HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/edding-group-company-limited" target="_blank" data-smartkarma-citation="entities:29731:1" rel="noopener">Edding Group (EDG HK)</a> has filed its prospectus with the Hong Kong Stock Exchange for listing recently. The Company has established a highly differentiated and diversified product portfolio, mainly divided into three categories: anti-infectives, cardiovascular system and respiratory system. The following analyzed both the market potential and concerns for Edding.

Edding Group (EDG HK) has filed its prospectus with the Hong Kong Stock Exchange for listing recently. The Company has established a highly differentiated and diversified product portfolio, mainly divided into three categories: anti-infectives, cardiovascular system and respiratory system. The following analyzed both the market potential and concerns for Edding.

Pre-IPO Edding Group - Strong Core Products but Still Have 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.

Edding Group, a leading integrated pharmaceutical company in China, plans to raise up to USD 200m via a Hong Kong listing.The company is turning from a distributor of NMC drugs to a pharmaceutical company by acquiring product rights in the past two years. We are of the view that the Vancocin and Ceclor are the selling point of the company as they both have a dominant position in the respective segment and are in growing markets. The company's Vascepa is an interesting CVD product but the competition is intense given that the statin is the main therapy to reduce CV risks and it has many varieties with a competitive market. However, we do not see Mulpleta and EPD 125 attractive. Sales of Mulpleta are very small in Japan and the EDP125 was suspended by Eli Lilly previously given that it failed to demonstrate superiority in Phase II/III clinical trials. We think the management does not possess impressive working experience, though investor backing is strong.

Edding Group, a leading integrated pharmaceutical company in China, plans to raise up to USD 200m via a Hong Kong listing.The company is turning from a distributor of NMC drugs to a pharmaceutical company by acquiring product rights in the past two years. We are of the view that the Vancocin and Ceclor are the selling point of the company as they both have a dominant position in the respective segment and are in growing markets. The company's Vascepa is an interesting CVD product but the competition is intense given that the statin is the main therapy to reduce CV risks and it has many varieties with a competitive market. However, we do not see Mulpleta and EPD 125 attractive. Sales of Mulpleta are very small in Japan and the EDP125 was suspended by Eli Lilly previously given that it failed to demonstrate superiority in Phase II/III clinical trials. We think the management does not possess impressive working experience, though investor backing is strong.

Edding Group (亿腾医药) Pre-IPO: Distributor Turning Pharmaceutical

China

Pharmaceutical company focusing on three core therapeutic areas, namely anti-infectives, cardiovascular ('CV') and respiratory, by leveraging our market-tested full value chain capabilities.

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Pre-IPO Edding Group - Strong Core Products but Still Have Concerns

The article analyzed the market potential of its core products in three categories: anti-infectives, cardiovascular system and respiratory system,...

Xinyao (Criss) Wang

Edding Group (亿腾医药) Pre-IPO: Distributor Turning Pharmaceutical

The company is turning from a distributor of NMC drugs to a pharmaceutical company by acquiring product rights in the past two years.

Ke Yan, CFA, FRM