HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

<ul>
<li>The Trump administration is considering putting “severe restrictions” on the drugs from China, which would negative for China biotech that mainly relies on licensing-out model. We share our views below.</li>
<li>The key to assessing the future profitability of innovative drugs in China lies in their ability to control costs, not just in the growth of product sales.</li>
<li>Sihuan achieved a turnaround and is undervalued. Just "medical aesthetics + cash" worth RMB15.3 billion valuation. The innovative drug business will provide decent upside potential, but with some concerns behind. </li>
</ul>


The Trump administration is considering putting “severe restrictions” on the drugs from China, which would negative for China biotech that mainly relies on licensing-out model. We share our views below.
The key to assessing the future profitability of innovative drugs in China lies in their ability to control costs, not just in the growth of product sales.
Sihuan achieved a turnaround and is undervalued. Just "medical aesthetics + cash" worth RMB15.3 billion valuation. The innovative drug business will provide decent upside potential, but with some concerns behind. 


China Healthcare Weekly (Sep.14) - Trump to Put Restrictions on Chinese Drugs, Sihuan Is Undervalued

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.

Equity Capital Markets

Xuanzhu Biopharmaceutical / Equity Capital Markets

<ul>
<li>Xuanzhu Biopharm, the biotech arm of HK-listed Sihuan Pharma, is seeking to raise at least USD 100m via a Hong Kong listing. The sole sponsor is CICC.</li>
<li>In previous insight, we looked at the company’s core products and key products, including XBP-3571, XZP-3287, and XZP-3621, and its management team and investor backing.</li>
<li>In this note, we look at the company’s latest filing and its previous attempt to list in the A-share market.</li>
</ul>


Xuanzhu Biopharm, the biotech arm of HK-listed Sihuan Pharma, is seeking to raise at least USD 100m via a Hong Kong listing. The sole sponsor is CICC.
In previous insight, we looked at the company’s core products and key products, including XBP-3571, XZP-3287, and XZP-3621, and its management team and investor backing.
In this note, we look at the company’s latest filing and its previous attempt to list in the A-share market.


Xuanzhu Biopharm  (轩竹生物科技) Pre-IPO: Alarming Signs upon Further Checks

<ul>
<li>Xuanzhu Biopharm, the biotech arm of HK-listed Sihuan Pharma, is seeking to raise at least USD 100m via a Hong Kong listing. The sole sponsor is CICC.</li>
<li>In this insight, we look at the company’s core products and key products, including XBP-3571, XZP-3287 and XZP-3621.</li>
<li>While there are some interesting reads from its clinical data, we are of the view that its near-commercial products are still lacking the differentiating factors in respective competitive therapeutic areas.</li>
</ul>


Xuanzhu Biopharm, the biotech arm of HK-listed Sihuan Pharma, is seeking to raise at least USD 100m via a Hong Kong listing. The sole sponsor is CICC.
In this insight, we look at the company’s core products and key products, including XBP-3571, XZP-3287 and XZP-3621.
While there are some interesting reads from its clinical data, we are of the view that its near-commercial products are still lacking the differentiating factors in respective competitive therapeutic areas.


Xuanzhu Biopharm (轩竹生物科技) Pre-IPO: Reality Checks Against Claims

<ul>
<li>The main purpose for Sihuan to acquire Combio is to form a strong innovative drug business Xuanzhu and then make large capital gains from the subsequent spin-off and listing.</li>
<li>All the three Core Products need to face fierce competition, and their clinical data do not show obvious advantages to competing products, making them hard to stand out.</li>
<li>Based on the announcement on Nov.12, 2024, valuation of Xuanzhu was RMB8.5 billion. However, due to the lack of competitive pipelines and weak commercialization prospects, we think Xuanzhu is overvalued.</li>
</ul>


The main purpose for Sihuan to acquire Combio is to form a strong innovative drug business Xuanzhu and then make large capital gains from the subsequent spin-off and listing.
All the three Core Products need to face fierce competition, and their clinical data do not show obvious advantages to competing products, making them hard to stand out.
Based on the announcement on Nov.12, 2024, valuation of Xuanzhu was RMB8.5 billion. However, due to the lack of competitive pipelines and weak commercialization prospects, we think Xuanzhu is overvalued.


Pre-IPO Xuanzhu Biopharmaceutical- Outdated Pipelines Are Difficult to Bring Good Investment Returns

China

Xuanzhu Biopharmaceutical is an innovation-driven biopharmaceutical company in China, specializing in the development, industrialization, and commercialization of small-molecule and macromolecular drugs. The company focuses on major therapeutic areas including digestive diseases, oncology, and non-alcoholic steatohepatitis (NASH), with key products like KBP-3571, XZP-3287, and XZP-3621. It is headquartered in Beijing, China, and was founded in 2002.

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Xuanzhu Biopharmaceutical (2575 HK)

China Healthcare Weekly (Sep.14) - Trump to Put Restrictions on Chinese Drugs, Sihuan Is Undervalued

Trump may impose restrictions on China drugs, impacting China biotech reliant on licensing model. Profitability in China biotech hinges on cost...

Xinyao (Criss) Wang

Xuanzhu Biopharm (轩竹生物科技) Pre-IPO: Alarming Signs upon Further Checks

Xuanzhu Biopharm, biotech arm of Sihuan Pharma, aims to raise $100m in HK listing with CICC as sole sponsor. We looked at latest filing and its A...

Ke Yan, CFA, FRM

Xuanzhu Biopharm (轩竹生物科技) Pre-IPO: Reality Checks Against Claims

Xuanzhu Biopharm aims to raise $100m in Hong Kong IPO with CICC as sole sponsor, but faces challenges with near-commercial products lacking...

Ke Yan, CFA, FRM

Pre-IPO Xuanzhu Biopharmaceutical- Outdated Pipelines Are Difficult to Bring Good Investment Returns

Sihuan's acquisition of Combio aims to create a strong innovative drug business Xuanzhu, but concerns arise over its outdated pipeline,...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

China Healthcare Weekly (Sep.14) - Trump to Put Restrictions on Chinese Drugs, Sihuan Is Undervalued

​Trump may impose restrictions on China drugs, impacting China biotech reliant on licensing model. Profitability in China biotech hinges on cost...

Xinyao (Criss) Wang

Xuanzhu Biopharm (轩竹生物科技) Pre-IPO: Alarming Signs upon Further Checks

​Xuanzhu Biopharm, biotech arm of Sihuan Pharma, aims to raise $100m in HK listing with CICC as sole sponsor. We looked at latest filing and its A...

Ke Yan, CFA, FRM

Xuanzhu Biopharm (轩竹生物科技) Pre-IPO: Reality Checks Against Claims

​Xuanzhu Biopharm aims to raise $100m in Hong Kong IPO with CICC as sole sponsor, but faces challenges with near-commercial products lacking...

Ke Yan, CFA, FRM

Pre-IPO Xuanzhu Biopharmaceutical- Outdated Pipelines Are Difficult to Bring Good Investment Returns

​Sihuan's acquisition of Combio aims to create a strong innovative drug business Xuanzhu, but concerns arise over its outdated pipeline,...

Xinyao (Criss) Wang

Trump may impose restrictions on China drugs, impacting China biotech reliant on licensing model. Profitability in China biotech hinges on cost...

Xuanzhu Biopharm, biotech arm of Sihuan Pharma, aims to raise $100m in HK listing with CICC as sole sponsor. We looked at latest filing and its A...

Xuanzhu Biopharm aims to raise $100m in Hong Kong IPO with CICC as sole sponsor, but faces challenges with near-commercial products lacking...

Sihuan's acquisition of Combio aims to create a strong innovative drug business Xuanzhu, but concerns arise over its outdated pipeline,...