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

Zhaoke Ophthalmic (兆科眼科) IPO Trading: Strong Cornerstone Doesn't Save the Deal

Zhaoke Ophthalmic (兆科眼科) Pre-IPO: Beware of Aggressive "Guidance"

Zhaoke Ophthalmic (兆科眼科) Pre-IPO: Thoughts on Valuation

Zhaoke Ophthalmic (兆科眼科): Could Be Over-Valued for Pre-IPO Round

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

Zhaoke Ophthalmology Pharmaceutical / Equity Capital Markets

Zhaoke Ophthalmology Pharmaceutical (6622 HK)

<p>Founded by Lee's Pharma, Zhaoke offers a comprehensive ophthalmic product pipeline. The company launched book building to raise up to USD 267m via a Hong Kong listing.</p><p>In our previous note, we looked at the company's two products, namely CsA gel and ZKY001. We are of the view that CsA gel does provide advantage over Restasis, the top selling eye gel for the DED, but the forecast of market growth is too aggressive for the DED market. For another core product ZKY001, while there is no data on the efficacy from Phase I clinical trial, we do note that the licensing parnter's product which uses the same technology but on a different indication, did not meet the primary end point in Phase III clinical trial according to a recent announcement, which raises our concern on the potential of the product candidate. In addition, the company also had a long list of generic referencing top selling glaucoma drugs. The company has an OK management team but strong backing of institutional investors.  </p><p>We think the valuation is rich at the high end and the cornerstone investors' commitment left a large portion of the deal to be sold on debut. We also note that the market sentiment is not very positive on the ophthalmic deals.</p><div><div><h2>Our previous coverage on Zhaoke Ophthalmic</h2></div></div><div><ul style="list-style-type: disc;">
<li><a href="https://www.smartkarma.com/insights/zhaoke-ophthalmic-could-be-over-valued-for-pre-ipo-round" target="_blank" rel="noopener">Zhaoke Ophthalmic (兆科眼科): Could Be Over-Valued for Pre-IPO Round</a></li>
<li><a href="https://www.smartkarma.com/insights/zhaoke-ophthalmic-pre-ipo-thoughts-on-valuation" target="_blank" rel="noopener">Zhaoke Ophthalmic (兆科眼科) Pre-IPO: Thoughts on Valuation</a></li>
<li><a href="https://www.smartkarma.com/insights/zhaoke-ophthalmic-pre-ipo-beware-of-aggressive-guidance" target="_blank" rel="noopener">Zhaoke Ophthalmic (兆科眼科) Pre-IPO: Beware of Aggressive “Guidance”</a></li>
</ul></div>

Founded by Lee's Pharma, Zhaoke offers a comprehensive ophthalmic product pipeline. The company launched book building to raise up to USD 267m via a Hong Kong listing.In our previous note, we looked at the company's two products, namely CsA gel and ZKY001. We are of the view that CsA gel does provide advantage over Restasis, the top selling eye gel for the DED, but the forecast of market growth is too aggressive for the DED market. For another core product ZKY001, while there is no data on the efficacy from Phase I clinical trial, we do note that the licensing parnter's product which uses the same technology but on a different indication, did not meet the primary end point in Phase III clinical trial according to a recent announcement, which raises our concern on the potential of the product candidate. In addition, the company also had a long list of generic referencing top selling glaucoma drugs. The company has an OK management team but strong backing of institutional investors.  We think the valuation is rich at the high end and the cornerstone investors' commitment left a large portion of the deal to be sold on debut. We also note that the market sentiment is not very positive on the ophthalmic deals.Our previous coverage on Zhaoke Ophthalmic
Zhaoke Ophthalmic (兆科眼科): Could Be Over-Valued for Pre-IPO Round
Zhaoke Ophthalmic (兆科眼科) Pre-IPO: Thoughts on Valuation
Zhaoke Ophthalmic (兆科眼科) Pre-IPO: Beware of Aggressive “Guidance”


Zhaoke Ophthalmic (兆科眼科) IPO: Rationalize the Valuation