HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>Next, domestic policy may shift from easing the pressure on medical insurance to focusing on the concerns about people's livelihood, the pressure of public opinion, people's demands, and old-age care.</li>
<li>The endogenous demand will be stepped downward based on current economic situation. The performance/valuation of HPV vaccine/growth hormones/eye care companies will gradually decline if just based on domestic markets.</li>
<li>The second half of 2022 to 2023 will gradually enter the outbreak period of medical equipment procurement for newly built hospitals. Related companies will usher in a "honeymoon period".</li>
</ul>


Next, domestic policy may shift from easing the pressure on medical insurance to focusing on the concerns about people's livelihood, the pressure of public opinion, people's demands, and old-age care.
The endogenous demand will be stepped downward based on current economic situation. The performance/valuation of HPV vaccine/growth hormones/eye care companies will gradually decline if just based on domestic markets.
The second half of 2022 to 2023 will gradually enter the outbreak period of medical equipment procurement for newly built hospitals. Related companies will usher in a "honeymoon period".


China Healthcare Weekly (Aug.26) - Policy Trend, Aier Eye Hospital, Hospital Project Construction

Equity Bottom-Up

<ul>
<li>BeiGene’s product sales in 2022H1 more than doubled YoY, which was a positive sign for commercialization. However, net loss further widened, mainly due to significantly high R&amp;D and SG&amp;A expenses.</li>
<li>Tislelizumab and zanubrutinib are not enough to support BeiGene’s high valuation. The success or failure of TIGIT project will be the key to determine how far BeiGene will go.</li>
<li>So far, it is still an indisputable fact that BeiGene has profitability issues. That's why it's hard for us to be optimistic about this company. </li>
</ul>


BeiGene’s product sales in 2022H1 more than doubled YoY, which was a positive sign for commercialization. However, net loss further widened, mainly due to significantly high R&amp;D and SG&amp;A expenses.
Tislelizumab and zanubrutinib are not enough to support BeiGene’s high valuation. The success or failure of TIGIT project will be the key to determine how far BeiGene will go.
So far, it is still an indisputable fact that BeiGene has profitability issues. That's why it's hard for us to be optimistic about this company. 


BeiGene (6160.HK/BGNE.US) 22H1- It Is an Indisputable Fact that BeiGene Is Difficult to Make Profits

<ul>
<li>The NHSA issued a Notice on the investigation and registration of dental implant charges and service fees, paving ways for the subsequent centralized procurement, which would affect companies’ profit model.</li>
<li>As the pioneer of commercial insurance,Huimin Insurance is showing a decreasing marginal effect on improving the ability to pay the bills out of NRDL and improving bargaining power of companies.</li>
<li>To improve internationalization, China Biotech can choose to “Fast Follow” differentiated BIC candidates and also start MRCT in Phase I trials. This could be a path to strive for.</li>
</ul>


The NHSA issued a Notice on the investigation and registration of dental implant charges and service fees, paving ways for the subsequent centralized procurement, which would affect companies’ profit model.
As the pioneer of commercial insurance,Huimin Insurance is showing a decreasing marginal effect on improving the ability to pay the bills out of NRDL and improving bargaining power of companies.
To improve internationalization, China Biotech can choose to “Fast Follow” differentiated BIC candidates and also start MRCT in Phase I trials. This could be a path to strive for.


China Healthcare Weekly (Aug19)-Dental Implant VBP,Commercial Insurance,Biotech Internationalization

<ul>
<li>IVD field ushered in the largest centralized procurement in history - the liver function biochemical testing reagents,which would bring great reshuffle effect to the competition pattern of biochemical diagnostics market.</li>
<li>
<a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK) </a>and Sanofi reached two major cooperation. Meanwhile, Innovent’s CCO Liu Min resigned. We deep dived the logic and impact behind. </li>
<li>For HK IPO, market participants have come up with ways to reduce issuance scale in an attempt to stabilize the performance of new shares after IPO, which wouldn’t help.</li>
</ul>


IVD field ushered in the largest centralized procurement in history - the liver function biochemical testing reagents,which would bring great reshuffle effect to the competition pattern of biochemical diagnostics market.

Innovent Biologics Inc (1801 HK) and Sanofi reached two major cooperation. Meanwhile, Innovent’s CCO Liu Min resigned. We deep dived the logic and impact behind. 
For HK IPO, market participants have come up with ways to reduce issuance scale in an attempt to stabilize the performance of new shares after IPO, which wouldn’t help.


China Healthcare Weekly (Aug.5) - HK IPO, Innovent, BeiGene, the Largest IVD Centralized Procurement

<ul>
<li>The Development and Reform Commission of Shenzhen Municipality issued a document about the subsidy for VBP, which is a positive policy and is good for innovation.</li>
<li>The approval of Genuine Biotech’s Azvudine could greatly increase the unpredictability of the approval of domestic innovative drugs, thus greatly increasing the unpredictable risk of domestic innovative drug enterprises.</li>
<li>In terms of internationalization, we summarized what Chinese pharmaceutical companies could do at the current stage. But they are hard to become the mainstream in pharmaceuticals globally in short term.</li>
</ul>


The Development and Reform Commission of Shenzhen Municipality issued a document about the subsidy for VBP, which is a positive policy and is good for innovation.
The approval of Genuine Biotech’s Azvudine could greatly increase the unpredictability of the approval of domestic innovative drugs, thus greatly increasing the unpredictable risk of domestic innovative drug enterprises.
In terms of internationalization, we summarized what Chinese pharmaceutical companies could do at the current stage. But they are hard to become the mainstream in pharmaceuticals globally in short term.


China Healthcare Weekly (July.29)-Subsidy for VBP, Unpredictable NMPA, Ways for Internationalization

China

BeiGene, Ltd. operates as a commercial stage biopharmaceutical company. The Company focuses on discovery, development, and commercialization of molecularly targeted and immuno-oncology drugs for the treatment of cancer. BeiGene serves patients worldwide.

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BeOne (ONC US)

China Healthcare Weekly (Aug.26) - Policy Trend, Aier Eye Hospital, Hospital Project Construction

Policy may shift from easing medical insurance pressure to improving people's livelihood. Low endogenous demand will affect company's valuation....

Xinyao (Criss) Wang

BeiGene (6160.HK/BGNE.US) 22H1- It Is an Indisputable Fact that BeiGene Is Difficult to Make Profits

Despite improved product sales, BeiGene’s future still depends on TIGIT project. It's hard to make profits due to high R&D and SG&A expenses....

Xinyao (Criss) Wang

China Healthcare Weekly (Aug19)-Dental Implant VBP,Commercial Insurance,Biotech Internationalization

Dental implant VBP will affect companies' profit model/valuation elasticity. Commercial medical insurance faces challenges. China Biotech's...

Xinyao (Criss) Wang

China Healthcare Weekly (Aug.5) - HK IPO, Innovent, BeiGene, the Largest IVD Centralized Procurement

IVD field ushered in the largest VBP in history. Innovent/Sanofi reached major cooperation, and Innovent’s CCO resigned. We deep dived the logic...

Xinyao (Criss) Wang

China Healthcare Weekly (July.29)-Subsidy for VBP, Unpredictable NMPA, Ways for Internationalization

The policy about subsidy for VBP is a positive sign for innovation. NMPA is unpredictable, increasing the uncertainty of drug approval. Here's what...

Xinyao (Criss) Wang

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