Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

Shanghai Fosun Pharmaceutical (Group) / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-fosun-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:8045:1" rel="noopener">Shanghai Fosun Pharmaceutical (Group) (2196 HK)</a> received marketing approval for Fovinaciclib, for the treatment of HR+, HER2-negative locally advanced or metastatic breast cancer, in combination with an aromatase inhibitor.</li>
<li>In 1H25, Fosun Pharma reported revenue of RMB 19.4B, down 5% YoY. Revenue from innovative drugs achieved robust growth of 14% as it garnered RMB 4.3B in sales.</li>
<li>Fovinaciclib with two approved indications would boost the innovative drugs domain and given the market opportunities of the drug, this can help to somewhat compensate for the VBA related loss.</li>
</ul>



Shanghai Fosun Pharmaceutical (Group) (2196 HK) received marketing approval for Fovinaciclib, for the treatment of HR+, HER2-negative locally advanced or metastatic breast cancer, in combination with an aromatase inhibitor.
In 1H25, Fosun Pharma reported revenue of RMB 19.4B, down 5% YoY. Revenue from innovative drugs achieved robust growth of 14% as it garnered RMB 4.3B in sales.
Fovinaciclib with two approved indications would boost the innovative drugs domain and given the market opportunities of the drug, this can help to somewhat compensate for the VBA related loss.


Shanghai Fosun Pharmaceuticals (2196 HK): New Indication Approval Opens Up Opportunity

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>After excluding gains on the disposal of United Family Healthcare, profitability of main business was disappointing.The revenue decline confirms that Fosun Pharma is facing pressure. Short-term performance hasn’t truly improved.</li>
<li>Fosun Pharma will continue to sell unprofitable assets to alleviate debt pressure and optimize business structure, which will be the short-term main theme. Fosun Pharma is still in adjustment period</li>
<li>Whether high profit growth can be sustainable in long term is uncertain, which depends on if Henlius is able to achieve high growth to offset the negative impact of VBP.</li>
</ul>


After excluding gains on the disposal of United Family Healthcare, profitability of main business was disappointing.The revenue decline confirms that Fosun Pharma is facing pressure. Short-term performance hasn’t truly improved.
Fosun Pharma will continue to sell unprofitable assets to alleviate debt pressure and optimize business structure, which will be the short-term main theme. Fosun Pharma is still in adjustment period
Whether high profit growth can be sustainable in long term is uncertain, which depends on if Henlius is able to achieve high growth to offset the negative impact of VBP.


Shanghai Fosun Pharmaceutical (2196.HK/600196.CH) 25H1 - The Performance Has Not Truly Improved

Thematic (Sector/Industry)

<ul>
<li>Simcere entered into license agreement with Vigonvita for new indications of Deuterated Remdesivir Hydrobromide. Kelun Biotech inked partnership with Crescent Biopharma to develop and commercialize oncology therapeutics, including novel combinations.</li>
<li>Samsung Biologics is acquiring land for third campus in Songdo, Icheon for KRW249B. SK Biopharmaceutical signed supply agreement with Eckert &amp; Ziegler for actinium-225 for the development of next-generation radiopharmaceutical.</li>
<li>Daiichi Sankyo won a court appeal for its long-running legal battle with Seagen. Biocon made settlement agreement with Amgen clearing commercialization path for its Denosumab biosimilars in Europe and RoW.</li>
</ul>


Simcere entered into license agreement with Vigonvita for new indications of Deuterated Remdesivir Hydrobromide. Kelun Biotech inked partnership with Crescent Biopharma to develop and commercialize oncology therapeutics, including novel combinations.
Samsung Biologics is acquiring land for third campus in Songdo, Icheon for KRW249B. SK Biopharmaceutical signed supply agreement with Eckert &amp; Ziegler for actinium-225 for the development of next-generation radiopharmaceutical.
Daiichi Sankyo won a court appeal for its long-running legal battle with Seagen. Biocon made settlement agreement with Amgen clearing commercialization path for its Denosumab biosimilars in Europe and RoW.


APAC Healthcare Weekly (December 7) – Simcere, Kelun Bio, Samsung Biologics, Daiichi Sankyo, Biocon

<ul>
<li>2024 results appear to be improving, but there’s no large-scale/sustainable new increment with high certainty in revenue end.Fosun Pharma would rely on reducing costs/selling loss-making projects to recover profit/cash flow.</li>
<li>Financial performance in 2025 could be under pressure due to VBP. Fosun Pharm is also mired in a huge guarantee quagmire. International business expansion is facing fierce market competition.</li>
<li>There could be a “valuation discount” for Fosun Pharma due to the concerns on its business model and undervaluation could be a norm. Our recommendation is to invest Henlius directly.</li>
</ul>


2024 results appear to be improving, but there’s no large-scale/sustainable new increment with high certainty in revenue end.Fosun Pharma would rely on reducing costs/selling loss-making projects to recover profit/cash flow.
Financial performance in 2025 could be under pressure due to VBP. Fosun Pharm is also mired in a huge guarantee quagmire. International business expansion is facing fierce market competition.
There could be a “valuation discount” for Fosun Pharma due to the concerns on its business model and undervaluation could be a norm. Our recommendation is to invest Henlius directly.


Shanghai Fosun Pharmaceutical (2196 HK/600196 CH) - The Concerns Behind 2024 Results and the Outlook

<ul>
<li>Given new policy recommendations, it is only a matter of time before HPV vaccination is included in the national immunization program, which is detrimental to HPV vaccine companies.</li>
<li>MNCs have seen a inflection point in performance growth in 2024 in China. Although VBP/NRDL negotiation are negative factors, is it also due to any consideration to withdraw from China?</li>
<li>Fosun Pharma has agreed to sell its entire stake in United Family Healthcare to Calcite Gem Investments Group for US$124.1 million. We shared our views about the deal.</li>
</ul>


Given new policy recommendations, it is only a matter of time before HPV vaccination is included in the national immunization program, which is detrimental to HPV vaccine companies.
MNCs have seen a inflection point in performance growth in 2024 in China. Although VBP/NRDL negotiation are negative factors, is it also due to any consideration to withdraw from China?
Fosun Pharma has agreed to sell its entire stake in United Family Healthcare to Calcite Gem Investments Group for US$124.1 million. We shared our views about the deal.


China Healthcare Weekly (Mar.23)-Fosun Pharma Sells United Family Healthcare, MNC's Inflection Point

China

Shanghai Fosun Pharmaceutical (Group) Co., Ltd. is a pharmaceutical company. Through its subsidiaries, the Company manufactures genetic medicines, Chinese traditional medicines, diagnostic products, and medical instruments, provides technology, marketing, and advertising services, as well as invests in import and export trading.

Shanghai Fosun Pharmaceutical (Group) (600196 CH)

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Shanghai Fosun Pharmaceutical (Group) (600196 CH)

Shanghai Fosun Pharmaceuticals (2196 HK): New Indication Approval Opens Up Opportunity

Shanghai Fosun Pharmaceutical receives marketing approval for Fovinaciclib to treat certain types of breast cancers. During 1H25, the company...

Tina Banerjee

Shanghai Fosun Pharmaceutical (2196.HK/600196.CH) 25H1 - The Performance Has Not Truly Improved

The revenue decline confirms that Fosun Pharma is facing pressure and has to continue to sell unprofitable assets to alleviate debt pressure....

Xinyao (Criss) Wang

APAC Healthcare Weekly (December 7) – Simcere, Kelun Bio, Samsung Biologics, Daiichi Sankyo, Biocon

Simcere stuck license pact with Vigonvita. Kelun Bio inked partnership with Crescent Biopharma. Samsung Biologics is acquiring land for third...

Tina Banerjee

Shanghai Fosun Pharmaceutical (2196 HK/600196 CH) - The Concerns Behind 2024 Results and the Outlook

Fosun Pharma's financial performance in 2025/2026 could be under pressure due to VBP. There could be “valuation discount” due to the concerns on...

Xinyao (Criss) Wang

China Healthcare Weekly (Mar.23)-Fosun Pharma Sells United Family Healthcare, MNC's Inflection Point

National immunization program likely to include HPV vaccination. MNCs in China see an inflection point, potential withdrawal. Fosun Pharma sells...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Shanghai Fosun Pharmaceuticals (2196 HK): New Indication Approval Opens Up Opportunity

​Shanghai Fosun Pharmaceutical receives marketing approval for Fovinaciclib to treat certain types of breast cancers. During 1H25, the company...

Tina Banerjee

Shanghai Fosun Pharmaceutical (2196.HK/600196.CH) 25H1 - The Performance Has Not Truly Improved

The revenue decline confirms that Fosun Pharma is facing pressure and has to continue to sell unprofitable assets to alleviate debt pressure....

Xinyao (Criss) Wang

APAC Healthcare Weekly (December 7) – Simcere, Kelun Bio, Samsung Biologics, Daiichi Sankyo, Biocon

Simcere stuck license pact with Vigonvita. Kelun Bio inked partnership with Crescent Biopharma. Samsung Biologics is acquiring land for third...

Tina Banerjee

Shanghai Fosun Pharmaceutical (2196 HK/600196 CH) - The Concerns Behind 2024 Results and the Outlook

​Fosun Pharma's financial performance in 2025/2026 could be under pressure due to VBP. There could be “valuation discount” due to the concerns on...

Xinyao (Criss) Wang

China Healthcare Weekly (Mar.23)-Fosun Pharma Sells United Family Healthcare, MNC's Inflection Point

​National immunization program likely to include HPV vaccination. MNCs in China see an inflection point, potential withdrawal. Fosun Pharma sells...

Xinyao (Criss) Wang

Shanghai Fosun Pharmaceutical receives marketing approval for Fovinaciclib to treat certain types of breast cancers. During 1H25, the company...

Fosun Pharma's financial performance in 2025/2026 could be under pressure due to VBP. There could be “valuation discount” due to the concerns on...

National immunization program likely to include HPV vaccination. MNCs in China see an inflection point, potential withdrawal. Fosun Pharma sells...