HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Event-Driven

<ul>
<li>Zadaxin is the biggest performance driver of SciClone. However, due to the challenge of generic drugs/VBP, sales of Zadaxin wouldn’t maintain strong growth momentum.  SciClone’s revenue/profit would face a significant decline.</li>
<li>The capital participating the IPO had reduced their holdings or exit entirely. Considering the low valuation/poor liquidity in HKEX, we think this privatization provides investors with a great exit opportunity.</li>
<li>For arbitrage investors, the annualized return depends on the time it takes to complete the privatization (e.g. about 5%-10%). If the privatization fails, share price could fall back to HK$14.</li>
</ul>


Zadaxin is the biggest performance driver of SciClone. However, due to the challenge of generic drugs/VBP, sales of Zadaxin wouldn’t maintain strong growth momentum.  SciClone’s revenue/profit would face a significant decline.
The capital participating the IPO had reduced their holdings or exit entirely. Considering the low valuation/poor liquidity in HKEX, we think this privatization provides investors with a great exit opportunity.
For arbitrage investors, the annualized return depends on the time it takes to complete the privatization (e.g. about 5%-10%). If the privatization fails, share price could fall back to HK$14.


Sciclone Pharmaceuticals (6600.HK) - The Privatization Offers a Good Exit Opportunity

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Capital Markets

Sciclone Pharmaceuticals / Equity Capital Markets

<p>SciClone Pharmaceuticals is a China-based company that has filed to list on the HKEX. The company primarily sells products in-licensed from third parties and provides promotion services. We expect concerns about Volume-Based Procurement for Zadaxin to weigh on the valuation until new products can offset potential pressures. As a result, we would pass on the deal. </p>

SciClone Pharmaceuticals is a China-based company that has filed to list on the HKEX. The company primarily sells products in-licensed from third parties and provides promotion services. We expect concerns about Volume-Based Procurement for Zadaxin to weigh on the valuation until new products can offset potential pressures. As a result, we would pass on the deal. 

SciClone Pharmaceuticals: Caged by the Elephant

China

Hainan Shuangcheng Pharmaceuticals Company Limited develops, manufactures and sells chemical synthesized peptide drugs. The Company's main products include thymalfasin, somatostatin, and thymopentin for injection.

Hainan Shuangcheng Phrmcutcls (002693 CH)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Hainan Shuangcheng Phrmcutcls (002693 CH)

Sciclone Pharmaceuticals (6600.HK) - The Privatization Offers a Good Exit Opportunity

The success rate of privatization could be 70-80%. The time could be about six months. The annualized rate of return isn't attractive.It's up to...

Xinyao (Criss) Wang

SciClone Pharmaceuticals: Caged by the Elephant

SciClone Pharmaceuticals is a China-based company that has filed to list on the HKEX. We expect concerns about VBP for Zadaxin to weigh on the...

Kemp Dolliver, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)