HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

1. Industry viewpoints:<ul>
<li>Last week, the negotiations of volume-based purchase 2020 came to a close, and the bidding of PD-1/L1 was the most eye-catching.</li>
<li>In the future, with the rapid release of radiotherapy equipment in China, the penetration rate of radiotherapy is expected to be accelerated.</li>
<li>The use of traditional Chinese medicine in hospital is facing severe challenges.</li>
</ul>2. Company news:News about the updated progress of new drugs and cooperation from <a href="https://www.smartkarma.com/entities/ascletis-pharma-inc" target="_blank" data-smartkarma-citation="entities:27265:1" rel="noopener">Ascletis Pharma Inc (1672 HK)</a>, <a href="https://www.smartkarma.com/entities/harbour-biomed-holdings-limited" target="_blank" data-smartkarma-citation="entities:29717:1" rel="noopener">Harbour Biomed (2142 HK)</a> and <a href="https://www.smartkarma.com/entities/luye-pharma-group-ltd" target="_blank" data-smartkarma-citation="entities:488:1" rel="noopener">Luye Pharma (2186 HK)</a>.3. Market review:Last week, stock price for healthcare sector in A share increased 4.25%, while CSI 300 increased 2.26% over the same period of time.4. Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:
Last week, the negotiations of volume-based purchase 2020 came to a close, and the bidding of PD-1/L1 was the most eye-catching.
In the future, with the rapid release of radiotherapy equipment in China, the penetration rate of radiotherapy is expected to be accelerated.
The use of traditional Chinese medicine in hospital is facing severe challenges.
2. Company news:News about the updated progress of new drugs and cooperation from Ascletis Pharma Inc (1672 HK), Harbour Biomed (2142 HK) and Luye Pharma (2186 HK).3. Market review:Last week, stock price for healthcare sector in A share increased 4.25%, while CSI 300 increased 2.26% over the same period of time.4. Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

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.

Equity Capital Markets

Established in 2008, <a href="https://www.smartkarma.com/entities/remegen-ltd" target="_blank" data-smartkarma-citation="entities:29191:1" rel="noopener">Remegen Ltd (1788976D CH)</a>  is a commercial-ready biopharmaceutical company for the treatment of autoimmune, oncology and ophthalmic diseases.Two of the company’s core product candidates Telitacicept (RC18) and Disitamab Vedotin (RC48) have been accepted by NMPA and were granted priority review. The company expects to receive approval from the NMPA for the above two drug candidates in 4Q2020 and 2Q2021 respectively.The company has filed to list its shares on the Hong Kong Exchange and plans to raise around US$400m. In this insight, we examine the company’s product pipeline, its core drug candidates and their potential.

Established in 2008, Remegen Ltd (1788976D CH)  is a commercial-ready biopharmaceutical company for the treatment of autoimmune, oncology and ophthalmic diseases.Two of the company’s core product candidates Telitacicept (RC18) and Disitamab Vedotin (RC48) have been accepted by NMPA and were granted priority review. The company expects to receive approval from the NMPA for the above two drug candidates in 4Q2020 and 2Q2021 respectively.The company has filed to list its shares on the Hong Kong Exchange and plans to raise around US$400m. In this insight, we examine the company’s product pipeline, its core drug candidates and their potential.

RemeGen IPO: Key Drugs Show Promising Potential

Established in 2016, <a href="https://www.smartkarma.com/entities/jw-therapeutics" target="_blank" data-smartkarma-citation="entities:29679:1" rel="noopener">JW Therapeutics (2126 HK)</a> is a JV between Juno Therapeutics (Juno is indirectly owned by Bristol Myers Squibb) and Wuxi AppTec. The company is a leading clinical and pre-clinical stage cell therapy company in China focused on advanced cell-based immunotherapies.The company’s core product candidate, relma-cel is an autologous anti-CD19 CAR-T therapy for relapsed or refractory B-cell lymphoma, that is currently accepted for NMPA review and was granted priority review status in September 2020.The company has filed for an IPO on the Hong Kong Stock Exchange to raise about HK$2.14bn (US$276m) at the midpoint of the indicative IPO price range.The company has entered into cornerstone investment agreements with several investors including Rock Springs Capital and Four Pines Master Fund, Platinum Investment Management, Veritas Asset Management, etc. These cornerstone investors have agreed to subscribe for an aggregate amount of US$150m (approximately HK$1.17bn) worth of shares.In this insight, we take a look at the company’s drug candidates, core product relma-cel and its potential and the attractiveness of the company’s valuation based on future cashflows from relma-cel.

Established in 2016, JW Therapeutics (2126 HK) is a JV between Juno Therapeutics (Juno is indirectly owned by Bristol Myers Squibb) and Wuxi AppTec. The company is a leading clinical and pre-clinical stage cell therapy company in China focused on advanced cell-based immunotherapies.The company’s core product candidate, relma-cel is an autologous anti-CD19 CAR-T therapy for relapsed or refractory B-cell lymphoma, that is currently accepted for NMPA review and was granted priority review status in September 2020.The company has filed for an IPO on the Hong Kong Stock Exchange to raise about HK$2.14bn (US$276m) at the midpoint of the indicative IPO price range.The company has entered into cornerstone investment agreements with several investors including Rock Springs Capital and Four Pines Master Fund, Platinum Investment Management, Veritas Asset Management, etc. These cornerstone investors have agreed to subscribe for an aggregate amount of US$150m (approximately HK$1.17bn) worth of shares.In this insight, we take a look at the company’s drug candidates, core product relma-cel and its potential and the attractiveness of the company’s valuation based on future cashflows from relma-cel.

JW Therapeutics: Limited Upside from the Top End; Further Potential if Other Drugs Become Successful

Event-Driven

Gilead Sciences announced on 13th September that it has entered into a definitive agreement to acquire Immunomedics for US$88.00 per share in cash, which values the deal at a whopping US$21bn. The company’s offer is at a 117% premium to Immunomedics’ share price at the close of the previous days’ trading.The transaction was unanimously approved by the board of directors of both Gilead and Immunomedics and is expected to close during the fourth quarter of 2020.The deal will provide Gilead the access to Immunomedics’ antibody drug for advanced triple-negative breast cancer, Trodelvy which was given accelerated FDA approval in April 2020.

Gilead Sciences announced on 13th September that it has entered into a definitive agreement to acquire Immunomedics for US$88.00 per share in cash, which values the deal at a whopping US$21bn. The company’s offer is at a 117% premium to Immunomedics’ share price at the close of the previous days’ trading.The transaction was unanimously approved by the board of directors of both Gilead and Immunomedics and is expected to close during the fourth quarter of 2020.The deal will provide Gilead the access to Immunomedics’ antibody drug for advanced triple-negative breast cancer, Trodelvy which was given accelerated FDA approval in April 2020.

Gilead: Will Immunomedics Be Gilead’s Next Pharmasset?

Genor Biopharma Holdings  / Equity Capital Markets

<ul>
<li>JHBP (CY) Holdings Ltd also known as Genor Biopharma has filed for an IPO on the Hong Kong Stock Exchange to raise about HK$2.48bn (US$320m). The biopharmaceutical company focuses on developing and commercialising oncology and autoimmune drugs.</li>
<li>Genor plans to utilise a majority of its IPO proceeds on clinical trials, prepare registration filings, fund planned clinical trials and potential commercialisation of its core products. The company also plans to use part of its IPO proceeds on funding other drug candidates in its pipeline and on expanding its drug pipeline respectively.</li>
<li>The company currently does not have any products approved for commercial sale; hence the company does not generate any revenues from product sales. However, the company owns four late stage drug assets and of which the company expects to launch 2-3 drug assets in the second half of 2021, subject to NMPA approval.</li>
<li>Two of the company’s key drug candidates, GB491 (potentially best-in-class oral CDK4/6 for HR+/HER2-breast cancer) and GB242 (a biosimilar candidate to infliximab (developed by J&amp;J) for autoimmune diseases) are most likely to have competitive advantage over its competitors and these drugs cater to growing markets with significant growth potential.</li>
</ul>


JHBP (CY) Holdings Ltd also known as Genor Biopharma has filed for an IPO on the Hong Kong Stock Exchange to raise about HK$2.48bn (US$320m). The biopharmaceutical company focuses on developing and commercialising oncology and autoimmune drugs.
Genor plans to utilise a majority of its IPO proceeds on clinical trials, prepare registration filings, fund planned clinical trials and potential commercialisation of its core products. The company also plans to use part of its IPO proceeds on funding other drug candidates in its pipeline and on expanding its drug pipeline respectively.
The company currently does not have any products approved for commercial sale; hence the company does not generate any revenues from product sales. However, the company owns four late stage drug assets and of which the company expects to launch 2-3 drug assets in the second half of 2021, subject to NMPA approval.
Two of the company’s key drug candidates, GB491 (potentially best-in-class oral CDK4/6 for HR+/HER2-breast cancer) and GB242 (a biosimilar candidate to infliximab (developed by J&amp;J) for autoimmune diseases) are most likely to have competitive advantage over its competitors and these drugs cater to growing markets with significant growth potential.


Genor Biopharma IPO: Strong Clinical Pipeline with Some Potential Blockbusters

China

Hygeia is a China based oncology healthcare group.

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Hygeia Healthcare Group (6078 HK)

China Healthcare Weekly (Dec.18)

The article analyzed the news about the negotiation result of PD-1/L1 in China VBP, industry viewpoints about radiotherapy and traditional Chinese...

Xinyao (Criss) Wang

RemeGen IPO: Key Drugs Show Promising Potential

RemeGen is a commercial-ready biopharmaceutical company who has filed for an IPO on the HKEX. In this insight, we explore the company's core drug...

Shifara Samsudeen, ACMA, CGMA

JW Therapeutics: Limited Upside from the Top End; Further Potential if Other Drugs Become Successful

In this insight, we take a look at the company’s drug candidates, core product relma-cel and its potential and the attractiveness of the company’s...

Shifara Samsudeen, ACMA, CGMA

Gilead: Will Immunomedics Be Gilead’s Next Pharmasset?

Gilead Sciences announced on 13th September that it has entered into a definitive agreement to acquire Immunomedics for US$88.00 per share in cash,...

Shifara Samsudeen, ACMA, CGMA

Genor Biopharma IPO: Strong Clinical Pipeline with Some Potential Blockbusters

JHBP (CY) Holdings Ltd also known as Genor Biopharma has filed for an IPO on the Hong Kong Stock Exchange to raise about HK$2.48bn (US$320m). The...

Shifara Samsudeen, ACMA, CGMA

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