The privatization of the panshengzi "continuation", CFOs: it should have returned a long time ago!

Whether the privatization of Panshengzi will bring a chain reaction is still unknown, but the logic behind this action is not only the difference in the valuation logic of investors in China and the United States for biotechnology companies, but more importantly, to all listed and unlisted biotechnology companies to give another warning: keep good cash flow, this lifeline can not be broken no matter what!

Ren Zhengfei's words that "pass the cold air to everyone" just fell, and the medical people immediately experienced the meaning

On August 22, The Board of Directors announced that it had received a preliminary non-binding privatization offer

Although Pan Shengzi declined to be interviewed by major media on the grounds that he was in a period of silence, the fermentation of this incident has far exceeded the event itself

However, pharmaceutical CFOs, who have always spoken with data, believe that the privatization of Panshengzi at this time is a "wise" choice, "it should have returned a long time ago"

The CFO of an innovative pharmaceutical company analyzed the E drug manager reporter while looking at the financial statements of Panshengzi, and from the comparison of cash on the account with the data of the three expenses, Panshengzi urgently needed cash supplements to continue to operate

From 2019 to 2021, the revenue of Panshengzi was 323 million yuan, 424 million yuan and 532 million yuan respectively

In addition, the CFO of another Hong Kong listed company told the manager of E-Drug that the global stock market is "killing" valuations in a cold economic environment, and it is not a good time for companies with serious market value reduction to

In the process of privatization, "the equity changes are clear and stable, the employee options are arranged, whether the nominee holding is lifted, the privatization funding sources are repaid, and the connection with the subsequent red chips, which involves too many problems," Zhang Yipeng, a partner at Zhong Lun Law Firm, told the manager of E-Drug

01 Back to A shares or to the Hong Kong Stock Exchange?

The certainty of re-listing after the privatization of panshengzi is relatively large, which is the unanimous view of the interviewees

02 Pay attention to fundamentals and keep good cash flow

Fan Shengzi launched this round of privatization of Chinese stocks listed in the United States, will the future chinese stock biotechnology companies also choose to complete their own privatization at this time node with low market value? An innovative pharmaceutical company CFO who is preparing to list on the Science and Technology Innovation Board said that this problem needs specific case analysis, under normal circumstances, the purpose of privatization is to better and sustainably operate, privatization will generally be based on three reasons: value is not recognized, going concern is trapped, and there is no trading volume

03 Is WuXi AppTec privatization and returning to the glory of A replicable?

The pharmaceutical industry has previously had a wave of privatization of Chinese stocks listed in the United States, and representative companies include 3SBio, Simcere Pharmaceuticals and WuXi AppTec

But in fact, all medical people will ask in their hearts, who can copy WuXi AppTec?

It is true that whether it is the bitter winter of global Biotech, or the intensification of Sino-US friction and other external reasons, in recent years, the valuation of Chinese stocks in the case of hot money in overseas markets is generally not high, coupled with the fact that Chinese stocks have been maliciously sniped by overseas short-selling agencies, for many enterprises, the significance of staying overseas is indeed