HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>With both strong innovation and internationalization capability, Lifetech is more resistant to risks and have greater development space and long-term value, which is not common in China healthcare industry. </li>
<li>The biggest concerns currently are the policy risks and the potential deterioration of international relations.</li>
<li>But overall, Lifetech is a still company worth investor’s attention. Our view is that its future valuation would be higher than that of <a href="https://www.smartkarma.com/entities/shanghai-microport-endovas-a" target="_blank" data-smartkarma-citation="entities:30310:1" rel="noopener">Shanghai Microport Endovascular MedTech (688016 CH)</a>.</li>
</ul>


With both strong innovation and internationalization capability, Lifetech is more resistant to risks and have greater development space and long-term value, which is not common in China healthcare industry. 
The biggest concerns currently are the policy risks and the potential deterioration of international relations.
But overall, Lifetech is a still company worth investor’s attention. Our view is that its future valuation would be higher than that of Shanghai Microport Endovascular MedTech (688016 CH).


Lifetech Scientific (1302.HK) - A “dark Horse” in China Innovative Device Industry

Thematic (Sector/Industry)

<ul>
<li>The “capital arbitrage” in domestic innovative drug industry would not be sustainable.</li>
<li>Based on data, the sales and profits of innovative drugs at present can hardly support the current valuation of pharmaceutical companies (or recover the high cost of license-in deals).</li>
<li>However, we are still highly bullish on China healthcare industry if seen from the <strong>big picture</strong>.</li>
</ul>


The “capital arbitrage” in domestic innovative drug industry would not be sustainable.
Based on data, the sales and profits of innovative drugs at present can hardly support the current valuation of pharmaceutical companies (or recover the high cost of license-in deals).
However, we are still highly bullish on China healthcare industry if seen from the big picture.


China Healthcare Weekly (Dec.24)- Capital Arbitrage, Drug Commercial Results, Healthcare Big Picture

<ul>
<li>
<a href="https://www.smartkarma.com/entities/zai-lab-ltd" target="_blank" data-smartkarma-citation="entities:25877:1" rel="noopener">Zai Lab Ltd (ZLAB US)</a> is famous for its license-in mode, but the biggest highlight is its strong vision and high success rate in the process, forming a distinctive pipeline.</li>
<li>The concerns such as the changes of pattern in license-in mode, attitude of the regulatory authorities, fierce competition and commercialization outlook also deserve attention.</li>
<li>Investing a company is actually investing in its people. We have confidence that Zai Lab would find its way out.</li>
</ul>



Zai Lab Ltd (ZLAB US) is famous for its license-in mode, but the biggest highlight is its strong vision and high success rate in the process, forming a distinctive pipeline.
The concerns such as the changes of pattern in license-in mode, attitude of the regulatory authorities, fierce competition and commercialization outlook also deserve attention.
Investing a company is actually investing in its people. We have confidence that Zai Lab would find its way out.


Zai Lab Ltd (ZLAB.US) - The Strength and the Concerns

<ul>
<li>The most important policy for the domestic healthcare industry in the next three years is the DRGs/DIP. We analyzed some important points and the industry outlook brought by this policy.</li>
<li>The aggregate “constraints” imposed by DRGs/DIP will greatly reduce the growth of industry, but A-share market hasn’t fully priced in the impact. Investors are advised to be aware of it.</li>
<li>Recently, Shaanxi province announced the results of centralized procurement of pacemakers.</li>
</ul>


The most important policy for the domestic healthcare industry in the next three years is the DRGs/DIP. We analyzed some important points and the industry outlook brought by this policy.
The aggregate “constraints” imposed by DRGs/DIP will greatly reduce the growth of industry, but A-share market hasn’t fully priced in the impact. Investors are advised to be aware of it.
Recently, Shaanxi province announced the results of centralized procurement of pacemakers.


China Healthcare Weekly (Dec.17)-The Most Important Policy in Next Three Years,Pacemaker VBP Results

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

<ul>
<li>Yesterday, the Financial Times reported that the Biden Administration would add two dozen Chinese companies to the entity list while there could be additions to the investment blacklist too.</li>
<li>There was a big drop in biotech stocks in Hong Kong on the news with the Hang Seng Hong Kong listed Biotech Index dropping over 7%.</li>
<li>Ahead of the publication of the lists on Thursday, we look at the potential impact on the stocks that could be added to either/both the lists.</li>
</ul>


Yesterday, the Financial Times reported that the Biden Administration would add two dozen Chinese companies to the entity list while there could be additions to the investment blacklist too.
There was a big drop in biotech stocks in Hong Kong on the news with the Hang Seng Hong Kong listed Biotech Index dropping over 7%.
Ahead of the publication of the lists on Thursday, we look at the potential impact on the stocks that could be added to either/both the lists.


Potential Blacklist Additions: Impact on China AI/Biotech Stocks

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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BeiGene (6160 HK)

Lifetech Scientific (1302.HK) - A “dark Horse” in China Innovative Device Industry

This insight analyzed Lifetech in terms of its three main product lines, the growth points and the outlook in the future, short-term catalysts and...

Xinyao (Criss) Wang

China Healthcare Weekly (Dec.24)- Capital Arbitrage, Drug Commercial Results, Healthcare Big Picture

This insight analyzed the concerns on capital arbitrage in domestic innovative drugs, the unsatisfactory innovative drug commercial results,...

Xinyao (Criss) Wang

Zai Lab Ltd (ZLAB.US) - The Strength and the Concerns

This insight analyzes Zai Lab about its distinctive pipeline, the management team, the concerns on license-in mode, regulatory...

Xinyao (Criss) Wang

China Healthcare Weekly (Dec.17)-The Most Important Policy in Next Three Years,Pacemaker VBP Results

This article analyzed the most important policy for China healthcare in the next three years - DRGs/DIP, its potential impact, the outlook of...

Xinyao (Criss) Wang

Potential Blacklist Additions: Impact on China AI/Biotech Stocks

An FT article said that the Biden administration would add 8 entities to the NS-CMIC list and 24 entities to the Entity List. We look at the...

Brian Freitas

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