HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Hangzhou Kangji Medical Instrument Co., Ltd. / Equity Bottom-Up

Hangzhou Kangji Medical Instrument Co., Ltd.

<ul>
<li>The steady growth in revenue/overseas revenue proportion/gross profit indicated that Kangji’s core business was still in good shape in 25H1. Losses of Weijing increased because commercialization is in initial stage.</li>
<li>The declining net profit in 25H1 may encourage some investors to support the privatization, but there are still some investors planning to oppose this privatization based on the sample screenshots.</li>
<li>Risk-Takers can bet on the success of privatization to obtain arbitrage returns.But deal break also offers an excellent opportunity to buy at a low price(similar to the playbook on Henlius).</li>
</ul>


The steady growth in revenue/overseas revenue proportion/gross profit indicated that Kangji’s core business was still in good shape in 25H1. Losses of Weijing increased because commercialization is in initial stage.
The declining net profit in 25H1 may encourage some investors to support the privatization, but there are still some investors planning to oppose this privatization based on the sample screenshots.
Risk-Takers can bet on the success of privatization to obtain arbitrage returns.But deal break also offers an excellent opportunity to buy at a low price(similar to the playbook on Henlius).


Kangji Medical (9997 HK) Privatization Update - About the 25H1 Results and the Privatization Outlook

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>
<a href="https://www.smartkarma.com/entities/remegen-co-ltd" target="_blank" data-smartkarma-citation="entities:29191:1" rel="noopener">Remegen (9995 HK)</a> recorded revenue of RMB 1.1B, a 48% rise YoY, driven by robust sales growth of telitacicept (treatment of autoimmune diseases) and disitamab vedotin (treatment of solid tumors).</li>
<li>Remegen entered into a license agreement with Vor Biopharma (telitacicept global rights) and Santen (RC28-E rights in China and other few countries). Upfront payments to reflect in revenues in 2H25.  </li>
<li>Vor Biopharma is conducting a global multi-center Phase III clinical trial (first patient enrolled in August 2024, in U.S) of telitacicept for the treatment of patients with myasthenia gravis (gMG).</li>
</ul>



Remegen (9995 HK) recorded revenue of RMB 1.1B, a 48% rise YoY, driven by robust sales growth of telitacicept (treatment of autoimmune diseases) and disitamab vedotin (treatment of solid tumors).
Remegen entered into a license agreement with Vor Biopharma (telitacicept global rights) and Santen (RC28-E rights in China and other few countries). Upfront payments to reflect in revenues in 2H25.  
Vor Biopharma is conducting a global multi-center Phase III clinical trial (first patient enrolled in August 2024, in U.S) of telitacicept for the treatment of patients with myasthenia gravis (gMG).


Remegen (9995 HK): 2H25 Upfront Boost; Indication Expansion Positive; Overseas Trial Results Awaited

TransThera Sciences (Nanjing) / Equity Bottom-Up

<ul>
<li>At current valuation level, leading biotech listed in Hong Kong have generally “overdrawn” their performance for the next 1 to 3 years. So, it is time to consider taking profits.</li>
<li>TransThera’s shares have been highly volatile following their inclusion in several innovative-drug ETFs. We analyzed the drivers behind this move. With valuation now diverging from fundamentals, we advise caution.</li>
<li>The fluctuations of Duality’s shares were driven by the inclusion of HSCI. However, some funds chose to take profits at high stock prices, thus Duality is under pressure of correction.</li>
</ul>


At current valuation level, leading biotech listed in Hong Kong have generally “overdrawn” their performance for the next 1 to 3 years. So, it is time to consider taking profits.
TransThera’s shares have been highly volatile following their inclusion in several innovative-drug ETFs. We analyzed the drivers behind this move. With valuation now diverging from fundamentals, we advise caution.
The fluctuations of Duality’s shares were driven by the inclusion of HSCI. However, some funds chose to take profits at high stock prices, thus Duality is under pressure of correction.


China Healthcare Weekly(Sep.21)-HK Biotechs Are Overvalued, Duality, Story Behind "Crazy" TransThera

Thematic (Sector/Industry)

<ul>
<li>Fosun Pharma received approval for Fovinaciclib Citrate Capsules for certain types of breast cancers. Chugai’s oral GLP-1 drug candidate demonstrated semaglutide-beating result in Phase 3 trial being conducted by Lilly.</li>
<li>Astellas Pharma got conditional approval of Izervay in Japan. SK Biopharmaceuticals announced positive result from Phase 3 trial evaluating cenobamate for Primary Generalized Tonic-Clonic (PGTC) Seizures.</li>
<li>Alteogen’s partner Merck moved one step ahead toward European approval of subcutaneous version of Keytruda. HK inno.N has launched its acid-related gastrointestinal diseases drug, PCAB in India.</li>
</ul>


Fosun Pharma received approval for Fovinaciclib Citrate Capsules for certain types of breast cancers. Chugai’s oral GLP-1 drug candidate demonstrated semaglutide-beating result in Phase 3 trial being conducted by Lilly.
Astellas Pharma got conditional approval of Izervay in Japan. SK Biopharmaceuticals announced positive result from Phase 3 trial evaluating cenobamate for Primary Generalized Tonic-Clonic (PGTC) Seizures.
Alteogen’s partner Merck moved one step ahead toward European approval of subcutaneous version of Keytruda. HK inno.N has launched its acid-related gastrointestinal diseases drug, PCAB in India.


APAC Healthcare Weekly (September 21)– Fosun Pharm, Chugai, Astellas, SK Biopharm, Alteogen, HK Inno

Sihuan Pharmaceutical Hldgs / Equity Bottom-Up

<ul>
<li>The Trump administration is considering putting “severe restrictions” on the drugs from China, which would negative for China biotech that mainly relies on licensing-out model. We share our views below.</li>
<li>The key to assessing the future profitability of innovative drugs in China lies in their ability to control costs, not just in the growth of product sales.</li>
<li>Sihuan achieved a turnaround and is undervalued. Just "medical aesthetics + cash" worth RMB15.3 billion valuation. The innovative drug business will provide decent upside potential, but with some concerns behind. </li>
</ul>


The Trump administration is considering putting “severe restrictions” on the drugs from China, which would negative for China biotech that mainly relies on licensing-out model. We share our views below.
The key to assessing the future profitability of innovative drugs in China lies in their ability to control costs, not just in the growth of product sales.
Sihuan achieved a turnaround and is undervalued. Just "medical aesthetics + cash" worth RMB15.3 billion valuation. The innovative drug business will provide decent upside potential, but with some concerns behind. 


China Healthcare Weekly (Sep.14) - Trump to Put Restrictions on Chinese Drugs, Sihuan Is Undervalued

China

Shanghai Henlius Biotech, Inc develops and produces drugs. The Company develops and produces monoclonal antibody biosimilar drugs, bio betters, novel monoclonal antibodys, and other drugs. Shanghai Henlius Biotech throughout China.

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Shanghai Henlius Biotech (2696 HK)

Kangji Medical (9997 HK) Privatization Update - About the 25H1 Results and the Privatization Outlook

The Scheme Document has been released, with notices of the Court Meeting and the EGM to be held on Nov.10. Although there are still some investors...

Xinyao (Criss) Wang

Remegen (9995 HK): 2H25 Upfront Boost; Indication Expansion Positive; Overseas Trial Results Awaited

Remegen (9995 HK) posted 48% revenue growth driven by sales of telitacicept and disitamab vedotin. License agreements augur well. Overseas trial...

Tina Banerjee

China Healthcare Weekly(Sep.21)-HK Biotechs Are Overvalued, Duality, Story Behind "Crazy" TransThera

Investors in HK biotechs should consider taking profits as they are overvalued. Duality is under pressure of correction. TransThera’s shares...

Xinyao (Criss) Wang

APAC Healthcare Weekly (September 21)– Fosun Pharm, Chugai, Astellas, SK Biopharm, Alteogen, HK Inno

Fosun Pharma and Astellas got new drug approvals. Chugai and SK Biopharma announced positive Phase 3 trial result. Alteogen’s technology powered...

Tina Banerjee

China Healthcare Weekly (Sep.14) - Trump to Put Restrictions on Chinese Drugs, Sihuan Is Undervalued

Trump may impose restrictions on China drugs, impacting China biotech reliant on licensing model. Profitability in China biotech hinges on cost...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Kangji Medical (9997 HK) Privatization Update - About the 25H1 Results and the Privatization Outlook

The Scheme Document has been released, with notices of the Court Meeting and the EGM to be held on Nov.10. Although there are still some investors...

Xinyao (Criss) Wang

Remegen (9995 HK): 2H25 Upfront Boost; Indication Expansion Positive; Overseas Trial Results Awaited

​Remegen (9995 HK) posted 48% revenue growth driven by sales of telitacicept and disitamab vedotin. License agreements augur well. Overseas trial...

Tina Banerjee

China Healthcare Weekly(Sep.21)-HK Biotechs Are Overvalued, Duality, Story Behind "Crazy" TransThera

​Investors in HK biotechs should consider taking profits as they are overvalued. Duality is under pressure of correction. TransThera’s shares...

Xinyao (Criss) Wang

APAC Healthcare Weekly (September 21)– Fosun Pharm, Chugai, Astellas, SK Biopharm, Alteogen, HK Inno

Fosun Pharma and Astellas got new drug approvals. Chugai and SK Biopharma announced positive Phase 3 trial result. Alteogen’s technology powered...

Tina Banerjee

China Healthcare Weekly (Sep.14) - Trump to Put Restrictions on Chinese Drugs, Sihuan Is Undervalued

​Trump may impose restrictions on China drugs, impacting China biotech reliant on licensing model. Profitability in China biotech hinges on cost...

Xinyao (Criss) Wang

Remegen (9995 HK) posted 48% revenue growth driven by sales of telitacicept and disitamab vedotin. License agreements augur well. Overseas trial...

Investors in HK biotechs should consider taking profits as they are overvalued. Duality is under pressure of correction. TransThera’s shares...

Trump may impose restrictions on China drugs, impacting China biotech reliant on licensing model. Profitability in China biotech hinges on cost...