HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>Anhui’s new VBP included OTC TCM for the first time, which poses a big challenge to the pricing autonomy of CR Sanjiu. This makes Sanjiu's acquisition of Tasly more important/urgent. </li>
<li>Novo Nordisk's performance has raised concerns. The capacity bottleneck for weight-loss drugs seems resolved. Could this signal that the market for weight-loss drugs is reaching its peak?</li>
<li>
<a href="https://www.smartkarma.com/entities/keymed-biosciences-inc" target="_blank" data-smartkarma-citation="entities:33011:1" rel="noopener">Keymed Biosciences (2162 HK)</a>’s CM310 will miss this year’s NRDL negotiations, putting the company at a disadvantage. Considering the competitive landscape, we are concerned about Keymed’s performance.</li>
</ul>


Anhui’s new VBP included OTC TCM for the first time, which poses a big challenge to the pricing autonomy of CR Sanjiu. This makes Sanjiu's acquisition of Tasly more important/urgent. 
Novo Nordisk's performance has raised concerns. The capacity bottleneck for weight-loss drugs seems resolved. Could this signal that the market for weight-loss drugs is reaching its peak?

Keymed Biosciences (2162 HK)’s CM310 will miss this year’s NRDL negotiations, putting the company at a disadvantage. Considering the competitive landscape, we are concerned about Keymed’s performance.


China Healthcare Weekly (Sep.22) - CR Sanjiu's Trouble, Weight-Loss Drug Market Saturation, Keymed

Event-Driven

Chongqing Taiji Industry (Group) A / Event-Driven

<ul>
<li>TCM formula granules VBP would cause some disturbance to related enterprises’ performance, but the substitution of TCM formula granules for TCM decoction pieces is a trend, indicating long-term optimistic growth.</li>
<li>Keymed’s CM310 would probably miss the NRDL negotiation this year, which will put the Company in passive situation. Based on competitive landscape, we are worried about the performance of Keymed.</li>
<li>Unsatisfactory performance of Taiji’s shares is related to concerns on China TCM’s privatization/24H1 results.However, even without the integration with China TCM, Taiji's market value should be more than RMB20 billion.</li>
</ul>


TCM formula granules VBP would cause some disturbance to related enterprises’ performance, but the substitution of TCM formula granules for TCM decoction pieces is a trend, indicating long-term optimistic growth.
Keymed’s CM310 would probably miss the NRDL negotiation this year, which will put the Company in passive situation. Based on competitive landscape, we are worried about the performance of Keymed.
Unsatisfactory performance of Taiji’s shares is related to concerns on China TCM’s privatization/24H1 results.However, even without the integration with China TCM, Taiji's market value should be more than RMB20 billion.


China Healthcare Weekly (Aug.4)- Taiji Group & China TCM, TCM Formula Granules VBP, Keymed's Trouble

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>
<a href="https://www.smartkarma.com/entities/legend-biotech-corp" target="_blank" data-smartkarma-citation="entities:28963:1" rel="noopener">Legend Biotech Corp (LEGN US)</a> received FDA approval for its first product Carvykti in February as a fifth-line treatment of relapsed or refractory multiple myeloma.</li>
<li>Label expansion of Carvykti for earlier line of multiple myeloma treatments should expand addressable market, thereby increasing peak sales opportunity to $5 billion from initial expectation of $1.5 billion.</li>
<li>The U.S. Securities and Exchange Commission has added Legend to their delisting watchlist last week. The company needs to release required evidence by May 3 to stay listed.</li>
</ul>



Legend Biotech Corp (LEGN US) received FDA approval for its first product Carvykti in February as a fifth-line treatment of relapsed or refractory multiple myeloma.
Label expansion of Carvykti for earlier line of multiple myeloma treatments should expand addressable market, thereby increasing peak sales opportunity to $5 billion from initial expectation of $1.5 billion.
The U.S. Securities and Exchange Commission has added Legend to their delisting watchlist last week. The company needs to release required evidence by May 3 to stay listed.


Legend Biotech Corp (LEGN US): Carvykti Approval Is the Silver Lining Amid Uncertainty of Delisting

Equity Capital Markets

Meihua International Medical Technologies / Equity Capital Markets

Meihua International Medical Technologies

<ul>
<li>China-Based medical devices company, Meihua International Medical Technologies intends to raise $50 million from its U.S. IPO by offering 5 million shares at price between $9 and $11 per share.</li>
<li>Upon the completion of this offering, the company will have 25 million shares outstanding. At the midpoint of offer price, Meihua will command a market capitalization of $250 million.</li>
<li>Despite attractive valuation, investors can avoid the IPO due to its unimpressive financial performance and concerns over Chinese companies listing in the U.S. market.  </li>
</ul>


China-Based medical devices company, Meihua International Medical Technologies intends to raise $50 million from its U.S. IPO by offering 5 million shares at price between $9 and $11 per share.
Upon the completion of this offering, the company will have 25 million shares outstanding. At the midpoint of offer price, Meihua will command a market capitalization of $250 million.
Despite attractive valuation, investors can avoid the IPO due to its unimpressive financial performance and concerns over Chinese companies listing in the U.S. market.  


Meihua International Medical Technologies Pre-IPO: Risks Overshadow Cheap Valuation

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Connect Biopharma / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/connect-biopharma-holdings-l" target="_blank" data-smartkarma-citation="entities:32187:1" rel="noopener">Connect Biopharma (CNTB US)</a> is a global clinical-stage biopharmaceutical company developing therapies for the treatment of T cell-driven inflammatory diseases. Connect has a pipeline of four drug candidates. The two most advanced clinical-stage programs, CBP-201 and CBP-307, are potentially differentiated product candidates against validated targets.</p><p>Connect has launched a Nasdaq IPO to raise net proceeds of $135 million at the mid-point of the IPO price range of $15.00 and $17.00 per ADS. At the mid-point of the IPO price range, Connect will command a market cap of $863 million.</p><div class="content-highlight"><p>Connect specialises in designing and developing product candidates that modulate the immune system, with a particular focus on T cells. CBP-201, the lead product candidate, has the potential to bring improved therapeutic benefit to atopic dermatitis (AD) patients than the current standard of care. CBP-307 has the potential to deliver best-in-class lymphocyte recovery times in combination with a well-tolerated safety profile for the treatment of UC (ulcerative colitis) and CD (Crohn’s disease). Overall, we believe that the prospects of Connect’s clinical-stage drug assets are favourable. We will discuss the rNPV of the assets in our next note.</p></div>

Connect Biopharma (CNTB US) is a global clinical-stage biopharmaceutical company developing therapies for the treatment of T cell-driven inflammatory diseases. Connect has a pipeline of four drug candidates. The two most advanced clinical-stage programs, CBP-201 and CBP-307, are potentially differentiated product candidates against validated targets.Connect has launched a Nasdaq IPO to raise net proceeds of $135 million at the mid-point of the IPO price range of $15.00 and $17.00 per ADS. At the mid-point of the IPO price range, Connect will command a market cap of $863 million.Connect specialises in designing and developing product candidates that modulate the immune system, with a particular focus on T cells. CBP-201, the lead product candidate, has the potential to bring improved therapeutic benefit to atopic dermatitis (AD) patients than the current standard of care. CBP-307 has the potential to deliver best-in-class lymphocyte recovery times in combination with a well-tolerated safety profile for the treatment of UC (ulcerative colitis) and CD (Crohn’s disease). Overall, we believe that the prospects of Connect’s clinical-stage drug assets are favourable. We will discuss the rNPV of the assets in our next note.

United States

Connect Biopharma Holdings Limited operates as a holding company. The Company, through its subsidiaries, focuses on developing therapies for the treatment of T cell-driven inflammatory diseases. Connect Biopharma Holdings serves customers worldwide.

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Connect Biopharma (CNTB US)

China Healthcare Weekly (Sep.22) - CR Sanjiu's Trouble, Weight-Loss Drug Market Saturation, Keymed

Anhui's VBP includes OTC TCM, challenging CR Sanjiu's pricing autonomy. There are concerns about weight-loss drug market saturation. CM310 missing...

Xinyao (Criss) Wang

China Healthcare Weekly (Aug.4)- Taiji Group & China TCM, TCM Formula Granules VBP, Keymed's Trouble

Substitution of TCM formula granules for decoction pieces is a trend despite the VBP. Keymed will face difficulties without NRDL negotiation....

Xinyao (Criss) Wang

Legend Biotech Corp (LEGN US): Carvykti Approval Is the Silver Lining Amid Uncertainty of Delisting

FDA approval of the company’s first drug Carvykti, with initial peak sales opportunity of $1.5 billion should be considered as a buy opportunity,...

Tina Banerjee

Meihua International Medical Technologies Pre-IPO: Risks Overshadow Cheap Valuation

Meihua plans to raise $50 million by offering 5 million shares. At midpoint, the company would command a market cap of $250 million. Shares are...

Tina Banerjee

Connect Biopharma IPO: Potent Medicine

Connect has launched a Nasdaq IPO to raise net proceeds of $135m at the mid-point of the IPO price range. Overall, we believe that the prospects of...

Arun George

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China Healthcare Weekly (Sep.22) - CR Sanjiu's Trouble, Weight-Loss Drug Market Saturation, Keymed

​Anhui's VBP includes OTC TCM, challenging CR Sanjiu's pricing autonomy. There are concerns about weight-loss drug market saturation. CM310 missing...

Xinyao (Criss) Wang

China Healthcare Weekly (Aug.4)- Taiji Group & China TCM, TCM Formula Granules VBP, Keymed's Trouble

​Substitution of TCM formula granules for decoction pieces is a trend despite the VBP. Keymed will face difficulties without NRDL negotiation....

Xinyao (Criss) Wang

Legend Biotech Corp (LEGN US): Carvykti Approval Is the Silver Lining Amid Uncertainty of Delisting

FDA approval of the company’s first drug Carvykti, with initial peak sales opportunity of $1.5 billion should be considered as a buy opportunity,...

Tina Banerjee

Meihua International Medical Technologies Pre-IPO: Risks Overshadow Cheap Valuation

Meihua plans to raise $50 million by offering 5 million shares. At midpoint, the company would command a market cap of $250 million. Shares are...

Tina Banerjee

Connect Biopharma IPO: Potent Medicine

Connect has launched a Nasdaq IPO to raise net proceeds of $135m at the mid-point of the IPO price range. Overall, we believe that the prospects of...

Arun George

Anhui's VBP includes OTC TCM, challenging CR Sanjiu's pricing autonomy. There are concerns about weight-loss drug market saturation. CM310 missing...

Substitution of TCM formula granules for decoction pieces is a trend despite the VBP. Keymed will face difficulties without NRDL negotiation....