capital, Athos Capital, Springhill Fund, Superstring Capital and Toroa.In Clover Biopharmaceuticals IPO: Needling, we stated that while there are numerous COVID-19 vaccine candidates, SCB-2019 (CpG 1018/Alum) is one of the select COVID-19 vaccine candidates to have received grant funding of up to $360.5 million from Coalition for Epidemic Preparedness Innovations (CEPI). Clover has also secured an advanced purchase agreement to supply up to 414 million SCB-2019 vaccine doses (of which 65 million are committed doses) to the COVAX Facility for global allocation. We concluded that Clover is worth a closer look. Our valuation analysis suggests that the IPO price range is attractive.  

Clover Biopharmaceuticals IPO: Valuation Insights

<p>Clover, a China-based clinical-stage biotech company, launched book building to raise up to USD 226m via a Hong Kong listing.</p><p>In our previous note, we discussed that the company developed a trimer tag platform that makes use of human collagen to trimerize targeted protein with an expected favorable safety profile. The company has completed a Phase 2/3 clinical trial for the COVID-19 vaccine (SCB-2019) which will be the main revenue driver for the company in the next two years as it will supply vaccines through the COVAX program. We also look at its two clinical-stage candidates, namely SCB-313 and SCB-808. The company is interesting and investors should follow the deal. We also provided our forecast for its SCB-2019 and SCB-313. We note that the company's valuation is largely anchored on the sales of its COVID-19 vaccine. Its SCB-313 is also interesting given the prevalence of the targeted indication. </p><p>In this note, we also provided an update for the book building.</p>

Clover, a China-based clinical-stage biotech company, launched book building to raise up to USD 226m via a Hong Kong listing.In our previous note, we discussed that the company developed a trimer tag platform that makes use of human collagen to trimerize targeted protein with an expected favorable safety profile. The company has completed a Phase 2/3 clinical trial for the COVID-19 vaccine (SCB-2019) which will be the main revenue driver for the company in the next two years as it will supply vaccines through the COVAX program. We also look at its two clinical-stage candidates, namely SCB-313 and SCB-808. The company is interesting and investors should follow the deal. We also provided our forecast for its SCB-2019 and SCB-313. We note that the company's valuation is largely anchored on the sales of its COVID-19 vaccine. Its SCB-313 is also interesting given the prevalence of the targeted indication. In this note, we also provided an update for the book building.

Clover (三叶草生物) IPO: Valuation with a Margin of Safety

<p>Clover, a China-based clinical-stage biotech company, plans to raise up to USD 300m via a Hong Kong listing.</p><p>In our previous note, we discussed that the company developed a trimer tag platform that makes use of human collagen to trimerize targeted protein with an expected favorable safety profile. The company has completed a Phase 2/3 clinical trial for the COVID-19 vaccine (SCB-2019) which will be the main revenue driver for the company in the next two years as it will supply vaccines through the COVAX program. We also look at its two clinical-stage candidates, namely SCB-313 and SCB-808. The company is interesting and investors should follow the deal.</p><p>In this note, we provide our forecast for its SCB-2019 and SCB-313. We note that the company's valuation is largely anchored on the sales of its COVID-19 vaccine. Its SCB-313 is also interesting given the prevalence of the targeted indication. </p>

Clover, a China-based clinical-stage biotech company, plans to raise up to USD 300m via a Hong Kong listing.In our previous note, we discussed that the company developed a trimer tag platform that makes use of human collagen to trimerize targeted protein with an expected favorable safety profile. The company has completed a Phase 2/3 clinical trial for the COVID-19 vaccine (SCB-2019) which will be the main revenue driver for the company in the next two years as it will supply vaccines through the COVAX program. We also look at its two clinical-stage candidates, namely SCB-313 and SCB-808. The company is interesting and investors should follow the deal.In this note, we provide our forecast for its SCB-2019 and SCB-313. We note that the company's valuation is largely anchored on the sales of its COVID-19 vaccine. Its SCB-313 is also interesting given the prevalence of the targeted indication. 

Clover (三叶草生物) Pre-IPO: Thoughts on Valuation

China

CanSino Biologics Inc. develops and manufactures biological vaccine products. The Company discovers quadrivalence meningococcal conjugate, pneumococcal polysaccharide, and adenovirus vector-based tuberculosis vaccines for human use. CanSino Biologics serves customers worldwide.

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CanSino Biologics (6185 HK)

Brii Biosciences (2137.HK) - With the Potential of “Zero to One”

The article analyzed Brii Biosciences in terms of its COVID-19 product BRII-196/BRII-198, the meaning of its success, the concerns,the impact on...

Xinyao (Criss) Wang

Clover (三叶草生物) IPO Trading: Level for Accumulation

We look at factors for Clover Pharmaceuticals' debut performance. While the debut performance is likely to be poor, we would like to accumulate the...

Ke Yan, CFA, FRM

Clover Biopharmaceuticals IPO: Valuation Insights

Clover has launched an IPO to raise net proceeds of $236m at the mid-point of the price range of HK$12.80-13.50 per share. Our valuation analysis...

Arun George

Clover (三叶草生物) IPO: Valuation with a Margin of Safety

We provide an update for the Clover Pharmaceuticals' book building. We think its valuation provides a margin of safety against our conservative...

Ke Yan, CFA, FRM

Clover (三叶草生物) Pre-IPO: Thoughts on Valuation

We provide our forecast for its SCB-2019 and SCB-313. The company's valuation is largely anchored on the sales of its COVID-19 vaccine thought SCB...

Ke Yan, CFA, FRM

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