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.

Equity Capital Markets

<a href="https://www.smartkarma.com/entities/abbisko-cayman-limited" target="_blank" data-smartkarma-citation="entities:33511:1" rel="noopener">Abbisko Cayman (ABB HK)</a> is a clinical-stage biopharmaceutical company focused on the discovery and development of innovative and differentiated small molecule oncology therapies. Abbisko has developed a pipeline of 14 candidates focused on oncology, including five candidates at the clinical stage The core products are ABSK091, a pan-FGFR inhibitor licensed from <a href="https://www.smartkarma.com/entities/astrazeneca-plc" target="_blank" data-smartkarma-citation="entities:21824:1" rel="noopener">AstraZeneca PLC (AZN LN)</a> and ABSK011, an FGFR4 inhibitor. Abbisko is pre-marketing an HKEx IPO to raise $300 million, according to press reports. Abbisko has a credible management team with a commendable commercialisation track record. The three co-founders together have made contributions to several discovery programs, several of which led to successful commercialisation. Abbisko also has several blue-chip backers such as Lilly Asia Ventures, Sinopharm Capital, Qiming Venture Capital, GIC, Temasek, <a href="https://www.smartkarma.com/entities/carlyle-group-inc" target="_blank" data-smartkarma-citation="entities:33402:1" rel="noopener">Carlyle Group Inc (CG US)</a>, Lake Bleu Capital and OrbiMed. <div class="content-highlight">While both core products are at an early stage of development, promising results from trials, management’s track record and the exceptional line-up of blue-chip backers suggest that the product candidates have the potential to succeed in a fiercely competitive market. Overall, we believe that Abbisko is worth a closer look. </div>

Abbisko Cayman (ABB HK) is a clinical-stage biopharmaceutical company focused on the discovery and development of innovative and differentiated small molecule oncology therapies. Abbisko has developed a pipeline of 14 candidates focused on oncology, including five candidates at the clinical stage The core products are ABSK091, a pan-FGFR inhibitor licensed from AstraZeneca PLC (AZN LN) and ABSK011, an FGFR4 inhibitor. Abbisko is pre-marketing an HKEx IPO to raise $300 million, according to press reports. Abbisko has a credible management team with a commendable commercialisation track record. The three co-founders together have made contributions to several discovery programs, several of which led to successful commercialisation. Abbisko also has several blue-chip backers such as Lilly Asia Ventures, Sinopharm Capital, Qiming Venture Capital, GIC, Temasek, Carlyle Group Inc (CG US), Lake Bleu Capital and OrbiMed. While both core products are at an early stage of development, promising results from trials, management’s track record and the exceptional line-up of blue-chip backers suggest that the product candidates have the potential to succeed in a fiercely competitive market. Overall, we believe that Abbisko is worth a closer look. 

Abbisko IPO: A Promising but Longer Term Prognosis

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.

Abbisko was a clinical-stage biopharmaceutical company in China. The company plans to raise up to USD 300m via  a Hong Kong listing.The company's product pipeline has a strong focus on selective FGFR small molecules for oncology therapy. Its core products ABSK011 is an FGFR4 inhibitor and ABSK091 is a pan-FGFR inhibitor, which was in-licensed from AstraZeneca with global rights. We think its products have yet to show convincing clinical numbers despite a strong prospect from pre-clinical readings. We think the company's management team is experienced with proven track record of product development and commercialization. The investor line-up is strong.

Abbisko was a clinical-stage biopharmaceutical company in China. The company plans to raise up to USD 300m via  a Hong Kong listing.The company's product pipeline has a strong focus on selective FGFR small molecules for oncology therapy. Its core products ABSK011 is an FGFR4 inhibitor and ABSK091 is a pan-FGFR inhibitor, which was in-licensed from AstraZeneca with global rights. We think its products have yet to show convincing clinical numbers despite a strong prospect from pre-clinical readings. We think the company's management team is experienced with proven track record of product development and commercialization. The investor line-up is strong.

Abbisko (和誉) Pre-IPO: Strong Team but FGFR Inhibitors Not Convincing Yet

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

Industry viewpoints:<ul>
<li>A new round of rebalancing may still take some time.</li>
<li>Last week, the results of centralized procurement of artificial joints was released.</li>
<li>The added value of consumer genetic testing is that it could be a reference rather than an essential treatment or evidence.</li>
</ul>Company news:News about the updated progress on new drugs and cooperation agreement of <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a>, <a href="https://www.smartkarma.com/entities/cstone-pharmaceuticals" target="_blank" data-smartkarma-citation="entities:27882:1" rel="noopener">CStone Pharmaceuticals (2616 HK)</a> and <a href="https://www.smartkarma.com/entities/everest-medicines-ltd" target="_blank" data-smartkarma-citation="entities:29224:1" rel="noopener">Everest Medicines (1952 HK)</a>.Market review: Last week, stock price for healthcare sector in A share increased 2.63%, while CSI 300 decreased 3.14% over the same period of time. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
A new round of rebalancing may still take some time.
Last week, the results of centralized procurement of artificial joints was released.
The added value of consumer genetic testing is that it could be a reference rather than an essential treatment or evidence.
Company news:News about the updated progress on new drugs and cooperation agreement of BeiGene Ltd (6160 HK), CStone Pharmaceuticals (2616 HK) and Everest Medicines (1952 HK).Market review: Last week, stock price for healthcare sector in A share increased 2.63%, while CSI 300 decreased 3.14% over the same period of time. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China Healthcare Weekly (Sep17) - A New Round of Rebalancing, Artificial Joints VBP, Genetic Testing

Equity Bottom-Up

Recently, <a href="https://www.smartkarma.com/entities/innocare-pharma-ltd" target="_blank" data-smartkarma-citation="entities:28355:1" rel="noopener">InnoCare Pharma Ltd (9969 HK)</a> released 2021/1H financial results. The revenue was RMB102 million, up 13490.51% YoY, which was mainly due to the sales growth of orelabrutinib. Net loss was narrowed from RMB337 in 2020/1H to RMB213 million in 2021/1H, indicating improvement. Meanwhile, InnoCare is also going to be listed on the SSE STAR market, which is expected to be another biopharmaceutical company with "A+H" shares listing. This insight mainly analyzed the core product, pipeline and the concerns of the Company.

Recently, InnoCare Pharma Ltd (9969 HK) released 2021/1H financial results. The revenue was RMB102 million, up 13490.51% YoY, which was mainly due to the sales growth of orelabrutinib. Net loss was narrowed from RMB337 in 2020/1H to RMB213 million in 2021/1H, indicating improvement. Meanwhile, InnoCare is also going to be listed on the SSE STAR market, which is expected to be another biopharmaceutical company with "A+H" shares listing. This insight mainly analyzed the core product, pipeline and the concerns of the Company.

InnoCare Pharma Ltd (9969.HK) - Risk of Becoming Mediocre

Industry viewpoints:<ul>
<li>Every stock market pullback is a good time to reorganize the logic and to think about what the trends are and what the constant demand is.</li>
<li>The volume-based purchase (VBP) of insulin will begin soon.</li>
<li>Due to the slow international logistics and product export restrictions during the COVID-19, the upstream pharmaceutical equipment, which was previously slow in import substitution, is expected to add the domestic industrial chain and quickly achieve the import substitution. </li>
</ul>Company news: News about the updated progress on drugs of <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a>, <a href="https://www.smartkarma.com/entities/everest-medicines-ltd" target="_blank" data-smartkarma-citation="entities:29224:1" rel="noopener">Everest Medicines (1952 HK)</a>, <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a> and <a href="https://www.smartkarma.com/entities/cstone-pharmaceuticals" target="_blank" data-smartkarma-citation="entities:27882:1" rel="noopener">CStone Pharmaceuticals (2616 HK)</a>. Market review:Last week, stock price for healthcare sector in A share decreased 4.32%, while CSI 300 decreased 5.46% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
Every stock market pullback is a good time to reorganize the logic and to think about what the trends are and what the constant demand is.
The volume-based purchase (VBP) of insulin will begin soon.
Due to the slow international logistics and product export restrictions during the COVID-19, the upstream pharmaceutical equipment, which was previously slow in import substitution, is expected to add the domestic industrial chain and quickly achieve the import substitution. 
Company news: News about the updated progress on drugs of BeiGene Ltd (6160 HK), Everest Medicines (1952 HK), Innovent Biologics Inc (1801 HK) and CStone Pharmaceuticals (2616 HK). Market review:Last week, stock price for healthcare sector in A share decreased 4.32%, while CSI 300 decreased 5.46% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China

Everest Medicines Limited operates as a late clinical-stage biopharmaceutical company. The Company engages in licensing, clinical development, and commercialization of therapies for oncology, immunology, cardio-renal disease, and infectious disease. Everest Medicines markets its products in China and other emerging Asia Pacific markets.

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Everest Medicines (1952 HK)

Abbisko IPO: A Promising but Longer Term Prognosis

While both core products are at an early stage of development, promising trials, management’s track record and blue-chip backers suggest that the...

Arun George

Abbisko (和誉) Pre-IPO: Strong Team but FGFR Inhibitors Not Convincing Yet

We look at the two main FGFR inhibitor products of Abbisko which is looking to raise up to USD 300m via a Hong Kong listing.

Ke Yan, CFA, FRM

China Healthcare Weekly (Sep17) - A New Round of Rebalancing, Artificial Joints VBP, Genetic Testing

The article mainly analyzed the logic of volume-based purchase (VBP) and healthcare sector rebalancing, the results of centralized procurement of...

Xinyao (Criss) Wang

InnoCare Pharma Ltd (9969.HK) - Risk of Becoming Mediocre

This article analyzed InnoCare in terms of its core product orelabrutinib, key product candidates in the pipeline, the competitive landscape, the...

Xinyao (Criss) Wang

China Healthcare Weekly (July.30)

This article mainly analyzed the logic and trends when stock market pullback, volume-based purchase of insulin in China, import substitution of...

Xinyao (Criss) Wang

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