HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>“Measures for the Supervision and Administration of Online Drug Sales” was released, which indicated that the online sale of prescription drugs is allowed, but there are certain restrictions and requirements.</li>
<li>The rise of China biotech is based on the historical opportunities of both alpha (individual efforts) and beta (industry development) superposition. It’s unique. Investors shouldn’t expect to “copy” similar paths.</li>
<li>We have noted that some biotech/biopharma have or are considering changing excess capacity to do CDMO. This is caused by too much “bubble” in the market, which is not logical.</li>
</ul>


“Measures for the Supervision and Administration of Online Drug Sales” was released, which indicated that the online sale of prescription drugs is allowed, but there are certain restrictions and requirements.
The rise of China biotech is based on the historical opportunities of both alpha (individual efforts) and beta (industry development) superposition. It’s unique. Investors shouldn’t expect to “copy” similar paths.
We have noted that some biotech/biopharma have or are considering changing excess capacity to do CDMO. This is caused by too much “bubble” in the market, which is not logical.


China Healthcare Weekly(Sep2)-Online Drug Sale, Biotech's Historical Opportunity, Biotech to Be CDMO

Global Healthcare Analyst

Tina Banerjee

Equity Capital Markets

Ascentage Pharma / Equity Capital Markets

<ul>
<li>
<a href="https://www.smartkarma.com/entities/ascentage-pharma-group-international" target="_blank" data-smartkarma-citation="entities:27824:1" rel="noopener">Ascentage Pharma (6855 HK)</a> has filed for a likely future at-the-market equity offering program of American depositary shares to raise up to US$ 200M.</li>
<li>Company reported revenue of RMB 574.1M in 2025, down 41.5%, largely because of high base effect. Revenue from Olverembatinib was up 81% YoY. Lisaftoclax garnered RMB 70.6M in sales.</li>
<li>Losses will continue and R&amp;D expenses, commercialization cost will be catered to by the likes of above ADS offering and previous placement proceeds. 2027 likely to be an inflection point.</li>
</ul>



Ascentage Pharma (6855 HK) has filed for a likely future at-the-market equity offering program of American depositary shares to raise up to US$ 200M.
Company reported revenue of RMB 574.1M in 2025, down 41.5%, largely because of high base effect. Revenue from Olverembatinib was up 81% YoY. Lisaftoclax garnered RMB 70.6M in sales.
Losses will continue and R&amp;D expenses, commercialization cost will be catered to by the likes of above ADS offering and previous placement proceeds. 2027 likely to be an inflection point.


Ascentage Pharma (6855 HK): ADS Offering Justified, 2027 Likely To Be An Inflection Point

Industry viewpoints:<ul>
<li>The 2021 medical insurance catalogue adjustment plan is soliciting opinions, and drugs approved for market launch during 2020.8.17 - 2021.6.30 will be eligible to participate in the negotiations.</li>
<li>Related departments issued new documents stating that from June to December this year, they will jointly carry out a special campaign to crack down on illegal medical beauty activities.</li>
<li>The General Office of the State Council issued a new document about the  development of public hospitals.</li>
</ul>Company news:News about the updated progress on drugs of <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK), </a><a href="https://www.smartkarma.com/entities/jiangsu-hengrui-medicine-co-ltd" target="_blank" data-smartkarma-citation="entities:14128:1" rel="noopener">Jiangsu Hengrui Medicine (600276 CH)</a>, <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 <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>.Market review:Last week, stock price for healthcare sector in A share decreased 2.8%, while CSI 300 decreased 2.34% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
The 2021 medical insurance catalogue adjustment plan is soliciting opinions, and drugs approved for market launch during 2020.8.17 - 2021.6.30 will be eligible to participate in the negotiations.
Related departments issued new documents stating that from June to December this year, they will jointly carry out a special campaign to crack down on illegal medical beauty activities.
The General Office of the State Council issued a new document about the  development of public hospitals.
Company news:News about the updated progress on drugs of BeiGene Ltd (6160 HK), Jiangsu Hengrui Medicine (600276 CH), Innovent Biologics Inc (1801 HK), and CSPC Pharmaceutical Group (1093 HK).Market review:Last week, stock price for healthcare sector in A share decreased 2.8%, while CSI 300 decreased 2.34% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:<ul>
<li>The National Healthcare Security Administration (NHSA) released new interim procedures about the medical insurance coverage for the retail pharmacies, which will come into effect on February 1st, 2021.</li>
<li>The epidemic since the end of 2019 has brought a large demand for blood products.</li>
<li>With the improvement of affordability, the expansion of medical insurance coverage and the increase of R&amp;D investment, the biological drug market size is expected to further expand.</li>
</ul>2. Company news:News about the progress of new drugs and new license agreement of Fosun Kite, <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a>, <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 <a href="https://www.smartkarma.com/entities/betta-pharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:25883:1" rel="noopener">Betta Pharmaceuticals (300558 CH)</a>.3. Market review:Last week, stock price for healthcare sector in A share decreased 2.41%, while CSI 300 decreased 0.68% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:
The National Healthcare Security Administration (NHSA) released new interim procedures about the medical insurance coverage for the retail pharmacies, which will come into effect on February 1st, 2021.
The epidemic since the end of 2019 has brought a large demand for blood products.
With the improvement of affordability, the expansion of medical insurance coverage and the increase of R&amp;D investment, the biological drug market size is expected to further expand.
2. Company news:News about the progress of new drugs and new license agreement of Fosun Kite, BeiGene Ltd (6160 HK), Innovent Biologics Inc (1801 HK) and Betta Pharmaceuticals (300558 CH).3. Market review:Last week, stock price for healthcare sector in A share decreased 2.41%, while CSI 300 decreased 0.68% 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>Recently, the National Medical Products Administration has released a new policy (draft version) about the online drug sales.</li>
<li>Vaccine is a hot topic in 2020, so let’s talk about vaccine.</li>
<li>The upsurge in the application of AI in medical imaging in China provides a new direction for the development, which may be the most promising field for China to surpass foreign countries.</li>
</ul>2. Company news:News about the updated progress of new drugs and the marketing approval of new products from <a href="https://www.smartkarma.com/entities/betta-pharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:25883:1" rel="noopener">Betta Pharmaceuticals (300558 CH)</a>, <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a> , Kangpu Biopharmaceuticals, and <a href="https://www.smartkarma.com/entities/venus-medtech-hangzhou-inc" target="_blank" data-smartkarma-citation="entities:28257:1" rel="noopener">Venus MedTech (2500 HK).</a>3. Market review:Last week, stock price for healthcare sector in A share decreased 1.43%, while CSI 300 increased 1.78% over the same period of time.4. Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1.Industry viewpoints:
Recently, the National Medical Products Administration has released a new policy (draft version) about the online drug sales.
Vaccine is a hot topic in 2020, so let’s talk about vaccine.
The upsurge in the application of AI in medical imaging in China provides a new direction for the development, which may be the most promising field for China to surpass foreign countries.
2. Company news:News about the updated progress of new drugs and the marketing approval of new products from Betta Pharmaceuticals (300558 CH), BeiGene Ltd (6160 HK) , Kangpu Biopharmaceuticals, and Venus MedTech (2500 HK).3. Market review:Last week, stock price for healthcare sector in A share decreased 1.43%, while CSI 300 increased 1.78% over the same period of time.4. Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

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Betta Pharmaceuticals (BETTA HK)

China Healthcare Weekly(Sep2)-Online Drug Sale, Biotech's Historical Opportunity, Biotech to Be CDMO

New policy of online drug sales is released,including certain restrictions.The rise of China biotech is based on historical opportunity of alpha...

Xinyao (Criss) Wang

Ascentage Pharma (6855 HK): ADS Offering Justified, 2027 Likely To Be An Inflection Point

Ascentage Pharma plans to raise up to US$200M through ADS offering. Olverembatinib, Lisaftoclax gradually gaining momentum. 2027 likely to be an...

Tina Banerjee

China Healthcare Weekly (Jun.18)

The article analyzed the 2021 medical insurance catalogue adjustment plan, new document to crack down on illegal medical beauty activities, new...

Xinyao (Criss) Wang

China Healthcare Weekly (Jan.15)

This article analyzed the new interim procedures released by NHSA, trend of blood products and biological drug market, and also include company...

Xinyao (Criss) Wang

China Healthcare Weekly (Nov. 20)

The article summarized the new healthcare policy released, major industry viewpoints, company news and capital market review in China healthcare...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

China Healthcare Weekly(Sep2)-Online Drug Sale, Biotech's Historical Opportunity, Biotech to Be CDMO

New policy of online drug sales is released,including certain restrictions.The rise of China biotech is based on historical opportunity of alpha...

Xinyao (Criss) Wang

Ascentage Pharma (6855 HK): ADS Offering Justified, 2027 Likely To Be An Inflection Point

​Ascentage Pharma plans to raise up to US$200M through ADS offering. Olverembatinib, Lisaftoclax gradually gaining momentum. 2027 likely to be an...

Tina Banerjee

China Healthcare Weekly (Jun.18)

The article analyzed the 2021 medical insurance catalogue adjustment plan, new document to crack down on illegal medical beauty activities, new...

Xinyao (Criss) Wang

China Healthcare Weekly (Jan.15)

This article analyzed the new interim procedures released by NHSA, trend of blood products and biological drug market, and also include company...

Xinyao (Criss) Wang

China Healthcare Weekly (Nov. 20)

The article summarized the new healthcare policy released, major industry viewpoints, company news and capital market review in China healthcare...

Xinyao (Criss) Wang

Ascentage Pharma plans to raise up to US$200M through ADS offering. Olverembatinib, Lisaftoclax gradually gaining momentum. 2027 likely to be an...