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> reported decrease of 34% YoY in revenue to RMB 269.6M as sales of pralsetinib decreased substantially due to price adjustments in preparation for the NRDL negotiation.</li>
<li>R&amp;D expenses increased by 131% to RMB 311.5M due to an increase in third party contracting costs. Ended 2025 with loss of RMB 437M vs RMB 90.2M loss in 2024.</li>
<li>Sugemalimab launches in new overseas territories would be next big trigger for the stock. Eventually, in the medium-long term Aykavit and Gavreto will help and boost revenues.</li>
</ul>



CStone Pharmaceuticals (2616 HK) reported decrease of 34% YoY in revenue to RMB 269.6M as sales of pralsetinib decreased substantially due to price adjustments in preparation for the NRDL negotiation.
R&amp;D expenses increased by 131% to RMB 311.5M due to an increase in third party contracting costs. Ended 2025 with loss of RMB 437M vs RMB 90.2M loss in 2024.
Sugemalimab launches in new overseas territories would be next big trigger for the stock. Eventually, in the medium-long term Aykavit and Gavreto will help and boost revenues.


CStone Pharma (2616 HK): 2025 Seen Off Well, 2026 Would Be Crucial. A Possible Turnaround On Cards?

Index Rebal/Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Index Rebal/Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Index Rebalance

<ul>
<li>The ChiNext index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.</li>
<li>The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.</li>
<li>We see 8 changes for the ChiNext index and 5 changes for the ChiNext 50 index in the next index rebal event in June 2026.</li>
</ul>


The ChiNext index represents the performance of the 100 largest and most liquid A-share stocks listed on the ChiNext Market of the Shenzhen Stock Exchange.
The ChiNext 50 index is a subset of the ChiNext Index and it consists of the top 50 names in the ChiNext index with the highest daily average turnover.
We see 8 changes for the ChiNext index and 5 changes for the ChiNext 50 index in the next index rebal event in June 2026.


Quiddity Leaderboard ChiNext & ChiNext 50 Jun26: Expected ADDs/DELs Can Change; US$1bn+ One-Way

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Equity Capital Markets

<ul>
<li>InventisBio, a China-based biotech, is looking to raise at least USD 100 million via a Hong Kong listing. CITIC is the sole sponsor.</li>
<li>In this note, we look at the company's two late-stage core products, taragarestrant and D-2570.</li>
<li>We also look at the company's pre-IPO investors and management team.</li>
</ul>


InventisBio, a China-based biotech, is looking to raise at least USD 100 million via a Hong Kong listing. CITIC is the sole sponsor.
In this note, we look at the company's two late-stage core products, taragarestrant and D-2570.
We also look at the company's pre-IPO investors and management team.


InventisBio (益方生物) A+H: Moderate Innovation in Crowded Spaces

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Suzhou Zelgen Biopharmaceutica / Equity Capital Markets

Suzhou Zelgen Biopharmaceutica (688266 CH)

<ul>
<li>Zelgen’s key products (Donafenib, recombinant human thrombin, Gecacitinib Hydrochloride) have to face fierce competition, VBP impact and small market size.The Company is possible to turn loss into profits before 2027.</li>
<li>The point here is whether Zelgen can continue to launch new innovative products based on Gensun platform, which would be is the key to test Zelgen's R&amp;D system.</li>
<li>Reasonable valuation should be higher than that of companies with only mature generic drugs/simple Me-too innovative drug businesses.Due to high potential innovative drug pipeline, valuation could be higher than peer.</li>
</ul>


Zelgen’s key products (Donafenib, recombinant human thrombin, Gecacitinib Hydrochloride) have to face fierce competition, VBP impact and small market size.The Company is possible to turn loss into profits before 2027.
The point here is whether Zelgen can continue to launch new innovative products based on Gensun platform, which would be is the key to test Zelgen's R&amp;D system.
Reasonable valuation should be higher than that of companies with only mature generic drugs/simple Me-too innovative drug businesses.Due to high potential innovative drug pipeline, valuation could be higher than peer.


Pre-IPO Suzhou Zelgen Biopharmaceuticals (A/H Listing)- Valuation Relies on Innovative Drug Pipeline

Betta Pharmaceuticals / Equity Capital Markets

<ul>
<li>Betta is facing difficulties. Old products have a decline in sales due to competition, while the new products have been struggling to break through, failing to contribute expected revenue scale.</li>
<li>The loss of core talent would have negative impact on Betta’s development, which would be gradually revealed in the future in terms of R&amp;D capability/product iteration/capital operation/licensing cooperation.</li>
<li>Valuation of Betta would be lower than peers, as these companies have relatively diversified pipelines, and have already reached high-quality licensing cooperation with MNCs, demonstrating optimistic internationalization outlook.  </li>
</ul>


Betta is facing difficulties. Old products have a decline in sales due to competition, while the new products have been struggling to break through, failing to contribute expected revenue scale.
The loss of core talent would have negative impact on Betta’s development, which would be gradually revealed in the future in terms of R&amp;D capability/product iteration/capital operation/licensing cooperation.
Valuation of Betta would be lower than peers, as these companies have relatively diversified pipelines, and have already reached high-quality licensing cooperation with MNCs, demonstrating optimistic internationalization outlook.  


Pre-IPO Betta Pharmaceuticals (A/H Listing) - Thoughts on the Pipeline, the Outlook, and Valuation

China

Betta Pharmaceuticals Co., Ltd operates as a pharmaceutical company. The Company researches, manufactures, and sells drugs for the treatment of malignant tumors, diabetes, cardiovascular, cerebrovascular, and other related diseases. Betta Pharmaceuticals markets throughout China.

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Betta Pharmaceuticals (300558 CH)

CStone Pharma (2616 HK): 2025 Seen Off Well, 2026 Would Be Crucial. A Possible Turnaround On Cards?

CStone Pharma announced placement of 118M shares at a price of HK$ 8.97 per share. The proceeds (~ HK$ 1B) will be used for R&D of “Pipeline 2.0”...

Tina Banerjee

Quiddity Leaderboard ChiNext & ChiNext 50 Jun26: Expected ADDs/DELs Can Change; US$1bn+ One-Way

We expect there to be US$899mn and US$216mn one-way flows for the ChiNext and ChiNext 50 in June 2026. Some names have double impacts.

Janaghan Jeyakumar, CFA

InventisBio (益方生物) A+H: Moderate Innovation in Crowded Spaces

China-based biotech InventisBio seeks to raise $100 million through Hong Kong listing with CITIC as sole sponsor. We look at its drug pipelines,...

Ke Yan, CFA, FRM

Pre-IPO Suzhou Zelgen Biopharmaceuticals (A/H Listing)- Valuation Relies on Innovative Drug Pipeline

Zelgen faces competition/VBP, but potential for profit turnaround by 2027 hinges on innovative product launches and R&D system strength. Valuation...

Xinyao (Criss) Wang

Pre-IPO Betta Pharmaceuticals (A/H Listing) - Thoughts on the Pipeline, the Outlook, and Valuation

Betta face challenges due to pipeline with insufficient competitiveness and loss of core talent. Valuation will be lower than peers with more...

Xinyao (Criss) Wang

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CStone Pharma (2616 HK): 2025 Seen Off Well, 2026 Would Be Crucial. A Possible Turnaround On Cards?

CStone Pharma announced placement of 118M shares at a price of HK$ 8.97 per share. The proceeds (~ HK$ 1B) will be used for R&D of “Pipeline 2.0”...

Tina Banerjee

Quiddity Leaderboard ChiNext & ChiNext 50 Jun26: Expected ADDs/DELs Can Change; US$1bn+ One-Way

We expect there to be US$899mn and US$216mn one-way flows for the ChiNext and ChiNext 50 in June 2026. Some names have double impacts.

Janaghan Jeyakumar, CFA

InventisBio (益方生物) A+H: Moderate Innovation in Crowded Spaces

​China-based biotech InventisBio seeks to raise $100 million through Hong Kong listing with CITIC as sole sponsor. We look at its drug pipelines,...

Ke Yan, CFA, FRM

Pre-IPO Suzhou Zelgen Biopharmaceuticals (A/H Listing)- Valuation Relies on Innovative Drug Pipeline

​Zelgen faces competition/VBP, but potential for profit turnaround by 2027 hinges on innovative product launches and R&D system strength. Valuation...

Xinyao (Criss) Wang

Pre-IPO Betta Pharmaceuticals (A/H Listing) - Thoughts on the Pipeline, the Outlook, and Valuation

​Betta face challenges due to pipeline with insufficient competitiveness and loss of core talent. Valuation will be lower than peers with more...

Xinyao (Criss) Wang

China-based biotech InventisBio seeks to raise $100 million through Hong Kong listing with CITIC as sole sponsor. We look at its drug pipelines,...

Zelgen faces competition/VBP, but potential for profit turnaround by 2027 hinges on innovative product launches and R&D system strength. Valuation...

Betta face challenges due to pipeline with insufficient competitiveness and loss of core talent. Valuation will be lower than peers with more...