Daily Brief Health Care: Bio-Thera Solutions Ltd, Establishment Labs Holdings In, Hogy Medical, Alnylam Pharmaceuticals, Olba Healthcare Holdings, Beijing Tongrentang Co A, Guangyuyuan Chinese Herbal Medicn, Jcr Pharmaceuticals and more

• STAR 50 Index is a tech-focused, blue-chip index in Mainland China which tracks the top 50 largest and most liquid names in the STAR market of the Shanghai Stock Exchange.
• STAR 100 index tracks the next 100 names (51st-150th ranks) and it represents the mid-cap segment of the STAR market.
• In this insight, we have presented our final expectations for ADDs and DELs for the upcoming December 2025 index rebal event.

• Establishment Labs is a medical technology company poised for significant growth following the recent US FDA approval for its flagship Motiva® breast implants, granting access to the world’s largest market for aesthetic procedures.
• The company’s key competitive advantage lies in its focus on safety and innovation, with its proprietary SmoothSilk® surface and ergonomic implant designs demonstrating low complication rates in extensive clinical studies, potentially disrupting a market dominated by long-standing incumbents.
• Despite strong revenue growth, the company has a history of significant net losses and negative cash flow. The successful commercialization in the US and a clear path to profitability are critical for future stock performance.

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• Hogy Medical (3593 JP) , in the last 10 fiscals, witnessed sales grow at CAGR of 1%. In tandem with that, company reported 4% drop sales to ¥18.9B in H1FY26.
• The company revised FY26 sales guidance downwards to ¥39.2B (from previous ¥41.8B), with profits also witnessing considerable downward revision.
• Stock to underperform and so we recommend a SELL on Hogy at this moment. Strategically, two possible outcomes open for Hogy, a take-over by another corporate entity or going private.

• Alnylam Pharmaceuticals (ALNY US) just became eligible for S&P500 following positive earnings released on 30 October 2025.
• The company’s market cap and other eligibility metrics are estimated to place it among the top 5 addition candidates for S&P500 with a higher chance of inclusion in 2026.
• Top 3 addition candidates for S&P500 are CRH, FIX and PSTG with the next inclusion expected by the end of November following the Omnicom-Interpublic $13bn acquisition.

• The company’s Q1 FY06/26 sales were JPY30.8bn (+6.1% YoY), with operating profit at JPY259mn (-7.3% YoY).
• Medical Devices and Consumables segment sales rose 5.2% YoY, driven by consumables and equipment sales growth.
• SPD segment sales increased 6.3% YoY, but operating profit declined 31.4% YoY due to rising SG&A expenses.

• Unmatched Brand Heritage and Market Leadership: With a history spanning over 350 years, Beijing Tongrentang is a premier brand in Traditional Chinese Medicine (TCM), commanding significant brand loyalty and market recognition. This “time-honored brand”status provides a substantial competitive advantage in a fragmented market.
• Favorable Industry Tailwinds: The company is well-positioned to benefit from China’s aging population, rising health consciousness, and strong government support for the TCM industry. These demographic and policy trends are expected to drive sustained demand for TCM products and services.
• Concerning Cash Flow Trend Despite Solid Growth: While the company has demonstrated consistent revenue and net income growth, a significant and persistent decline in operating and free cash flow over the past several years raises concerns about working capital management and the quality of earnings.

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• Venerable Brand with Deep Heritage: Guangyuyuan is one of China’s oldest Traditional Chinese Medicine (TCM) brands, founded in 1541. This long history provides significant brand equity and consumer trust, a key advantage in the healthcare sector. The company was officially recognized as a “China Time-Honored Brand”by the Ministry of Commerce in 2006.
• Favorable Industry Tailwinds: The TCM industry in China is experiencing robust growth, supported by government policies, an aging population, and increasing health awareness. The market is projected to grow at a double-digit CAGR, creating a favorable environment for established players like Guangyuyuan.
• Financial Turnaround and Growth Focus: After a significant loss in 2022, the company has demonstrated a strong recovery in profitability through 2023 and 2024. Management is focused on a growth-oriented strategy, emphasizing product innovation and new marketing channels, including e-commerce and collaborations with influencers.

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• Jcr Pharmaceuticals (4552 JP) has reported in-line performance for H1FY26. While mainstay product is facing pricing and competitive pressure, one-off licensing income has driven overall performance.   
• JCR is expected to meet FY26 guidance. H1FY26 sales, operating profit, and net profit represent progress rate of 56.5%, 91.5%, and 57.0%, against full-year guidance, respectively.
• Heavy dependence on one major product, which is subject to pricing and competitive pressure, and no major product launch lined up anytime soon are key near-term risks.