NEW YORK, Sept. 20, 2023 (GLOBE NEWSWIRE) -- Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has released update note on YS Biopharma Co., Ltd. (NASDAQ: YS). The update note includes information on the YS Biopharma's financial results, management commentary, recent developments, outlook, risks, and our revised valuation estimates.
The update note is available here. Highlights from the note include:
- YS Biopharma Secures Pivotal U.S. Patent for Novel HBV Immunotherapeutic Vaccine: YS Biopharma has further solidified its intellectual property portfolio with the acquisition of a pivotal U.S. patent for its innovative immunotherapeutic vaccine, PIKA YS-HBV-002, specifically designed to address chronic Hepatitis B Virus (HBV) infections. This milestone not only strengthens the company's competitive positioning but also targets a significant unmet medical need that affects up to 2.2 million individuals in the U.S. and 400 million people globally. This condition poses elevated risks for cirrhosis, liver failure, and liver cancer, with existing treatments offering limited efficacy. Unlike conventional prophylactic HBV vaccines, PIKA YS-HBV-002 is engineered to serve patients who are already suffering from chronic HBV. The vaccine employs YS Biopharma's proprietary PIKA immunomodulating technology with the aim to activate and re-establish a desirable immune response in patients in order to eradicate HBV infection. As the company progresses targeting a submission of an Investigational New Drug (IND) application and commencing clinical trials in 2024, it is strategically positioned to potentially redefine the existing treatment landscape for chronic HBV. This development could herald a paradigm shift in the management of chronic HBV, offering a more targeted and potentially more effective treatment option. The patent's issuance also underscores the growing importance of immune-based interventions in combating infectious diseases, marking a significant advancement in the broader field of biopharmaceuticals.
- YS Biopharma Leadership Purchases Company Shares, Signaling Confidence in Long-Term Strategy: The company disclosed that its founder and chairperson, Mr. Yi Zhang, and its CEO, Dr. Hui Shao, have acquired a substantial number of the company's ordinary shares in the open market. Specifically, Mr. Yi Zhang purchased 429,188 shares at an average price of $1.407 per share, while Dr. Hui Shao acquired 46,300 shares at an average price of $1.46 per share. This action as a strong endorsement of the company's long-term business strategy and growth prospects. The purchases also indicate a high level of confidence in the company's mission and its commitment to shareholder value. Both executives have indicated the possibility of additional share purchases, depending on market conditions and regulatory requirements. This development could be a positive indicator for investors, as it aligns the economic interests of the company's leadership more closely with those of its shareholders.
- Valuation: After successfully raising over $200 million from leading healthcare-focused investors like Fidelity, OrbiMed, HillHouse, and Adjuvant Capital, which is backed by the Gates Foundation, YS Biopharma has gained substantial visibility in the industry. To assess its valuation, we have utilized a risk-adjusted discounted cash flow (DCF) as the primary method, supplemented by comparable analysis using the EV/sales valuation metric. We reaffirm a blended valuation of $474.29 million, or $5.10 per share, contingent on successful execution by the company.
About YS Biopharma Co., Ltd.
YS Biopharma Co., Ltd. is a Beijing-based biopharmaceutical company founded in 2002. Specializing in vaccines and therapeutic biologics, it targets diseases such as Rabies, Coronavirus, Hepatitis B, Influenza and Shingles via a proprietary PIKA® immunomodulating technology platform. The firm operates in various regions including China, the U.S., and Southeast Asian Countries.
For more information, visit https://www.ysbiopharm.com/
About Diamond Equity Research
Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms including Factset, Morningstar, and Thomson One.
For more information, visit https://www.diamondequityresearch.com.
Disclosures:
Diamond Equity Research LLC is being compensated by YS Biopharma Co., Ltd. for producing research materials regarding YS Biopharma Co., Ltd. and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for an annual or semi-annual research engagement. As of 09/20/23 the issuer had paid us $20,000 for our company sponsored research services, which commenced 07/01/23 and is billed annually, consisting of $20,000 for an initiation and update note and $20,000 for a minimum of two follow on notes, due upfront in each period for respective services as part of a $40,000 annual research term fee. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has not paid us for non-research related services as of 09/20/23. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities including the complete loss of their investment. Investors can find various risk factors in the initiation report and in the respective financial filings for YS Biopharma Co., Ltd.
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