Global Healthcare Analyst

Tina Banerjee

Thematic (Sector/Industry)

<ul>
<li>Samsung Biologics secured highest ever contract manufacturing order worth KRW2.07T ($1.4B) from a European pharmaceutical company. The cumulative order volume has now surpassed $17.6B.</li>
<li>FDA has accepted Daiichi Sankyo’s revised filing for Dato-DXd for certain types of non-small cell lung cancer (NSCLC) and Eisai’s BLA for Leqembi subcutaneous autoinjector for weekly maintenance dosing.</li>
<li>Sun Pharma is acquiring Canada-based Antibe Therapeutics, a clinical-stage biotechnological company developing novel drugs primarily focusing on reducing pain and inflammation. Biocon got FDA clearance for insulin facility in Malaysia.</li>
</ul>


Samsung Biologics secured highest ever contract manufacturing order worth KRW2.07T ($1.4B) from a European pharmaceutical company. The cumulative order volume has now surpassed $17.6B.
FDA has accepted Daiichi Sankyo’s revised filing for Dato-DXd for certain types of non-small cell lung cancer (NSCLC) and Eisai’s BLA for Leqembi subcutaneous autoinjector for weekly maintenance dosing.
Sun Pharma is acquiring Canada-based Antibe Therapeutics, a clinical-stage biotechnological company developing novel drugs primarily focusing on reducing pain and inflammation. Biocon got FDA clearance for insulin facility in Malaysia.


APAC Healthcare Weekly (Jan 19)- Samsung Biologics, Daiichi Sankyo, Eisai, Sun Pharma, Biocon

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Cloudbreak Pharma / Equity Capital Markets

<ul>
<li>Since diagnosis/treatment rate of pterygium is low, it’s uncertain how many patients will be willing to pay high price for CBT-001. CBT-009 may lose first-mover advantage in front of Ryjunea.</li>
<li>Due to pressure on cash flow, the development progress of CBT-006 and CBT-004 could be slower-than-expected. CBT-004’s sales may be squeezed due to the off-label use of anti VEGF drugs. </li>
<li>Valuation could be lower than peers considering that CLOUDBREAK has out-licensed commercialization rights of core product and has to face fierce competition and uncertain market demand after the product launch.</li>
</ul>


Since diagnosis/treatment rate of pterygium is low, it’s uncertain how many patients will be willing to pay high price for CBT-001. CBT-009 may lose first-mover advantage in front of Ryjunea.
Due to pressure on cash flow, the development progress of CBT-006 and CBT-004 could be slower-than-expected. CBT-004’s sales may be squeezed due to the off-label use of anti VEGF drugs. 
Valuation could be lower than peers considering that CLOUDBREAK has out-licensed commercialization rights of core product and has to face fierce competition and uncertain market demand after the product launch.


Pre-IPO Cloudbreak Pharma (PHIP Updates) - Some Points Worth the Attention

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.

<ul>
<li>Cloudbreak re-filed for a Hong Kong listing to raise at least USD 100 million.</li>
<li>In this note, we look at updates to the prospectus. We noted delays in its products and downward revisions of prospects.</li>
<li>We checked peer performance and have a negative readthrough for the company.</li>
</ul>


Cloudbreak re-filed for a Hong Kong listing to raise at least USD 100 million.
In this note, we look at updates to the prospectus. We noted delays in its products and downward revisions of prospects.
We checked peer performance and have a negative readthrough for the company.


Cloudbreak (拨康视云) Pre-IPO: PHIP Updates

Equity Bottom-Up

Shenyang Xingqi Pharmaceutical / Equity Bottom-Up

Shenyang Xingqi Pharmaceutical (300573 CH)

<ul>
<li>The 10th national VBP has started. Kelun Pharma, Fosun Pharma and CSPC are expected to be the big pharmaceutical companies that get hit most in this VBP.</li>
<li>For biopharmaceutical companies, rather than R&amp;D technology, revenue scale is the most important moat. Accordingly, we recommend to invest medium and large biotech that are currently scaling up.</li>
<li>Xingqi’s share price decline is related to the potential lower-than-expected performance in 24Q3. Sales expansion of 0.01% atropine eye drops takes time considering the difficulty of new drug hospital admission.</li>
</ul>


The 10th national VBP has started. Kelun Pharma, Fosun Pharma and CSPC are expected to be the big pharmaceutical companies that get hit most in this VBP.
For biopharmaceutical companies, rather than R&amp;D technology, revenue scale is the most important moat. Accordingly, we recommend to invest medium and large biotech that are currently scaling up.
Xingqi’s share price decline is related to the potential lower-than-expected performance in 24Q3. Sales expansion of 0.01% atropine eye drops takes time considering the difficulty of new drug hospital admission.


China Healthcare Weekly (Oct.27)-10th National VBP, Revenue Scale Is the Only Moat, Xingqi’s Outlook

<ul>
<li>Xingqi’s 0.01% atropine sulfate eye drops got approved for marketing this March, which is expected to monopolize the domestic market for at least 2.5-3 years, and enjoy higher gross margin.</li>
<li>Peak sales of 0.01% atropine sulfate eye drops would reach RMB5 billion at least. Together with other products, Xingqi’s total revenue would reach at least RMB6 billion in the future.</li>
<li>Due to attractive dividend policy, this stock is worth holding for the long term.Xingqi’s market value could even reach RMB50 billion if the sales exclusivity period is longer than expected. </li>
</ul>


Xingqi’s 0.01% atropine sulfate eye drops got approved for marketing this March, which is expected to monopolize the domestic market for at least 2.5-3 years, and enjoy higher gross margin.
Peak sales of 0.01% atropine sulfate eye drops would reach RMB5 billion at least. Together with other products, Xingqi’s total revenue would reach at least RMB6 billion in the future.
Due to attractive dividend policy, this stock is worth holding for the long term.Xingqi’s market value could even reach RMB50 billion if the sales exclusivity period is longer than expected. 


Shenyang Xingqi Pharmaceutical (300573.CH)-Looking Forward to a Leap in Valuation and Rich Dividends

China

Zhaoke Ophthalmology is an ophthalmic pharmaceutical company focused on the research, development, manufacturing, and commercialization of therapies for unmet medical needs in eye diseases. Its comprehensive drug portfolio addresses conditions such as dry eye disease, myopia, presbyopia, wet age-related macular degeneration, diabetic macular edema, and glaucoma. The company was founded in 2017 and is headquartered in Guangzhou, China.

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Zhaoke Ophthalmology (6622 HK)

APAC Healthcare Weekly (Jan 19)- Samsung Biologics, Daiichi Sankyo, Eisai, Sun Pharma, Biocon

APAC healthcare companies got approvals for new products as well as clinical trials. The companies continued with acquisitions and collaborations...

Tina Banerjee

Pre-IPO Cloudbreak Pharma (PHIP Updates) - Some Points Worth the Attention

Low diagnosis/treatment rate for pterygium may impact willingness to pay for CBT-001. Commercialization outlook is highly uncertain due to...

Xinyao (Criss) Wang

Cloudbreak (拨康视云) Pre-IPO: PHIP Updates

Cloudbreak re-files for Hong Kong listing, facing delays and downward revisions in prospects with negative peer performance readthrough.

Ke Yan, CFA, FRM

China Healthcare Weekly (Oct.27)-10th National VBP, Revenue Scale Is the Only Moat, Xingqi’s Outlook

10th national VBP will impact big pharma like Kelun/Fosun/CSPC.Revenue scale is the only moat for pharma company.Xingqi's 24Q3 results may be...

Xinyao (Criss) Wang

Shenyang Xingqi Pharmaceutical (300573.CH)-Looking Forward to a Leap in Valuation and Rich Dividends

Xingqi's newly approved atropine eye drops will drive high growth/valuation expansion due to sales exclusivity period.Together with lucrative...

Xinyao (Criss) Wang

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52-week Range

Market Cap (USDm)

P/E

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APAC Healthcare Weekly (Jan 19)- Samsung Biologics, Daiichi Sankyo, Eisai, Sun Pharma, Biocon

APAC healthcare companies got approvals for new products as well as clinical trials. The companies continued with acquisitions and collaborations...

Tina Banerjee

Pre-IPO Cloudbreak Pharma (PHIP Updates) - Some Points Worth the Attention

​Low diagnosis/treatment rate for pterygium may impact willingness to pay for CBT-001. Commercialization outlook is highly uncertain due to...

Xinyao (Criss) Wang

Cloudbreak (拨康视云) Pre-IPO: PHIP Updates

​Cloudbreak re-files for Hong Kong listing, facing delays and downward revisions in prospects with negative peer performance readthrough.

Ke Yan, CFA, FRM

China Healthcare Weekly (Oct.27)-10th National VBP, Revenue Scale Is the Only Moat, Xingqi’s Outlook

​10th national VBP will impact big pharma like Kelun/Fosun/CSPC.Revenue scale is the only moat for pharma company.Xingqi's 24Q3 results may be...

Xinyao (Criss) Wang

Shenyang Xingqi Pharmaceutical (300573.CH)-Looking Forward to a Leap in Valuation and Rich Dividends

Xingqi's newly approved atropine eye drops will drive high growth/valuation expansion due to sales exclusivity period.Together with lucrative...

Xinyao (Criss) Wang

Low diagnosis/treatment rate for pterygium may impact willingness to pay for CBT-001. Commercialization outlook is highly uncertain due to...

Cloudbreak re-files for Hong Kong listing, facing delays and downward revisions in prospects with negative peer performance readthrough.

10th national VBP will impact big pharma like Kelun/Fosun/CSPC.Revenue scale is the only moat for pharma company.Xingqi's 24Q3 results may be...