HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

On February 24th, 2021, <a href="https://www.smartkarma.com/entities/yishengbio-co-ltd" target="_blank" data-smartkarma-citation="entities:32205:1" rel="noopener">YishengBio (1872307D HK)</a> announced the completion of a Series B financing of over $130 million, led by Oceanpine and OrbiMed. Soon after, on March 8th, Yisheng filed its IPO prospectus with the HKEX. Since the Changchun Changsheng vaccine scandal in 2018, rabies vaccines have been in short supply in China. Therefore, vaccine companies hope to seize this opportunity and develop vigorously with the help of the capital market. For example, last year, <a href="https://www.smartkarma.com/entities/chengdu-kanghua-biological-a" target="_blank" data-smartkarma-citation="entities:29895:1" rel="noopener">Chengdu Kanghua Biological-A (300841 CH)</a> was listed on the A-share market successfully. This year, Yisheng also plans to raise funds, expand the business and fund the future operation in the public capital market.

On February 24th, 2021, YishengBio (1872307D HK) announced the completion of a Series B financing of over $130 million, led by Oceanpine and OrbiMed. Soon after, on March 8th, Yisheng filed its IPO prospectus with the HKEX. Since the Changchun Changsheng vaccine scandal in 2018, rabies vaccines have been in short supply in China. Therefore, vaccine companies hope to seize this opportunity and develop vigorously with the help of the capital market. For example, last year, Chengdu Kanghua Biological-A (300841 CH) was listed on the A-share market successfully. This year, Yisheng also plans to raise funds, expand the business and fund the future operation in the public capital market. 

Pre-IPO YishengBio Co., Ltd  - Here Are the Concerns Despite Solid Market Potential

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.

YishengBio is a China-based biopharmaceutical company with a focus of developing PIKA based technology for vaccine and oncology. The company plans to raise up to USD 200m via a Hong Kong listing.We look at the company's main product, the PIKA based rabies vaccine and the rabies vaccine market. We are of the view that there is limited upsides from the rabies vaccine market given the oligopoly market structure. New comers, unless offering a much lower price, will find it challenging to acquire a market share from the incumbent players. Having said that, we do see that the company's PIKA based rabies has advantages of less injection and few visits for patients. In addition, the company is using the PIKA technology for oncology and HBV vaccine. We think to invest in the company is to bet on the PIKA technology that has not been proven working in indications other than rabies. We also highlight past GMP non-compliance issues with the company and as a result it suspended production of rabies vaccine for 7 years.The company's management team is mediocre but the pre-IPO investor line up is strong.

YishengBio is a China-based biopharmaceutical company with a focus of developing PIKA based technology for vaccine and oncology. The company plans to raise up to USD 200m via a Hong Kong listing.We look at the company's main product, the PIKA based rabies vaccine and the rabies vaccine market. We are of the view that there is limited upsides from the rabies vaccine market given the oligopoly market structure. New comers, unless offering a much lower price, will find it challenging to acquire a market share from the incumbent players. Having said that, we do see that the company's PIKA based rabies has advantages of less injection and few visits for patients. In addition, the company is using the PIKA technology for oncology and HBV vaccine. We think to invest in the company is to bet on the PIKA technology that has not been proven working in indications other than rabies. We also highlight past GMP non-compliance issues with the company and as a result it suspended production of rabies vaccine for 7 years.The company's management team is mediocre but the pre-IPO investor line up is strong. 

YishengBio (依生生物) Pre-IPO: Need a Faithful Bet in PIKA

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YishengBio (1872307D HK)

Pre-IPO YishengBio Co., Ltd - Here Are the Concerns Despite Solid Market Potential

This article mainly analyzed YishengBio in terms of market potential, competitive landscape, financial position, and concerns (insurance coverage,...

Xinyao (Criss) Wang

YishengBio (依生生物) Pre-IPO: Need a Faithful Bet in PIKA

YishengBio is a China-based biopharmaceutical company with a focus of developing PIKA based technology for vaccine and oncology. We like the...

Ke Yan, CFA, FRM

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