Daily Brief Health Care: China Shineway Pharmaceutical, SCG Cell Therapy, Shinpoong Pharmaceutical and more

In today’s briefing:

China Shineway Pharmaceutical (2877.HK) – Strong Growth Momentum Is Expected to Continue in 2023
SG Biotech Firm Secures $8.1m at $210m Valuation
Shinpoong Pharmaceutical (019170 KS): Widening Operating Loss; COVID Drug Loses Steam

China Shineway Pharmaceutical (2877.HK) – Strong Growth Momentum Is Expected to Continue in 2023

Shineway’s 2022 performance was outstanding.Its TCM formula granules business would seize more market share and maintain strong growth momentum, which would continue to be the main performance driver in 2023.
Considering obvious policy preferences and lower price reduction of TCM in VBP, we recommend investors to leave a place for TCM company in portfolio, and Shineway deserves investors’ attention.
Shineway is cash rich. Together with promising growth potential and solid financial performance, Shineway’s share price is expected to perform well, which could be a good trading target for investors.

Singapore-based SCG Cell Therapy, a biotech firm, has recently raised US$8.1 million at a valuation over US$210 million, according to VentureCap Insights, which tracks regulatory filings in Singapore.
The lead backer of the fundraise – which was marked as a series C1 round – was Hong Kong-based Smartech Investment Holdings, pouring about US$3.4 million into SCG Cell Therapy.
The investment firm has also backed other Singaporean biotech firms such as Biocheetah and Lion TCR.

Shinpoong Pharmaceutical (019170 KS) recorded operating loss of KRW34 billion in 2022 from operating loss of KRW14 billion in 2021 and an operating profit of KRW8 billion in 2020.
Shinpoong is investing heavily on R&D, which is taking a toll on its financial health. During 2022, R&D expenses accounted for 21% of total revenue, up from 16% in 2021.
The company is revising phase 3 trial plan for anti-malarial drug Pyramax as COVID-19 treatment. Even if Pyramax succeeds to get approval, the drug is expected to have limited uptake.

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