IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

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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

CARSgen Therapeutics / Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/carsgen-therapeutics-ltd" target="_blank" data-smartkarma-citation="entities:32213:1" rel="noopener">CARSgen Therapeutics (2171 HK)</a> is a biopharma focused on innovative CAR-T cell therapies for the treatment of haematological malignancies and solid tumours. CARsgen opines that it is a key player in the field of CAR-T cell therapies. Pre-IPO investors include Hillhouse Capital, <a href="https://www.smartkarma.com/entities/zhejiang-jolly-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:7333:1" rel="noopener">Zhejiang Jolly Pharmaceutical (300181 CH)</a>, KTB Network, <a href="https://www.smartkarma.com/entities/tasly-pharmaceutical-group-co-ltd" target="_blank" data-smartkarma-citation="entities:9569:1" rel="noopener">Tasly Pharmaceutical Group (600535 CH)</a>, Loyal Valley Capital, Shiyu Investment Management and Lilly Asia Ventures.</p></div><div><p>CARsgen has launched an HKEx IPO to raise net proceeds of HK$2,795 million ($360 million) at the mid-point of the IPO price range of HK$29.60-32.80 per share.</p></div><div><p>Nine cornerstone investors have agreed to invest about $230 million in the IPO (60.38% of the offer shares at the mid-point of the IPO price range). The cornerstone investors are LAV Group, New China Capital Management, CloudAlpha Capital Management, Orient Asset Management, WT Asset Management, GF Fund, Dymon Asia, IvyRock and China Southern Asset Management. </p></div><div><div>
<p>In <a href="https://www.smartkarma.com/insights/carsgen-therapeutics-ipo-initiation-choosing-therapies-a-la-car-t" target="_blank" data-smartkarma-citation="insights:52072" rel="noopener">CARsgen Therapeutics IPO Initiation: Choosing Therapies À La CAR-T</a>, we stated that the promising prospects for the lead product, a credible management team and a good shareholder register make the IPO worth a closer look. </p>
<div class="content-highlight"><p>Our SoTP value is HK$31.74 per share which is a 2% upside to the mid-point of the IPO price range. Due to the limited upside to our SoTP valuation, we think that the IPO price range is full. Overall, while we like CARsgen's fundamentals, due to the full IPO price range, lack of blue-chip cornerstone support and the current weak market sentiment on IPOs, we are inclined to wait on the sidelines for a more attractive entry point. </p></div>
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CARSgen Therapeutics (2171 HK) is a biopharma focused on innovative CAR-T cell therapies for the treatment of haematological malignancies and solid tumours. CARsgen opines that it is a key player in the field of CAR-T cell therapies. Pre-IPO investors include Hillhouse Capital, Zhejiang Jolly Pharmaceutical (300181 CH), KTB Network, Tasly Pharmaceutical Group (600535 CH), Loyal Valley Capital, Shiyu Investment Management and Lilly Asia Ventures.CARsgen has launched an HKEx IPO to raise net proceeds of HK$2,795 million ($360 million) at the mid-point of the IPO price range of HK$29.60-32.80 per share.Nine cornerstone investors have agreed to invest about $230 million in the IPO (60.38% of the offer shares at the mid-point of the IPO price range). The cornerstone investors are LAV Group, New China Capital Management, CloudAlpha Capital Management, Orient Asset Management, WT Asset Management, GF Fund, Dymon Asia, IvyRock and China Southern Asset Management. 
In CARsgen Therapeutics IPO Initiation: Choosing Therapies À La CAR-T, we stated that the promising prospects for the lead product, a credible management team and a good shareholder register make the IPO worth a closer look. 
Our SoTP value is HK$31.74 per share which is a 2% upside to the mid-point of the IPO price range. Due to the limited upside to our SoTP valuation, we think that the IPO price range is full. Overall, while we like CARsgen's fundamentals, due to the full IPO price range, lack of blue-chip cornerstone support and the current weak market sentiment on IPOs, we are inclined to wait on the sidelines for a more attractive entry point. 


CARsgen Therapeutics IPO: Valuation Insights

<p><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> is a biopharma focused on innovative CAR-T cell therapies for the treatment of haematological malignancies and solid tumours. CARsgen opines that is a key player in the field of CAR-T cell therapies. CARsgen is pre-marketing an HKEx IPO to raise proceeds of $400-500 million, according to press reports. </p><p>Five CAR-T products, <em>Kymriah, Yescarta, Tecartus, Breyanzi</em> and <em>Abecma</em>, have been approved by the FDA for marketing in the US. However, there is no CAR-T cell therapy approved by the NMPA for marketing in China. The total revenue of <em>Kymriah, Yescarta</em> and <em>Tecartus</em> in 2020 was $1.1 billion (source: Frost &amp; Sullivan) which highlights the market opportunity. </p><div class="content-highlight"><p>CARsgen has developed a pipeline of 11 product candidates, including six at the clinical stage. CARsgen owns the global rights to its product candidates and technologies, all of which are developed in-house. The sole core product candidate is CT053. Overall, we believe that the promising prospects for the lead product, a credible management team and a good shareholder register make the IPO worth a closer look. </p></div>

CARSgen Therapeutics (1186504D CH) is a biopharma focused on innovative CAR-T cell therapies for the treatment of haematological malignancies and solid tumours. CARsgen opines that is a key player in the field of CAR-T cell therapies. CARsgen is pre-marketing an HKEx IPO to raise proceeds of $400-500 million, according to press reports. Five CAR-T products, Kymriah, Yescarta, Tecartus, Breyanzi and Abecma, have been approved by the FDA for marketing in the US. However, there is no CAR-T cell therapy approved by the NMPA for marketing in China. The total revenue of Kymriah, Yescarta and Tecartus in 2020 was $1.1 billion (source: Frost &amp; Sullivan) which highlights the market opportunity. CARsgen has developed a pipeline of 11 product candidates, including six at the clinical stage. CARsgen owns the global rights to its product candidates and technologies, all of which are developed in-house. The sole core product candidate is CT053. Overall, we believe that the promising prospects for the lead product, a credible management team and a good shareholder register make the IPO worth a closer look. 

CARsgen Therapeutics IPO Initiation: Choosing Therapies À La CAR-T

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.

<p>Carsgen is a China and US-based clinical stage biopharmaceutical company focused on CAR-T therapies. The company has four CAR-T products and one monoclonal antibody in the clinical stage.  The company is looking to raise up to USD 300m via a Hong Kong listing.</p><p>The company has many selling points, including the potentially best-in-class BCMA target for the indication of r/r MM, and its advancement in two targets for the CAR-T therapy, namely CLDN18.2 and GPC3. It has its own technologies that improved the safety for CAR-T technology and also demonstrated preliminary efficacy in the solid tumor which was challenging for the CAR-T therapy. Having looked at numbers from its clinical trials for CT053, we are of the view that this is a promising therapy for r/r MM but the market will be mostly in the US where the company has started clinical trial. As the company is leading in the CLDN18.2 and GPC3, there might be upside if the target is proven to work for CAR-T therapy. The company has a strong management team with academic experiences. Its pre-IPO investors are strong but are mainly domestic institutions. </p><p>In this note, we will provide our thoughts on the company's valuation.</p>

Carsgen is a China and US-based clinical stage biopharmaceutical company focused on CAR-T therapies. The company has four CAR-T products and one monoclonal antibody in the clinical stage.  The company is looking to raise up to USD 300m via a Hong Kong listing.The company has many selling points, including the potentially best-in-class BCMA target for the indication of r/r MM, and its advancement in two targets for the CAR-T therapy, namely CLDN18.2 and GPC3. It has its own technologies that improved the safety for CAR-T technology and also demonstrated preliminary efficacy in the solid tumor which was challenging for the CAR-T therapy. Having looked at numbers from its clinical trials for CT053, we are of the view that this is a promising therapy for r/r MM but the market will be mostly in the US where the company has started clinical trial. As the company is leading in the CLDN18.2 and GPC3, there might be upside if the target is proven to work for CAR-T therapy. The company has a strong management team with academic experiences. Its pre-IPO investors are strong but are mainly domestic institutions. In this note, we will provide our thoughts on the company's valuation.

CARsgen (科济药业) Pre-IPO: Thoughts on Valuation

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Keymed Biosciences / Equity Capital Markets

<p>On April 8, 2021, <a href="https://www.smartkarma.com/entities/keymed-biosciences-inc" target="_blank" data-smartkarma-citation="entities:33011:1" rel="noopener">Keymed Biosciences Inc (KBS HK)</a> filed a prospectus with the Hong Kong Stock Exchange to apply for a main board listing. It is worth mentioning that, the major competing product, Sanofi’s Dupixent (dupilumab) was approved in China last year for the indication of moderate-to-severe atopic dermatitis (AD) in adults and was successfully included in the medical insurance catalogue in December 2020, becoming the only targeted biological agent for the treatment of moderate-to-severe AD in the catalogue. On the other hand, the core product of Keymed, CM310, was just at phase II clinical trial, far lagging behind Dupixent. Besides, the Company has no products approved for commercial sale at present. So it is not surprising that Keymed plans to go public for financing so as to accelerate the development and commercialization of the its product candidates. </p>

On April 8, 2021, Keymed Biosciences Inc (KBS HK) filed a prospectus with the Hong Kong Stock Exchange to apply for a main board listing. It is worth mentioning that, the major competing product, Sanofi’s Dupixent (dupilumab) was approved in China last year for the indication of moderate-to-severe atopic dermatitis (AD) in adults and was successfully included in the medical insurance catalogue in December 2020, becoming the only targeted biological agent for the treatment of moderate-to-severe AD in the catalogue. On the other hand, the core product of Keymed, CM310, was just at phase II clinical trial, far lagging behind Dupixent. Besides, the Company has no products approved for commercial sale at present. So it is not surprising that Keymed plans to go public for financing so as to accelerate the development and commercialization of the its product candidates. 

Pre-IPO Keymed Biosciences - Challenges Are Inevitable Despite Some Advantages on Pipeline

<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

China

Legend Biotech Corporation operates as a biopharmaceutical company. The Company engages in discovery and development of novel cell therapies for oncology and other indications. Legend Biotech serves customers in the State of New Jersey.

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Legend Biotech Corp (LEGN US)

CARsgen Therapeutics IPO: Valuation Insights

Due to the full IPO price range, lack of blue-chip cornerstone support and the current weak market sentiment on IPOs, we are inclined to wait on...

Arun George

CARsgen Therapeutics IPO Initiation: Choosing Therapies À La CAR-T

CARsgen is pre-marketing an HKEx IPO to raise proceeds of $400-500m. The promising prospects for the lead product, credible management and a good...

Arun George

CARsgen (科济药业) Pre-IPO: Thoughts on Valuation

In this insight, we provide a risk-adjusted NPV based valuation for the company's key product CT035 and the SOTP valuation for the company.

Ke Yan, CFA, FRM

Pre-IPO Keymed Biosciences - Challenges Are Inevitable Despite Some Advantages on Pipeline

This article analyzed Keymed Biosciences in terms of the insights on core product CM310 and two key products CM326 and CMG901, the advantages, the...

Xinyao (Criss) Wang

Pre-IPO CARsgen Therapeutics - Insights on Pipeline and Challenges

This article mainly analyzed CARsgen in terms of key product candidates in the pipeline, competitive landscape, challenges, financial position and...

Xinyao (Criss) Wang

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