Healthcare Analyst

Wilfred Yuen

Thematic (Sector/Industry)

<ul>
<li>
Genscript delivered a strong set of 1H26 results, driven by AI demands. Kelun Bio, CSPC, Sino Biopharm delivered positive 1H26 results, thanks to revenue ramp-up from innovative drugs and BD</li>
<li>Hengrui missed its 2Q26 results, dragged down by generic drugs (-17% QoQ to RMB2.3bn) and moderating growth from oncology segment (-6% YoY). Yet, we are positive on its pipeline progress</li>
<li>Other updates from this week include Zai Lab/Argenx, Hutchmed/AstraZeneca, and EyePoint/Betta Pharma...
</li>
</ul>



Genscript delivered a strong set of 1H26 results, driven by AI demands. Kelun Bio, CSPC, Sino Biopharm delivered positive 1H26 results, thanks to revenue ramp-up from innovative drugs and BD
Hengrui missed its 2Q26 results, dragged down by generic drugs (-17% QoQ to RMB2.3bn) and moderating growth from oncology segment (-6% YoY). Yet, we are positive on its pipeline progress
Other updates from this week include Zai Lab/Argenx, Hutchmed/AstraZeneca, and EyePoint/Betta Pharma...



Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

CStone Pharmaceuticals / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/cstone-pharmaceuticals" target="_blank" data-smartkarma-citation="entities:27882:1" rel="noopener">CStone Pharmaceuticals (2616 HK)</a> posted revenue of RMB 205.1M (vs RMB 49.4M in 1H25) as sales of Gavreto (pralsetinib) increased substantially following its successful inclusion in the NRDL.</li>
<li>R&amp;D expenses increased 95% to RMB 205.5M due to increased ongoing clinical trials. Company ended 1H26 with a loss of RMB 252.3M vs loss of RMB 270.2M in 1H25.</li>
<li>Sugemalimab awaiting launches in new overseas territories, Aykavit and Gavreto sales slowly picking and CS2009 showing encouraging trial results pose a positive outlook about the company.</li>
</ul>



CStone Pharmaceuticals (2616 HK) posted revenue of RMB 205.1M (vs RMB 49.4M in 1H25) as sales of Gavreto (pralsetinib) increased substantially following its successful inclusion in the NRDL.
R&amp;D expenses increased 95% to RMB 205.5M due to increased ongoing clinical trials. Company ended 1H26 with a loss of RMB 252.3M vs loss of RMB 270.2M in 1H25.
Sugemalimab awaiting launches in new overseas territories, Aykavit and Gavreto sales slowly picking and CS2009 showing encouraging trial results pose a positive outlook about the company.


CStone Pharma (2616 HK): Pharma Products Picking Up, Pipeline 2.0 Showing Potential

<ul>
<li>
<a href="https://www.smartkarma.com/entities/alphamab-oncology" target="_blank" data-smartkarma-citation="entities:28213:1" rel="noopener">Alphamab Co Ltd (9966 HK) </a>reported drop of 15% YoY in revenue, driven by licensing income. Recorded loss of RMB 40.5M in 1H26 (vs profit of RMB 21.6M in 1H25).</li>
<li>The NDA of KN026 in combination with docetaxel, as neoadjuvant treatment for HER2+ BC and as first-line treatment of HER2+ advanced BC is under priority review and approval procedure.</li>
<li>We feel the trial results, approvals and launches of various candidates lined up would act as further triggers to the stock price. We prefer to be bullish on the name.</li>
</ul>



Alphamab Co Ltd (9966 HK) reported drop of 15% YoY in revenue, driven by licensing income. Recorded loss of RMB 40.5M in 1H26 (vs profit of RMB 21.6M in 1H25).
The NDA of KN026 in combination with docetaxel, as neoadjuvant treatment for HER2+ BC and as first-line treatment of HER2+ advanced BC is under priority review and approval procedure.
We feel the trial results, approvals and launches of various candidates lined up would act as further triggers to the stock price. We prefer to be bullish on the name.


Alphamab Oncology (9966 HK): Phase III Candidates, Pending Approvals Waiting To Unlock Value

<ul>
<li>Hansoh Pharmaceutical entered outlicense agreement with Roche for upfront and milestone payments of $2B+. Leads Biolabs and Dianthus Therapeutics entered into exclusive global license agreement for pre-clinical asset.</li>
<li>Chugai Pharmaceutical’s partner Eli Lilly announced positive results from Phase 3 trials of orforglipron. SanBio Co announced that their partial change application for AKUUGO is one step ahead for approval.</li>
<li>Celltrion launched Actemra biosimilar, Aptozma in the U.S. at ~35% discount to original drug. Samsung Biologics shareholders approved biologics business spin-off plan to transform the company into a pure-play CDMO.</li>
</ul>


Hansoh Pharmaceutical entered outlicense agreement with Roche for upfront and milestone payments of $2B+. Leads Biolabs and Dianthus Therapeutics entered into exclusive global license agreement for pre-clinical asset.
Chugai Pharmaceutical’s partner Eli Lilly announced positive results from Phase 3 trials of orforglipron. SanBio Co announced that their partial change application for AKUUGO is one step ahead for approval.
Celltrion launched Actemra biosimilar, Aptozma in the U.S. at ~35% discount to original drug. Samsung Biologics shareholders approved biologics business spin-off plan to transform the company into a pure-play CDMO.


APAC Healthcare Weekly (October 19) – Hansoh, Leads Biolabs, Chugai, SanBio, Celltrion, Samsung Bio

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>We remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass), with Int’l Compass reports all echoing this sentiment.</li>
<li>We will maintain our bullish intermediate-term view as long as market dynamics remain healthy and the SPX and ACWI-US are above 6028-6059 (up from 5700-5785) and $119-$121.</li>
<li>$128, $125-$126, and $123-$123.50 are short-term supports to watch on ACWI-US; we will maintain our near-term bullish outlook as long as $123 support holds.</li>
</ul>


We remain near-term bullish since our 4/22/25 Compass, and our intermediate-term outlook remains bullish as well (as of our 5/14/25 Compass), with Int’l Compass reports all echoing this sentiment.
We will maintain our bullish intermediate-term view as long as market dynamics remain healthy and the SPX and ACWI-US are above 6028-6059 (up from 5700-5785) and $119-$121.
$128, $125-$126, and $123-$123.50 are short-term supports to watch on ACWI-US; we will maintain our near-term bullish outlook as long as $123 support holds.


Continue Adding Exposure to China; Short-Term Supports to for This ACWI-US Pullback

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Betta Pharmaceuticals (BETTA HK)

China Healthcare Weekly Wrap (17-21 Aug)

In this weekly wrap, we cover 1H26 results from Genscript, Hengrui, Sino Biopharm, CSPC, Kelun Biotech. Other news/updates include Zai Lab/Argenx,...

Wilfred Yuen

CStone Pharma (2616 HK): Pharma Products Picking Up, Pipeline 2.0 Showing Potential

CStone posted revenue growth in 1H26 with Gavreto included in NRDL. Sugemalimab launch in new territories, Aykavit & Gavreto slowly picking and...

Tina Banerjee

Alphamab Oncology (9966 HK): Phase III Candidates, Pending Approvals Waiting To Unlock Value

Alphamab posted 15% YoY revenue drop driven licensing income. KN026 awaiting further approval. Trial results, approvals and launches lined up are...

Tina Banerjee

APAC Healthcare Weekly (October 19) – Hansoh, Leads Biolabs, Chugai, SanBio, Celltrion, Samsung Bio

Hansoh and Leads Biolabs bag global outlicensing deals. Chugai’s partner Lilly announced positive P3 result for orforglipron. Celltrion launched...

Tina Banerjee

Continue Adding Exposure to China; Short-Term Supports to for This ACWI-US Pullback

Continue Adding Exposure to China; $ACWI Short-Term Supports for this pullback: $128, $125-$126, and $123-$123.50. Pullbacks = buy opportunities,...

Vermilion Research

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)