Healthcare Equity Analyst - Emerging & Dev Markets, daaimon

Avien Pillay

Healthcare Equity Analyst - Emerging & Dev Markets

daaimon

daaimon is an independent research company focusing on healthcare and consumer sectors across developed and emerging markets. We produce insightful research which challenges conventional thinking. In particular, we look for new ideas by testing consensus forecasts and markets expectations.

Equity Bottom-Up

<ul>
<li>Since our <a href="https://www.smartkarma.com/insights/update-china-medical-system-cms-867-hk-a-cheap-play-on-china-s-pending-health-care-crisis" target="_blank" rel="noopener">initiation on 5 June 2024</a>, China Medical Sytem’s share price is up 113% and the FPE has moved from less than 8 to close to 16 times.</li>
<li>The gap valuation between US drug companies and CMS has largely closed with CMS trading at a premium to a number of US counterparts.</li>
<li>The earnings outlook is largely flat since the initiation, implying the share price appreciation has been driven by a re-rating.</li>
</ul>


Since our initiation on 5 June 2024, China Medical Sytem’s share price is up 113% and the FPE has moved from less than 8 to close to 16 times.
The gap valuation between US drug companies and CMS has largely closed with CMS trading at a premium to a number of US counterparts.
The earnings outlook is largely flat since the initiation, implying the share price appreciation has been driven by a re-rating.


China Medical System (867 HK) – From an 8 to a 16 FPE

Global Healthcare Analyst

Tina Banerjee

Thematic (Sector/Industry)

<ul>
<li>Hengrui Pharmaceuticals’ trastuzumab rezetecan got third indication approval in China for colorectal cancer. CSPC Pharma and AstraZeneca entered JV contract for the construction of new-generation biologics manufacturing facility in China.</li>
<li>Takeda Pharmaceutical got FDA approval for Orzeyful for narcolepsy type 1. As a first-in-class orexin treatment, Orzeyful is the only medicine indicated in the U.S. to treat the disease holistically.</li>
<li>Otsuka announced new data from the Phase 3 trial demonstrating that Voyxact stabilizes kidney function decline. Alteogen signed an exclusive license agreement with a global pharmaceutical company for ALT-B4. </li>
</ul>


Hengrui Pharmaceuticals’ trastuzumab rezetecan got third indication approval in China for colorectal cancer. CSPC Pharma and AstraZeneca entered JV contract for the construction of new-generation biologics manufacturing facility in China.
Takeda Pharmaceutical got FDA approval for Orzeyful for narcolepsy type 1. As a first-in-class orexin treatment, Orzeyful is the only medicine indicated in the U.S. to treat the disease holistically.
Otsuka announced new data from the Phase 3 trial demonstrating that Voyxact stabilizes kidney function decline. Alteogen signed an exclusive license agreement with a global pharmaceutical company for ALT-B4. 


APAC Healthcare Weekly (August 9) – Hengrui, CSPC Pharma, Takeda Pharma, Otsuka, Alteogen

Healthcare Analyst

Wilfred Yuen

<ul>
<li>BD&amp;L deal flows continue: 1) Dizal/AstraZeneca on EGFR inhibitor Zegfrovy, 2) Innovent/Spero on CD40L, 3) Insilico Medicine/Bora on AI drug discovery, 4) Hansoh/Avere on oral IL23</li>
<li>
Pharmaron and Joinn Lab provided 1H26 results previews. Hengrui's NewCo Braveheart files for IPO. Legend's Carvykti generated sales of USD657m (+49% YoY or +10% QoQ) in 2Q26.</li>
<li>
China’s outbound drug licensing deal value reached c.USD110bn in 1H26, setting another new historic high, per NMPA. Moreover, China approved 38 Class I new drug in 1H26.</li>
</ul>


BD&amp;L deal flows continue: 1) Dizal/AstraZeneca on EGFR inhibitor Zegfrovy, 2) Innovent/Spero on CD40L, 3) Insilico Medicine/Bora on AI drug discovery, 4) Hansoh/Avere on oral IL23

Pharmaron and Joinn Lab provided 1H26 results previews. Hengrui's NewCo Braveheart files for IPO. Legend's Carvykti generated sales of USD657m (+49% YoY or +10% QoQ) in 2Q26.

China’s outbound drug licensing deal value reached c.USD110bn in 1H26, setting another new historic high, per NMPA. Moreover, China approved 38 Class I new drug in 1H26.


China Healthcare Weekly Wrap (13-17 July)

<ul>
<li>Innovent Biologics entered a strategic collaboration with Eli Lilly, to advance novel medicines in oncology and immunology. InSilico and China Medical System Holdings stuck partnership on innovative drug development.</li>
<li>Eisai’s Leqembi subcutaneous autoinjector gets priority review in China. FDA accepted Takeda’s NDA for oveporexton for the treatment of narcolepsy type 1, with a decision date in 3Q26.</li>
<li>Alteogen’s once-monthly obesity treatment candidate matches weight loss effects of Eli Lilly's once-weekly retatrutide, currently under development. Pharmaessentia plans to invest $46M to establish a manufacturing subsidiary in Puerto Rico.</li>
</ul>


Innovent Biologics entered a strategic collaboration with Eli Lilly, to advance novel medicines in oncology and immunology. InSilico and China Medical System Holdings stuck partnership on innovative drug development.
Eisai’s Leqembi subcutaneous autoinjector gets priority review in China. FDA accepted Takeda’s NDA for oveporexton for the treatment of narcolepsy type 1, with a decision date in 3Q26.
Alteogen’s once-monthly obesity treatment candidate matches weight loss effects of Eli Lilly's once-weekly retatrutide, currently under development. Pharmaessentia plans to invest $46M to establish a manufacturing subsidiary in Puerto Rico.


APAC Healthcare Weekly (February 15)–Innovent Bio, InSilico, Eisai, Takeda, Alteogen, Pharmaessentia

<ul>
<li>Fosun Pharma outlicensed XH-S004 to Expedition Therapeutics for $120M upfront and milestone payment. Remegen’s drug candidate met primary endpoint in Phase 3 trial for Sjögren's syndrome in China.</li>
<li>Astellas Pharma announced positive topline results from the Phase 3 trial evaluating Padcev in bladder cancer. Daewoong Pharmaceutical announced positive result for their self-developed semaglutide microneedle patch.</li>
<li>Zydus Lifesciences received FDA approval for chest pain drug Diltiazem Hydrochloride tablets. Lupin has partnered with Sandoz to market and commercialize Lupin’s biosimilar ranibizumab across multiple regions.</li>
</ul>


Fosun Pharma outlicensed XH-S004 to Expedition Therapeutics for $120M upfront and milestone payment. Remegen’s drug candidate met primary endpoint in Phase 3 trial for Sjögren's syndrome in China.
Astellas Pharma announced positive topline results from the Phase 3 trial evaluating Padcev in bladder cancer. Daewoong Pharmaceutical announced positive result for their self-developed semaglutide microneedle patch.
Zydus Lifesciences received FDA approval for chest pain drug Diltiazem Hydrochloride tablets. Lupin has partnered with Sandoz to market and commercialize Lupin’s biosimilar ranibizumab across multiple regions.


APAC Healthcare Weekly (Aug 17) – Fosun Pharma, Remegen, Astellas, Daewoong Pharma, Zydus, Lupin

China

China Medical System is a specialty pharmaceutical company focused on the research and development, manufacturing, marketing, and sales of pharmaceutical products in China. The company offers a diverse portfolio across therapeutic areas such as cardio-cerebrovascular, gastroenterology, ophthalmology, dermatology, and medical aesthetics. It was founded in 1995 and is headquartered in North Point, Hong Kong.

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China Medical System (867 HK)