HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Transcenta Holding / Equity Capital Markets

<p>Recently, <a href="https://www.smartkarma.com/entities/transcenta-holding-limited" target="_blank" data-smartkarma-citation="entities:33523:1" rel="noopener">Transcenta Holding (THL HK)</a> has passed the listing hearing of the HKEX and is expected to be listed on the main board in the near future. Transcenta is a clinical stage global biopharmaceutical company that integrates the capacities of discovery, research, development, manufacturing and business development, with nine product candidates in the pipeline, eight of which are oncology drug candidates. This insight mainly analyzed the important product candidates (such as MSB2311, TST001, TST005 and MSB0254) in the pipeline and related concerns. </p>

Recently, Transcenta Holding (THL HK) has passed the listing hearing of the HKEX and is expected to be listed on the main board in the near future. Transcenta is a clinical stage global biopharmaceutical company that integrates the capacities of discovery, research, development, manufacturing and business development, with nine product candidates in the pipeline, eight of which are oncology drug candidates. This insight mainly analyzed the important product candidates (such as MSB2311, TST001, TST005 and MSB0254) in the pipeline and related concerns. 

Pre-IPO Transcenta Holding - Insights on Pipeline and the Concerns

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.

CARSgen Therapeutics / Equity Capital Markets

<p>CARsgen raised HKD 2,940 million (USD 379m) from its global offering and will list on the Hong Kong Stock Exchange on Friday, June 17th.</p>
<p>In our previous note, we discussed that the company has many selling points, including the potentially best-in-class BCMA target for the indication of r/r MM, and its advancement in two targets for the CAR-T therapy, namely CLDN18.2 and GPC3. It has its own technologies that improved the safety for CAR-T technology and also demonstrated preliminary efficacy in the solid tumor which was challenging for the CAR-T therapy. Having looked at numbers from its clinical trials for CT053, we are of the view that this is a promising therapy for r/r MM but the market will be mostly in the US where the company has started clinical trial. As the company is leading in the CLDN18.2 and GPC3, there might be upside if the target is proven to work for CAR-T therapy. The company has a strong management team with academic experiences. Its pre-IPO investors are strong but are mainly domestic institutions.</p>
<p>In this note, we look at the updates since our last note. Past deals with similar book coverage didn't do well on the first day in general despite a strong liquidity. Share allocations for institutional investors were concentrated. As such we do not expect a pop on debut but we think it can still trade higher in the days after. </p>

CARsgen raised HKD 2,940 million (USD 379m) from its global offering and will list on the Hong Kong Stock Exchange on Friday, June 17th.
In our previous note, we discussed that the company has many selling points, including the potentially best-in-class BCMA target for the indication of r/r MM, and its advancement in two targets for the CAR-T therapy, namely CLDN18.2 and GPC3. It has its own technologies that improved the safety for CAR-T technology and also demonstrated preliminary efficacy in the solid tumor which was challenging for the CAR-T therapy. Having looked at numbers from its clinical trials for CT053, we are of the view that this is a promising therapy for r/r MM but the market will be mostly in the US where the company has started clinical trial. As the company is leading in the CLDN18.2 and GPC3, there might be upside if the target is proven to work for CAR-T therapy. The company has a strong management team with academic experiences. Its pre-IPO investors are strong but are mainly domestic institutions.
In this note, we look at the updates since our last note. Past deals with similar book coverage didn't do well on the first day in general despite a strong liquidity. Share allocations for institutional investors were concentrated. As such we do not expect a pop on debut but we think it can still trade higher in the days after. 

CARsgen (科济药业) IPO Trading: Not Likely a Pop on Debut

Equity Analyst, LightStream Research

Shifara Samsudeen, ACMA, CGMA

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

<p><a href="https://www.smartkarma.com/entities/carsgen-therapeutics-ltd" target="_blank" data-smartkarma-citation="entities:32213:1" rel="noopener">CARSgen Therapeutics (2171 HK)</a>  has announced the indicative price range for its IPO at HK$29.6-32.8 per share. The company plans to issue approx. 94.7m shares and at the midpoint of the IPO price range of HK$31.2 per share, CARsgen will raise net proceeds of HK$2.8bn (approx. US$363.3m) at a market capitalisation of HK$17.7bn and a post-money EV of HK$13.7bn.</p><p>In our previous insight on the company’s IPO <a href="https://www.smartkarma.com/insights/carsgen-therapeutics-ipo-catalyzing-cancer-therapies" target="_blank" data-smartkarma-citation="insights:52243" rel="noopener">CARSgen Therapeutics IPO: Catalyzing Cancer Therapies</a> , we discussed CARsgen’s product pipeline and their potential. The company has not yet started generating revenues as it does not have any commercialised product. The company’s core product candidate CT053, BCMA-targeted CAR-T product candidate for the treatment of refractory/relapsed multiple myeloma (R/R MM) shows significant potential and CARsgen plans to submit a NDA to the NMPA in 1H2022.</p>

CARSgen Therapeutics (2171 HK)  has announced the indicative price range for its IPO at HK$29.6-32.8 per share. The company plans to issue approx. 94.7m shares and at the midpoint of the IPO price range of HK$31.2 per share, CARsgen will raise net proceeds of HK$2.8bn (approx. US$363.3m) at a market capitalisation of HK$17.7bn and a post-money EV of HK$13.7bn.In our previous insight on the company’s IPO CARSgen Therapeutics IPO: Catalyzing Cancer Therapies , we discussed CARsgen’s product pipeline and their potential. The company has not yet started generating revenues as it does not have any commercialised product. The company’s core product candidate CT053, BCMA-targeted CAR-T product candidate for the treatment of refractory/relapsed multiple myeloma (R/R MM) shows significant potential and CARsgen plans to submit a NDA to the NMPA in 1H2022.

CARsgen Therapeutics IPO: Limited Upside as Most Drug Candidates Are in Phase I Studies

<p>CARsgen is a China and US-based clinical stage biopharmaceutical company focused on CAR-T therapies. The company has four CAR-T products and one monoclonal antibody in the clinical stage. The company launched book building to raise up to USD 400m via a Hong Kong listing.</p><p>In our previous note, we discussed that the company has many selling points, including the potentially best-in-class BCMA target for the indication of r/r MM, and its advancement in two targets for the CAR-T therapy, namely CLDN18.2 and GPC3. It has its own technologies that improved the safety for CAR-T technology and also demonstrated preliminary efficacy in the solid tumor which was challenging for the CAR-T therapy. Having looked at numbers from its clinical trials for CT053, we are of the view that this is a promising therapy for r/r MM but the market will be mostly in the US where the company has started clinical trial. As the company is leading in the CLDN18.2 and GPC3, there might be upside if the target is proven to work for CAR-T therapy. The company has a strong management team with academic experiences. Its pre-IPO investors are strong but are mainly domestic institutions. </p><p>In this note, we provide an update for the book building. We think there will be at least a 24% upside at the high end and the allocation will be thin for investors.</p>

CARsgen is a China and US-based clinical stage biopharmaceutical company focused on CAR-T therapies. The company has four CAR-T products and one monoclonal antibody in the clinical stage. The company launched book building to raise up to USD 400m via a Hong Kong listing.In our previous note, we discussed that the company has many selling points, including the potentially best-in-class BCMA target for the indication of r/r MM, and its advancement in two targets for the CAR-T therapy, namely CLDN18.2 and GPC3. It has its own technologies that improved the safety for CAR-T technology and also demonstrated preliminary efficacy in the solid tumor which was challenging for the CAR-T therapy. Having looked at numbers from its clinical trials for CT053, we are of the view that this is a promising therapy for r/r MM but the market will be mostly in the US where the company has started clinical trial. As the company is leading in the CLDN18.2 and GPC3, there might be upside if the target is proven to work for CAR-T therapy. The company has a strong management team with academic experiences. Its pre-IPO investors are strong but are mainly domestic institutions. In this note, we provide an update for the book building. We think there will be at least a 24% upside at the high end and the allocation will be thin for investors.

CARsgen (科济药业) IPO: Not the Best Deal but Will Be Decent

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/carsgen-therapeutics-ltd" target="_blank" data-smartkarma-citation="entities:32213:1" rel="noopener">CARSgen Therapeutics (2171 HK)</a> is a biopharma focused on innovative CAR-T cell therapies for the treatment of haematological malignancies and solid tumours. CARsgen opines that it is a key player in the field of CAR-T cell therapies. Pre-IPO investors include Hillhouse Capital, <a href="https://www.smartkarma.com/entities/zhejiang-jolly-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:7333:1" rel="noopener">Zhejiang Jolly Pharmaceutical (300181 CH)</a>, KTB Network, <a href="https://www.smartkarma.com/entities/tasly-pharmaceutical-group-co-ltd" target="_blank" data-smartkarma-citation="entities:9569:1" rel="noopener">Tasly Pharmaceutical Group (600535 CH)</a>, Loyal Valley Capital, Shiyu Investment Management and Lilly Asia Ventures.</p></div><div><p>CARsgen has launched an HKEx IPO to raise net proceeds of HK$2,795 million ($360 million) at the mid-point of the IPO price range of HK$29.60-32.80 per share.</p></div><div><p>Nine cornerstone investors have agreed to invest about $230 million in the IPO (60.38% of the offer shares at the mid-point of the IPO price range). The cornerstone investors are LAV Group, New China Capital Management, CloudAlpha Capital Management, Orient Asset Management, WT Asset Management, GF Fund, Dymon Asia, IvyRock and China Southern Asset Management. </p></div><div><div>
<p>In <a href="https://www.smartkarma.com/insights/carsgen-therapeutics-ipo-initiation-choosing-therapies-a-la-car-t" target="_blank" data-smartkarma-citation="insights:52072" rel="noopener">CARsgen Therapeutics IPO Initiation: Choosing Therapies À La CAR-T</a>, we stated that the promising prospects for the lead product, a credible management team and a good shareholder register make the IPO worth a closer look. </p>
<div class="content-highlight"><p>Our SoTP value is HK$31.74 per share which is a 2% upside to the mid-point of the IPO price range. Due to the limited upside to our SoTP valuation, we think that the IPO price range is full. Overall, while we like CARsgen's fundamentals, due to the full IPO price range, lack of blue-chip cornerstone support and the current weak market sentiment on IPOs, we are inclined to wait on the sidelines for a more attractive entry point. </p></div>
</div></div>

CARSgen Therapeutics (2171 HK) is a biopharma focused on innovative CAR-T cell therapies for the treatment of haematological malignancies and solid tumours. CARsgen opines that it is a key player in the field of CAR-T cell therapies. Pre-IPO investors include Hillhouse Capital, Zhejiang Jolly Pharmaceutical (300181 CH), KTB Network, Tasly Pharmaceutical Group (600535 CH), Loyal Valley Capital, Shiyu Investment Management and Lilly Asia Ventures.CARsgen has launched an HKEx IPO to raise net proceeds of HK$2,795 million ($360 million) at the mid-point of the IPO price range of HK$29.60-32.80 per share.Nine cornerstone investors have agreed to invest about $230 million in the IPO (60.38% of the offer shares at the mid-point of the IPO price range). The cornerstone investors are LAV Group, New China Capital Management, CloudAlpha Capital Management, Orient Asset Management, WT Asset Management, GF Fund, Dymon Asia, IvyRock and China Southern Asset Management. 
In CARsgen Therapeutics IPO Initiation: Choosing Therapies À La CAR-T, we stated that the promising prospects for the lead product, a credible management team and a good shareholder register make the IPO worth a closer look. 
Our SoTP value is HK$31.74 per share which is a 2% upside to the mid-point of the IPO price range. Due to the limited upside to our SoTP valuation, we think that the IPO price range is full. Overall, while we like CARsgen's fundamentals, due to the full IPO price range, lack of blue-chip cornerstone support and the current weak market sentiment on IPOs, we are inclined to wait on the sidelines for a more attractive entry point. 


CARsgen Therapeutics IPO: Valuation Insights

China

CARsgen is a leading immunotherapy company focused on the development of new chimeric antigen receptor T (CAR-T) cell therapeutics for liver, lung, stomach and brain cancers. The company has relationships with Shanghai Cancer Institute and Shanghai Renji Hospital, plans to initiate clinical trials for KJgpc3-001, a glypican-3 (GPC3)-directed CAR-T cell therapy.

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CARSgen Therapeutics (2171 HK)

Pre-IPO Transcenta Holding - Insights on Pipeline and the Concerns

The article mainly analyzed Transcenta Holding in terms of its important product candidates MSB2311, TST001, TST005 and MSB0254,including the...

Xinyao (Criss) Wang

CARsgen (科济药业) IPO Trading: Not Likely a Pop on Debut

We look at the updates of CARsgen since our last note. Past deals with similar book coverage didn't do well on the first day in general despite a...

Ke Yan, CFA, FRM

CARsgen Therapeutics IPO: Limited Upside as Most Drug Candidates Are in Phase I Studies

Our DCF analysis offers limited upside to the company’s indicative IPO price range and our assumptions for the company’s revenue and margin...

Shifara Samsudeen, ACMA, CGMA

CARsgen (科济药业) IPO: Not the Best Deal but Will Be Decent

In this note, we provide an update for the CARsgen's book building. We think there will be at least a 24% upside at the high end and the allocation...

Ke Yan, CFA, FRM

CARsgen Therapeutics IPO: Valuation Insights

Due to the full IPO price range, lack of blue-chip cornerstone support and the current weak market sentiment on IPOs, we are inclined to wait on...

Arun George

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