HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>Four departments jointly issued “opinions” emphasis on the training/construction of TCM talents, which has great significance of TCM development in China. We advise investors not to underestimate this policy.</li>
<li>The COVID-19, policy risks (VBP/centralized procurement/DRGs) and public hospitals expansion have significantly intensified private hospitals' pressure for survival, which will eventually be reflected in the financial statements.</li>
<li>The deal between <a href="https://www.smartkarma.com/entities/sino-biopharmaceutical" target="_blank" data-smartkarma-citation="entities:230:1" rel="noopener">Sino Biopharmaceutical (1177 HK) </a>and F-star Therapeutics with aggregate consideration of approximately US$161 million indicated that the industry clearing of biotech in China is far from completed.</li>
</ul>


Four departments jointly issued “opinions” emphasis on the training/construction of TCM talents, which has great significance of TCM development in China. We advise investors not to underestimate this policy.
The COVID-19, policy risks (VBP/centralized procurement/DRGs) and public hospitals expansion have significantly intensified private hospitals' pressure for survival, which will eventually be reflected in the financial statements.
The deal between Sino Biopharmaceutical (1177 HK) and F-star Therapeutics with aggregate consideration of approximately US$161 million indicated that the industry clearing of biotech in China is far from completed.


China Healthcare Weekly (July.1)- TCM New Policy, Private Hospitals Survival Pressure, Sino Biopharm

<ul>
<li>The 7th national VBP is about to start. The competition would be more intense. Due to the adjustment of bidding rules, it’s more difficult for companies to win at high price.</li>
<li>Recently, the State released an exposure draft stipulating that third-party digital healthcare platforms shall not directly participate in online drug sales activities. We analyzed the impact.</li>
<li>National Health Commission issued a new document to remove the threshold for the qualification of medical institutions on OK lens business, which could lead to accelerated development of this industry.</li>
</ul>


The 7th national VBP is about to start. The competition would be more intense. Due to the adjustment of bidding rules, it’s more difficult for companies to win at high price.
Recently, the State released an exposure draft stipulating that third-party digital healthcare platforms shall not directly participate in online drug sales activities. We analyzed the impact.
National Health Commission issued a new document to remove the threshold for the qualification of medical institutions on OK lens business, which could lead to accelerated development of this industry.


China Healthcare Weekly (Jun.24)-7th National VBP, Online Pharmacy New Policy, OK Lens Rules Relaxed

<ul>
<li>Shanghai Municipal Medical Insurance Bureau issued a policy that TAVR consumables would be reimbursed according to surgery performance, breaking the bottleneck of low demand due to the expensive TAVR surgery.</li>
<li>The COVID nucleic acid testing industry faces the problem of exit, because it is very difficult to find a corresponding scale of replacement business for these huge capacity accumulated.</li>
<li>In terms of the internationalization prospects of China biotech companies, we prefer to pick RemeGen. The same logic also applies to Keymed.</li>
</ul>


Shanghai Municipal Medical Insurance Bureau issued a policy that TAVR consumables would be reimbursed according to surgery performance, breaking the bottleneck of low demand due to the expensive TAVR surgery.
The COVID nucleic acid testing industry faces the problem of exit, because it is very difficult to find a corresponding scale of replacement business for these huge capacity accumulated.
In terms of the internationalization prospects of China biotech companies, we prefer to pick RemeGen. The same logic also applies to Keymed.


China Healthcare Weekly (May.27) - New TAVR Policy, Exiting Issue of COVID Testing, RemeGen/Keymed

<ul>
<li>The NMPA has issued a draft regulation about rare diseases, which would have a profound impact. Investors are advised to follow this field as policy becomes more friendly.</li>
<li>After continuous corrections, many investors are wondering if the healthcare sector has reached bottom. We analyzed our thoughts and judgement.</li>
<li>Let's have a look at the lockdown in China from a different angle. The zero-COVID policy could make economic sense. The “travails” are significant for the coming economic crisis.</li>
</ul>


The NMPA has issued a draft regulation about rare diseases, which would have a profound impact. Investors are advised to follow this field as policy becomes more friendly.
After continuous corrections, many investors are wondering if the healthcare sector has reached bottom. We analyzed our thoughts and judgement.
Let's have a look at the lockdown in China from a different angle. The zero-COVID policy could make economic sense. The “travails” are significant for the coming economic crisis.


China Healthcare Weekly (May20)-Lockdown Impact on Macro Economy, Bottom Signal? Rare Disease Policy

<ul>
<li>China biotech companies are “being squeezed” between the negative domestic policies and the dilemma of internationalization. The investment logic of biotech has broken and the valuation forecasts are ineffective.</li>
<li>For CXO, the uncertainties outweigh the certainties.Investors need to be prepared for the possibility of CXO not to return to its peak, because its best time may have been over.</li>
<li>We’re in a very complicated environment. A lot of things come together. Survive first. Seize rebounds after plunge rather than go bottom fishing. You don't know when the bottom is. </li>
</ul>


China biotech companies are “being squeezed” between the negative domestic policies and the dilemma of internationalization. The investment logic of biotech has broken and the valuation forecasts are ineffective.
For CXO, the uncertainties outweigh the certainties.Investors need to be prepared for the possibility of CXO not to return to its peak, because its best time may have been over.
We’re in a very complicated environment. A lot of things come together. Survive first. Seize rebounds after plunge rather than go bottom fishing. You don't know when the bottom is. 


Re-Examine the Outlook and Investment Strategy for China Biotech and CXO

Hong Kong

Sino Biopharmaceutical is a leading, innovation-driven pharmaceutical conglomerate in China, focusing on the research, development, manufacturing, and sale of pharmaceutical products. The company specializes in therapeutic areas such as oncology, hepatology, respiratory, and cardiovascular diseases, offering both modernized Chinese and Western medicines. It was founded in 2000 and is headquartered in Wanchai, Hong Kong.

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Sino Biopharmaceutical (1177 HK)

China Healthcare Weekly (July.1)- TCM New Policy, Private Hospitals Survival Pressure, Sino Biopharm

New policy about TCM talent will have great significance of TCM development.Private hospitals' survival pressure will be reflected in financial...

Xinyao (Criss) Wang

China Healthcare Weekly (Jun.24)-7th National VBP, Online Pharmacy New Policy, OK Lens Rules Relaxed

7th national VBP is coming,with more competition. New policy that third-party digital healthcare platforms can't directly participate in online...

Xinyao (Criss) Wang

China Healthcare Weekly (May.27) - New TAVR Policy, Exiting Issue of COVID Testing, RemeGen/Keymed

New TAVR policy will break the low demand bottleneck due to high cost; COVID testing industry faces the problem of exit; Remegen/Keymed may have...

Xinyao (Criss) Wang

China Healthcare Weekly (May20)-Lockdown Impact on Macro Economy, Bottom Signal? Rare Disease Policy

The lockdown could make economic sense, which is significant for coming economic crisis;We analyzed the bottom signal of biotech/CXO/medical...

Xinyao (Criss) Wang

Re-Examine the Outlook and Investment Strategy for China Biotech and CXO

The investment logic of China biotech has broken due to dilemma of domestic policy and internationalization risk.CXO couldn't sustain high...

Xinyao (Criss) Wang

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52-week Range

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