HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Porton Pharma Solutions / Equity Bottom-Up

<ul>
<li>Porton’s performance declined significantly in 23H1 compared with high base last year, because most of Pfizer’s COVID-19 big orders have been completed. Porton's performance in 2023 would be under pressure.</li>
<li>Porton isn’t a first-tier CXO and lags behind industry leaders in terms of new businesses (CGT/ADC CXO). Valuation of entire CXO sector and Porton hasn’t yet reached an inflection point.</li>
<li>Market's expectation for CXO would decrease and then bottom out in 2023H2. Whether CXO's performance would rebound in 2024 still needs to wait for the turnaround in macro environment.</li>
</ul>


Porton’s performance declined significantly in 23H1 compared with high base last year, because most of Pfizer’s COVID-19 big orders have been completed. Porton's performance in 2023 would be under pressure.
Porton isn’t a first-tier CXO and lags behind industry leaders in terms of new businesses (CGT/ADC CXO). Valuation of entire CXO sector and Porton hasn’t yet reached an inflection point.
Market's expectation for CXO would decrease and then bottom out in 2023H2. Whether CXO's performance would rebound in 2024 still needs to wait for the turnaround in macro environment.


Porton Pharma Solutions (300363.CH) 23H1 - Performance Pressure Would Remain in 2023

Equity Capital Markets

WuXi XDC Cayman  / Equity Capital Markets

<ul>
<li>Although WuXi XDC has financing needs, we’re more inclined to view this spin-off listing as another capital operation of WuXi AppTec/WuXi Bio, who may not want to take risks alone.</li>
<li>Global ADC/broader bioconjugate market is at a nascent stage of development, with high R&amp;D risks/commercialization uncertainties. We cannot guarantee whether WuXi XDC will maintain its industry-leading position in the future.</li>
<li>Although high growth can bring good stories, we're not sure how much actual market space WuXi XDC will have in the future,which is the key to determining the valuation ceiling.</li>
</ul>


Although WuXi XDC has financing needs, we’re more inclined to view this spin-off listing as another capital operation of WuXi AppTec/WuXi Bio, who may not want to take risks alone.
Global ADC/broader bioconjugate market is at a nascent stage of development, with high R&amp;D risks/commercialization uncertainties. We cannot guarantee whether WuXi XDC will maintain its industry-leading position in the future.
Although high growth can bring good stories, we're not sure how much actual market space WuXi XDC will have in the future,which is the key to determining the valuation ceiling.


Pre-IPO WuXi XDC - The Beautiful Story and the Truth Behind

<ul>
<li>
<a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a> has been removed from the "Unverified List", but the crisis is not over. CXO's valuation center could gradually volatile to the downside,during which there would be temporary rebounds.</li>
<li>Biotechnology of US and China has entered a higher level of game. As domestic CXO is deeply embedded in global supply chain, we won't take any chances on WuXi Biologics.</li>
<li>We may face a long high-interest-rate environment after the Fed hikes,but the booming of US pharmaceutical IPOs is the underlying logic of CXO. We provided suggestions on CXO trading strategy.</li>
</ul>



Wuxi Biologics (2269 HK) has been removed from the "Unverified List", but the crisis is not over. CXO's valuation center could gradually volatile to the downside,during which there would be temporary rebounds.
Biotechnology of US and China has entered a higher level of game. As domestic CXO is deeply embedded in global supply chain, we won't take any chances on WuXi Biologics.
We may face a long high-interest-rate environment after the Fed hikes,but the booming of US pharmaceutical IPOs is the underlying logic of CXO. We provided suggestions on CXO trading strategy.


Wuxi Biologics (2269.HK) - Removed from UVL, but the Crisis Is Not Over

Thematic (Sector/Industry)

<ul>
<li>“Measures for the Supervision and Administration of Online Drug Sales” was released, which indicated that the online sale of prescription drugs is allowed, but there are certain restrictions and requirements.</li>
<li>The rise of China biotech is based on the historical opportunities of both alpha (individual efforts) and beta (industry development) superposition. It’s unique. Investors shouldn’t expect to “copy” similar paths.</li>
<li>We have noted that some biotech/biopharma have or are considering changing excess capacity to do CDMO. This is caused by too much “bubble” in the market, which is not logical.</li>
</ul>


“Measures for the Supervision and Administration of Online Drug Sales” was released, which indicated that the online sale of prescription drugs is allowed, but there are certain restrictions and requirements.
The rise of China biotech is based on the historical opportunities of both alpha (individual efforts) and beta (industry development) superposition. It’s unique. Investors shouldn’t expect to “copy” similar paths.
We have noted that some biotech/biopharma have or are considering changing excess capacity to do CDMO. This is caused by too much “bubble” in the market, which is not logical.


China Healthcare Weekly(Sep2)-Online Drug Sale, Biotech's Historical Opportunity, Biotech to Be CDMO

Beijing Mabworks Biotech / Equity Capital Markets

<p>On July 18, 2021, <a href="https://www.smartkarma.com/entities/beijing-mabworks-biotech-company-limited" target="_blank" data-smartkarma-citation="entities:33816:1" rel="noopener">Beijing Mabworks Biotech (MWB HK) </a>formally submitted its application to the HKEX for listing on the main board. It should be noted that Mabworks's application for listing on the SSE STAR Market was accepted in September last year, but the Company voluntarily withdrew its application in March this year. Mabworks is a clinical-stage biopharmaceutical company in China focusing on the discovery and development of differentiated antibody drugs. This insight mainly analyzed the clinical-stage drug candidates and related concerns of the Company.</p>

On July 18, 2021, Beijing Mabworks Biotech (MWB HK) formally submitted its application to the HKEX for listing on the main board. It should be noted that Mabworks's application for listing on the SSE STAR Market was accepted in September last year, but the Company voluntarily withdrew its application in March this year. Mabworks is a clinical-stage biopharmaceutical company in China focusing on the discovery and development of differentiated antibody drugs. This insight mainly analyzed the clinical-stage drug candidates and related concerns of the Company.

Pre-IPO Beijing Mabworks Biotech - MIL62 Alone Cannot Save the Situation

China

TOT Biopharm International Company Limited operates biopharmaceutical company. The Company focuses on development and commercialisation of tumor drugs and therapies. TOT Biopharm International serves clients in China.

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TOT Biopharm International (1875 HK)

Porton Pharma Solutions (300363.CH) 23H1 - Performance Pressure Would Remain in 2023

Porton's weak performance will continue in 23H2. As a latecomer, its ADC CDMO business is still at early stage. When the entire sector is at bottom...

Xinyao (Criss) Wang

Pre-IPO WuXi XDC - The Beautiful Story and the Truth Behind

How far WuXi XDC can go in the future depends on the real market space of ADC and the company's performance. But as a capital operation, good story...

Xinyao (Criss) Wang

Wuxi Biologics (2269.HK) - Removed from UVL, but the Crisis Is Not Over

Removal from UVL won’t bring fundamental change.The logic of CXO(low labor cost+booming US pharmaceutical IPO) is untenable.We provide trading...

Xinyao (Criss) Wang

China Healthcare Weekly(Sep2)-Online Drug Sale, Biotech's Historical Opportunity, Biotech to Be CDMO

New policy of online drug sales is released,including certain restrictions.The rise of China biotech is based on historical opportunity of alpha...

Xinyao (Criss) Wang

Pre-IPO Beijing Mabworks Biotech - MIL62 Alone Cannot Save the Situation

This article mainly analyzed Mabworks Biotech in terms of the important clinical-stage drug candidates (MIL62, MIL93, MBS301, MIL97, MIL95, MIL86,...

Xinyao (Criss) Wang

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