IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

Arun has over 15 years’ experience covering the Technology sector. During this time, he has worked with technology start-ups and as an equity analyst in investment banks and independent research firms. He was formerly a Technology Analyst for Canaccord Genuity, Altium Securities, Espirito Santo Investment Bank, Noble Group and Clear Capital. He has a dual Master’s degree in Financial Engineering and Industrial and Operations Engineering from the University of Michigan. He obtained his Bachelor’s degree in Mechanical Engineering from the Indian Institute of Technology, Bombay. He is also a CFA charterholder.

IPOs and Catalysts/Events

SciClone Pharmaceuticals IPO: Valuation Insights

SciClone Pharma (6600 HK): Privatisation Déjà Vu All over Again?

Weekly Deals Digest (24 Mar) - Shinko, C&F Logistics, JSR, IntelliCentrics, SciClone, Link Admin

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Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

Sciclone Pharmaceuticals / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/sciclone-pharmaceuticals-holdings-limited" target="_blank" data-smartkarma-citation="entities:17351:1" rel="noopener">Sciclone Pharmaceuticals (1863447D HK)</a> is a biopharmaceutical company with an integrated platform for product development and commercialisation of drugs in the oncology and severe infection therapeutic areas. The predecessor company, SciClone US, listed on NASDAQ in March 1992 and was subsequently privatised and delisted in October 2017. SciClone is pre-marketing a Hong Kong IPO to raise $500 million, according to press reports. </p><div class="content-highlight"><p>SciClone is a less than ideal IPO candidate. Despite efforts at diversification, SciClone is highly dependent on a single product, Zadaxin, which was launched in 1996. Commendably, Zadaxin sales have increased despite several challenges, including generic competition, changes in reimbursement policies and the centralised tender processes. However, the risk to Zadaxin’s sales remains undiminished. The large pre-IPO dividends by existing shareholders in face of these challenges also sends the wrong message to potential IPO investors. Overall, on a fundamental basis, we are inclined to give this IPO a pass. </p></div>

Sciclone Pharmaceuticals (1863447D HK) is a biopharmaceutical company with an integrated platform for product development and commercialisation of drugs in the oncology and severe infection therapeutic areas. The predecessor company, SciClone US, listed on NASDAQ in March 1992 and was subsequently privatised and delisted in October 2017. SciClone is pre-marketing a Hong Kong IPO to raise $500 million, according to press reports. SciClone is a less than ideal IPO candidate. Despite efforts at diversification, SciClone is highly dependent on a single product, Zadaxin, which was launched in 1996. Commendably, Zadaxin sales have increased despite several challenges, including generic competition, changes in reimbursement policies and the centralised tender processes. However, the risk to Zadaxin’s sales remains undiminished. The large pre-IPO dividends by existing shareholders in face of these challenges also sends the wrong message to potential IPO investors. Overall, on a fundamental basis, we are inclined to give this IPO a pass. 

SciClone Pharmaceuticals IPO Initiation: A Hard Sell