HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Gracell Biotechnologies Inc / Equity Bottom-Up

<ul>
<li>Although the pipeline has characteristics, Gracell’s R&amp;D progress cannot catch up with the speed of the transformation of global CGT investment climate. Its commercialization performance could be much lower than expected. </li>
<li>There’s “practical obstacles” for the use of CAR-T, which cannot solve the actual clinical needs at this stage. Doctors would choose other solutions. So, the actual market space is small.</li>
<li>Investors can do short-term trade when Gracell’s valuation is lower than peers, but due to the highly uncertain long-term prospects of this company, we do not recommend long-term hold.</li>
</ul>


Although the pipeline has characteristics, Gracell’s R&amp;D progress cannot catch up with the speed of the transformation of global CGT investment climate. Its commercialization performance could be much lower than expected. 
There’s “practical obstacles” for the use of CAR-T, which cannot solve the actual clinical needs at this stage. Doctors would choose other solutions. So, the actual market space is small.
Investors can do short-term trade when Gracell’s valuation is lower than peers, but due to the highly uncertain long-term prospects of this company, we do not recommend long-term hold.


Gracell Biotechnologies Inc (GRCL.US) - The Overall Outlook for CAR T Therapy Is Highly Uncertain

Research from EqualOcean, EqualOcean

EqualOcean

Research from EqualOcean

EqualOcean is an investment research firm and information service provider focusing on China's Technology, Automotive and Consumer Internet sectors. With unique research and due diligence methodology, we provide tailored insights into a wide range of industries and companies, empowering our clients' value-added decisions.

Founded in 2014, EqualOcean is headquartered in Beijing and has offices in Shanghai, Shenzhen and New York.

Thematic (Sector/Industry)

<ul><li>GT (Cell and Gene Therapy) is a sector with high growth potential.</li><li>CAR-T, as one of the main CGT currently, presents great value for both doctors and patients.</li><li>This article showcases the industry pain points and opportunities faced in the CAR-T sub-sector.</li></ul>

GT (Cell and Gene Therapy) is a sector with high growth potential.CAR-T, as one of the main CGT currently, presents great value for both doctors and patients.This article showcases the industry pain points and opportunities faced in the CAR-T sub-sector.

Opportunities and Challenges Hidden in the CGT Industry in China

Global Healthcare Analyst

Tina Banerjee

Equity Capital Markets

Meihua International Medical Technologies / Equity Capital Markets

Meihua International Medical Technologies

<ul>
<li>China-Based medical devices company, Meihua International Medical Technologies intends to raise $50 million from its U.S. IPO by offering 5 million shares at price between $9 and $11 per share.</li>
<li>Upon the completion of this offering, the company will have 25 million shares outstanding. At the midpoint of offer price, Meihua will command a market capitalization of $250 million.</li>
<li>Despite attractive valuation, investors can avoid the IPO due to its unimpressive financial performance and concerns over Chinese companies listing in the U.S. market.  </li>
</ul>


China-Based medical devices company, Meihua International Medical Technologies intends to raise $50 million from its U.S. IPO by offering 5 million shares at price between $9 and $11 per share.
Upon the completion of this offering, the company will have 25 million shares outstanding. At the midpoint of offer price, Meihua will command a market capitalization of $250 million.
Despite attractive valuation, investors can avoid the IPO due to its unimpressive financial performance and concerns over Chinese companies listing in the U.S. market.  


Meihua International Medical Technologies Pre-IPO: Risks Overshadow Cheap Valuation

<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

CARSgen Therapeutics / Equity Capital Markets

<p>The new IPO regulations of the HKEX accelerate the listing of many unprofitable domestic biopharmaceutical companies, which help them to raise funds for the clinical progress and R&amp;D. At the same time, these companies also hope to seize the huge unmet medical market with the advantage of taking the first step. Among them, there are companies focusing on the CAR-T therapy. For example, on February 26, 2021, according to the disclosure of the HKEX, <a href="https://www.smartkarma.com/entities/carsgen-therapeutics-ltd" target="_blank" data-smartkarma-citation="entities:32213:1" rel="noopener">CARSgen Therapeutics (1186504D CH)</a> submitted the application for listing. The following mainly analyzed the Company’s major product candidates and the concerns.</p>

The new IPO regulations of the HKEX accelerate the listing of many unprofitable domestic biopharmaceutical companies, which help them to raise funds for the clinical progress and R&amp;D. At the same time, these companies also hope to seize the huge unmet medical market with the advantage of taking the first step. Among them, there are companies focusing on the CAR-T therapy. For example, on February 26, 2021, according to the disclosure of the HKEX, CARSgen Therapeutics (1186504D CH) submitted the application for listing. The following mainly analyzed the Company’s major product candidates and the concerns.

Pre-IPO CARsgen Therapeutics - Insights on Pipeline and Challenges

United States

Gracell Biotechnologies Inc. operates as a clinical-stage biopharmaceutical company. The Company focuses on discovering and developing cell therapies to address medical needs in the treatment of cancer. Gracell Biotechnologies aims to disrupt conventional approaches to CAR-T cell therapies with technology platforms-FasTCAR and TruUCAR.

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Gracell Biotechnologies Inc (GRCL US)