ClouDr Suffers Chronic Losses but Still Set for High-Value Health IPO

Online medical services provider ClouDr is about to list on the Hong Kong Stock Exchange. Its losses over three years amount to 7.6 billion yuan, but its IPO valuation is still much higher than peers such as Ping An Healthcare and JD Health Key Takeaways: ClouDr’s big investments in marketing and R&D have turned rapidly growing revenues into mounting losses Although far from profitable, the company has been popular with investors, worth 14.6 billion yuan after the final round of financing and seeing its valuation rise to 15.4 billion yuan…

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Mega Genomics Eyes Hong Kong IPO To Ride Growing Popularity of Genetic Testing

The genetic testing company is looking to raise up to $33 million in a Hong Kong IPO as its services become popular in China Key Takeaways: Mega Genomics is looking to list about 11.9 million shares at HK$18-HK$22 apiece in Hong Kong on June 23 Although the company’s net profit didn’t grow last year amid pressure on margins, it remained profitable unlike listed competitors New Horizon Health and Burning Rock Biotech By Molly Wen Chinese consumers are increasingly keen to know what their genes tell about themselves. For Mega Genomics…

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Cash-Strapped Concord Healthcare Plans to Raise Money Through HK Listing

Trapped by losses and insufficient cash flow, the China-based private medical oncology service provider applies to list on the Hong Kong stock exchange Key Takeaways: Concord has accumulated losses of 1.7 billion yuan in the past three years as its focus has been on expanding in tier-1 cities With under 140 million yuan in cash and little hope of getting money from its parent, the company is eager to go public By Molly Wen Concord Healthcare Group Co. Ltd., the second largest player in the private hospital market in China,…

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CStone Pharma Replaces Chairman Amid Huge Losses, Irregular Investment

CStone’s executive reshuffle comes after company discovers questionable investment made by finance vice president in 2021 Key Takeaways: CStone brought four products to market last year, and its losses have surged due to growing R&D and sales spending Appointment of chairman with close ties to WuXi AppTec reveals a power struggle between shareholders and management By Molly Wen CStone Pharmaceuticals‘ (2616.HK) revenue fell 77% last year and its net loss climbed, as the Chinese drug company saw one-off license fees decline sharply and marketing costs to launch new drugs swell.…

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Burning Rock Localizes as Investors Grow Impatient

Cancer testing company reported a widening loss in the first quarter as it spent heavily to build up its localized business model of providing services through partner hospitals Key Takeaways: Burning Rock’s revenue grew 27% in the first quarter, but its costs grew even faster as it focused on building up new revenue sources Company’s older centralized testing services contracted in the quarter due to Covid disruptions, but its newer localized service with partner hospitals posted strong growth  By Doug Young Patience is an increasingly rare commodity among U.S. investors…

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YSB’s B2B Pharma Platform: Sexier Than the SOEs, But Stodgier Than B2Cs

The drug distributor for pharmacies and community-level medical institutions has filed for a Hong Kong listing, boasting strong revenue growth but also massive losses Key Takeaways: YSB has filed for a Hong Kong listing, operating a B2B drug-selling business model with lower margins than B2C platforms Company operates a drug-trading platform and its own proprietary business, with a P/S ratio lower than B2C platforms but higher than traditional drug distributors By Molly Wen While selling to consumers can generate big user numbers for e-commerce companies, it also generates big pressure…

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CanSino’s Covid Vaccine Gets WHO Nod. But Is It Too Little, Too Late?

The company’s Convidecia has received emergency-use authorization from the World Health Organization, becoming the third Chinese vaccine to get that nod Key Takeaways: CanSino’s Covid-19 vaccine Convidecia will be admitted to the global Covax program following its approval by the WHO The approval could have limited benefits for the company as the pandemic fades and other products are widely available By Jony Ho As the Covid-19 pandemic recedes and countries start to reopen, the World Health Organization (WHO) has just granted an emergency-use license to yet another Chinese vaccine. But…

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One-Trick Pony Boan Biotech Files for Hong Kong IPO Into Tough Market

The biotech company is awaiting approval on a second drug to drive up revenue as it firms its foothold in a competitive landscape Key Takeaways: Boan Biotechnology sells only one product so far and is facing stiff competition from other similar drugs Luye Pharma bought Boan in 2020 and is taking it public at a time when markets are bearish By Molly Wen Shandong Boan Biotechnology Co. Ltd. recently filed for an IPOon the Hong Kong Stock Exchange to raise cash to boost drug development, marketing and research. Hong Kong-listed…

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As Losses Narrow, Is Zai Lab Finally Finding its Winning Formula?

The biotech breaks a cycle of widening losses as it shifts towards developing new drugs Key Takeaways: Zai Lab reported its loss shrank 65% in the first quarter of the year while its revenues continued to rise The company slashed its R&D costs by cutting licensing payments for existing drugs while spending more on finding new remedies By Tina Yip Zai Lab, like many pharma start-ups in China, kickstarted its business by licensing proven drugs from other companies. Investors had high hopes that it would later transform into an innovator…

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