Report
EUR 86.90
For Business Accounts Only
In our previous note, we discussed that the company's main portfolio is BG491 (best-in-class CDK4/6), GB226 (PD-1), and three biosimilars (trastuzumab, infliximab, bevacizumab). While the CDK4/6 was a licensed-in product in 2020 and is potentially best-in-class oral CDK4/6 inhibitor for HR+/HER2- breast cancer in terms of tolerability, we think its slow R&D is evidenced by the GB226 (PD-1 candidate) that it is still in Phase 2 trial of PD-1 five years after licensing from Crown Bioscience, as well as GB221 (me-too of trastuzumab) which is still in Phase 3 after four years. After the change of ownership and pre-IPO financing in 2018 and 2019, the company is now backed by a decent line-up of institutional investors led by Hillhouse Capital. We note the key product GB491 (potentially best- in-class-CDK4/6) was in-licensed after the investment by Hillhouse Capital. We think there have been positive changes to the company in the past two years but its R&D capability remains to be proven.
In this note, we provided a SOTP valuation based on the risk-adjusted valuation of its core products. We value the company at USD 1.7bn pre-money.
JHBP (嘉和生物) Pre-IPO - Thoughts on valuation
JHBP/Gencor Biopharmaceutical (hereafter Gencor) is a China-based biotech company with a focus on oncology and autoimmune drugs with development programs for both China and the global market.In our previous note, we discussed that the company's main portfolio is BG491 (best-in-class CDK4/6), GB226 (PD-1), and three biosimilars (trastuzumab, infliximab, bevacizumab). While the CDK4/6 was a licensed-in product in 2020 and is potentially best-in-class oral CDK4/6 inhibitor for HR+/HER2- breast cancer in terms of tolerability, we think its slow R&D is evidenced by the GB226 (PD-1 candidate) that it is still in Phase 2 trial of PD-1 five years after licensing from Crown Bioscience, as well as GB221 (me-too of trastuzumab) which is still in Phase 3 after four years. After the change of ownership and pre-IPO financing in 2018 and 2019, the company is now backed by a decent line-up of institutional investors led by Hillhouse Capital. We note the key product GB491 (potentially best- in-class-CDK4/6) was in-licensed after the investment by Hillhouse Capital. We think there have been positive changes to the company in the past two years but its R&D capability remains to be proven.
In this note, we provided a SOTP valuation based on the risk-adjusted valuation of its core products. We value the company at USD 1.7bn pre-money.
Underlying
Genor Biopharma
Provider
Aequitas Research
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Since 2015, we have covered 400+ IPOs and 450+ placements with a hit rate of 73% and 65%, respectively. We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic analysis.
Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis. We also provide a more quant driven analysis on placement/follow-on offerings.
Markets that we cover include:
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
Ke Yan
Other Reports on these Companies
Other Reports from Aequitas Research
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.