HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

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

Equity Capital Markets

Shanghai Haoyuan Chemexpress C / Equity Capital Markets

Shanghai Haoyuan Chemexpress C (688131 CH)

Recently, small market capitalization and undervalued CRO companies are favored by the market. For example, the most eye-catching rebound came from the <a href="https://www.smartkarma.com/entities/viva-biotech-holdings" target="_blank" data-smartkarma-citation="entities:27850:1" rel="noopener">Viva Biotech Holdings (1873 HK)</a> (up over 60% in May) and <a href="https://www.smartkarma.com/entities/hitgen-inc" target="_blank" data-smartkarma-citation="entities:30371:1" rel="noopener">HitGen Inc (688222 CH)</a> (up over 27% in May). In fact, the investment logic in CRO industry can be divided into two aspects: One is to invest in the leading companies with higher certainty, such as <a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec Co. Ltd. (2359 HK)</a>, <a href="https://www.smartkarma.com/entities/hangzhou-tigermed-consulting-co-ltd-1008d609-73bd-4d76-8315-b29502a448ff" target="_blank" data-smartkarma-citation="entities:29212:1" rel="noopener">Hangzhou Tigermed Consulting (H) (3347 HK)</a>, <a href="https://www.smartkarma.com/entities/pharmaron-beijing-co-ltd" target="_blank" data-smartkarma-citation="entities:28428:1" rel="noopener">Pharmaron Beijing Co Ltd-H (3759 HK)</a> and so on; The other is to pursue flexibility and choose to invest some targets that have made certain achievements in subdivision fields, such as the <a href="https://www.smartkarma.com/entities/viva-biotech-holdings" target="_blank" data-smartkarma-citation="entities:27850:1" rel="noopener">Viva Biotech Holdings (1873 HK)</a> and <a href="https://www.smartkarma.com/entities/hitgen-inc" target="_blank" data-smartkarma-citation="entities:30371:1" rel="noopener">HitGen Inc (688222 CH)</a> mentioned above. Here comes a new CRO/CDMO company that worth the attention, <a href="https://www.smartkarma.com/entities/shanghai-haoyuan-chemexpress" target="_blank" data-smartkarma-citation="entities:33415:1" rel="noopener">Shanghai Haoyuan Chemexpress (688131 CH)</a>, which will list on the SSE STAR Market soon. The following insight mainly analyzes the industry characteristics, business, financial performance and potential risks of the Company.

Recently, small market capitalization and undervalued CRO companies are favored by the market. For example, the most eye-catching rebound came from the Viva Biotech Holdings (1873 HK) (up over 60% in May) and HitGen Inc (688222 CH) (up over 27% in May). In fact, the investment logic in CRO industry can be divided into two aspects: One is to invest in the leading companies with higher certainty, such as WuXi AppTec Co. Ltd. (2359 HK), Hangzhou Tigermed Consulting (H) (3347 HK), Pharmaron Beijing Co Ltd-H (3759 HK) and so on; The other is to pursue flexibility and choose to invest some targets that have made certain achievements in subdivision fields, such as the Viva Biotech Holdings (1873 HK) and HitGen Inc (688222 CH) mentioned above. Here comes a new CRO/CDMO company that worth the attention, Shanghai Haoyuan Chemexpress (688131 CH), which will list on the SSE STAR Market soon. The following insight mainly analyzes the industry characteristics, business, financial performance and potential risks of the Company.

Pre-IPO Shanghai Haoyuan Chemexpress - A New CRO/CDMO with Continued High Growth Potential

Since 2021, if you want to ask which sector in the healthcare industry has outstanding performance, the medical beauty sector is definitely the one. Looking at the leading companies in this sector, the market cap and P/E ratio of <a href="https://www.smartkarma.com/entities/bloomage-biotechnology-corporation-a" target="_blank" data-smartkarma-citation="entities:30390:1" rel="noopener">Bloomage Biotechnology Corporation-A (688363 CH)</a> by the end of May 28, 2021 were RMB121 billion and 175, respectively. For <a href="https://www.smartkarma.com/entities/imeik-technology-development-co-ltd" target="_blank" data-smartkarma-citation="entities:32170:1" rel="noopener">Imeik Technology Development (300896 CH)</a>, they were RMB142 billion and 250, respectively. Both were at high end and very expensive. Here is another company, <a href="https://www.smartkarma.com/entities/sihuan-pharmaceutical-hldgs" target="_blank" data-smartkarma-citation="entities:33:1" rel="noopener">Sihuan Pharmaceutical Hldgs (460 HK)</a>, whose share price was up over 318% since the beginning of 2021 on the back of its medical beauty business, with market cap of HK$32.5 billion and P/E ratio of 57.17, which is pretty eye-catching. So could the medical beauty business revalue the Company? This insight mainly analyzed the business outlook and the concerns.

Since 2021, if you want to ask which sector in the healthcare industry has outstanding performance, the medical beauty sector is definitely the one. Looking at the leading companies in this sector, the market cap and P/E ratio of Bloomage Biotechnology Corporation-A (688363 CH) by the end of May 28, 2021 were RMB121 billion and 175, respectively. For Imeik Technology Development (300896 CH), they were RMB142 billion and 250, respectively. Both were at high end and very expensive. Here is another company, Sihuan Pharmaceutical Hldgs (460 HK), whose share price was up over 318% since the beginning of 2021 on the back of its medical beauty business, with market cap of HK$32.5 billion and P/E ratio of 57.17, which is pretty eye-catching. So could the medical beauty business revalue the Company? This insight mainly analyzed the business outlook and the concerns.

Sihuan Pharmaceutical (460.HK) - Optimistic in the Short Term but Conservative in the Long Term

Brii Biosciences / Equity Capital Markets

On April 8, 2021, <a href="https://www.smartkarma.com/entities/brii-biosciences" target="_blank" data-smartkarma-citation="entities:33014:1" rel="noopener">Brii Biosciences (1621985D US) </a>submitted its listing application to the main board of the Hong Kong Stock Exchange. Since June 2018, the Company has raised several rounds of funding with approximately US$414 million in total. In March of this year, Brii completed a US$155 million Series C financing with a post-financing valuation of US$1.455 billion. The founding investors include Boyu, 6 Dimensions, ARCH, Sequoia China, Yunfeng and BluePool, which are all well-known healthcare and biotech funds. Compared with the financing of tumor immunity and cell therapy projects, it is less common for large-scale financing in the field of anti-infection. So what makes the Company so special that it attracts so many star investors? This insight mainly analyzed the key product candidates and related concerns.

On April 8, 2021, Brii Biosciences (1621985D US) submitted its listing application to the main board of the Hong Kong Stock Exchange. Since June 2018, the Company has raised several rounds of funding with approximately US$414 million in total. In March of this year, Brii completed a US$155 million Series C financing with a post-financing valuation of US$1.455 billion. The founding investors include Boyu, 6 Dimensions, ARCH, Sequoia China, Yunfeng and BluePool, which are all well-known healthcare and biotech funds. Compared with the financing of tumor immunity and cell therapy projects, it is less common for large-scale financing in the field of anti-infection. So what makes the Company so special that it attracts so many star investors? This insight mainly analyzed the key product candidates and related concerns.

Pre-IPO Brii Biosciences - Insights on Pipeline and Related Concerns

At present, although the competition of PD-1/PD-L1 is becoming more and more fierce in China, it has to be admitted that, compared with the global market share of about 55%, domestic monoclonal antibodies only occupy 6% of the biopharmaceutical market share, so there is still a broad space and growth potential. Meanwhile, with PD-1/PD-L1 products of the domestic top four companies (<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/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</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/shanghai-junshi-bioscience-h" target="_blank" data-smartkarma-citation="entities:27760:1" rel="noopener">Shanghai Junshi Bioscience Co. Ltd. (1877 HK)</a>) being included in medical insurance catalogue, the pricing of PD-1/PD-L1 products of these four companies would be the ceiling for all subsequent homogeneous enterprises. The only companies that are capable of joining the competition are those with the best products and strong commercialization capability. Actually, <a href="https://www.smartkarma.com/entities/akeso-biopharma-inc" target="_blank" data-smartkarma-citation="entities:28830:1" rel="noopener">Akeso Biopharma Inc (9926 HK)</a> could be the very one to challenge the top four. Besides, as a competitive and strong biotech company, Akeso is also moving in the direction of a Big Pharma.

At present, although the competition of PD-1/PD-L1 is becoming more and more fierce in China, it has to be admitted that, compared with the global market share of about 55%, domestic monoclonal antibodies only occupy 6% of the biopharmaceutical market share, so there is still a broad space and growth potential. Meanwhile, with PD-1/PD-L1 products of the domestic top four companies (Jiangsu Hengrui Medicine (600276 CH), BeiGene Ltd (6160 HK), Innovent Biologics Inc (1801 HK) and Shanghai Junshi Bioscience Co. Ltd. (1877 HK)) being included in medical insurance catalogue, the pricing of PD-1/PD-L1 products of these four companies would be the ceiling for all subsequent homogeneous enterprises. The only companies that are capable of joining the competition are those with the best products and strong commercialization capability. Actually, Akeso Biopharma Inc (9926 HK) could be the very one to challenge the top four. Besides, as a competitive and strong biotech company, Akeso is also moving in the direction of a Big Pharma.

Akeso Biopharma Inc (9926.HK) - Could Be the Very One to Challenge the “Top Four”

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)

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

Pre-IPO Shanghai Haoyuan Chemexpress - A New CRO/CDMO with Continued High Growth Potential

As CRO/CDMO continues to be a hot sector for investors and have outstanding performance, the new pre-IPO company Haoyuan Chemexpress with high...

Xinyao (Criss) Wang

Sihuan Pharmaceutical (460.HK) - Optimistic in the Short Term but Conservative in the Long Term

The medical beauty business outlook with high certainty is the main reason for the share price to rise three times this year.However, there are...

Xinyao (Criss) Wang

Akeso Biopharma Inc (9926.HK) - Could Be the Very One to Challenge the “Top Four”

This article mainly analyzed Akeso in terms of its core product candidates AK-105, AK-104, AK-112, AK-101, the potential, the business outlook, and...

Xinyao (Criss) Wang

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52-week Range

Market Cap (USDm)

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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

Pre-IPO Shanghai Haoyuan Chemexpress - A New CRO/CDMO with Continued High Growth Potential

As CRO/CDMO continues to be a hot sector for investors and have outstanding performance, the new pre-IPO company Haoyuan Chemexpress with high...

Xinyao (Criss) Wang

Sihuan Pharmaceutical (460.HK) - Optimistic in the Short Term but Conservative in the Long Term

The medical beauty business outlook with high certainty is the main reason for the share price to rise three times this year.However, there are...

Xinyao (Criss) Wang

Pre-IPO Brii Biosciences - Insights on Pipeline and Related Concerns

This insight mainly analyzed the core product candidates of Brii Biosciences in the pipeline (HBV, COVID-19 products and others), the competitive...

Xinyao (Criss) Wang

Akeso Biopharma Inc (9926.HK) - Could Be the Very One to Challenge the “Top Four”

This article mainly analyzed Akeso in terms of its core product candidates AK-105, AK-104, AK-112, AK-101, the potential, the business outlook, and...

Xinyao (Criss) Wang