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.

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Equity Capital Markets

<ul>
<li>The clinical need for NGS hasn't developed as rigid demand due to high cost, difficult operation, high requirements on hospitals/personnel, etc. It takes time for NGS to improve market penetration.</li>
<li>Genecast’s LDT business could face compliance issue.Its in-hospital business has lower gross margin.Increasing R&amp;D expenditure is inevitable since products need to get approval by regulatory authorities, putting pressure on profitability. </li>
<li>Burning Rock is in a leading position in NGS field, but its market value is quite low. We advise investors to be prepared for valuations to fall short of expectations.</li>
</ul>


The clinical need for NGS hasn't developed as rigid demand due to high cost, difficult operation, high requirements on hospitals/personnel, etc. It takes time for NGS to improve market penetration.
Genecast’s LDT business could face compliance issue.Its in-hospital business has lower gross margin.Increasing R&amp;D expenditure is inevitable since products need to get approval by regulatory authorities, putting pressure on profitability. 
Burning Rock is in a leading position in NGS field, but its market value is quite low. We advise investors to be prepared for valuations to fall short of expectations.


Pre-IPO Genecast Group - NGS Still Has Long Way to Go; Valuation Performance Is Worrying