In today’s briefing:
- GSK Spinoff Haleon (HLN UK) Is Biggest New Euro Listing In 10yrs – Index Implications and Overhang
- CSPC Pharmaceutical (1093 HK): 1Q22 Result: Double-Digit Revenue Growth; One-Off Charges Drag Profit
- Pre-IPO Cryofocus Medtech (Shanghai) – The Industry, the Business and the Concerns
GSK Spinoff Haleon (HLN UK) Is Biggest New Euro Listing In 10yrs – Index Implications and Overhang
- GlaxoSmithKline PLC (GSK LN) shareholders on 6 July overwhelmingly approved the long-awaited demerger of its GSK Consumer Healthcare unit newly-named Haleon (HLN LN) earlier this month.
- While not originally universally-desired (Elliott wanted a sale), it was overwhelmingly approved. Haleon lists Monday 18 July with a £40+bn valuation resulting in FTSE 100 and Stoxx Europe 600 changes.
- GSK investors get 1 share of Haleon for every share of GSK held. Post-demerger, the public owns 55%, Pfizer ~32%, GSK ~13%. Lockup ends 10 November. There will be overhang.
CSPC Pharmaceutical (1093 HK): 1Q22 Result: Double-Digit Revenue Growth; One-Off Charges Drag Profit
- CSPC Pharmaceutical Group (1093 HK) reported Q1 results, with revenue growth of 17% y/y to RMB8 billion, driven by a 15% y/y growth in finished drugs revenue.
- Oncology, with 34% contribution to finished drug revenue remained the main growth engine. Oncology revenue grew 15% y/y. The company has launched one new innovative oncology drug in Q1.
- CSPC’s net profit declined 5% y/y to RMB1.40 billion, dragged by fair-value losses of RMB133 million on its financial assets. Without considering one-off charge, net profit would have increased 10%.
Pre-IPO Cryofocus Medtech (Shanghai) – The Industry, the Business and the Concerns
- The cryoablation market accounts for about 1/3 of the total tumor ablation market overseas, while this percentage is less than 1/10 in China, indicating promising growth potential in the future.
- Cryofocus Medtech (Shanghai) (CFM HK)’s products and candidates do have technical advantages, offering more choices for patients and doctors.
- However, the commercialization outlook remains to be seen because of the potential large price reduction after entering national medical insurance coverage and the uncertainties over acceptance by patients and doctors.
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