In today’s briefing:
- Shanghai Junshi Bioscience Placement- Junshi Is Having a Hard Time, with Lower than Expected Returns
- LRT Capital Management May 2022 Investor Update
Shanghai Junshi Bioscience Placement- Junshi Is Having a Hard Time, with Lower than Expected Returns
- Junshi’s fatal flaw is not that it is still suffering loss, or that its founders have no medical background, but that the Company is very short of money.
- Considering the gloomy prospects of etesevimab/VV116, uncertainties in toripalimab and other late-stage candidates, we remain conservative about Junshi’s commercialization outlook. Junshi’s higher valuation than Innovent is not justified.
- Together with unfriendly macro environment, we don’t think heavy investment in R&D/MRCT/commercial development could bring high return as expected.Investors need to be rational about Junshi’s RMB4 billion private placement plan.
LRT Capital Management May 2022 Investor Update
- LRT Capital is a fundamental investment hedge fund. We invest only in companies with durable competitive advantages, i.e. “moats.”.
- May’s results for the LRT Economic Moat Strategy were below expectations.
- The effectiveness of our hedging strategy has been limited due to the extremely strong performance of energy and commodity related stocks.
- The wealth of tomorrow will be in the hands of the net buyers of today.
Before it’s here, it’s on Smartkarma
