Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

An inquisitive investment analyst with background in both finance and computing. Covering ECM research, biotech, market data analytics.

Asia Pac IPO & Placement Research, China biotech

SciClone Pharmaceuticals: Caged by the Elephant

SciClone (赛生药业) IPO: A Mediocre Deal

SciClone (赛生药业) IPO Trading: Bifurcation of Demand

SciClone Pharma (赛生药业) Pre-IPO: Rejuvenation of Old Drugs

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.

Equity Capital Markets

Sciclone Pharmaceuticals / Equity Capital Markets

<p>SciClone Pharma was founded in the US but has a focus on sales of oncology and infectious disease drugs in China. The company plans to raise up to USD 500m via a listing in Hong Kong.</p><p>In our previous note, we discussed that the company has a long history but has a heavy reliance on a single drug Zadaxin which has dubious efficacy as it has not managed to obtain FDA approval for its otherwise approved indication in China. The company tried to expand the indication based on its ability to enhance the immune system to fight against diseases. The company's near-term revenue driver mainly comes from the consolidation of the sales from Pfizer products after the transfer of rights. However, we think the products from both Pfizer and Baxter are not attractive overall. The products from Baxter have been in the market for decades. Quality of the management team is mediocre with a focus on sales experience and not R&amp;D experience. So is the quality of financial investors which are mostly domestic private equity funds.</p><p>In this note, we forecast the company's revenue and net profit. We also value the company with reference to peer pharmaceutical companies listed in Hong Kong.</p><h2>Our previous note on SciClone</h2><ul><li><a href="https://www.smartkarma.com/insights/sciclone-pharma-pre-ipo-rejuvenation-of-old-drugs" target="_blank" rel="noopener">SciClone Pharma (赛生药业) Pre-IPO: Rejuvenation of Old Drugs</a></li></ul>

SciClone Pharma was founded in the US but has a focus on sales of oncology and infectious disease drugs in China. The company plans to raise up to USD 500m via a listing in Hong Kong.In our previous note, we discussed that the company has a long history but has a heavy reliance on a single drug Zadaxin which has dubious efficacy as it has not managed to obtain FDA approval for its otherwise approved indication in China. The company tried to expand the indication based on its ability to enhance the immune system to fight against diseases. The company's near-term revenue driver mainly comes from the consolidation of the sales from Pfizer products after the transfer of rights. However, we think the products from both Pfizer and Baxter are not attractive overall. The products from Baxter have been in the market for decades. Quality of the management team is mediocre with a focus on sales experience and not R&amp;D experience. So is the quality of financial investors which are mostly domestic private equity funds.In this note, we forecast the company's revenue and net profit. We also value the company with reference to peer pharmaceutical companies listed in Hong Kong.Our previous note on SciCloneSciClone Pharma (赛生药业) Pre-IPO: Rejuvenation of Old Drugs

SciClone Pharma (赛生药业) Pre-IPO: PHIP Updates and Thoughts on Valuation