Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Bottom-Up

<p>We spend a substantial portion of our time thinking about oncology in China: one of the largest unmet needs in healthcare globally. The World Health Organization estimates that there are 4.3 million new cases and 2.9 million deaths annually. Historically, treatment options have been limited compared to the US, EU, and many of China’s neighbors. Fortunately, the government has implemented several reforms in recent years to accelerate development and importation of innovative treatments and to provide reimbursement for them. </p><p>This Insight includes names to consider for two approaches to invest in this opportunity:</p><p>1) Invest in the leading multi-asset oncology companies.</p><p>2) Invest in a basket of companies with narrower oncology offerings.</p>

We spend a substantial portion of our time thinking about oncology in China: one of the largest unmet needs in healthcare globally. The World Health Organization estimates that there are 4.3 million new cases and 2.9 million deaths annually. Historically, treatment options have been limited compared to the US, EU, and many of China’s neighbors. Fortunately, the government has implemented several reforms in recent years to accelerate development and importation of innovative treatments and to provide reimbursement for them. This Insight includes names to consider for two approaches to invest in this opportunity:1) Invest in the leading multi-asset oncology companies.2) Invest in a basket of companies with narrower oncology offerings.

BeiGene: Cancer Treatment in China--The Underestimated Opportunity

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

<p style="text-align: justify;">On November 20, another unprofitable biopharmaceutical company, <a href="https://www.smartkarma.com/entities/antengene-corporation-limited" target="_blank" data-smartkarma-citation="entities:29705:1" rel="noopener">Antengene (6996 HK)</a>, will be listed on HKEX at a price of HK$18.08 per share. Currently, Antengene has a total of 12 innovative drugs in its pipeline. Among them, 6 drugs are basically from license-in mode while the rest are mainly self-developed. From the public information, it is still unknown that whether Antengene would use the license-in mode (like <a href="https://www.smartkarma.com/entities/everest-medicines" target="_blank" data-smartkarma-citation="entities:29224:1" rel="noopener">Everest Medicines (1952 HK)</a>) to achieve rapid financing and then develop a competitive pipeline in the future. The following is mainly to analyze the value and potential of the current pipeline, and also provide some thoughts on valuation.</p>

On November 20, another unprofitable biopharmaceutical company, Antengene (6996 HK), will be listed on HKEX at a price of HK$18.08 per share. Currently, Antengene has a total of 12 innovative drugs in its pipeline. Among them, 6 drugs are basically from license-in mode while the rest are mainly self-developed. From the public information, it is still unknown that whether Antengene would use the license-in mode (like Everest Medicines (1952 HK)) to achieve rapid financing and then develop a competitive pipeline in the future. The following is mainly to analyze the value and potential of the current pipeline, and also provide some thoughts on valuation.

Antengene - Insights on Pipeline and Valuation

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>JW Therapeutics raised HKD 2,197 million (USD 387m) from its global offering and will list on the Hong Kong Stock Exchange tomorrow November 2nd.</p>
<p>n our previous note, we discussed that the company is backed by a strong shareholder Juno, and has a strong foundation in the technology underlying the CAR-T therapy, which is demonstrated by its superior safety data for its Relma-cel. In addition to the CD19 target, the company has also obtained the technology for the BCMA target. The company's T-cell receptor-based pipeline products for solid tumor (liver cancer) with anti-T cell exhaustion enhancement based on the technologies from Eureka and Lyell have good potential as well. </p>
<p>In this note, we will look at the allocation and implications. We think the IPO valuation is reasonable with long term upsides given its leadership in CAR-T therapy.  However, we note that both Legend Biotech and Immunotech Biopharm have fallen substantially from their peak, which doesn't bode well for JW Therapeutics' listing. </p>
<div>
<h2>Our previous coverage on JW Therapeutics</h2>
</div>
<div>
<ul style="list-style-type: disc;">
<li dir="ltr">
<p><a href="https://www.smartkarma.com/insights/jw-therapeutics-pre-ipo-car-t-leader-in-china" target="_blank" rel="noopener">JW Therapeutics (药明巨诺) Pre-IPO: CAR-T leader in China</a></p>
</li>
<li dir="ltr">
<p><a href="https://www.smartkarma.com/insights/jw-therapeutics-pre-ipo-pricing-with-in-license-potential" target="_blank" rel="noopener">JW Therapeutics (药明巨诺) Pre-IPO: Pricing with in-license potential</a></p>
</li>
<li dir="ltr"><a href="https://www.smartkarma.com/insights/jw-therapeutics-ipo-free-options-for-potential-license-in" target="_blank" rel="noopener">JW Therapeutics (药明巨诺) IPO: Free Options for Potential License-In</a></li>
</ul>
</div>

JW Therapeutics raised HKD 2,197 million (USD 387m) from its global offering and will list on the Hong Kong Stock Exchange tomorrow November 2nd.
n our previous note, we discussed that the company is backed by a strong shareholder Juno, and has a strong foundation in the technology underlying the CAR-T therapy, which is demonstrated by its superior safety data for its Relma-cel. In addition to the CD19 target, the company has also obtained the technology for the BCMA target. The company's T-cell receptor-based pipeline products for solid tumor (liver cancer) with anti-T cell exhaustion enhancement based on the technologies from Eureka and Lyell have good potential as well. 
In this note, we will look at the allocation and implications. We think the IPO valuation is reasonable with long term upsides given its leadership in CAR-T therapy.  However, we note that both Legend Biotech and Immunotech Biopharm have fallen substantially from their peak, which doesn't bode well for JW Therapeutics' listing. 

Our previous coverage on JW Therapeutics




JW Therapeutics (药明巨诺) Pre-IPO: CAR-T leader in China


JW Therapeutics (药明巨诺) Pre-IPO: Pricing with in-license potential

JW Therapeutics (药明巨诺) IPO: Free Options for Potential License-In



JW Therapeutics (药明巨诺) IPO Trading: Peer Performance Doesn't Support a Strong Debut

<p style="text-align: justify;">On October 18, after two months of waiting, <a href="https://www.smartkarma.com/entities/jw-therapeutics" target="_blank" data-smartkarma-citation="entities:29679:1" rel="noopener">JW Therapeutics (2126 HK)</a> finally received a positive reply from the HKEX. This means that after <a href="https://www.smartkarma.com/entities/legend-biotech-corp" target="_blank" data-smartkarma-citation="entities:28963:1" rel="noopener">Legend Biotech Corp (LEGN US)</a> becomes China's first listed company for CAR-T therapy, JW Therapeutics will soon become the second one in the same field.</p>

On October 18, after two months of waiting, JW Therapeutics (2126 HK) finally received a positive reply from the HKEX. This means that after Legend Biotech Corp (LEGN US) becomes China's first listed company for CAR-T therapy, JW Therapeutics will soon become the second one in the same field.

JW Therapeutics - Concerns Are in the Short Term but Still Promising in the Long Term

APAC IPOs & Placements

Zhen Zhou, Toh

<p><a href="https://www.smartkarma.com/entities/li-auto-inc" target="_blank" data-smartkarma-citation="entities:28812:1" rel="noopener">Li Auto Inc. (LI US)</a> raised about US$1.1bn at US$11.50 per share, above the top-end of its IPO price range last night. We have covered the deal in our earlier notes:</p>
<ul>
<li>
<a href="https://www.smartkarma.com/insights/li-auto-pre-ipo-taking-the-long-way-around" target="_blank" data-smartkarma-citation="insights:41253" rel="noopener">Li Auto (理想汽车) Pre-IPO - Taking the Long Way Around</a> </li>
<li><a href="https://www.smartkarma.com/insights/li-auto-visit-li-auto-store-and-find-out-license-game" target="_blank" data-smartkarma-citation="insights:41299" rel="noopener">Li Auto (理想汽车): A to Visit Li Auto's Store and Find Out about the License Game</a></li>
<li>
<a href="https://www.smartkarma.com/insights/li-auto-pre-ipo-peer-comparison-margins-may-look-like-byd-but-sells-like-nio" target="_blank" data-smartkarma-citation="insights:41515" rel="noopener">Li Auto (理想汽车) Pre-IPO - Peer Comparison - Margins May Look like BYD, but Sells like NIO</a> </li>
<li>
<a href="https://www.smartkarma.com/insights/li-auto-ipo-worth-a-ride-at-the-low-end" target="_blank" data-smartkarma-citation="insights:41596" rel="noopener">Li Auto (理想汽车) IPO - Worth a Ride, at the Low -End</a> </li>
</ul>
<p>In this note, we will look at the deal dynamics and provide a table with implied valuation at different share price levels.</p>

Li Auto Inc. (LI US) raised about US$1.1bn at US$11.50 per share, above the top-end of its IPO price range last night. We have covered the deal in our earlier notes:


Li Auto (理想汽车) Pre-IPO - Taking the Long Way Around 
Li Auto (理想汽车): A to Visit Li Auto's Store and Find Out about the License Game

Li Auto (理想汽车) Pre-IPO - Peer Comparison - Margins May Look like BYD, but Sells like NIO 

Li Auto (理想汽车) IPO - Worth a Ride, at the Low -End 

In this note, we will look at the deal dynamics and provide a table with implied valuation at different share price levels.

Li Auto (理想汽车) Trading Update - No Mention of Hillhouse's Investment

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.

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

Legend Biotech Corp (LEGN US)

BeiGene: Cancer Treatment in China--The Underestimated Opportunity

We think that cancer is underdiagnosed and undertreated in China. We analyze the data and propose two approaches for investing in this theme.

Kemp Dolliver, CFA

Antengene - Insights on Pipeline and Valuation

This article analyzed the value and potential of Antengene's current pipeline, its competitors' products and also include some thoughts on valuation.

Xinyao (Criss) Wang

JW Therapeutics (药明巨诺) IPO Trading: Peer Performance Doesn't Support a Strong Debut

In this note, we will look at the allocation and implications. We think the IPO valuation is reasonable with long term upsides given its leadership...

Ke Yan, CFA, FRM

JW Therapeutics - Concerns Are in the Short Term but Still Promising in the Long Term

This article analyzed the concerns (market size, high cost, financial performance, etc.) for JW Therapeutics in the short run but also include...

Xinyao (Criss) Wang

Li Auto (理想汽车) Trading Update - No Mention of Hillhouse's Investment

Li Auto Inc. (LI US) raised about US$1.1bn at US$11.50 per share, above the top-end of its IPO price range last night. We have covered the deal in...

Zhen Zhou, Toh

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)