The valuation is outrageous! For this reason, Tianjing biology is reluctant to leave Hong Kong stock market and embrace NASDAQ

Liang Jian, the author, recently updated the application documents submitted to the CSRC by Tianjing bio, an innovative pharmaceutical company It plans to land on the Nasdaq market with the code of "imab" on January 16, EDT, and raise $100 million through IPO It's worth noting that Tianjing biology put its IPO location in Hong Kong before, but later changed its mind to NASDAQ In this change, the expected financing amount of Tianjing biology has also been greatly increased, from the previously planned $30-40 million to the current $100 million It can be seen that Tianjing biology is optimistic about its own strength and the U.S capital market 。 The bottom of Tianjing bio's optimism lies in that Americans value it much higher than other enterprises At the end of last year, foreign biotechnology website Gen recently released the list of top 10 start-ups in global immune oncology in 2019, ranking by total assets raised through private financing, cooperative income and IPO In this list, Tianjing biology is the only immunooncology start-up in China Of course, on the other hand, Tianjing biology is still in the early stage of development, most of its products are still in clinical trials, and there is still a long way to go before they are really put into commercial use In the face of the high price of its IPO, it is also a question mark whether American shareholders will accept it Eggs should be put in many baskets The future market space of products under research of Tianjing bio can not be underestimated Take the field of multiple myeloma that Tianjing bio focuses on as an example According to a research report of global data in 2019, the eight major markets of multiple myeloma in the world have a total scale of 14.5 billion US dollars in 2017 and are expected to reach 27.8 billion US dollars in 2027, a compound year from 2018 to 2027 The average growth rate was 6.7% The blue sea of the market is also believed to be the reason why American investors valued Tianjing biology at 800 million US dollars However, for Tianjing biology, the blue sea of market space needs to be supported by a number of heavy varieties under research Looking at Tianjing bio's prospectus, we can see that tj202, the company's most powerful alternative product, is a CD38 human antibody At present, it is carrying out two clinical trials of single drug three-line therapy and two-line combination therapy in Taiwan Province of China At the end of 2019, it was approved by the state food and drug administration to expand these trials to the mainland of China In addition, Tianjing biology has made many bets At present, new products have been approved for testing in both China and the United States The innovative all human monoclonal antibody tjc4 independently developed for the target of CD47 has been approved by FDA for clinical trials In addition, there are more than 10 projects in Tianjing biological's product line, which are distributed from pre clinical to clinical phase I to phase III, which will lay a solid foundation for the company's international competitiveness But now there is another problem It's obvious that Tianjing biology doesn't want to put eggs in the same basket However, in the face of such a wide product line, whether the fund raised by Tianjing biology can be supported is also a problem that investors need to consider After all, the product line is too large, which means that the capital and technical strength are excessively diluted, which eventually leads to the risk that neither product can get enough support and fail to pass strict clinical tests In addition, the reasons for choosing NASDAQ are worth exploring In fact, the differences between China and the United States have simply expanded from trade to capital, medical and other industries In particular, the new IPO policy implemented by the Hong Kong Stock Exchange and the establishment of the mainland science and technology innovation board provide a more convenient financing channel for Chinese bio pharmaceutical enterprises On the contrary, NASDAQ recently tightened the restrictions on IPO of small and medium-sized enterprises in China, and the time for application to pass was also longer, according to Reuters in early October The reason is that many investors from China, rather than the United States, are speculating on these stocks But why did Tianjing creatures go against the current and turn to NASDAQ? This point also needs to be answered from the valuation of Tianjing biology In fact, the U.S has given a valuation of $800 million for Tianjing biology, which means that it is quite recognized for the long-term value of the company in the future, which shows the difference between the U.S capital market and the domestic capital market In fact, in the biomedical industry, the main focus of American investors is on the core technology of enterprises Americans are more enthusiastic about enterprises with unique technology platforms For innovative pharmaceutical companies, the current mainstream valuation method is the pipeline valuation method Its core idea is the cash discount method to estimate the future peak sales or the expected post IPO sales revenue based on the factors such as the approved probability of drugs, the size of the disease market, the drug price, the patent period, etc., which is also the biggest difference with A-share listed companies Back to Tianjing biology, the company's many product pipelines should have moved the tricky American investors As mentioned above, investors believe that the market space of these products in the future is huge, which is why Tianjing biology has such a high valuation Of course, with the maturity of the capital market in the mainland, A-share has gradually attached importance to the core technology of listed companies, and it is difficult for A-share shareholders to be fooled by the obscure prospectus of listed companies before 37