HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>China attaches great importance to gene therapy and related products, which would be a leader of the third industrial revolution in biomedicine and have broad prospects for future development.</li>
<li>With obvious strength in this field,<a href="https://www.smartkarma.com/entities/genscript-biotech-corp" target="_blank" data-smartkarma-citation="entities:21041:1" rel="noopener">Genscript Biotech (1548 HK)</a>’s businesses are in line with the future trend and the outlook is also quite promising, indicating exponential growth potential in valuation.</li>
<li>However, the potential risks on deterioration of international relations and the concerns on CAR-T commercialization should not be neglected by investors.</li>
</ul>


China attaches great importance to gene therapy and related products, which would be a leader of the third industrial revolution in biomedicine and have broad prospects for future development.
With obvious strength in this field,Genscript Biotech (1548 HK)’s businesses are in line with the future trend and the outlook is also quite promising, indicating exponential growth potential in valuation.
However, the potential risks on deterioration of international relations and the concerns on CAR-T commercialization should not be neglected by investors.


Genscript Biotech (1548.HK) - The Strength and the Concerns

Equity Capital Markets

Beijing Mabworks Biotech / Equity Capital Markets

On July 18, 2021, <a href="https://www.smartkarma.com/entities/beijing-mabworks-biotech-company-limited" target="_blank" data-smartkarma-citation="entities:33816:1" rel="noopener">Beijing Mabworks Biotech (MWB HK) </a>formally submitted its application to the HKEX for listing on the main board. It should be noted that Mabworks's application for listing on the SSE STAR Market was accepted in September last year, but the Company voluntarily withdrew its application in March this year. Mabworks is a clinical-stage biopharmaceutical company in China focusing on the discovery and development of differentiated antibody drugs. This insight mainly analyzed the clinical-stage drug candidates and related concerns of the Company.

On July 18, 2021, Beijing Mabworks Biotech (MWB HK) formally submitted its application to the HKEX for listing on the main board. It should be noted that Mabworks's application for listing on the SSE STAR Market was accepted in September last year, but the Company voluntarily withdrew its application in March this year. Mabworks is a clinical-stage biopharmaceutical company in China focusing on the discovery and development of differentiated antibody drugs. This insight mainly analyzed the clinical-stage drug candidates and related concerns of the Company.

Pre-IPO Beijing Mabworks Biotech - MIL62 Alone Cannot Save the Situation

Transcenta Holding / Equity Capital Markets

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.

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

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 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.

<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.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.

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

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)

Genscript Biotech (1548.HK) - The Strength and the Concerns

This insight analyzed Genscript's three largest segments (life-science services and products, CDMO, cell therapy), strength in CGT, and concerns on...

Xinyao (Criss) Wang

Pre-IPO Beijing Mabworks Biotech - MIL62 Alone Cannot Save the Situation

This article mainly analyzed Mabworks Biotech in terms of the important clinical-stage drug candidates (MIL62, MIL93, MBS301, MIL97, MIL95, MIL86,...

Xinyao (Criss) Wang

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

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