Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

Simcere Pharmaceutical / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/simcere-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:29186:1" rel="noopener">Simcere Pharmaceutical Group (2096 HK)</a> reported an 11% y/y revenue growth to RMB5 billion, mainly driven by 54% y/y revenue growth from innovative pharmaceuticals.</li>
<li>However, gross margin contracted 160 basis point to 78.4%, reflecting pricing headwind. Heavy R&amp;D and selling and distribution expenses are taking toll on operating profit.</li>
<li>During 2021, Simcere has added six registered clinical trials for phase 3, two trails for phase 2, three trails for phase 1, and obtained 12 clinical trial approvals for drugs.</li>
</ul>



Simcere Pharmaceutical Group (2096 HK) reported an 11% y/y revenue growth to RMB5 billion, mainly driven by 54% y/y revenue growth from innovative pharmaceuticals.
However, gross margin contracted 160 basis point to 78.4%, reflecting pricing headwind. Heavy R&amp;D and selling and distribution expenses are taking toll on operating profit.
During 2021, Simcere has added six registered clinical trials for phase 3, two trails for phase 2, three trails for phase 1, and obtained 12 clinical trial approvals for drugs.


Simcere Pharmaceutical (2096 HK): Double-Digit Topline Growth; Margin Deteriorating Spoils the Party

<ul>
<li>
<a href="https://www.smartkarma.com/entities/simcere-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:29186:1" rel="noopener">Simcere Pharmaceutical Group (2096 HK)</a> is transitioning to an innovation and R&amp;D-driven pharmaceutical company, with revenue from innovative pharmaceuticals making greater contribution and R&amp;D pipeline of innovative pharmaceuticals advancing rapidly.</li>
<li>During H1 2021, Simcere newly added 5 pivotal registrational trials and phase III clinical trials and 1 phase I clinical trial, and received 7 clinical trial approvals.</li>
<li>Simcere entered into three international partnerships to develop and market innovative drugs in China. The company has also in-licensed an oral COVID-19 drug candidate, which is in pre-clinical stage.</li>
</ul>



Simcere Pharmaceutical Group (2096 HK) is transitioning to an innovation and R&amp;D-driven pharmaceutical company, with revenue from innovative pharmaceuticals making greater contribution and R&amp;D pipeline of innovative pharmaceuticals advancing rapidly.
During H1 2021, Simcere newly added 5 pivotal registrational trials and phase III clinical trials and 1 phase I clinical trial, and received 7 clinical trial approvals.
Simcere entered into three international partnerships to develop and market innovative drugs in China. The company has also in-licensed an oral COVID-19 drug candidate, which is in pre-clinical stage.


Simcere Pharmaceutical (2096 HK): Focus Shifts to Innovative Drug; COVID-19 Oral Drug in Development

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>For development strategy, <a href="https://www.smartkarma.com/entities/alphamab-oncology" target="_blank" data-smartkarma-citation="entities:28213:1" rel="noopener">Alphamab Co Ltd (9966 HK) </a>may lack the foundation of strategic certainty of expectation. It is also not sure about the commercialization performance of KN035 brought by Simcere.</li>
<li>Although the management’s thinking mode of business operation has improved, it still cannot dispel the doubts about whether the Company can catch up with top-level biopharmaceutical enterprises in the future.</li>
<li>Even with the concerns, it does not rule out that investors can long this stock at an undervalued or a reasonable price to get a good return.</li>
</ul>


For development strategy, Alphamab Co Ltd (9966 HK) may lack the foundation of strategic certainty of expectation. It is also not sure about the commercialization performance of KN035 brought by Simcere.
Although the management’s thinking mode of business operation has improved, it still cannot dispel the doubts about whether the Company can catch up with top-level biopharmaceutical enterprises in the future.
Even with the concerns, it does not rule out that investors can long this stock at an undervalued or a reasonable price to get a good return.


Alphamab Co Ltd (9966.HK) - Some Points Worth the Attention

Equity Capital Markets

<p>The PD-1/L1 market is one of the most competitive drug markets in the world. After <a href="https://www.smartkarma.com/entities/lepu-biopharma-co-ltd" target="_blank" data-smartkarma-citation="entities:33231:1" rel="noopener">Lepu Biopharma (LBP HK)</a>, whose core product is PD-1, officially started its IPO process in HKEX in April this year, another bio-pharmaceutical company, <a href="https://www.smartkarma.com/entities/3d-medicines-inc" target="_blank" data-smartkarma-citation="entities:33790:1" rel="noopener">3D Medicines (3DM HK)</a> (“3DMed”) submitted its prospectus to the HKEX on June, 30, 2021 based on its core product PD-1 as well. 3DMed is committed to the development and commercialization of a new generation of immuno-oncology therapies with differentiated clinical profile in response to the trend of treating cancer as a chronic disease. This insight mainly analyzed its core product and the pipeline.</p>

The PD-1/L1 market is one of the most competitive drug markets in the world. After Lepu Biopharma (LBP HK), whose core product is PD-1, officially started its IPO process in HKEX in April this year, another bio-pharmaceutical company, 3D Medicines (3DM HK) (“3DMed”) submitted its prospectus to the HKEX on June, 30, 2021 based on its core product PD-1 as well. 3DMed is committed to the development and commercialization of a new generation of immuno-oncology therapies with differentiated clinical profile in response to the trend of treating cancer as a chronic disease. This insight mainly analyzed its core product and the pipeline.

Pre-IPO 3D Medicines - Insights on the Core Product, the Pipeline and the Concerns

<p>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.</p>

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

China

Simcere Pharmaceutical Group is an innovation and R&D-driven pharmaceutical company engaged in the research, development, manufacturing, and sale of pharmaceutical products. It focuses on therapeutic areas such as oncology, central nervous system diseases, autoimmune diseases, and anti-infection, with key products including Sanbexin, Endostar, and Bicun. The company was founded in 1995 and is headquartered in Nanjing, China.

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Simcere Pharmaceutical (2096 HK)