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 Healthcare Weekly (Apr.6) - Boom of TCM Injections Is Coming, Defects in GLP-1s, Sino Biopharm

China Healthcare Weekly (Apr14)- Shanghai Shyndec Pharma,Innovative Drug Policy,Ultra Long-Term Bond

Wuxi Biologics (2269.HK) - The Crisis Is Not Over

China Traditional Chinese Medicine (570.HK) - New Information on Privatization

Will China TCM (570.HK) Be Incorporated into Taiji Group (600129.CH)? –If Yes, Valuation Will Double

Escalation of Israel-Hamas War - Here's How Investors Should Position Themselves in Dramatic Changes

WuXi AppTec (2359.HK/603259.CH) 2023 Results - Time to Prepare for the Worst

Event-Driven

<ul>
<li>Zadaxin is the biggest performance driver of SciClone. However, due to the challenge of generic drugs/VBP, sales of Zadaxin wouldn’t maintain strong growth momentum.  SciClone’s revenue/profit would face a significant decline.</li>
<li>The capital participating the IPO had reduced their holdings or exit entirely. Considering the low valuation/poor liquidity in HKEX, we think this privatization provides investors with a great exit opportunity.</li>
<li>For arbitrage investors, the annualized return depends on the time it takes to complete the privatization (e.g. about 5%-10%). If the privatization fails, share price could fall back to HK$14.</li>
</ul>


Zadaxin is the biggest performance driver of SciClone. However, due to the challenge of generic drugs/VBP, sales of Zadaxin wouldn’t maintain strong growth momentum.  SciClone’s revenue/profit would face a significant decline.
The capital participating the IPO had reduced their holdings or exit entirely. Considering the low valuation/poor liquidity in HKEX, we think this privatization provides investors with a great exit opportunity.
For arbitrage investors, the annualized return depends on the time it takes to complete the privatization (e.g. about 5%-10%). If the privatization fails, share price could fall back to HK$14.


China Traditional Chinese Medicine (570 HK)

Hainan Shuangcheng Phrmcutcls (002693 CH)

Sinopep-Allsino Bio Pharmaceutical (688076 CH)

Sciclone Pharmaceuticals (6600.HK) - The Privatization Offers a Good Exit Opportunity