HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

Industry viewpoints:<ul>
<li>The 5th volume-based purchase (VBP) could be kicked off in May or June this year, and then officially implement in July.</li>
<li>The National Health Care Security Administration pays high attention to the promotion of "Internet +" medical insurance payment.</li>
<li>The specialized hospitals in China are expected to have more growth potential than general hospitals. 
</li>
</ul>Company news:News about the updated progress of new drugs from <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/shanghai-henlius-biotech-inc" target="_blank" data-smartkarma-citation="entities:27888:1" rel="noopener">Shanghai Henlius Biotech (2696 HK)</a>, and <a href="https://www.smartkarma.com/entities/everest-medicines-ltd" target="_blank" data-smartkarma-citation="entities:29224:1" rel="noopener">Everest Medicines (1952 HK)</a>.Market review: Last week, stock price for healthcare sector in A share increased 2.81%, while CSI 300 increased 2.45% over the same period of time. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
The 5th volume-based purchase (VBP) could be kicked off in May or June this year, and then officially implement in July.
The National Health Care Security Administration pays high attention to the promotion of "Internet +" medical insurance payment.
The specialized hospitals in China are expected to have more growth potential than general hospitals. 

Company news:News about the updated progress of new drugs from Innovent Biologics Inc (1801 HK), Shanghai Henlius Biotech (2696 HK), and Everest Medicines (1952 HK).Market review: Last week, stock price for healthcare sector in A share increased 2.81%, while CSI 300 increased 2.45% over the same period of time. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:<ul>
<li>The continuous promotion of medical insurance fee control policies such as DRG is conductive to the development of China ICL industry in the future.</li>
<li>For the TAVR industry, the domestic market is still in the early stage of growth, but with a lot of potential in the future.</li>
<li>With the aggravation of population aging and government incentive policies (such as the two-child policy), the assisted reproductive industry in China has been attracting much attention due to its low penetration rate and high gross profit.</li>
</ul>2. Company news:News about the registration of COVID-19 vaccine, updated progress of new drugs and the new agreement of innovative technology platform from <a href="https://www.smartkarma.com/entities/sinopharm-group-co-ltd-h" target="_blank" data-smartkarma-citation="entities:32:1" rel="noopener">Sinopharm Group Co Ltd H (1099 HK)</a>, <a href="https://www.smartkarma.com/entities/shanghai-henlius-biotech-inc" target="_blank" data-smartkarma-citation="entities:27888:1" rel="noopener">Shanghai Henlius Biotech (2696 HK)</a>, <a href="https://www.smartkarma.com/entities/peijia-medical" target="_blank" data-smartkarma-citation="entities:28862:1" rel="noopener">Peijia Medical (9996 HK)</a> and Biocytogen.3. Market review:Last week, stock price for healthcare sector in A share decreased 2.14%, while CSI 300 decreased 3.48% over the same period of time.4. Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:
The continuous promotion of medical insurance fee control policies such as DRG is conductive to the development of China ICL industry in the future.
For the TAVR industry, the domestic market is still in the early stage of growth, but with a lot of potential in the future.
With the aggravation of population aging and government incentive policies (such as the two-child policy), the assisted reproductive industry in China has been attracting much attention due to its low penetration rate and high gross profit.
2. Company news:News about the registration of COVID-19 vaccine, updated progress of new drugs and the new agreement of innovative technology platform from Sinopharm Group Co Ltd H (1099 HK), Shanghai Henlius Biotech (2696 HK), Peijia Medical (9996 HK) and Biocytogen.3. Market review:Last week, stock price for healthcare sector in A share decreased 2.14%, while CSI 300 decreased 3.48% over the same period of time.4. Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints<ul>
<li>Although China's medical device market share is just a small piece on a global scale, in recent years, its YoY growth rate remains above 15%, and it still has large growth potential.</li>
<li>With favorable policies to encourage the prescription outflow, it is estimated that the out-of-hospital market of prescription drugs will reach nearly RMB250 billion in 2020.</li>
<li>The market size of minimally invasive interventional medical devices in China is expected to reach RMB142.13 billion yuan by 2023, with a large growth potential for import substitution.</li>
</ul>2. Company newsNews of <a href="https://www.smartkarma.com/entities/ascletis-pharma-inc" target="_blank" data-smartkarma-citation="entities:27265:1" rel="noopener">Ascletis Pharma Inc (1672 HK)</a> , AffaMed Therapeutics and <a href="https://www.smartkarma.com/entities/shanghai-henlius-biotech-inc" target="_blank" data-smartkarma-citation="entities:27888:1" rel="noopener">Shanghai Henlius Biotech (2696 HK)</a> on the progress of new drug, merger agreement and the co-development and exclusive license agreement.3. Market reviewLast week, stock price for healthcare sector rose 3.23%, while CSI 300 rose 2.36% over the same period of time.4. Risk DisclosurePolicy risk, R&amp;D risk, Company risk and COVID-19 risk

1. Industry viewpoints
Although China's medical device market share is just a small piece on a global scale, in recent years, its YoY growth rate remains above 15%, and it still has large growth potential.
With favorable policies to encourage the prescription outflow, it is estimated that the out-of-hospital market of prescription drugs will reach nearly RMB250 billion in 2020.
The market size of minimally invasive interventional medical devices in China is expected to reach RMB142.13 billion yuan by 2023, with a large growth potential for import substitution.
2. Company newsNews of Ascletis Pharma Inc (1672 HK) , AffaMed Therapeutics and Shanghai Henlius Biotech (2696 HK) on the progress of new drug, merger agreement and the co-development and exclusive license agreement.3. Market reviewLast week, stock price for healthcare sector rose 3.23%, while CSI 300 rose 2.36% over the same period of time.4. Risk DisclosurePolicy risk, R&amp;D risk, Company risk and COVID-19 risk

1.Industry viewpoints
<ul>
<li>China's biopharmaceutical market is still in its early days, but it has a strong growth potential.</li>
<li>Q3 earning season kicks off.</li>
<li>Favorable policies may still not ensure the golden time for the industry of Chinese traditional medicine.</li>
</ul>
2.Company news
News of Shanghai Henlius Biotech, Innovent Biologics and BeiGene on the progress of new drugs and amended agreement.
3.Market review
Last week, stock price for healthcare sector rose 2.86%, while CSI 300 rose 2.04% over the same period of time.
4.Risk Disclosure 
Policy risk, R&amp;D risk, company risk and COVID-19 risk

1.Industry viewpoints

China's biopharmaceutical market is still in its early days, but it has a strong growth potential.
Q3 earning season kicks off.
Favorable policies may still not ensure the golden time for the industry of Chinese traditional medicine.

2.Company news
News of Shanghai Henlius Biotech, Innovent Biologics and BeiGene on the progress of new drugs and amended agreement.
3.Market review
Last week, stock price for healthcare sector rose 2.86%, while CSI 300 rose 2.04% over the same period of time.
4.Risk Disclosure 
Policy risk, R&amp;D risk, company risk and COVID-19 risk

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

<ul>
<li>More than a year in, the <a href="https://www.smartkarma.com/entities/enn-natural-gas-co-ltd" target="_blank" data-smartkarma-citation="entities:16456:1" rel="noopener">ENN Natural Gas (600803 CH)</a> offer for <a href="https://www.smartkarma.com/entities/enn-energy-holdings-limited" target="_blank" data-smartkarma-citation="entities:316:1" rel="noopener">ENN Energy (2688 HK)</a> lapses as the long stop date (12 June) was not extended.</li>
<li>The offer was effectively blocked, not by an explicit CSRC rejection with stated reasons, but by the approval process failing to conclude within a viable timeframe.</li>
<li>The CSRC's non-approval is unprecedented, as the transaction has received NDRC, MoC, and SAFE approvals. My estimated deal-break price is HK$49.00 (broadly in line with the last close).</li>
</ul>


More than a year in, the ENN Natural Gas (600803 CH) offer for ENN Energy (2688 HK) lapses as the long stop date (12 June) was not extended.
The offer was effectively blocked, not by an explicit CSRC rejection with stated reasons, but by the approval process failing to conclude within a viable timeframe.
The CSRC's non-approval is unprecedented, as the transaction has received NDRC, MoC, and SAFE approvals. My estimated deal-break price is HK$49.00 (broadly in line with the last close).


ENN Energy (2688 HK): Precedent Set as the Offer Is Effectively Blocked by Regulators

China

Shanghai Henlius Biotech is a global, innovation-driven biopharmaceutical company focused on delivering high-quality, affordable biologic therapies for oncology, autoimmune diseases, and ophthalmic diseases. The company is engaged in biopharmaceutical research and development, manufacturing, and commercialization, offering products such as the biosimilars HANLIKANG (rituximab), HANQUYOU (trastuzumab), HANDAYUAN (adalimumab), and HANBEITAI (bevacizumab), as well as the innovative biologic HANSIZHUANG (serplulimab). Headquartered in Shanghai, China, the company was founded in 2010.

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Shanghai Henlius Biotech (2696 HK)

China Healthcare Weekly (Apr.2)

This article analyzed the upcoming 5th volume-based purchase, the "Internet +" medical insurance payment, the specialized hospital market...

Xinyao (Criss) Wang

China Healthcare Weekly (Dec.11)

The article analyzed industry viewpoints about China ICL industry, TAVR industry and the assisted reproductive industry, and also included...

Xinyao (Criss) Wang

China Healthcare Weekly (Oct.16)

This article summarized major industry viewpoints, company news, and capital market review for China healthcare industry last week.

Xinyao (Criss) Wang

China Healthcare Weekly (Oct.9)

This insight summarized the important industry viewpoints, news of listed healthcare companies and capital market review for the last week of China...

Xinyao (Criss) Wang

ENN Energy (2688 HK): Precedent Set as the Offer Is Effectively Blocked by Regulators

The CSRC's non-approval is unprecedented, as the offer has already received approvals from the NDRC, MoC, and SAFE. My estimated deal-break price...

Arun George

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