HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/eli-lilly-co" target="_blank" data-smartkarma-citation="entities:19419:1" rel="noopener">Eli Lilly'</a>s development strategy is worth learning from, which explains the investment logic of a lot of “smart money” and can also be used for reference by domestic pharmaceutical companies.</li>
<li>For CGT, before detail policies on how to properly commercialize CGT in China released, CXO with related R&amp;D capabilities could be a better investment option at the current stage.</li>
<li>The overall sleep situation of Chinese people is not optimistic, leading to the rapid development of China's sleep economy. Meanwhile, we also recommend that investors pay attention to sleep quality.</li>
</ul>



Eli Lilly's development strategy is worth learning from, which explains the investment logic of a lot of “smart money” and can also be used for reference by domestic pharmaceutical companies.
For CGT, before detail policies on how to properly commercialize CGT in China released, CXO with related R&amp;D capabilities could be a better investment option at the current stage.
The overall sleep situation of Chinese people is not optimistic, leading to the rapid development of China's sleep economy. Meanwhile, we also recommend that investors pay attention to sleep quality.


China Healthcare Weekly (Mar.25)- Viable Business Model for Pharma, CXO for CGT, China Sleep Economy

<ul>
<li>The first to be affected is the clinical trial projects under way in Ukraine. It’s possible that pharmaceutical companies may lose such a high-quality and low cost clinical trial center. </li>
<li>Ukraine plays an important role in the healthcare supply chain. So, the war would affected both pharmaceutical companies and medical device companies, both directly and indirectly.</li>
<li>The risk to CXO is not completely eliminated. The “cyclical nature” of CRO industry could begin to show. But CDMO is better than CRO in terms of short-term investment opportunities.</li>
</ul>


The first to be affected is the clinical trial projects under way in Ukraine. It’s possible that pharmaceutical companies may lose such a high-quality and low cost clinical trial center. 
Ukraine plays an important role in the healthcare supply chain. So, the war would affected both pharmaceutical companies and medical device companies, both directly and indirectly.
The risk to CXO is not completely eliminated. The “cyclical nature” of CRO industry could begin to show. But CDMO is better than CRO in terms of short-term investment opportunities.


Russia-Ukraine War: The Impact on China Healthcare

<ul>
<li>Despite the rational return, the healthcare industry is constantly optimized and adjusted under the guidance of policy and would finally achieve a new balance. So, we are still highly bullish.</li>
<li>We analyzed the investment logic and related investment opportunities in sectors such as medical device, TCM, biotech and CXO.</li>
<li>The valuation of China healthcare sector has entered an attractive range. So, for long-term players, it is recommended to consider to long some high-quality assets at a good cost. </li>
</ul>


Despite the rational return, the healthcare industry is constantly optimized and adjusted under the guidance of policy and would finally achieve a new balance. So, we are still highly bullish.
We analyzed the investment logic and related investment opportunities in sectors such as medical device, TCM, biotech and CXO.
The valuation of China healthcare sector has entered an attractive range. So, for long-term players, it is recommended to consider to long some high-quality assets at a good cost. 


Presentation for Webinar: China Healthcare - Outlook and Opportunities in 2022

<ul>
<li>For Pfizer,orders on COVID-19 vaccine and Paxlovid would generate over US$50 billion revenue in 2022. So whether Pfizer would pursue for new M&amp;A opportunities become the focus of the market.</li>
<li>The oral COVID-19 antivirals are a great opportunity for the development of Chinese API companies, improving the overall valuation. However, CXOs are actually the first to benefit from this market.</li>
<li>If the COVID mutates in a more transmissible direction, the valuation and forecast of related companies in this industrial chain needs readjustment.However, if it doesn’t, the logic would change again.</li>
</ul>


For Pfizer,orders on COVID-19 vaccine and Paxlovid would generate over US$50 billion revenue in 2022. So whether Pfizer would pursue for new M&amp;A opportunities become the focus of the market.
The oral COVID-19 antivirals are a great opportunity for the development of Chinese API companies, improving the overall valuation. However, CXOs are actually the first to benefit from this market.
If the COVID mutates in a more transmissible direction, the valuation and forecast of related companies in this industrial chain needs readjustment.However, if it doesn’t, the logic would change again.


Oral COVID-19 Antivirals and the Impact on China

Asia Pac ECM and Index Rebal, Shenton Research

Ke Yan, CFA, FRM

Asia Pac ECM and Index Rebal

Asia Pac IPO & Placement Research, China Biotech

DZT Research

DZT Research is an independent Asia Pacific equity specialist. Our quantitative research covers index rebalancing flows, alongside exchange data analytics accross Asia Pacific. On the equity capital markets side, we focus on Asia Pacific ECM, especially biotech and TMT. Our lead analyst is frequently cited by international media.

Quantitative Analysis

<ul>
<li>We analyse the changes of A-H premium on 195 stocks over the last week. The average A-H premium was 83.0% as of Jul 17th.</li>
<li>The average A-H premium changed by -1.9ppt week-on-week, led by real estate, consumer staples, energy.</li>
<li>We highlight weekly changes in A-H premium for Hua Hong Semi, Innocare, Yofc, China Life, Zijin Mining.</li>
</ul>


We analyse the changes of A-H premium on 195 stocks over the last week. The average A-H premium was 83.0% as of Jul 17th.
The average A-H premium changed by -1.9ppt week-on-week, led by real estate, consumer staples, energy.
We highlight weekly changes in A-H premium for Hua Hong Semi, Innocare, Yofc, China Life, Zijin Mining.


A-H Premium Weekly (Jul 17th): Hua Hong Semi, Innocare, Yofc, China Life, Zijin Mining

China

WuXi AppTec is a global contract research, development, and manufacturing organization (CRDMO) for the pharmaceutical and life sciences industries. It provides integrated, end-to-end services including chemistry drug CRDMO, biology discovery, preclinical testing, and clinical research services for various therapeutic modalities. The company was founded in 2000 and is headquartered in Shanghai, China.

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WuXi AppTec (2359 HK)

China Healthcare Weekly (Mar.25)- Viable Business Model for Pharma, CXO for CGT, China Sleep Economy

The strategy of Eli Lilly could be a good reference for domestic pharmaceutical companies.CXO for CGT is a better investment option.The sleep...

Xinyao (Criss) Wang

Russia-Ukraine War: The Impact on China Healthcare

We analyzed the potential impact of Russia-Ukraine war on China healthcare industry including the delay of clinical trial projects in Ukraine,...

Xinyao (Criss) Wang

Presentation for Webinar: China Healthcare - Outlook and Opportunities in 2022

We review the important events since 2021H1 and keep bullish on China healthcare outlook.We also analyzed investment logic and opportunities in...

Xinyao (Criss) Wang

Oral COVID-19 Antivirals and the Impact on China

This insight analyzed Pfizer's Paxlovid and Merck’s Molnupiravir after FDA EUA, the global market potential, the impact on China market and related...

Xinyao (Criss) Wang

A-H Premium Weekly (Jul 17th): Hua Hong Semi, Innocare, Yofc, China Life, Zijin Mining

We analyzed A-H premium changes in the past week and highlight A-H premium changes for Hua Hong Semi, Innocare, Yofc, China Life, Zijin Mining.

Ke Yan, CFA, FRM

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)