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Bio-Thera Solutions (百奥泰) Pre-IPO - Not an attractive pipeline

Bio-Thera is a China-based biopharmaceutical company. The company plans to raise at least USD 500m to list in Hong Kong.

Although the company has already commercialized one product and has two under NDA reviews by the NMPA, we think its product line-up is not impressive with a lack of truly innovative products.

The first commercialized product, GLETLI, is the first Humira biosimilar to commercialize in China. However, in the first half of 2020, GLETLI only recorded sales of RMB 49 million. BAT2094, which is pending the NDA review, has a small market for antiplatelet therapy, although the PCI procedures are increasing rapidly in China, due to the intense competition from alternative drugs.

We think the company's HER2-ADC drug BAT8001 is interesting given it's likely one of the first two domestically HER2-ADC to hit the market. But there is a lack of clinical trial data to tell if it is better than peer products though it has a better design than the reference product.

We view the quality of management and investor backing as mediocre amongst biotech listings.