HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Over 15 years' experience in both finance and healthcare, covering clinic operations, investment and equity research in both China and overseas.

China TCM (570.HK) - About the Profit Warning and the Valuation Outlook

Pre-IPO Jiangsu Hengrui Medicine - High Valuation Cannot Be Justified

CanSino Biologics (6185.HK/688185.CH) - From 2025 Onwards, Cansino Will Bring Decent Returns

Equity Capital Markets

<ul>
<li>The investment logic of vaccine companies is different from that of biotech. Generally speaking, vaccine companies cannot develop to large scale without successfully betting on blockbuster vaccine varieties.</li>
<li>Commercialization of Ab&amp;B’s vaccines could face uncertainties due to fierce competition/price war/slower R&amp;D progress. Some Class II vaccines could be converted to Class I vaccines. Breakthrough point lies in internationalization. </li>
<li>After Series B financing, post-money valuation reached RMB4.2 billion. Since CanSino’s pipelines are either global innovative, or potential best-in-class or first-in-class in China, Ab&amp;B’s valuation should be lower than CanSino.</li>
</ul>


The investment logic of vaccine companies is different from that of biotech. Generally speaking, vaccine companies cannot develop to large scale without successfully betting on blockbuster vaccine varieties.
Commercialization of Ab&amp;B’s vaccines could face uncertainties due to fierce competition/price war/slower R&amp;D progress. Some Class II vaccines could be converted to Class I vaccines. Breakthrough point lies in internationalization. 
After Series B financing, post-money valuation reached RMB4.2 billion. Since CanSino’s pipelines are either global innovative, or potential best-in-class or first-in-class in China, Ab&amp;B’s valuation should be lower than CanSino.


Hualan Biological Engineering (002007 CH)

Chengdu Kanghua Biological Pro (300841 CH)

Pre-IPO Ab&B Bio-Tech: Commercialization May Be Lower than Expected, Thereby Dragging Down Valuation