HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Sihuan Pharmaceutical Hldgs / Equity Bottom-Up

<ul>
<li>The disposal of generic drug segment would bring one-time cash flow. Together with the cash on hand, <a href="https://www.smartkarma.com/entities/sihuan-pharmaceutical-hldgs" target="_blank" data-smartkarma-citation="entities:33:1" rel="noopener">Sihuan Pharmaceutical Hldgs (460 HK)</a> is undervalued based on its current market value. </li>
<li>In the context of its innovative drug segment facing long-term losses, and the decreasing profit margins of medical beauty segment due to increasing competition, Sihuan’s prospects are no brighter.</li>
<li>Due to the concerns on outlook and its development mode, Sihuan’s upside potential could be lower than expected, and the share price could fluctuate largely. </li>
</ul>


The disposal of generic drug segment would bring one-time cash flow. Together with the cash on hand, Sihuan Pharmaceutical Hldgs (460 HK) is undervalued based on its current market value. 
In the context of its innovative drug segment facing long-term losses, and the decreasing profit margins of medical beauty segment due to increasing competition, Sihuan’s prospects are no brighter.
Due to the concerns on outlook and its development mode, Sihuan’s upside potential could be lower than expected, and the share price could fluctuate largely. 


Sihuan Pharmaceutical (460.HK) - The Potential Disposal of Generic Drug Business and the Outlook

Sino Biopharmaceutical / Equity Bottom-Up

<ul>
<li>As the “the king of generics”, <a href="https://www.smartkarma.com/entities/sino-biopharmaceutical" target="_blank" data-smartkarma-citation="entities:230:1" rel="noopener">Sino Biopharmaceutical (1177 HK)</a> is lucky to have three “golden eggs”(Entecavir, Anlotinib, CoronaVac) to contribute huge performance over the years.</li>
<li>The promotion of VBP and fierce competition make Sino Biopharmaceutical's products lose pricing power. Due to little revolutionary technology/slow product iteration/weak R&amp;D, it’s unlikely to have another Anlotinib level asset.</li>
<li>The Company's development mode, the mindset of management, and other concerns could be more serious problems, causing investors to distrust the management level and preventing it from getting high valuation.</li>
</ul>


As the “the king of generics”, Sino Biopharmaceutical (1177 HK) is lucky to have three “golden eggs”(Entecavir, Anlotinib, CoronaVac) to contribute huge performance over the years.
The promotion of VBP and fierce competition make Sino Biopharmaceutical's products lose pricing power. Due to little revolutionary technology/slow product iteration/weak R&amp;D, it’s unlikely to have another Anlotinib level asset.
The Company's development mode, the mindset of management, and other concerns could be more serious problems, causing investors to distrust the management level and preventing it from getting high valuation.


Sino Biopharmaceutical (1177.HK) - Three “Golden Eggs” and the Risks Behind

Global Healthcare Analyst

Tina Banerjee

Shanghai Junshi Biosciences  / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-junshi-bioscience-h" target="_blank" data-smartkarma-citation="entities:27760:1" rel="noopener">Shanghai Junshi Bioscience Co. Ltd. (1877 HK)'s</a> oncology drug candidate toripalimab marketing application is currently under priority review by the FDA, with a target action date of April 30, 2022.</li>
<li>However, FDA may reject toripalimab application, as it is predominantly based on China clinical trial data. Toripalimab may also face delay in FDA decision due to delayed regulatory inspection.</li>
<li>PD-1 drug market in the U.S. is intensely competitive, making the commercialization prospect of a new drug quite difficult. Toripalimab reported muted performance in China due to pricing headwind.</li>
</ul>



Shanghai Junshi Bioscience Co. Ltd. (1877 HK)'s oncology drug candidate toripalimab marketing application is currently under priority review by the FDA, with a target action date of April 30, 2022.
However, FDA may reject toripalimab application, as it is predominantly based on China clinical trial data. Toripalimab may also face delay in FDA decision due to delayed regulatory inspection.
PD-1 drug market in the U.S. is intensely competitive, making the commercialization prospect of a new drug quite difficult. Toripalimab reported muted performance in China due to pricing headwind.


Shanghai Junshi Bioscience (1877 HK): Uncertainties Prevailing Ahead of First U.S. Drug Approval

<ul>
<li>Akeso has a very high starting point, and was regarded as the leader of domestic second-tier biotech companies. However, in current unfavorable market sentiment, it’s necessary to re-examine the Company.</li>
<li>In Akeso’s pipeline, there are some valuable and differentiated candidates, especially in the field of bispecific antibodies. Its R&amp;D capability is also well recognized.</li>
<li>However, due to the rich pipeline, related clinical trials will drain money fast. So, investors are advised to be cautious until Akeso has ensured sustainable and stable cash flow.</li>
</ul>


Akeso has a very high starting point, and was regarded as the leader of domestic second-tier biotech companies. However, in current unfavorable market sentiment, it’s necessary to re-examine the Company.
In Akeso’s pipeline, there are some valuable and differentiated candidates, especially in the field of bispecific antibodies. Its R&amp;D capability is also well recognized.
However, due to the rich pipeline, related clinical trials will drain money fast. So, investors are advised to be cautious until Akeso has ensured sustainable and stable cash flow.


Akeso Biopharma Inc (9926.HK) - Caution Is Advised Until Sufficient Financing Is Secured

Suzhou Zelgen Biopharmaceutica / Equity Bottom-Up

<ul>
<li>We analyzed <a href="https://www.smartkarma.com/entities/suzhou-zelgen-biopharmaceuticals-a" target="_blank" data-smartkarma-citation="entities:30375:1" rel="noopener">Suzhou Zelgen Biopharmaceuticals (688266 CH)</a>’s key products(Donafenib, recombinant human thrombin for topical use, Alkotinib, Jaktinib, etc.). They have to face fierce competition, VBP impact and small market size.</li>
<li>Through Gensun Biopharma, Zelgen has established the ability to develop advanced tumor immunotherapy drugs. Whether it can continue to launch new products is the key to test Zelgen's R&amp;D system.</li>
<li>We are cautious about Zelgen because uncertainties led to inaccurate prediction on market size and outlook.Investors can choose to “catch” a rebound, but Zelgen is far from a complete reversal.</li>
</ul>


We analyzed Suzhou Zelgen Biopharmaceuticals (688266 CH)’s key products(Donafenib, recombinant human thrombin for topical use, Alkotinib, Jaktinib, etc.). They have to face fierce competition, VBP impact and small market size.
Through Gensun Biopharma, Zelgen has established the ability to develop advanced tumor immunotherapy drugs. Whether it can continue to launch new products is the key to test Zelgen's R&amp;D system.
We are cautious about Zelgen because uncertainties led to inaccurate prediction on market size and outlook.Investors can choose to “catch” a rebound, but Zelgen is far from a complete reversal.


Suzhou Zelgen Biopharmaceuticals (688266.CH) - Uncertainty Leads to Inaccurate Prediction on Outlook

China

Alphamab Oncology produces and sells drugs. The Company manufactures and sells tumor immunobiology macromolecular targeted drug and other products. Alphamab Oncology provides services worldwide.

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Alphamab Co Ltd (9966 HK)

Sihuan Pharmaceutical (460.HK) - The Potential Disposal of Generic Drug Business and the Outlook

The medical aesthetics/innovative drug business face various challenges.Though Sihuan is undervalued,concerns on outlook/development mode will...

Xinyao (Criss) Wang

Sino Biopharmaceutical (1177.HK) - Three “Golden Eggs” and the Risks Behind

Sino Biopharma is lucky to have three “golden eggs” to contribute huge performance over the years. But its weak pipeline and other destabilizing...

Xinyao (Criss) Wang

Shanghai Junshi Bioscience (1877 HK): Uncertainties Prevailing Ahead of First U.S. Drug Approval

Going by the FDA’s recent action, Junshi Bioscience’s toripalimab has a chance to get rejected by the FDA. It may miss the approval timeline....

Tina Banerjee

Akeso Biopharma Inc (9926.HK) - Caution Is Advised Until Sufficient Financing Is Secured

Akeso has a high starting point, with strong R&D capability and valuable pipeline. However, related clinical trials will drain money fast....

Xinyao (Criss) Wang

Suzhou Zelgen Biopharmaceuticals (688266.CH) - Uncertainty Leads to Inaccurate Prediction on Outlook

Zelgen’s key products would face fierce competition, VBP and small market size, leading to inaccurate prediction on outlook. So we choose to be...

Xinyao (Criss) Wang

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