HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

1. Industry viewpoints:<ul>
<li>With the aggravation of aging, the number of stroke patients would grow rapidly and it is estimated that the potential market size of neurointerventional medical devices would reach RMB33.3 billion in 2025</li>
<li>China has a huge demographic dividend and demand for vision correction. It is expected to be a large growth space for orthokeratology lenses industry in China.</li>
<li>Pet medical industry started late in China, but it develops rapidly.</li>
</ul>2. Company news:News about the progress of new drugs of <a href="https://www.smartkarma.com/entities/everest-medicines" target="_blank" data-smartkarma-citation="entities:29224:1" rel="noopener">Everest Medicines (1952 HK)</a>, <a href="https://www.smartkarma.com/entities/antengene-corporation-limited" target="_blank" data-smartkarma-citation="entities:29705:1" rel="noopener">Antengene (6996 HK)</a> and <a href="https://www.smartkarma.com/entities/jacobio-pharmaceuticals" target="_blank" data-smartkarma-citation="entities:29696:1" rel="noopener">Jacobio Pharmaceuticals (1167 HK)</a>.3. Market review:Last week, stock price for healthcare sector in A share increased 2.88%, while CSI 300 increased 5.45% over the same period of time.4. Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:
With the aggravation of aging, the number of stroke patients would grow rapidly and it is estimated that the potential market size of neurointerventional medical devices would reach RMB33.3 billion in 2025
China has a huge demographic dividend and demand for vision correction. It is expected to be a large growth space for orthokeratology lenses industry in China.
Pet medical industry started late in China, but it develops rapidly.
2. Company news:News about the progress of new drugs of Everest Medicines (1952 HK), Antengene (6996 HK) and Jacobio Pharmaceuticals (1167 HK).3. Market review:Last week, stock price for healthcare sector in A share increased 2.88%, while CSI 300 increased 5.45% over the same period of time.4. Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints: <ul>
<li>For a long time, the National Healthcare Security Administration has explicitly mentioned to include the traditional Chinese medicines into volume-based purchase (VBP) and the related policy is now in process.</li>
<li>Vaccine is a hot topic in 2020, so it deserves further discussion.</li>
<li>In terms of future trend, the IVD industry will undergo profound changes in the next five years.</li>
</ul>2. Company news:News about the new agreement and the progress of new drugs from <a href="https://www.smartkarma.com/entities/ascentage-pharma-group-inter" target="_blank" data-smartkarma-citation="entities:27824:1" rel="noopener">Ascentage Pharma Group Corp (6855 HK)</a>, <a href="https://www.smartkarma.com/entities/cspc-pharmaceutical-group-ltd" target="_blank" data-smartkarma-citation="entities:229:1" rel="noopener">CSPC Pharmaceutical Group (1093 HK)</a>, <a href="https://www.smartkarma.com/entities/ascletis-pharma-inc" target="_blank" data-smartkarma-citation="entities:27265:1" rel="noopener">Ascletis Pharma Inc (1672 HK)</a>, and <a href="https://www.smartkarma.com/entities/antengene-corporation-limited" target="_blank" data-smartkarma-citation="entities:29705:1" rel="noopener">Antengene (6996 HK).</a>3. Market review:Last week, stock price for healthcare sector in A share increased 5.98%, while CSI 300 increased 1.71% over the same period of time.4. Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints: 
For a long time, the National Healthcare Security Administration has explicitly mentioned to include the traditional Chinese medicines into volume-based purchase (VBP) and the related policy is now in process.
Vaccine is a hot topic in 2020, so it deserves further discussion.
In terms of future trend, the IVD industry will undergo profound changes in the next five years.
2. Company news:News about the new agreement and the progress of new drugs from Ascentage Pharma Group Corp (6855 HK), CSPC Pharmaceutical Group (1093 HK), Ascletis Pharma Inc (1672 HK), and Antengene (6996 HK).3. Market review:Last week, stock price for healthcare sector in A share increased 5.98%, while CSI 300 increased 1.71% over the same period of time.4. Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hansoh-pharmaceutical-group-co" target="_blank" data-smartkarma-citation="entities:23675:1" rel="noopener">Hansoh Pharmaceutical Group (3692 HK)</a> entered into a license agreement with <a href="https://www.smartkarma.com/entities/glaxosmithkline-plc" target="_blank" data-smartkarma-citation="entities:21960:1" rel="noopener">GlaxoSmithKline PLC (GSK LN)</a> for a B7-H4 targeted antibody-drug conjugate candidate, HS-20089, targeted toward gynecological cancers.  </li>
<li>Hansoh will receive an upfront payment of $85M and be eligible to receive milestone payments of up to $1.485B subject to achievement of relevant milestone events with respect to HS-20089.</li>
<li>Currently, HS-20089 is in phase 1 clinical trial in China. GSK plans to begin phase 1 trial of HS-20089 outside of China in 2024.</li>
</ul>



Hansoh Pharmaceutical Group (3692 HK) entered into a license agreement with GlaxoSmithKline PLC (GSK LN) for a B7-H4 targeted antibody-drug conjugate candidate, HS-20089, targeted toward gynecological cancers.  
Hansoh will receive an upfront payment of $85M and be eligible to receive milestone payments of up to $1.485B subject to achievement of relevant milestone events with respect to HS-20089.
Currently, HS-20089 is in phase 1 clinical trial in China. GSK plans to begin phase 1 trial of HS-20089 outside of China in 2024.


Hansoh Pharmaceutical (3692 HK): New Licensing Deal Boosts Conviction on Innovative Pipeline Prowess

Equity Capital Markets

<ul>
<li>If you look up history, Laekna has certain connection with Novartis. However, Novartis seems to have not made much progress in small-molecule targeted oncology therapies in the past few years.</li>
<li>LAE001 would face fierce competition. Its new mechanism may not be accepted by doctors/patients in front of many mature drug options in the market. LAE002 has high R&amp;D failure risk.</li>
<li>Since the stock price performance of a number of innovative drug companies based on license-in model in HKEX is unsatisfactory, together with the weak sentiment, we remain conservative about Laekna. </li>
</ul>


If you look up history, Laekna has certain connection with Novartis. However, Novartis seems to have not made much progress in small-molecule targeted oncology therapies in the past few years.
LAE001 would face fierce competition. Its new mechanism may not be accepted by doctors/patients in front of many mature drug options in the market. LAE002 has high R&amp;D failure risk.
Since the stock price performance of a number of innovative drug companies based on license-in model in HKEX is unsatisfactory, together with the weak sentiment, we remain conservative about Laekna. 


Pre-IPO Laekna (PHIP Updates) - Some Key Points Worth the Attention

Cutia Therapeutics / Equity Capital Markets

<ul>
<li>Majority of Cutia’s products are based on license-in/distribution agreements. Cutia’s independent R&amp;D capability has yet to be proven. Stock prices of companies that completely rely on license-in are unsatisfactory.</li>
<li>Cutia's pipelines have unique characteristics. So, the requirements on team's ability are comprehensive. Purely medical background of Cutia's team could be a “hindrance” and may fail to commercialize them well.</li>
<li>There is a real need in the fields Cutia is focusing on, so the story is compelling. However, with limited commercialized products, it’s difficult to prove anything at current stage.</li>
</ul>


Majority of Cutia’s products are based on license-in/distribution agreements. Cutia’s independent R&amp;D capability has yet to be proven. Stock prices of companies that completely rely on license-in are unsatisfactory.
Cutia's pipelines have unique characteristics. So, the requirements on team's ability are comprehensive. Purely medical background of Cutia's team could be a “hindrance” and may fail to commercialize them well.
There is a real need in the fields Cutia is focusing on, so the story is compelling. However, with limited commercialized products, it’s difficult to prove anything at current stage.


Pre-IPO Cutia Therapeutics (CUT HK) - Outlook Is Uncertain Due to Unique Pipeline Characteristics

China

Antengene is a global, R&D-driven, commercial-stage biotech company focused on discovering, developing, manufacturing, and commercializing first-in-class/best-in-class therapeutics for hematologic malignancies and solid tumors. Its pipeline includes in-house discovered programs like ATG-022 and ATG-101, and its lead commercial asset is XPOVIO® (selinexor). The company also developed the AnTenGager® T cell engager platform. Antengene is headquartered in Shanghai, China, and was founded in 2017.

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Antengene (6996 HK)

China Healthcare Weekly (Jan.8)

The article analyzed the viewpoints in neurointerventional medical devices market, orthokeratology lenses market and pet medical market in China,...

Xinyao (Criss) Wang

China Healthcare Weekly (Dec.4)

This article summarized the updated news in China volume-based purchase policy, industry viewpoints, company news, and capital market review for...

Xinyao (Criss) Wang

Hansoh Pharmaceutical (3692 HK): New Licensing Deal Boosts Conviction on Innovative Pipeline Prowess

Hansoh Pharma will receive an upfront payment of $85M and potential milestone payments of up to $1.485B. The licensed drug candidate is currently...

Tina Banerjee

Pre-IPO Laekna (PHIP Updates) - Some Key Points Worth the Attention

Laekna's core products would face different challenges, which makes us hard to be optimistic about their prospects.As a biotech based on license-in...

Xinyao (Criss) Wang

Pre-IPO Cutia Therapeutics (CUT HK) - Outlook Is Uncertain Due to Unique Pipeline Characteristics

Cutia need to clarify whether its positioning is to sell drugs or consumer products,as their strategies will be different. Cutia has to strengthen...

Xinyao (Criss) Wang

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China Healthcare Weekly (Jan.8)

The article analyzed the viewpoints in neurointerventional medical devices market, orthokeratology lenses market and pet medical market in China,...

Xinyao (Criss) Wang

China Healthcare Weekly (Dec.4)

This article summarized the updated news in China volume-based purchase policy, industry viewpoints, company news, and capital market review for...

Xinyao (Criss) Wang

Hansoh Pharmaceutical (3692 HK): New Licensing Deal Boosts Conviction on Innovative Pipeline Prowess

​Hansoh Pharma will receive an upfront payment of $85M and potential milestone payments of up to $1.485B. The licensed drug candidate is currently...

Tina Banerjee

Pre-IPO Laekna (PHIP Updates) - Some Key Points Worth the Attention

Laekna's core products would face different challenges, which makes us hard to be optimistic about their prospects.As a biotech based on license-in...

Xinyao (Criss) Wang

Pre-IPO Cutia Therapeutics (CUT HK) - Outlook Is Uncertain Due to Unique Pipeline Characteristics

Cutia need to clarify whether its positioning is to sell drugs or consumer products,as their strategies will be different. Cutia has to strengthen...

Xinyao (Criss) Wang

Hansoh Pharma will receive an upfront payment of $85M and potential milestone payments of up to $1.485B. The licensed drug candidate is currently...