Daily BriefsHealthcare

Health Care: Celltrion Inc, Arrail Group, Jiangsu Recbio Technology, PHC Holdings and more

In today’s briefing:

  • Celltrion and Celltrion Health Placement – Past Deals Have Been Mixed
  • Block Deal Sale of Celltrion & Celltrion Healthcare by ION Investment
  • Arrail Group (瑞尔集团) IPO Trading: Weak Demand, Rich Valuation
  • RecBio (江苏瑞科) IPO: Fairly Valued on Optimistic Industry Forecast
  • PHC Holdings (6523 JP): Eyeing a Bigger Pie of Global Diabetes Management Solution

Celltrion and Celltrion Health Placement – Past Deals Have Been Mixed

By Sumeet Singh


Block Deal Sale of Celltrion & Celltrion Healthcare by ION Investment

By Douglas Kim

  • After the market close today, it was announced that ION Investment will partially sell its stakes in Celltrion and Celltrion Healthcare for about 560 billion won in a block deal.
  • The block deal price ranges are at 6 to 9 percent discount to current prices of Celltrion and Celltrion Healthcare.
  • We would take this take this deal due to settling of the accounting issue, more reasonable valuations, and sizeable block deal discount range. 

Arrail Group (瑞尔集团) IPO Trading: Weak Demand, Rich Valuation

By Ke Yan, CFA, FRM

  • Arrail Group raised HKD 589.9 million (USD 75m) from its global offering and will list on the Hong Kong Stock Exchange on Tuesday, Mar 22nd.
  • In our previous notes, we looked at the company’s background, its operation, its financials, and its expansion plan, compared its key metrics with peers and provided thoughts on valuation.
  • In this note, we look at the updates since our last note and prior to debut.

RecBio (江苏瑞科) IPO: Fairly Valued on Optimistic Industry Forecast

By Ke Yan, CFA, FRM

  • RecBio is an innovative vaccine company with a focus on HPV vaccines. The company started book building to raise up to USD 98m via a Hong Kong listing.
  • In the previous note, we looked at the company’s core products, including its HPV portfolio and the COVID-19 vaccine and the valuation.
  • In this note, we provide an update for the book building. We will run the deal through our ECM framework and provide an update on the deal.

PHC Holdings (6523 JP): Eyeing a Bigger Pie of Global Diabetes Management Solution

By Tina Banerjee

  • PHC Holdings (6523 JP) is a diversified healthcare company, which serves ~$25 billion broader end-market, of which global glucose monitoring is the largest end-market.
  • The company’s diabetes management business is the highest margin earning segment and is poised to grow through expanding presence in continuous glucose monitoring system.
  • PHC can be an early investment idea as a passive play on the fastest growing segment of the global diabetes management segment ahead of its global launch of next-generation CGM.

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