HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Venus Medtech (Hangzhou) / Equity Bottom-Up

<ul>
<li>Even starting late,Peijia took the lead in the number of hospitals entered and sales volume in the 1st year after product launch.It could be a dark horse to achieve corner overtaking. </li>
<li>The ceiling of China TAVR market is obvious due to high surgery cost and severe shortage of doctors/qualified hospitals. Future price war due to fierce competition is also a concern.</li>
<li>Related TAVR companies’ high valuation cannot be supported without sufficient incremental markets. So, if companies hope to break the ceiling, they have to develop global markets.</li>
</ul>


Even starting late,Peijia took the lead in the number of hospitals entered and sales volume in the 1st year after product launch.It could be a dark horse to achieve corner overtaking. 
The ceiling of China TAVR market is obvious due to high surgery cost and severe shortage of doctors/qualified hospitals. Future price war due to fierce competition is also a concern.
Related TAVR companies’ high valuation cannot be supported without sufficient incremental markets. So, if companies hope to break the ceiling, they have to develop global markets.


Venus MedTech (2500.HK) Vs Peijia Medical (9996.HK) Vs CardioFlow (2160.HK) - Dilemma of TAVR Market

<ul>
<li>MicroPort’s net loss widened according to its profit warning. The negative impact of centralized procurement is already being shown. We analyzed the situation of its different business segments.</li>
<li>After continuous M&amp;A, <a href="https://www.smartkarma.com/entities/microport-scientific-corp" target="_blank" data-smartkarma-citation="entities:4487:1" rel="noopener">Microport Scientific (853 HK)</a> could face cash flow pressure in this unfriendly financing environment.</li>
<li>Due to MicroPort’s development mode, the market value of its subsidiaries could be higher than the parent company. Our view is that the subsidiaries would be a better investment.</li>
</ul>


MicroPort’s net loss widened according to its profit warning. The negative impact of centralized procurement is already being shown. We analyzed the situation of its different business segments.
After continuous M&amp;A, Microport Scientific (853 HK) could face cash flow pressure in this unfriendly financing environment.
Due to MicroPort’s development mode, the market value of its subsidiaries could be higher than the parent company. Our view is that the subsidiaries would be a better investment.


Microport Scientific (853.HK) - The Subsidiaries Would Be a Better Investment

Equity Capital Markets

Shanghai NewMed Medical / Equity Capital Markets

<ul>
<li>From <a href="https://www.smartkarma.com/entities/shanghai-newmed-medical-co-ltd" target="_blank" data-smartkarma-citation="entities:34126:1" rel="noopener">Shanghai NewMed Medical (NMM HK)</a>’s pipeline, it can be seen that almost all the candidates do not have obvious advantages in development progress in front of the competing products.</li>
<li>NewMed has little experience in launching and commercializing product candidates, especially as a late-comer. So, the actual commercialization performance could be lower than expected.</li>
<li>Since there are so many uncertainties as well as the poor market sentiment for new IPOs in HKEX, we are conservative about the outlook of NewMed at the current stage.</li>
</ul>


From Shanghai NewMed Medical (NMM HK)’s pipeline, it can be seen that almost all the candidates do not have obvious advantages in development progress in front of the competing products.
NewMed has little experience in launching and commercializing product candidates, especially as a late-comer. So, the actual commercialization performance could be lower than expected.
Since there are so many uncertainties as well as the poor market sentiment for new IPOs in HKEX, we are conservative about the outlook of NewMed at the current stage.


Pre-IPO Shanghai NewMed Medical - Concerns on Fierce Competition and Future Commercialization

<ul>
<li>
<a href="https://www.smartkarma.com/entities/venus-medtech-hangzhou-inc" target="_blank" data-smartkarma-citation="entities:28257:1" rel="noopener">Venus MedTech (2500 HK)</a> is taking the lead in TAVR industry, but <a href="https://www.smartkarma.com/entities/peijia-medical" target="_blank" data-smartkarma-citation="entities:28862:1" rel="noopener">Peijia Medical (9996 HK)</a> has advantages in development progress of future products. So, the market pattern is not yet determined.</li>
<li>The high cost of TAVR surgery is the main reason for lower-than-expected sales performance of related companies and low market penetration. The fierce competition would also bring more challenges. </li>
<li>A good solution is to enter developing markets with CE mark, which would offer a new commercialization option and also a wider expansion beyond just European and American markets.</li>
</ul>



Venus MedTech (2500 HK) is taking the lead in TAVR industry, but Peijia Medical (9996 HK) has advantages in development progress of future products. So, the market pattern is not yet determined.
The high cost of TAVR surgery is the main reason for lower-than-expected sales performance of related companies and low market penetration. The fierce competition would also bring more challenges. 
A good solution is to enter developing markets with CE mark, which would offer a new commercialization option and also a wider expansion beyond just European and American markets.


Peijia Medical (9996.HK) Vs Venus MedTech (2500.HK) Vs CardioFlow (2160.HK)-Pain Points and Solution

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>OrbusNeich Medical Group focuses on coronary and peripheral interventional instruments, such as balloons and stents used in PCI (coronary)/PTA (peripheral) procedures.</li>
<li>Comprehensive and innovative product portfolio for endovascular interventional procedures, established global sales network, and robust pipeline are the major strength of OrbusNeich.</li>
<li>Fierce competition, commoditized nature of the offering, centralized procurement leading to substantial price drop are some of the concerns for the company.</li>
</ul>


OrbusNeich Medical Group focuses on coronary and peripheral interventional instruments, such as balloons and stents used in PCI (coronary)/PTA (peripheral) procedures.
Comprehensive and innovative product portfolio for endovascular interventional procedures, established global sales network, and robust pipeline are the major strength of OrbusNeich.
Fierce competition, commoditized nature of the offering, centralized procurement leading to substantial price drop are some of the concerns for the company.


Pre-IPO OrbusNeich Medical Group: A Scale Player, With Comprehensive Portfolio in PCI Balloon Market

China

Venus Medtech is a leading medical device company specializing in transcatheter structural heart valvular therapies. It develops and commercializes innovative solutions for all four heart valves (TAVR, TPVR, TMVR, TTVR) and interventional hypertension treatment. The company was founded in 2009 and is headquartered in Hangzhou, China.

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Venus Medtech (Hangzhou) (2500 HK)

Venus MedTech (2500.HK) Vs Peijia Medical (9996.HK) Vs CardioFlow (2160.HK) - Dilemma of TAVR Market

The high surgery cost and severe shortage of qualified doctors hospitals are two main bottlenecks for China TAVR market. Entering global markets is...

Xinyao (Criss) Wang

Microport Scientific (853.HK) - The Subsidiaries Would Be a Better Investment

We analyzed the centralized procurement and other concerns on MicroPort. Due to its development mode, the subsidiaries are more attractive and...

Xinyao (Criss) Wang

Pre-IPO Shanghai NewMed Medical - Concerns on Fierce Competition and Future Commercialization

We analyzed the industry characteristics of heart valve device market. Concerns of NewMed are mainly the slow product development progress, fierce...

Xinyao (Criss) Wang

Peijia Medical (9996.HK) Vs Venus MedTech (2500.HK) Vs CardioFlow (2160.HK)-Pain Points and Solution

We analyzed the TAVR business of Venus, MicroPort CardioFlow and Peijia. We also analyzed the competition pattern, concerns, pain points of TAVR...

Xinyao (Criss) Wang

Pre-IPO OrbusNeich Medical Group: A Scale Player, With Comprehensive Portfolio in PCI Balloon Market

This insight has analyzed the product offerings, strength, and weakness of OrbusNeich Medical Group ahead of its IPO. The company intends to raise...

Tina Banerjee

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