Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/bnc-korea-co-ltd" target="_blank" data-smartkarma-citation="entities:34785:1" rel="noopener">BNC Korea (256840 KS)</a> has been found guilty for the violation of the Pharmaceutical Affairs Act. Consequently, production of its Bienox injection has temporarily been halted till May 30, 2023.</li>
<li>The company’s in-licensed COVID-19 drug candidate could not secure emergency use approval from the FDA, which has asked for further clinical trial demonstrating efficacy and safety.</li>
<li>BNC Korea is not a bottom fishing idea, due to lack of any strong growth engine in near-term. Despite attractive valuation, we still like to avoid the stock.     </li>
</ul>



BNC Korea (256840 KS) has been found guilty for the violation of the Pharmaceutical Affairs Act. Consequently, production of its Bienox injection has temporarily been halted till May 30, 2023.
The company’s in-licensed COVID-19 drug candidate could not secure emergency use approval from the FDA, which has asked for further clinical trial demonstrating efficacy and safety.
BNC Korea is not a bottom fishing idea, due to lack of any strong growth engine in near-term. Despite attractive valuation, we still like to avoid the stock.     


BNC Korea (256840 KS): Base Business Faces Regulatory Headwind; Delay in COVID Drugs Approval

Equity Capital Markets

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<li>
<a href="https://www.smartkarma.com/entities/genuine-biotech-limited" target="_blank" data-smartkarma-citation="entities:36220:1" rel="noopener">Genuine Biotech (GBL HK)</a> has filed for HK listing. Its Azvudine received NMPA approval for the treatment of COVID-19 in July 2022 to become the first China-made oral COVID-19 drug.</li>
<li>Azvudine was conditionally approved by the NMPA for the treatment of HIV infection in July 2021. However, the drug is yet to be commercialized.</li>
<li>Genuine Biotech plans to use the IPO proceeds for the commercialization of Azvudine. The company’s current cash balance can maintain its financial viability for approximately 20 months.</li>
</ul>



Genuine Biotech (GBL HK) has filed for HK listing. Its Azvudine received NMPA approval for the treatment of COVID-19 in July 2022 to become the first China-made oral COVID-19 drug.
Azvudine was conditionally approved by the NMPA for the treatment of HIV infection in July 2021. However, the drug is yet to be commercialized.
Genuine Biotech plans to use the IPO proceeds for the commercialization of Azvudine. The company’s current cash balance can maintain its financial viability for approximately 20 months.


Genuine Biotech (GBL HK): COVID Pill No Longer Attractive Opportunity; Thin Pipeline Mars Conviction

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Kintor Pharmaceutical / Equity Capital Markets

<ul>
<li>Over the past year, we've seen the stock price of Kintor fluctuate largely, which was mainly driven by its COVID-19 drug proxalutamide. However, we are not optimistic about its outlook.</li>
<li>There are big concerns about the credibility of management. The suspicion caused by mistrust leads us to suggest that investors directly enter the "show me the result" mode.</li>
<li>Shares plunged after the announcement of the Placing. Obviously, <a href="https://www.smartkarma.com/entities/kintor-pharmaceutical" target="_blank" data-smartkarma-citation="entities:28884:1" rel="noopener">Kintor Pharmaceutical (9939 HK)</a> is short of money. Considering the potential risks behind, we are bearish on Kintor. </li>
</ul>


Over the past year, we've seen the stock price of Kintor fluctuate largely, which was mainly driven by its COVID-19 drug proxalutamide. However, we are not optimistic about its outlook.
There are big concerns about the credibility of management. The suspicion caused by mistrust leads us to suggest that investors directly enter the "show me the result" mode.
Shares plunged after the announcement of the Placing. Obviously, Kintor Pharmaceutical (9939 HK) is short of money. Considering the potential risks behind, we are bearish on Kintor. 


Kintor Pharmaceutical (9939.HK) Placement - The Hidden Risks and the True Colors

Thematic (Sector/Industry)

<ul>
<li>China approved the first self-developed COVID-19 oral drug (Azivudine), but there are controversies about efficacy and safety profile on it, which could increase the unpredictability of domestic innovative drugs approval.</li>
<li>Due to the VBP, fierce competition, uncertainties in the COVID-19 prevention/control policies and decreasing demand, the commercialization performance and outlook of Azivudine could be lower-then-expected in China and overseas markets.</li>
<li>The approval of Azivudine wouldn’t change the zero-COVID policy. Until President Xi’s third term appointment is confirmed, there’s no reason to expect China to deviate from this policy.</li>
</ul>


China approved the first self-developed COVID-19 oral drug (Azivudine), but there are controversies about efficacy and safety profile on it, which could increase the unpredictability of domestic innovative drugs approval.
Due to the VBP, fierce competition, uncertainties in the COVID-19 prevention/control policies and decreasing demand, the commercialization performance and outlook of Azivudine could be lower-then-expected in China and overseas markets.
The approval of Azivudine wouldn’t change the zero-COVID policy. Until President Xi’s third term appointment is confirmed, there’s no reason to expect China to deviate from this policy.


Will the Approval of Genuine Biotech's COVID-19 Oral Drug Change China's Zero-COVID Policy?

China

Henan Genuine Biotech Co. Ltd. produces and sells drugs. The Company manufactures and sells antiviral drugs, antitumor drugs, cardiovascular and cerebrovascular diseases innovative drugs, and other products. Henan Genuine Biotech markets its products throughout China.

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Genuine Biotech (GBL HK)

BNC Korea (256840 KS): Base Business Faces Regulatory Headwind; Delay in COVID Drugs Approval

BNC Korea is barred from producing and exporting botulinum toxin for 6 months. Its in-licensed oral COVID drug could not secure FDA approval....

Tina Banerjee