Report
EUR 89.43
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). The company has been slow in R&D for the trastuzumab biosimilar, as well as the GB226 (PD-1) prior to the acquisition led by Hillhouse in 2018. 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. 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 will provide our thoughts on the price range. The deal comes with a strong line-up of cornerstone investors hence we believe though it is not best in class in terms of R&D capability, it will be a hot deal that will leave little for non-cornerstone investors. We have an asset valuation of HKD 32.8/share which implies a 37% upside at the high end based on our SOTP model.
JHBP/Genor (嘉和生物) IPO - Undemanding valuation with a strong investor line-up
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. The company has started book building to raise up to USD 371m to list in Hong Kong.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). The company has been slow in R&D for the trastuzumab biosimilar, as well as the GB226 (PD-1) prior to the acquisition led by Hillhouse in 2018. 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. 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 will provide our thoughts on the price range. The deal comes with a strong line-up of cornerstone investors hence we believe though it is not best in class in terms of R&D capability, it will be a hot deal that will leave little for non-cornerstone investors. We have an asset valuation of HKD 32.8/share which implies a 37% upside at the high end based on our SOTP model.
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.