HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

1. Industry viewpoints:<ul>
<li>Recently, there is news that insulin could be included in the volume-based purchase (VBP).</li>
<li>With the continuous improvement of the innovation capability of domestic pharmaceutical enterprises and the gradual recognition by foreign enterprises, "going global" has gradually become a common way in the domestic pharmaceutical industry.</li>
<li>As the residents' medical expenses continue to increase, commercial health insurance has become an important part to relieve the pressure of medical insurance fund.</li>
</ul>2. Company news:News about the new agreement and updated progress of new drugs from <a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a>, <a href="https://www.smartkarma.com/entities/alphamab-oncology" target="_blank" data-smartkarma-citation="entities:28213:1" rel="noopener">Alphamab Co Ltd (9966 HK)</a>, <a href="https://www.smartkarma.com/entities/luye-pharma-group-ltd" target="_blank" data-smartkarma-citation="entities:488:1" rel="noopener">Luye Pharma (2186 HK)</a> and <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>.3. Market review:Last week, stock price for healthcare sector in A share decreased 3.7%, while CSI 300 decreased 2.21% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:
Recently, there is news that insulin could be included in the volume-based purchase (VBP).
With the continuous improvement of the innovation capability of domestic pharmaceutical enterprises and the gradual recognition by foreign enterprises, "going global" has gradually become a common way in the domestic pharmaceutical industry.
As the residents' medical expenses continue to increase, commercial health insurance has become an important part to relieve the pressure of medical insurance fund.
2. Company news:News about the new agreement and updated progress of new drugs from Wuxi Biologics (2269 HK), Alphamab Co Ltd (9966 HK), Luye Pharma (2186 HK) and Remegen Co Ltd (9995 HK).3. Market review:Last week, stock price for healthcare sector in A share decreased 3.7%, while CSI 300 decreased 2.21% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Equity Bottom-Up

Genor Biopharma Holdings  / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/jhbp-cy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:29201:1" rel="noopener">JHBP (Genor) (6998 HK)</a> is a biopharmaceutical company that focuses on the R&amp;D and commercialization of oncology and autoimmune drugs, with a number of products in the late stage of clinical development and close to commercialization. Perhaps because of such characteristics, Genor is favored by reputable investment institutions such as Hillhouse Capital, Temasek, etc.. However, the stock price of Genor reached its peak when it was listed. It only rose in the first two days and then fell all the way. By March 9th, 2021, the closing price of Genor was HK$16.74/share, which was about 50% lower than the peak of HK$32.2/share at the beginning of listing. So, why is that?

JHBP (Genor) (6998 HK) is a biopharmaceutical company that focuses on the R&amp;D and commercialization of oncology and autoimmune drugs, with a number of products in the late stage of clinical development and close to commercialization. Perhaps because of such characteristics, Genor is favored by reputable investment institutions such as Hillhouse Capital, Temasek, etc.. However, the stock price of Genor reached its peak when it was listed. It only rose in the first two days and then fell all the way. By March 9th, 2021, the closing price of Genor was HK$16.74/share, which was about 50% lower than the peak of HK$32.2/share at the beginning of listing. So, why is that?

Genor Biopharma (6998.HK) - Here Is Why the Stock Price Decreased by About 50%

Equity Capital Markets

Zhaoke Ophthalmology Pharmaceutical / Equity Capital Markets

On December 18th 2020, <a href="https://www.smartkarma.com/entities/lee-s-pharmaceutical-hldgs" target="_blank" data-smartkarma-citation="entities:14616:1" rel="noopener">Lee's Pharmaceutical (950 HK)</a> announced that it had submitted an application to the Hong Kong Stock Exchange for approval to list <a href="https://www.smartkarma.com/entities/zhaoke-ophthalmology-pharmaceutical" target="_blank" data-smartkarma-citation="entities:31495:1" rel="noopener">Zhaoke Ophthalmology Pharmaceutical (ZKO HK)</a> on the main board of the HKEX. It is worth mentioning that, before the IPO, Lee's Pharmaceuticals holds 34.1% shares in Zhaoke, and Zhaoke is the affiliated company of the group. After the spin-off and listing, Lee's Pharmaceuticals would no longer be Zhaoke's controlling shareholder, but would still be its single largest shareholder. Meanwhile, at present, there are some good listed companies in the ophthalmology industry in the secondary capital market, such as <a href="https://www.smartkarma.com/entities/chengdu-kanghong-pharmaceu-a" target="_blank" data-smartkarma-citation="entities:24723:1" rel="noopener">Chengdu Kanghong Pharmaceu-A (002773 CH)</a> and <a href="https://www.smartkarma.com/entities/shenyang-xingqi-pharmaceut-a" target="_blank" data-smartkarma-citation="entities:29617:1" rel="noopener">Shenyang Xingqi Pharmaceut-A (300573 CH)</a>. As a "new force", how would Zhaoke perform compared with its strong peers in this industry?

On December 18th 2020, Lee's Pharmaceutical (950 HK) announced that it had submitted an application to the Hong Kong Stock Exchange for approval to list Zhaoke Ophthalmology Pharmaceutical (ZKO HK) on the main board of the HKEX. It is worth mentioning that, before the IPO, Lee's Pharmaceuticals holds 34.1% shares in Zhaoke, and Zhaoke is the affiliated company of the group. After the spin-off and listing, Lee's Pharmaceuticals would no longer be Zhaoke's controlling shareholder, but would still be its single largest shareholder. Meanwhile, at present, there are some good listed companies in the ophthalmology industry in the secondary capital market, such as Chengdu Kanghong Pharmaceu-A (002773 CH) and Shenyang Xingqi Pharmaceut-A (300573 CH). As a "new force", how would Zhaoke perform compared with its strong peers in this industry?

Pre-IPO Zhaoke Ophthalmology Pharmaceutical - It Remains to Be Seen How to Find Its Way Out

1. Industry viewpoints:
<ul>
<li>There is no doubt that the next step is to include biosimilar drugs in the volume-based purchase (VBP).</li>
<li>With the increasing prevalence of diabetes in China and the improvement of people's living and medical standards, the market size of diabetes drugs in China is expanding year by year.</li>
<li>As the penetration of interventional surgery continues to increase, the market of support devices across all interventional fields has a promising future.</li>
</ul>
2. Company news:
News about the new agreements from <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/luye-pharma-group-ltd" target="_blank" data-smartkarma-citation="entities:488:1" rel="noopener">Luye Pharma (2186 HK)</a>, and <a href="https://www.smartkarma.com/entities/huadong-medicine-co-ltd-a" target="_blank" data-smartkarma-citation="entities:18522:1" rel="noopener">Huadong Medicine Co Ltd A (000963 CH)</a>. 
3. Market review: 
Last week, stock price for healthcare sector in A share decreased 2.83%, while CSI 300 decreased 0.5% over the same period of time.
4. Risk disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:

There is no doubt that the next step is to include biosimilar drugs in the volume-based purchase (VBP).
With the increasing prevalence of diabetes in China and the improvement of people's living and medical standards, the market size of diabetes drugs in China is expanding year by year.
As the penetration of interventional surgery continues to increase, the market of support devices across all interventional fields has a promising future.

2. Company news:
News about the new agreements from BeiGene Ltd (6160 HK),Luye Pharma (2186 HK), and Huadong Medicine Co Ltd A (000963 CH). 
3. Market review: 
Last week, stock price for healthcare sector in A share decreased 2.83%, while CSI 300 decreased 0.5% over the same period of time.
4. Risk disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China Healthcare Weekly (Feb.19) - VBP on Biosimilar Drugs, Poor Performance of Healthcare Sector

Innovent Biologics Inc / Equity Bottom-Up

In recent years, <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> has launched a number of successful products, and the Company's investment value has significantly increased. Innovent leads the domestic counterparts in the layout of biological drugs and adhere to the development of internationally competitive products. The Company also establishes an excellent team to ensure the efficient implementation of the strategy. Meanwhile, Innovent is gradually transforming from a biotech company to a big pharma. With dozens of products in the pipeline, the Company is focusing on mainstream areas and is in the first echelon of clinical progress. In addition, with the rapid increase of sales after the listing of PD-1, its commercialization capability has also been recognized by the market.

In recent years, Innovent Biologics Inc (1801 HK) has launched a number of successful products, and the Company's investment value has significantly increased. Innovent leads the domestic counterparts in the layout of biological drugs and adhere to the development of internationally competitive products. The Company also establishes an excellent team to ensure the efficient implementation of the strategy. Meanwhile, Innovent is gradually transforming from a biotech company to a big pharma. With dozens of products in the pipeline, the Company is focusing on mainstream areas and is in the first echelon of clinical progress. In addition, with the rapid increase of sales after the listing of PD-1, its commercialization capability has also been recognized by the market. 

Innovent Biologics (1801 HK) - Have the Genes to Become a Big Pharma

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 (Mar.12)

The article analyzed viewpoints of potential VBP on insulin, internationalization of domestic pharmaceutical companies, commercial health...

Xinyao (Criss) Wang

Genor Biopharma (6998.HK) - Here Is Why the Stock Price Decreased by About 50%

This article analyzed the concerns of Genor Biopharma in terms of core products, competitive landscape, industry characteristics and the potential...

Xinyao (Criss) Wang

Pre-IPO Zhaoke Ophthalmology Pharmaceutical - It Remains to Be Seen How to Find Its Way Out

The article analyzed Zhaoke Ophthalmology in terms of pipeline, competitive landscape, financial position and also included concerns for the future...

Xinyao (Criss) Wang

China Healthcare Weekly (Feb.19) - VBP on Biosimilar Drugs, Poor Performance of Healthcare Sector

This article analyzed the new document about VBP for biosimilar drugs, diabetes drugs market, support devices market in interventional fields,...

Xinyao (Criss) Wang

Innovent Biologics (1801 HK) - Have the Genes to Become a Big Pharma

This article mainly analyzed Innovent in terms of its current listed products (Sintilimab, Bevacizumab, Adalimumab and Rituximab), its pipeline,...

Xinyao (Criss) Wang

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