HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>New policy was released to support the development of surgical robots in China, which would be short-term catalyst for related companies, but it may not bring high profits.</li>
<li>In fact, since March, it may not be appropriate for healthcare companies to use the COVID-19 as a reason if their performance in the following months is not as expected.</li>
<li>Before DRGs/DIP policy becomes very “lethal”, there is a “policy vacuum period” in the next two or three years, which is a good opportunity to go long in China healthcare.</li>
</ul>


New policy was released to support the development of surgical robots in China, which would be short-term catalyst for related companies, but it may not bring high profits.
In fact, since March, it may not be appropriate for healthcare companies to use the COVID-19 as a reason if their performance in the following months is not as expected.
Before DRGs/DIP policy becomes very “lethal”, there is a “policy vacuum period” in the next two or three years, which is a good opportunity to go long in China healthcare.


China Healthcare Weekly (Jan.27) - Surgical Robots New Policy, COVID-19 Update, Policy Vacuum Period

<ul>
<li>This year's NRDL negotiations could be a turnaround. If the final result really shows a moderate price decline, it will be “a landmark event” for the innovative drug industry.</li>
<li>Starting from 23Q2, with the peak of respiratory disease/COVID-19 outbreak past, the demand for related TCM would weaken. Then, the pullback of TCM would really begin.</li>
<li>Even if biotech initially tells the story of becoming a biopharma to obtain financing, it will not be realized in the end.</li>
</ul>


This year's NRDL negotiations could be a turnaround. If the final result really shows a moderate price decline, it will be “a landmark event” for the innovative drug industry.
Starting from 23Q2, with the peak of respiratory disease/COVID-19 outbreak past, the demand for related TCM would weaken. Then, the pullback of TCM would really begin.
Even if biotech initially tells the story of becoming a biopharma to obtain financing, it will not be realized in the end.


China Healthcare Weekly (Jan.1) - NRDL Negotiation Turnaround, Pullback of TCM, Biotech Sales System

<ul>
<li>Medical Insurance Bureau of Hebei released the document on centralized procurement of OK lens, which was the first detailed rules about OK lens VBP in China.</li>
<li>The results of orthodontic material centralized procurement of 16 provincial alliance led by Shaanxi were released. We analyzed the direct impacts on <a href="https://www.smartkarma.com/entities/angelalign-technology-inc" target="_blank" data-smartkarma-citation="entities:31480:1" rel="noopener">Angelalign Technology (6699 HK)</a> and the outlook.</li>
<li>Even from the perspective of the whole process of the development of China's pharmaceutical industry after the reform and opening up, 2022 is an extraordinary year for the pharmaceutical industry.</li>
</ul>


Medical Insurance Bureau of Hebei released the document on centralized procurement of OK lens, which was the first detailed rules about OK lens VBP in China.
The results of orthodontic material centralized procurement of 16 provincial alliance led by Shaanxi were released. We analyzed the direct impacts on Angelalign Technology (6699 HK) and the outlook.
Even from the perspective of the whole process of the development of China's pharmaceutical industry after the reform and opening up, 2022 is an extraordinary year for the pharmaceutical industry.


China Healthcare Weekly (Dec.25) - OK Lens VBP, Angelalign, Extraordinary 2022 for Pharmaceuticals

Healthcare Analyst

Wilfred Yuen

Equity Bottom-Up

<ul>
<li>Thanks to last year's salesforce streamline and additional indictions/NRDL inclusions, China in-market sales was up 32% YoY to US$94m, driven by Elunate (+41% YoY) and Sulanda (+45% YoY) in 1H26</li>
<li>Fruzaqla in-market sales was up 14% YoY to US$185m in 1H26, driven by ex-US (+c.70% YoY). Profitability maintained with net profit of US$16m in 1H26. Strong cash position at US$1.4bn</li>
<li>2026 revenue guidance maintained; 2H26 key catalysts: 1) global phase 3 readout SAFFRON (Savolitinib in 2L MET EGRF NSCLC), 2) R&amp;D day, 3) potential BD on ATTC. See more inside</li>
</ul>


Thanks to last year's salesforce streamline and additional indictions/NRDL inclusions, China in-market sales was up 32% YoY to US$94m, driven by Elunate (+41% YoY) and Sulanda (+45% YoY) in 1H26
Fruzaqla in-market sales was up 14% YoY to US$185m in 1H26, driven by ex-US (+c.70% YoY). Profitability maintained with net profit of US$16m in 1H26. Strong cash position at US$1.4bn
2026 revenue guidance maintained; 2H26 key catalysts: 1) global phase 3 readout SAFFRON (Savolitinib in 2L MET EGRF NSCLC), 2) R&amp;D day, 3) potential BD on ATTC. See more inside


Hutchmed (13.HK): 1H26 Call Takeaway: 2026 Guidance Intact; 2H Catalysts: SAFFRON, ATTC BD, R&D Day

<ul>
<li>While AI has had a profound impact in image recognition,there has been little comparable progress in drug discovery, far from the current levels of investment and expectations in this sector.</li>
<li>The success of license-in model must be based on the appropriate valuation level. The ultimate parameter to measure a drug company based on license-in model is its cash flow status.</li>
<li>Pet medical equipment is not subject to the negative policy impact of centralized procurement. Together with high demand, it is expected to become the second growth curve of enterprises.</li>
</ul>


While AI has had a profound impact in image recognition,there has been little comparable progress in drug discovery, far from the current levels of investment and expectations in this sector.
The success of license-in model must be based on the appropriate valuation level. The ultimate parameter to measure a drug company based on license-in model is its cash flow status.
Pet medical equipment is not subject to the negative policy impact of centralized procurement. Together with high demand, it is expected to become the second growth curve of enterprises.


China Healthcare Weekly (Aug.12)-AI Drug Discovery, License-In Mode Valuation, Pet Medical Equipment

Hong Kong

Hutchison Whampoa is an investment holding company with diverse global operations in ports and related services, property and hotels, retail, infrastructure, energy, and telecommunications. It operates port and container terminals, develops real estate, and provides mobile telecommunications services. The company is headquartered in Hong Kong and traces its roots back to 1862.

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

Hutchison Whampoa (13 HK)

China Healthcare Weekly (Jan.27) - Surgical Robots New Policy, COVID-19 Update, Policy Vacuum Period

New policy released to support development of surgical robot. COVID-19 is no longer an excuse for company's poor performance. It's a good time to...

Xinyao (Criss) Wang

China Healthcare Weekly (Jan.1) - NRDL Negotiation Turnaround, Pullback of TCM, Biotech Sales System

This year's NRDL negotiation could be “a landmark event” for innovative drug industry.Pullback of TCM may really begin from 23Q2.We analyzed...

Xinyao (Criss) Wang

China Healthcare Weekly (Dec.25) - OK Lens VBP, Angelalign, Extraordinary 2022 for Pharmaceuticals

The OK lens VBP in Hebei was the first to release detailed rules. The orthodontic material VBP result would affect Angelalign's outlook. 2022 is an...

Xinyao (Criss) Wang

Hutchmed (13.HK): 1H26 Call Takeaway: 2026 Guidance Intact; 2H Catalysts: SAFFRON, ATTC BD, R&D Day

Hutchmed (13.HK): 1H26 China sales continued to improve + steady growth from global sales of Fruzaqla; 2026 Guidance Intact; 2H26 catalysts:...

Wilfred Yuen

China Healthcare Weekly (Aug.12)-AI Drug Discovery, License-In Mode Valuation, Pet Medical Equipment

AI drug discovery is far from meeting the current investment level and expectations. The success of license-in mode must be based on appropriate...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)