HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Genor Biopharma Holdings  / Equity Capital Markets

<ul>
<li>The merger is good for both parties. On the one hand, it helps boost Genor's valuation. On the other hand, it finally makes Edding realize its desire to go public.</li>
<li>The outlook of Edding Genor Group depends on the pipeline quality. Core products Vancocin/Ceclor/FPN are facing different challenges. The pipeline strength/R&amp;D capabilities of Genor hasn’t been recognized by the market.</li>
<li>Short-Term valuation is expected to reach RMB7.5 billion. Future valuation could be above RMB10 billion if pipeline R&amp;D progress/clinical data and the commercialization performance of marketed products meet the expectation.</li>
</ul>


The merger is good for both parties. On the one hand, it helps boost Genor's valuation. On the other hand, it finally makes Edding realize its desire to go public.
The outlook of Edding Genor Group depends on the pipeline quality. Core products Vancocin/Ceclor/FPN are facing different challenges. The pipeline strength/R&amp;D capabilities of Genor hasn’t been recognized by the market.
Short-Term valuation is expected to reach RMB7.5 billion. Future valuation could be above RMB10 billion if pipeline R&amp;D progress/clinical data and the commercialization performance of marketed products meet the expectation.


Genor Biopharma (6998 HK) - The Reverse Merger Will Unleash the Upside Potential of Valuation

Equity Bottom-Up

Shanghai Henlius Biotech  / Equity Bottom-Up

<ul>
<li>LVC increased its holding of Henlius by 1,110,900 shares on January 23, reflecting its high recognition of the Company and optimism on its prospects, despite the biosimilar VBP headwinds.</li>
<li>Even with concerns, LVC still repeatedly invested in Henlius at a valuation far higher than its actual value, offering support with real money during pre-IPO stage.</li>
<li>Lin Lijun’s dissenting vote was a deliberate decision. We are interested to see Lin's next move. Lin should have a very clear understanding of the true value of Henlius.</li>
</ul>


LVC increased its holding of Henlius by 1,110,900 shares on January 23, reflecting its high recognition of the Company and optimism on its prospects, despite the biosimilar VBP headwinds.
Even with concerns, LVC still repeatedly invested in Henlius at a valuation far higher than its actual value, offering support with real money during pre-IPO stage.
Lin Lijun’s dissenting vote was a deliberate decision. We are interested to see Lin's next move. Lin should have a very clear understanding of the true value of Henlius.


Shanghai Henlius Biotech (2696 HK) - LVC Increased Its Holding of Henlius Again

Event-Driven

<ul>
<li>Leading Chinese biotech firms are among the few sub-sectors sustaining rapid growth. However, RemeGen stands as a negative example, with its business model and investment rationale proving flawed.</li>
<li>“Increasing revenue without increasing profits” is actually a “denial” of a company's business model. Even though the losses decreased in 24H1, this doesn’t change our negative expectations for Zai Lab.</li>
<li>Genor Biopharma and Edding Group are merging through a reverse takeover, benefiting both companies by boosting Genor's valuation and allowing Edding to achieve its goal of going public.</li>
</ul>


Leading Chinese biotech firms are among the few sub-sectors sustaining rapid growth. However, RemeGen stands as a negative example, with its business model and investment rationale proving flawed.
“Increasing revenue without increasing profits” is actually a “denial” of a company's business model. Even though the losses decreased in 24H1, this doesn’t change our negative expectations for Zai Lab.
Genor Biopharma and Edding Group are merging through a reverse takeover, benefiting both companies by boosting Genor's valuation and allowing Edding to achieve its goal of going public.


China Healthcare Weekly (Oct.13)-Genor to Acquire Edding, RemeGen's Bleak Outlook, Zai Lab's Trouble

Elpiscience Biopharmaceuticals / Equity Capital Markets

<ul>
<li>Elpiscience is incubated by LAV from the very beginning.The Company has strong capital operation capabilities, but the story of "founding team's decent background + star cornerstone investors" doesn't work anymore.</li>
<li>Elpiscience’s pipelines are still in early stage. However, investors are rational. They will no longer believe in those "good stories", but focus more on cash flow and drug sales revenue.</li>
<li>Elpiscience’s business model has raised concerns about its future product sales scale and profits.The market may not recognize the post-investment valuation of US$599 million if check the valuation of peers.</li>
</ul>


Elpiscience is incubated by LAV from the very beginning.The Company has strong capital operation capabilities, but the story of "founding team's decent background + star cornerstone investors" doesn't work anymore.
Elpiscience’s pipelines are still in early stage. However, investors are rational. They will no longer believe in those "good stories", but focus more on cash flow and drug sales revenue.
Elpiscience’s business model has raised concerns about its future product sales scale and profits.The market may not recognize the post-investment valuation of US$599 million if check the valuation of peers.


Pre-IPO Elpiscience Biopharmaceuticals - Will Investors Still Buy in These Stories?

<ul>
<li>The results of National TCM VBP were released, with average price reduction of 49.36%, involving multiple large varieties with sales over RMB1 billion and exclusive products from many listed companies.</li>
<li>CDE will move closer to the FDA's standard for approving new drugs. So, pharmaceutical companies need to update clinical strategies timely according to the situation, otherwise unexpected events may occur.</li>
<li>We analyzed some key points about <a href="https://www.smartkarma.com/entities/hua-medicine" target="_blank" data-smartkarma-citation="entities:27410:1" rel="noopener">Hua Medicine Ltd (2552 HK)</a>. We think its core drug Dorzagliatin still has many uncertainties that are worth investors' attention.</li>
</ul>


The results of National TCM VBP were released, with average price reduction of 49.36%, involving multiple large varieties with sales over RMB1 billion and exclusive products from many listed companies.
CDE will move closer to the FDA's standard for approving new drugs. So, pharmaceutical companies need to update clinical strategies timely according to the situation, otherwise unexpected events may occur.
We analyzed some key points about Hua Medicine Ltd (2552 HK). We think its core drug Dorzagliatin still has many uncertainties that are worth investors' attention.


China Healthcare Weekly (Jun.23) - National TCM VBP Results, CDE Changes Game Rule, Hua Medicine

China

Genor Biopharma Holdings Ltd operates as a biopharmaceutical company. The Company focuses on developing and commercializing oncology and autoimmune drugs. Genor Biopharma Holdings serves customers worldwide.

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Genor Biopharma Holdings (6998 HK)

Genor Biopharma (6998 HK) - The Reverse Merger Will Unleash the Upside Potential of Valuation

The merger will boost Genor's valuation and help Edding to go public. Future success hinges on pipeline quality. Valuation expected to reach...

Xinyao (Criss) Wang

Shanghai Henlius Biotech (2696 HK) - LVC Increased Its Holding of Henlius Again

Share price of Henlius has rebounded rapidly to above HK$20/share after the deal break. LVC/Lin Lijun repeatedly increased holding of Henlius,...

Xinyao (Criss) Wang

China Healthcare Weekly (Oct.13)-Genor to Acquire Edding, RemeGen's Bleak Outlook, Zai Lab's Trouble

Genor/Edding are merging through a reverse takeover, but valuation is unsatisfactory. Remegen is negative example among China Biotech.Weak...

Xinyao (Criss) Wang

Pre-IPO Elpiscience Biopharmaceuticals - Will Investors Still Buy in These Stories?

Elpiscience's strong capital operation capabilities are no longer enough as investors shift focus to cash flow and drug sales revenue. We have...

Xinyao (Criss) Wang

China Healthcare Weekly (Jun.23) - National TCM VBP Results, CDE Changes Game Rule, Hua Medicine

Results of National TCM VBP were released, involving some big varieties. CDE changes game rule on drug approva. Companies has to change clinical...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Genor Biopharma (6998 HK) - The Reverse Merger Will Unleash the Upside Potential of Valuation

​The merger will boost Genor's valuation and help Edding to go public. Future success hinges on pipeline quality. Valuation expected to reach...

Xinyao (Criss) Wang

Shanghai Henlius Biotech (2696 HK) - LVC Increased Its Holding of Henlius Again

Share price of Henlius has rebounded rapidly to above HK$20/share after the deal break. LVC/Lin Lijun repeatedly increased holding of Henlius,...

Xinyao (Criss) Wang

China Healthcare Weekly (Oct.13)-Genor to Acquire Edding, RemeGen's Bleak Outlook, Zai Lab's Trouble

Genor/Edding are merging through a reverse takeover, but valuation is unsatisfactory. Remegen is negative example among China Biotech.Weak...

Xinyao (Criss) Wang

Pre-IPO Elpiscience Biopharmaceuticals - Will Investors Still Buy in These Stories?

​Elpiscience's strong capital operation capabilities are no longer enough as investors shift focus to cash flow and drug sales revenue. We have...

Xinyao (Criss) Wang

China Healthcare Weekly (Jun.23) - National TCM VBP Results, CDE Changes Game Rule, Hua Medicine

Results of National TCM VBP were released, involving some big varieties. CDE changes game rule on drug approva. Companies has to change clinical...

Xinyao (Criss) Wang

The merger will boost Genor's valuation and help Edding to go public. Future success hinges on pipeline quality. Valuation expected to reach...

Elpiscience's strong capital operation capabilities are no longer enough as investors shift focus to cash flow and drug sales revenue. We have...