HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

Industry viewpoints:<ul>
<li>The 2021 medical insurance catalogue adjustment plan is soliciting opinions, and drugs approved for market launch during 2020.8.17 - 2021.6.30 will be eligible to participate in the negotiations.</li>
<li>Related departments issued new documents stating that from June to December this year, they will jointly carry out a special campaign to crack down on illegal medical beauty activities.</li>
<li>The General Office of the State Council issued a new document about the  development of public hospitals.</li>
</ul>Company news:News about the updated progress on drugs of <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK), </a><a href="https://www.smartkarma.com/entities/jiangsu-hengrui-medicine-co-ltd" target="_blank" data-smartkarma-citation="entities:14128:1" rel="noopener">Jiangsu Hengrui Medicine (600276 CH)</a>, <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a>, and <a href="https://www.smartkarma.com/entities/cspc-pharmaceutical-group-ltd" target="_blank" data-smartkarma-citation="entities:229:1" rel="noopener">CSPC Pharmaceutical Group (1093 HK)</a>.Market review:Last week, stock price for healthcare sector in A share decreased 2.8%, while CSI 300 decreased 2.34% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
The 2021 medical insurance catalogue adjustment plan is soliciting opinions, and drugs approved for market launch during 2020.8.17 - 2021.6.30 will be eligible to participate in the negotiations.
Related departments issued new documents stating that from June to December this year, they will jointly carry out a special campaign to crack down on illegal medical beauty activities.
The General Office of the State Council issued a new document about the  development of public hospitals.
Company news:News about the updated progress on drugs of BeiGene Ltd (6160 HK), Jiangsu Hengrui Medicine (600276 CH), Innovent Biologics Inc (1801 HK), and CSPC Pharmaceutical Group (1093 HK).Market review:Last week, stock price for healthcare sector in A share decreased 2.8%, while CSI 300 decreased 2.34% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Equity Bottom-Up

Hansoh Pharmaceutical Group  / Equity Bottom-Up

When it comes to <a href="https://www.smartkarma.com/entities/jiangsu-hengrui-medicine-co-ltd" target="_blank" data-smartkarma-citation="entities:14128:1" rel="noopener">Jiangsu Hengrui Medicine (600276 CH)</a>, people would  also mention <a href="https://www.smartkarma.com/entities/hansoh-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:23675:1" rel="noopener">Hansoh Pharmaceutical (3692 HK)</a>, because its chairlady and CEO Zhong Huijuan is the wife of Hengrui’s Sun Piaoyang. Previously, Hansoh started with generic drugs (mainly first-to-market generic drugs), and has several blockbuster varieties with annual sales of more than RMB1 billion, such as zefei, pulaile, oulanning and so on. After more than 20 years of development, the Company has tablished a broad, diversified and leading drug portfolio in central nervous system (“CNS”) diseases, oncology, anti-infectives and diabetes. This article mainly analyzed the core products, the pipeline, the key risks, the thoughts on valuation and the catalysts.

When it comes to Jiangsu Hengrui Medicine (600276 CH), people would  also mention Hansoh Pharmaceutical (3692 HK), because its chairlady and CEO Zhong Huijuan is the wife of Hengrui’s Sun Piaoyang. Previously, Hansoh started with generic drugs (mainly first-to-market generic drugs), and has several blockbuster varieties with annual sales of more than RMB1 billion, such as zefei, pulaile, oulanning and so on. After more than 20 years of development, the Company has tablished a broad, diversified and leading drug portfolio in central nervous system (“CNS”) diseases, oncology, anti-infectives and diabetes. This article mainly analyzed the core products, the pipeline, the key risks, the thoughts on valuation and the catalysts.

Hansoh Pharmaceutical (3692.HK) - Insights on Core Products, Pipeline, Catalysts and Key Risks

Industry viewpoints:<ul>
<li>Recently, a new document was released by the National Health Care Security Administration about the centralized procurement of high-value medical consumables.</li>
<li>The bidding of the 5th national volume-based purchase (VBP) will be officially opened on June 23, 2021.</li>
<li>The scale of China's rehabilitation therapy industry is growing rapidly.</li>
</ul>Company news:News about the new ultrasound system and updated progress on drugs of <a href="https://www.smartkarma.com/entities/remegen-co-ltd" target="_blank" data-smartkarma-citation="entities:29191:1" rel="noopener">Remegen Co Ltd (9995 HK)</a>, <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a>, <a href="https://www.smartkarma.com/entities/shenzhen-mindray-bio-medic-a" target="_blank" data-smartkarma-citation="entities:28017:1" rel="noopener">Shenzhen Mindray Bio-Medical Electronics (300760 CH)</a> and <a href="https://www.smartkarma.com/entities/jiangsu-hengrui-medicine-co-ltd" target="_blank" data-smartkarma-citation="entities:14128:1" rel="noopener">Jiangsu Hengrui Medicine (600276 CH)</a>.Market review:Last week, stock price for healthcare sector in A share decreased 0.81%, while CSI 300 decreased 1.09% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
Recently, a new document was released by the National Health Care Security Administration about the centralized procurement of high-value medical consumables.
The bidding of the 5th national volume-based purchase (VBP) will be officially opened on June 23, 2021.
The scale of China's rehabilitation therapy industry is growing rapidly.
Company news:News about the new ultrasound system and updated progress on drugs of Remegen Co Ltd (9995 HK), BeiGene Ltd (6160 HK), Shenzhen Mindray Bio-Medical Electronics (300760 CH) and Jiangsu Hengrui Medicine (600276 CH).Market review:Last week, stock price for healthcare sector in A share decreased 0.81%, while CSI 300 decreased 1.09% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

CStone Pharmaceuticals / Equity Bottom-Up

According to the official website, <a href="https://www.smartkarma.com/entities/cstone-pharmaceuticals" target="_blank" data-smartkarma-citation="entities:27882:1" rel="noopener">CStone Pharma (2616 HK)</a> announced that a registrational clinical trial (GEMSTONE-301 study) of the anti-PD-L1 monoclonal antibody sugemalimab in patients with stage III NSCLC met its primary endpoint at a planned interim analysis reviewed by the independent Data Monitoring Committee (iDMC). CStone plans to submit an NDA to the NMPA for sugemalimab in stage III NSCLC. Meanwhile, the phase III trial of sugemalimab as first-line treatment for stage IV squamous and non-squamous NSCLC met its primary endpoint in August 2020. An NDA for this indication was accepted by NMPA in November 2020, and CStone is expected to receive the NDA approval in the second half of 2021. Therefore, it is expected that sugemalimab would become the first anti-PD-1/PD-L1 monoclonal antibody in the world to cover both stage III and stage IV NSCLC patients. Together with the other three commercial launches in 2021 (pralsetinib, avapritinib and ivosidenib), it is the time to revalue the Company.

According to the official website, CStone Pharma (2616 HK) announced that a registrational clinical trial (GEMSTONE-301 study) of the anti-PD-L1 monoclonal antibody sugemalimab in patients with stage III NSCLC met its primary endpoint at a planned interim analysis reviewed by the independent Data Monitoring Committee (iDMC). CStone plans to submit an NDA to the NMPA for sugemalimab in stage III NSCLC. Meanwhile, the phase III trial of sugemalimab as first-line treatment for stage IV squamous and non-squamous NSCLC met its primary endpoint in August 2020. An NDA for this indication was accepted by NMPA in November 2020, and CStone is expected to receive the NDA approval in the second half of 2021. Therefore, it is expected that sugemalimab would become the first anti-PD-1/PD-L1 monoclonal antibody in the world to cover both stage III and stage IV NSCLC patients. Together with the other three commercial launches in 2021 (pralsetinib, avapritinib and ivosidenib), it is the time to revalue the Company.

CStone Pharma (2616.HK) - It Is the Time to Revalue the Company

Industry viewpoints:
<ul class="">
<li>China released a new policy to support couples having a third child as the population ages.</li>
<li>A joint procurement office on behalf of medical institutions in 12 provinces was formed to carry out centralized procurement of orthopedic trauma medical consumables.</li>
<li>With the increasing incidence of diseases that directly cause skull defects, the skull defect repair material industry in China has developed rapidly.</li>
</ul>
Company news:
News about the updated license-in agreement and new progress on drugs of <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK), </a><a href="https://www.smartkarma.com/entities/zai-lab-ltd" target="_blank" data-smartkarma-citation="entities:25877:1" rel="noopener">Zai Lab Ltd (ZLAB US)</a>, <a href="https://www.smartkarma.com/entities/cspc-pharmaceutical-group-ltd" target="_blank" data-smartkarma-citation="entities:229:1" rel="noopener">CSPC Pharmaceutical Group (1093 HK),</a> and <a href="https://www.smartkarma.com/entities/jiangsu-hengrui-medicine-co-ltd" target="_blank" data-smartkarma-citation="entities:14128:1" rel="noopener">Jiangsu Hengrui Medicine (600276 CH)</a>.
Market review: 
Last week, stock price for healthcare sector in A share increased 0.69%, while CSI 300 decreased 0.73% over the same period of time.
Risk disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:

China released a new policy to support couples having a third child as the population ages.
A joint procurement office on behalf of medical institutions in 12 provinces was formed to carry out centralized procurement of orthopedic trauma medical consumables.
With the increasing incidence of diseases that directly cause skull defects, the skull defect repair material industry in China has developed rapidly.

Company news:
News about the updated license-in agreement and new progress on drugs of Innovent Biologics Inc (1801 HK), Zai Lab Ltd (ZLAB US), CSPC Pharmaceutical Group (1093 HK), and Jiangsu Hengrui Medicine (600276 CH).
Market review: 
Last week, stock price for healthcare sector in A share increased 0.69%, while CSI 300 decreased 0.73% over the same period of time.
Risk disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China

Jiangsu Hengrui Medicine Co., Ltd. develops, manufactures, and markets a variety of medicines and medicine packing materials. The Company's products include anti-tumor medicines, pain-killers, anti-infection medicines, aluminum foil, and other related products.

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Jiangsu Hengrui Medicine (600276 CH)

China Healthcare Weekly (Jun.18)

The article analyzed the 2021 medical insurance catalogue adjustment plan, new document to crack down on illegal medical beauty activities, new...

Xinyao (Criss) Wang

Hansoh Pharmaceutical (3692.HK) - Insights on Core Products, Pipeline, Catalysts and Key Risks

This article analyzed Hansoh Pharmaceutical in terms of core products, the pipeline, the key risks, the thoughts on valuation and the catalysts for...

Xinyao (Criss) Wang

China Healthcare Weekly (Jun.11)

The article analyzed the new document about centralized procurement of high-value consumables,the opening of bidding of 5th volume-based...

Xinyao (Criss) Wang

CStone Pharma (2616.HK) - It Is the Time to Revalue the Company

With the four commercial launches in 2021 (sugemalimab, pralsetinib, avapritinib and ivosidenib), it is the time to revalue CStone. This insight...

Xinyao (Criss) Wang

China Healthcare Weekly (Jun.4)

This insight mainly analyzed the three-child new policy, centralized procurement of orthopedic trauma medical consumables, skull defect repair...

Xinyao (Criss) Wang

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