Global Healthcare Analyst

Tina Banerjee

Thematic (Sector/Industry)

<ul>
<li>Daiichi Sankyo is investing $152M for building a new ADC manufacturing facility in Shanghai. Eisai has received approval for Urece in China as a treatment for gout patients with hyperuricemia.</li>
<li>Celltrion has announced its largest-ever dividend of KRW750 per share and 1:20 bonus shares. The record date for dividend payment and bonus share is December 31.</li>
<li>Metropolis Healthcare is acquiring Core Diagnostics, a prominent player in India’s specialized diagnostics sector for INR2.5B. CSPC Pharmaceutical has granted an exclusive license to Beigene for a clinical-stage drug candidate.</li>
</ul>


Daiichi Sankyo is investing $152M for building a new ADC manufacturing facility in Shanghai. Eisai has received approval for Urece in China as a treatment for gout patients with hyperuricemia.
Celltrion has announced its largest-ever dividend of KRW750 per share and 1:20 bonus shares. The record date for dividend payment and bonus share is December 31.
Metropolis Healthcare is acquiring Core Diagnostics, a prominent player in India’s specialized diagnostics sector for INR2.5B. CSPC Pharmaceutical has granted an exclusive license to Beigene for a clinical-stage drug candidate.


APAC Healthcare Weekly (Dec 15)-Daiichi Sankyo, Eisai, Celltrion, Metropolis Healthcare, CSPC Pharma

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Hansoh Pharmaceutical Group  / Equity Bottom-Up

<ul>
<li>Hansoh’s 24H1 results beat the expectations. Product revenue (excluding BD cooperation revenue) would achieve double-digit growth in 2024 full year, among which revenue of Ameile would maintain 20%+ YoY growth.</li>
<li>Total product revenue would be about RMB14-14.5 billion in the future. Based on P/S of 5, market value is RMB70-72.5 billion, which is the lower end of market value range.</li>
<li>There is still certain gap in terms of R&amp;D capability/globalization outlook between Hansoh and those leading biotech in China. So, we think valuation of Hansoh would be lower than them.</li>
</ul>


Hansoh’s 24H1 results beat the expectations. Product revenue (excluding BD cooperation revenue) would achieve double-digit growth in 2024 full year, among which revenue of Ameile would maintain 20%+ YoY growth.
Total product revenue would be about RMB14-14.5 billion in the future. Based on P/S of 5, market value is RMB70-72.5 billion, which is the lower end of market value range.
There is still certain gap in terms of R&amp;D capability/globalization outlook between Hansoh and those leading biotech in China. So, we think valuation of Hansoh would be lower than them.


Hansoh Pharmaceutical Group (3692.HK) - Successful Business Transformation Opens up Valuation Upside

Event-Driven

China Resources Pharmaceutical / Event-Driven

<ul>
<li>The 10th national VBP officially begins. Enterprises involved in this VBP include <a href="https://www.smartkarma.com/entities/shanghai-fosun-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:8045:1" rel="noopener">Shanghai Fosun Pharmaceutical (2196 HK)</a><a href="https://www.smartkarma.com/entities/shanghai-pharmaceuticals-holding" target="_blank" data-smartkarma-citation="entities:228:1" rel="noopener">Shanghai Pharmaceuticals (2607 HK), </a><a href="https://www.smartkarma.com/entities/sichuan-kelun-pharmaceutical-co-ltd" target="_blank" data-smartkarma-citation="entities:3625:1" rel="noopener">Sichuan Kelun Pharmaceutical (002422 CH), </a><a href="https://www.smartkarma.com/entities/cspc-pharmaceutical-group-ltd" target="_blank" data-smartkarma-citation="entities:229:1" rel="noopener">CSPC (1093 HK)</a>, etc..</li>
<li>We analyzed Chinese Biotech companies’ P/S range based on different product revenue growth. Due to low profitability, there is “a valuation discount” if they are included in global valuation system.</li>
<li>KPC has agreed to acquire 51% interest in CR Shenghuo from CR Sanjiu. Due to good performance, we are full of expectations for the future acquisition/integration within China Resources.</li>
</ul>


The 10th national VBP officially begins. Enterprises involved in this VBP include Shanghai Fosun Pharmaceutical (2196 HK)Shanghai Pharmaceuticals (2607 HK), Sichuan Kelun Pharmaceutical (002422 CH), CSPC (1093 HK), etc..
We analyzed Chinese Biotech companies’ P/S range based on different product revenue growth. Due to low profitability, there is “a valuation discount” if they are included in global valuation system.
KPC has agreed to acquire 51% interest in CR Shenghuo from CR Sanjiu. Due to good performance, we are full of expectations for the future acquisition/integration within China Resources.


China Healthcare Weekly (Nov.24) - 10th VBP, Biotech Valuation Logic, China Resources Reorganization

<ul>
<li>Alteogen has signed an exclusive license agreement with Daiichi Sankyo to develop and commercialize a subcutaneous version of Enhertu. Volpara won $7.3M contract from the U.S. Defense Health Agency.</li>
<li>Santen Pharmaceutical has rolled out Rhopressa ophthalmic solution in South Korea for the treatment of open-angle glaucoma or ocular hypertension.</li>
<li>Sun Pharmaceutical’s launch of alopecia drug Leqselvi in the U.S. will be delayed due to litigation with Incyte. Recently, a U.S. District Court decided to grant a preliminary injunction.</li>
</ul>


Alteogen has signed an exclusive license agreement with Daiichi Sankyo to develop and commercialize a subcutaneous version of Enhertu. Volpara won $7.3M contract from the U.S. Defense Health Agency.
Santen Pharmaceutical has rolled out Rhopressa ophthalmic solution in South Korea for the treatment of open-angle glaucoma or ocular hypertension.
Sun Pharmaceutical’s launch of alopecia drug Leqselvi in the U.S. will be delayed due to litigation with Incyte. Recently, a U.S. District Court decided to grant a preliminary injunction.


APAC Healthcare Weekly (Nov 10)- Alteogen, Santen Pharmaceutical, Beigene, Sun Pharmaceutical

<ul>
<li>Sino Biopharm plans to acquire Hob Biotech through "equity transfer + voluntary partial offer". The purchase price of RMB33.74/share is expensive considering the small market size and weak fundamentals.</li>
<li>Hob may not bring much financial value/asset appreciation to Sino Biopharm. Synergies between the two is limited.The main purpose for Sino Biopharm to acquire Hob is to achieve A-share listing.</li>
<li>Future valuation performance of Hob depends on what type of assets it will receive from Sino Biopharm as well as afterwards operation, which if smooth, will significantly boost Hob’s valuation.</li>
</ul>


Sino Biopharm plans to acquire Hob Biotech through "equity transfer + voluntary partial offer". The purchase price of RMB33.74/share is expensive considering the small market size and weak fundamentals.
Hob may not bring much financial value/asset appreciation to Sino Biopharm. Synergies between the two is limited.The main purpose for Sino Biopharm to acquire Hob is to achieve A-share listing.
Future valuation performance of Hob depends on what type of assets it will receive from Sino Biopharm as well as afterwards operation, which if smooth, will significantly boost Hob’s valuation.


Sino Biopharm (1177.HK) To Acquire Hob Biotech (688656.CH)- Time to Buy Hob and Sell Sino Biopharm?

China

CSPC Pharmaceutical Group Limited, through its subsidiaries, manufactures and sells pharmaceutical products.  The Company's products include vitamin C, antibiotics and common generic drugs. The Company is also engages in the development of innovative drugs and antibiotics.

Price Gauge
52-week Range	0.00 - 0.00
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P/E	0.00
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CSPC Pharmaceutical Group (1093 HK)

APAC Healthcare Weekly (Dec 15)-Daiichi Sankyo, Eisai, Celltrion, Metropolis Healthcare, CSPC Pharma

The insight covers key developments in prominent APAC healthcare companies. These developments are expected to impact the financials of the...

Tina Banerjee

Hansoh Pharmaceutical Group (3692.HK) - Successful Business Transformation Opens up Valuation Upside

Hansoh's strong 24H1 results secure double-digit growth in 2024. However, valuation could be lower than leading biotech due to gap in R&D...

Xinyao (Criss) Wang

China Healthcare Weekly (Nov.24) - 10th VBP, Biotech Valuation Logic, China Resources Reorganization

The 10th national VBP kicks off. Chinese Biotech face valuation discount when included in global valuation system. China Resources is undergoing...

Xinyao (Criss) Wang

APAC Healthcare Weekly (Nov 10)- Alteogen, Santen Pharmaceutical, Beigene, Sun Pharmaceutical

Alteogen partners with Daiichi Sankyo for Enhertu, Volpara secures $7.3M contract, Santen launches Rhopressa in South Korea, Sun Pharma's Leqselvi...

Tina Banerjee

Sino Biopharm (1177.HK) To Acquire Hob Biotech (688656.CH)- Time to Buy Hob and Sell Sino Biopharm?

The price Sino Biopharm pays to acquire Hob is expensive.The main purpose is not asset appreciation but achieve A-share listing. Hob's future...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

APAC Healthcare Weekly (Dec 15)-Daiichi Sankyo, Eisai, Celltrion, Metropolis Healthcare, CSPC Pharma

The insight covers key developments in prominent APAC healthcare companies. These developments are expected to impact the financials of the...

Tina Banerjee

Hansoh Pharmaceutical Group (3692.HK) - Successful Business Transformation Opens up Valuation Upside

​Hansoh's strong 24H1 results secure double-digit growth in 2024. However, valuation could be lower than leading biotech due to gap in R&D...

Xinyao (Criss) Wang

China Healthcare Weekly (Nov.24) - 10th VBP, Biotech Valuation Logic, China Resources Reorganization

The 10th national VBP kicks off. Chinese Biotech face valuation discount when included in global valuation system. China Resources is undergoing...

Xinyao (Criss) Wang

APAC Healthcare Weekly (Nov 10)- Alteogen, Santen Pharmaceutical, Beigene, Sun Pharmaceutical

​Alteogen partners with Daiichi Sankyo for Enhertu, Volpara secures $7.3M contract, Santen launches Rhopressa in South Korea, Sun Pharma's Leqselvi...

Tina Banerjee

Sino Biopharm (1177.HK) To Acquire Hob Biotech (688656.CH)- Time to Buy Hob and Sell Sino Biopharm?

The price Sino Biopharm pays to acquire Hob is expensive.The main purpose is not asset appreciation but achieve A-share listing. Hob's future...

Xinyao (Criss) Wang

Hansoh's strong 24H1 results secure double-digit growth in 2024. However, valuation could be lower than leading biotech due to gap in R&D...

Alteogen partners with Daiichi Sankyo for Enhertu, Volpara secures $7.3M contract, Santen launches Rhopressa in South Korea, Sun Pharma's Leqselvi...