So-Young’s CEO-led Buyout Dissolves After Stock Plunge

The popular cosmetic surgery app operator’s shares have dived amid a crackdown on China’s medical aesthetics industry, an economic slowdown and strict Covid-control policies Key Takeaways: So-Young said a group led by its co-founder and CEO has withdrawn its earlier buyout offer made nearly a year ago The withdrawal came as the company faces challenges from a regulatory crackdown on the medical aesthetics industry and a slowing Chinese economy By Warren Yang For So-Young International Inc. (SY.US) investors, a management-led buyout offer floated nearly a year ago must feel like…

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What Pandemic? Joinn Lab Posts Bumper Profit Despite Covid Disruptions

Less affected by Covid-control measures that have clobbered many Chinese businesses, the pre-clinical contract research organization’s profit more than doubled in the first three quarters of 2022 Key Takeaways: Joinn Lab’s net profit in the first three quarters of this year surpassed the figure for all 2021 as the company rapidly expanded its capacity The company is strongly positioned due to high barriers to entry, and a broad presence in its industry chain through its acquisition of lab animal suppliers By Molly Wen Disruptions from China’s strict Covid control measures…

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Best Wellness Offers Personal Hygiene Pads – and Slumping Revenue – to IPO Investors

The medical consumables maker has filed for a Hong Kong listing, even as its weaknesses include declining revenue and heavy reliance on its largest single customer Key Takeaways: Best Wellness Health has filed for a Hong Kong IPO, seeking funds for R&D and other uses as it tries to reverse its declining revenue The company’s largest customer, Kimberly-Clark, supplies more than 70% of its revenue, posing a risk after their current supply deal expires at the end of 2024 By Ellie Si The times have certainly changed for Best Wellness…

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New Drugs Approvals Bring No Relief for Ailing Innovent Bio

The innovative drug maker has been approved to sell two more cancer drugs in China, but that hasn’t lifted its stock price Key Takeaways: Innovent Bio has brought several drugs to market in recent years, including two announced last week, but is still losing money with no profits in sight The company has overhauled its commercialization model and is doing more licensing partnerships with multinationals to expand its drug pipeline By Molly Wen The Hong Kong stock market’s latest freefall hasn’t spared anyone, including once highly sought medical stocks that…

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Sick IPO? Clifford Medical Eyes Listing Despite Huge Reliance on Single Hospital

The private medical services group gets more than 94% of its revenue from its Clifford Hospital in Guangdong province, highlighting a major risk factor Key Takeaways: Clifford Medical has filed for a Hong Kong IPO, even though its financials have been volatile in recent years and a single hospital contributes 94% of its revenue The company has a high debt burden due to its need to invest heavily in capital-intensive assets like medical facilities and equipment By Ellie Si Hospital, anyone? That’s what Clifford Medical Group Ltd. is asking investors,…

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Lepu Biopharma Marches Towards First Sales as Costs Mount

Company’s Puyouheng cancer immunotherapy drug was approved for two indications in China, becoming its first commercialized product Key Takeaways: Lepu Biopharma will incur more operational costs as it builds up its production capacity and sales and marketing teams to commercialize its first approved product The company’s stock surged after it said it would list on Shanghai’s STAR Market and be included in the Shenzhen-Hong Kong Stock Connect program By Emily Chan After months of languishing in relative obscurity following its February Hong Kong IPO, Lepu Biopharma Co. Ltd. (2157.HK) has…

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AIM Vaccine Shrinks Its IPO But Gives Chairman a Mega Paycheck

China’s second-largest maker of non-Covid vaccines has finally crossed the IPO finish line and will list its shares next Thursday Key Takeaways: AIM Vaccine is finally landing on the Hong Kong Stock Exchange at its third attempt, but has only issued 0.8% of its total share capital, raising a net HK$70 million The company issued equity incentives worth a whopping 900 million yuan to its chairman before going public, and swung from profit to loss last year By Molly Wen The biopharma sector has been one of the biggest casualties…

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Betters Medical Looks Ailing Going Into Hong Kong IPO

The medical equipment maker faces several risks, including reliance on a single product type and potential liability for failing to meet terms of an investor agreement Key Takeaways: Betters Medical has launched a Hong Kong listing, relying on high-margin microwave ablation needles as its major revenue contributor The company could face liability of tens of millions of yuan for failing to meet terms of an agreement with one of the investors in its Series C funding, though the agreement will be cancelled if the company lists successfully By Molly Wen…

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Lepu ScienTech Revives IPO After Policy Move Brightens Its Prospects

China’s leading supplier of congenital heart disease devices made its third filing earlier this month for a Hong Kong IPO Key Takeaways: After taking its Lepu Biopharma unit public in February, Lepu Medical is pressing ahead with a third attempt at listing is Lepu ScienTech unit in Hong Kong China’s healthcare regulator has said it won’t include innovative medical equipment in its bulk purchase programs, which should help Lepu ScienTech’s profitability Emily Chan Hong Kong’s stock market may be slumping, and the U.S.-China tech war may be spilling over into…

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Fosun International Sells Assets as Short-Term Cash Crunch Looms

Moody’s downgraded the Shanghai-based financial conglomerate last month, saying it could have difficulty repaying its ‘sizable debt’ maturing over the next 12 months Key Takeaways: Fosun has sold down its stake in New China Life, its latest move to raise cash as it faces large debt maturing in the next 12 months The company is also selling down stakes in its Fosun Tourism unit, owner of the Club Med resort chain, and appears to be selling shares in its core Fosun Pharma holding By Doug Young A group of Chinese…

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