HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/jhbp-cy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:29201:1" rel="noopener">JHBP (Genor) (6998 HK)</a> is a biopharmaceutical company that focuses on the R&amp;D and commercialization of oncology and autoimmune drugs, with a number of products in the late stage of clinical development and close to commercialization. Perhaps because of such characteristics, Genor is favored by reputable investment institutions such as Hillhouse Capital, Temasek, etc.. However, the stock price of Genor reached its peak when it was listed. It only rose in the first two days and then fell all the way. By March 9th, 2021, the closing price of Genor was HK$16.74/share, which was about 50% lower than the peak of HK$32.2/share at the beginning of listing. So, why is that?

JHBP (Genor) (6998 HK) is a biopharmaceutical company that focuses on the R&amp;D and commercialization of oncology and autoimmune drugs, with a number of products in the late stage of clinical development and close to commercialization. Perhaps because of such characteristics, Genor is favored by reputable investment institutions such as Hillhouse Capital, Temasek, etc.. However, the stock price of Genor reached its peak when it was listed. It only rose in the first two days and then fell all the way. By March 9th, 2021, the closing price of Genor was HK$16.74/share, which was about 50% lower than the peak of HK$32.2/share at the beginning of listing. So, why is that?

Genor Biopharma (6998.HK) - Here Is Why the Stock Price Decreased by About 50%

In recent years, <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> has launched a number of successful products, and the Company's investment value has significantly increased. Innovent leads the domestic counterparts in the layout of biological drugs and adhere to the development of internationally competitive products. The Company also establishes an excellent team to ensure the efficient implementation of the strategy. Meanwhile, Innovent is gradually transforming from a biotech company to a big pharma. With dozens of products in the pipeline, the Company is focusing on mainstream areas and is in the first echelon of clinical progress. In addition, with the rapid increase of sales after the listing of PD-1, its commercialization capability has also been recognized by the market.

In recent years, Innovent Biologics Inc (1801 HK) has launched a number of successful products, and the Company's investment value has significantly increased. Innovent leads the domestic counterparts in the layout of biological drugs and adhere to the development of internationally competitive products. The Company also establishes an excellent team to ensure the efficient implementation of the strategy. Meanwhile, Innovent is gradually transforming from a biotech company to a big pharma. With dozens of products in the pipeline, the Company is focusing on mainstream areas and is in the first echelon of clinical progress. In addition, with the rapid increase of sales after the listing of PD-1, its commercialization capability has also been recognized by the market. 

Innovent Biologics (1801 HK) - Have the Genes to Become a Big Pharma

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Capital Markets

Zhaoke Ophthalmology / Equity Capital Markets

Zhaoke Ophthalmology is a pre-revenue pharmaceutical company specializing in ophthalmic drugs for the China market. The company has filed an Application Proof to list on the HKEX, and is a carve-out of <a href="https://www.smartkarma.com/entities/lee-s-pharmaceutical-hldgs" target="_blank" data-smartkarma-citation="entities:14616:1" rel="noopener">Lee'S Pharmaceutical Hldgs (950 HK)</a> , which owns 34% of the shares. This Insight discusses the product pipelines (both innovative and generic), funding, and valuation (particularly in the context of the parent company).  We tag this Insight as Bullish for now.

Zhaoke Ophthalmology is a pre-revenue pharmaceutical company specializing in ophthalmic drugs for the China market. The company has filed an Application Proof to list on the HKEX, and is a carve-out of Lee'S Pharmaceutical Hldgs (950 HK) , which owns 34% of the shares. This Insight discusses the product pipelines (both innovative and generic), funding, and valuation (particularly in the context of the parent company).  We tag this Insight as Bullish for now.

Zhaoke Ophthalmology: Bringing Focus to China

Betta Pharmaceuticals   / Equity Capital Markets

In the past two years, especially in the year 2020, it seems to be a “fashion” for bio-pharmaceutical companies to list on the HKEX. Against this backdrop, <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> could also not miss this trend. Betta is a leading biopharmaceutical company committed to the R&amp;D of innovative therapies intended to address unmet medical needs including those in lung and other large cancer indications. On February 8th, 2021, the Company submitted to the HKEX the application for IPO.

In the past two years, especially in the year 2020, it seems to be a “fashion” for bio-pharmaceutical companies to list on the HKEX. Against this backdrop, Betta Pharmaceuticals (300558 CH) could also not miss this trend. Betta is a leading biopharmaceutical company committed to the R&amp;D of innovative therapies intended to address unmet medical needs including those in lung and other large cancer indications. On February 8th, 2021, the Company submitted to the HKEX the application for IPO. 

Pre-IPO Betta Pharmaceuticals - Insights on Products and Concerns

On January 29th, 2021, <a href="https://www.smartkarma.com/entities/luye-pharma-group-ltd" target="_blank" data-smartkarma-citation="entities:488:1" rel="noopener">Luye Pharma (2186 HK)</a> announced a subscription agreement with Hillhouse NEV, involving HK$1.25 billion of investment from Hillhouse in exchange for issuing of new shares. The subscription price of the new shares was HK$4.28/share, a premium of approximately 10.03% over the closing price of HK$3.89/share on January 29th. Once the deals are completed, Hillhouse NEV will have a 15.60% stake in Luye, making it the second largest shareholder of the Company. The news had an immediate boost to share prices. Luye's shares opened sharply higher on Monday (February 1st), trading as high as HK$7, up 79.95% from Friday's close of HK$3.89/share. It surged again on Wednesday (February 3rd), up 11.3%, and then started to fall back on Thursday. By the end of February 5th, Luye's share price was HK$6.19. So, could the magic of Hillhouse last long?

On January 29th, 2021, Luye Pharma (2186 HK) announced a subscription agreement with Hillhouse NEV, involving HK$1.25 billion of investment from Hillhouse in exchange for issuing of new shares. The subscription price of the new shares was HK$4.28/share, a premium of approximately 10.03% over the closing price of HK$3.89/share on January 29th. Once the deals are completed, Hillhouse NEV will have a 15.60% stake in Luye, making it the second largest shareholder of the Company. The news had an immediate boost to share prices. Luye's shares opened sharply higher on Monday (February 1st), trading as high as HK$7, up 79.95% from Friday's close of HK$3.89/share. It surged again on Wednesday (February 3rd), up 11.3%, and then started to fall back on Thursday. By the end of February 5th, Luye's share price was HK$6.19. So, could the magic of Hillhouse last long?

Luye Pharma (2186.HK) - Could the Magic of Hillhouse Last Long?

China

Develops, manufactures and markets anti-tumor drugs

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

BioDlink International (1875 HK)

Genor Biopharma (6998.HK) - Here Is Why the Stock Price Decreased by About 50%

This article analyzed the concerns of Genor Biopharma in terms of core products, competitive landscape, industry characteristics and the potential...

Xinyao (Criss) Wang

Innovent Biologics (1801 HK) - Have the Genes to Become a Big Pharma

This article mainly analyzed Innovent in terms of its current listed products (Sintilimab, Bevacizumab, Adalimumab and Rituximab), its pipeline,...

Xinyao (Criss) Wang

Zhaoke Ophthalmology: Bringing Focus to China

Zhaoke Ophthalmology is a pre-revenue pharmaceutical company specializing in ophthalmic drugs for China that has filed to list on the HKEX. Lee's...

Kemp Dolliver, CFA

Pre-IPO Betta Pharmaceuticals - Insights on Products and Concerns

This article analyzed Betta Pharmaceutical in terms of its major products, pipeline, competitive landscape, and also include the concerns on the...

Xinyao (Criss) Wang

Luye Pharma (2186.HK) - Could the Magic of Hillhouse Last Long?

This article analyzed Luye Pharma after the subscription agreement with Hillhouse in terms of the past performance, insights on recent changes, and...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)