Daily Brief Health Care: Biocytogen Pharmaceuticals (Beijing), BeiGene Ltd, Tokyo Stock Exchange Tokyo Price Index Topix and more

In today’s briefing:

Biocytogen (百奥赛图) IPO: Short Term and Long Term Challenges
BeiGene (6160.HK/BGNE.US) 22H1- It Is an Indisputable Fact that BeiGene Is Difficult to Make Profits
Can Companies Barely Meet Independent Director Requirement and Shy Away from Diversity Create Value?

Biocytogen (百奥赛图) IPO: Short Term and Long Term Challenges

Biocytogen is a leading animal model player in China expanding into biotech. The company launched a downsized deal to raise up to USD 70m via a Hong Kong listing.
In our previous note, we looked at the company business lines and compared the company’s operation with leading animal model players.
In this note, we provide an update for the book building. We provide our quick thoughts on the valuation and deal dynamics.

BeiGene’s product sales in 2022H1 more than doubled YoY, which was a positive sign for commercialization. However, net loss further widened, mainly due to significantly high R&D and SG&A expenses.
Tislelizumab and zanubrutinib are not enough to support BeiGene’s high valuation. The success or failure of TIGIT project will be the key to determine how far BeiGene will go.
So far, it is still an indisputable fact that BeiGene has profitability issues. That’s why it’s hard for us to be optimistic about this company.

The number of companies that meet the requirement has increased since the listing criteria for prime market specified specific numbers. However, the majority of companies have managed to meet 30%.
It’s clear that once the numerical criteria for board diversity as well as ％ independent directors were specified, it would have gone all the way. But this couldn’t be done.
It is concerned that Japanese companies may be distancing themselves from the need to listen to a wide range of opinions and create new value.

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