HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/venus-medtech-hangzhou-inc" target="_blank" data-smartkarma-citation="entities:28257:1" rel="noopener">Venus MedTech (2500 HK)</a> is taking the lead in TAVR industry, but <a href="https://www.smartkarma.com/entities/peijia-medical" target="_blank" data-smartkarma-citation="entities:28862:1" rel="noopener">Peijia Medical (9996 HK)</a> has advantages in development progress of future products. So, the market pattern is not yet determined.</li>
<li>The high cost of TAVR surgery is the main reason for lower-than-expected sales performance of related companies and low market penetration. The fierce competition would also bring more challenges. </li>
<li>A good solution is to enter developing markets with CE mark, which would offer a new commercialization option and also a wider expansion beyond just European and American markets.</li>
</ul>



Venus MedTech (2500 HK) is taking the lead in TAVR industry, but Peijia Medical (9996 HK) has advantages in development progress of future products. So, the market pattern is not yet determined.
The high cost of TAVR surgery is the main reason for lower-than-expected sales performance of related companies and low market penetration. The fierce competition would also bring more challenges. 
A good solution is to enter developing markets with CE mark, which would offer a new commercialization option and also a wider expansion beyond just European and American markets.


Peijia Medical (9996.HK) Vs Venus MedTech (2500.HK) Vs CardioFlow (2160.HK)-Pain Points and Solution

Global Healthcare Analyst

Tina Banerjee

Equity Capital Markets

OrbusNeich Medical Group Holdings / Equity Capital Markets

<ul>
<li>OrbusNeich Medical Group focuses on coronary and peripheral interventional instruments, such as balloons and stents used in PCI (coronary)/PTA (peripheral) procedures.</li>
<li>Comprehensive and innovative product portfolio for endovascular interventional procedures, established global sales network, and robust pipeline are the major strength of OrbusNeich.</li>
<li>Fierce competition, commoditized nature of the offering, centralized procurement leading to substantial price drop are some of the concerns for the company.</li>
</ul>


OrbusNeich Medical Group focuses on coronary and peripheral interventional instruments, such as balloons and stents used in PCI (coronary)/PTA (peripheral) procedures.
Comprehensive and innovative product portfolio for endovascular interventional procedures, established global sales network, and robust pipeline are the major strength of OrbusNeich.
Fierce competition, commoditized nature of the offering, centralized procurement leading to substantial price drop are some of the concerns for the company.


Pre-IPO OrbusNeich Medical Group: A Scale Player, With Comprehensive Portfolio in PCI Balloon Market

Thematic (Sector/Industry)

<ul>
<li>In 2021/1H, the neuro-interventional industry attracted great enthusiasm from investors, but starting from 2021/2H, things began to change and investors quickly returned to rationality.</li>
<li>The major concerns are the product homogenization, fierce market competition and the negative impact of centralized procurement policy. We summarized our policy interpretation to help investors make a prediction.</li>
<li>In terms of future trends, the grassroots market and the international markets are the breakthrough points for domestic neuro-interventional enterprises, which would be the main criteria for decision-making.</li>
</ul>


In 2021/1H, the neuro-interventional industry attracted great enthusiasm from investors, but starting from 2021/2H, things began to change and investors quickly returned to rationality.
The major concerns are the product homogenization, fierce market competition and the negative impact of centralized procurement policy. We summarized our policy interpretation to help investors make a prediction.
In terms of future trends, the grassroots market and the international markets are the breakthrough points for domestic neuro-interventional enterprises, which would be the main criteria for decision-making.


Concerns and Outlook on China Neuro-Interventional Industry

<ul>
<li>While the final results of 2021 national medical insurance negotiation have yet to be announced, here are what's circulating in the market.</li>
<li>The centralized procurement on spring coil in Hebei province would start soon, which means that the centralized procurement in the field of neuro-intervention in China has officially begun.</li>
<li>There is a phenomenon of "valuation upside down" in the primary and secondary market of healthcare investment, so we recommend investors to be more cautious and rational.</li>
</ul>


While the final results of 2021 national medical insurance negotiation have yet to be announced, here are what's circulating in the market.
The centralized procurement on spring coil in Hebei province would start soon, which means that the centralized procurement in the field of neuro-intervention in China has officially begun.
There is a phenomenon of "valuation upside down" in the primary and secondary market of healthcare investment, so we recommend investors to be more cautious and rational.


China Healthcare Weekly (Nov.12)-Medical Insurance Negotiation,Spring Coil VBP,Valuation Upside Down

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

HeMo Bioengineering / Equity Capital Markets

HeMo Bioengineering, a China-based interventional medical device company, plans to raise up to USD 300m via a Hong Kong listing.The company's main products are catheters for the aspiration thrombectomy for acute ischemic stroke. The thrombectomy market is experiencing rapid growth and the company targets a less competitive thrombectomy segment but effectively it is facing intense competition with stent retrievers. We are of the view that the company's product is not competitive and innovative enough to acquire large market share from other players despite the penetration rate of the aspiration thrombectomy in China is much lower than that in the US. The company's management does have a track record in developing medical devices in the past but we think its current product line does indicate few inventions.

HeMo Bioengineering, a China-based interventional medical device company, plans to raise up to USD 300m via a Hong Kong listing.The company's main products are catheters for the aspiration thrombectomy for acute ischemic stroke. The thrombectomy market is experiencing rapid growth and the company targets a less competitive thrombectomy segment but effectively it is facing intense competition with stent retrievers. We are of the view that the company's product is not competitive and innovative enough to acquire large market share from other players despite the penetration rate of the aspiration thrombectomy in China is much lower than that in the US. The company's management does have a track record in developing medical devices in the past but we think its current product line does indicate few inventions.

HeMo Bioengineering (禾木生物工程) Pre-IPO: Signs of Lacking Innovation

China

Peijia Medical Ltd. produces and sells medical devices. The Company develops and sells heart valve disease treatment medical devices and other products. Peijia Medical Technology markets its products throughout China. 

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Peijia Medical (9996 HK)