Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/abbvie-inc" target="_blank" data-smartkarma-citation="entities:1135:1" rel="noopener">Abbvie Inc (ABBV US)</a> shares remained rangebound in 2021, mainly due to Humira patent expiration overhang. Humira is the flagship drug of the company, accounting for 37% of total revenue.</li>
<li>Increasing label expansion of its two other drugs, Skyrizi and Rinvoq are now increasingly opening up new growth avenues for AbbVie. Together these drugs contributed 8% to total revenue.</li>
<li>Attractive valuation and healthy dividend yield make AbbVie a top value investment idea amid this turbulent time.</li>
</ul>



Abbvie Inc (ABBV US) shares remained rangebound in 2021, mainly due to Humira patent expiration overhang. Humira is the flagship drug of the company, accounting for 37% of total revenue.
Increasing label expansion of its two other drugs, Skyrizi and Rinvoq are now increasingly opening up new growth avenues for AbbVie. Together these drugs contributed 8% to total revenue.
Attractive valuation and healthy dividend yield make AbbVie a top value investment idea amid this turbulent time.


AbbVie Inc (ABBV US): Great Value Stock to Buy in Choppy Market

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>If we take a close look at the HFCAA, there are three points that are really hard for China to accept, which could be an irreconcilable contradiction.</li>
<li>There could be a trend of delisting from the US market and then relisting on HKEX or A-share market in the future. Investors could suffer losses when companies come back.</li>
<li>Overall, the regulatory risk and delisting risk are two real unknowns. Therefore, investors should pay attention to the relevant companies and get prepared in advance.</li>
</ul>


If we take a close look at the HFCAA, there are three points that are really hard for China to accept, which could be an irreconcilable contradiction.
There could be a trend of delisting from the US market and then relisting on HKEX or A-share market in the future. Investors could suffer losses when companies come back.
Overall, the regulatory risk and delisting risk are two real unknowns. Therefore, investors should pay attention to the relevant companies and get prepared in advance.


The Impact of HFCAA on China ADR (China Healthcare Companies)

Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Event-Driven

KraneShares CSI China Internet ETF / Event-Driven

<ul>
<li>China ADRs were sharply lower last week as the SEC started to name companies that were identified under the Holding Foreign Companies Accountable Act (HFCAA).</li>
<li>Then <a href="https://www.smartkarma.com/entities/didi-chuxing-inc" target="_blank" data-smartkarma-citation="entities:27467:1" rel="noopener">DiDi Global</a> dropped 44% on Friday following reports that the their proposals to prevent data/security leaks did not meet CAC's requirements and work on the HK listing was halted.</li>
<li>With 2024 not too far away, a lot of the U.S. listed companies will look at listing in Hong Kong in the near future. That will have its own implications.</li>
</ul>


China ADRs were sharply lower last week as the SEC started to name companies that were identified under the Holding Foreign Companies Accountable Act (HFCAA).
Then DiDi Global dropped 44% on Friday following reports that the their proposals to prevent data/security leaks did not meet CAC's requirements and work on the HK listing was halted.
With 2024 not too far away, a lot of the U.S. listed companies will look at listing in Hong Kong in the near future. That will have its own implications.


China ADRs & HFCAA: Pace of Homecoming Listings Should Pick Up & Implications

Jiangsu Hengrui Medicine / Equity Bottom-Up

<ul>
<li>Entering 2022, Hengrui’s stock price has gone through continuous correction. The market is not that optimistic about the performance of Hengrui in 2021 full year and 2021Q4.</li>
<li>We analyzed the possible future development trajectory of Hengrui's performance, which would be up and down due to VBP and NRDL negotiation. Investors could get prepared in advance.</li>
<li>Due to Hengrui’s  "DNA"  and development mode, it could have “stable growth” after getting out of the difficult situation, but hard to achieve “explosive growth or significant return”.</li>
</ul>


Entering 2022, Hengrui’s stock price has gone through continuous correction. The market is not that optimistic about the performance of Hengrui in 2021 full year and 2021Q4.
We analyzed the possible future development trajectory of Hengrui's performance, which would be up and down due to VBP and NRDL negotiation. Investors could get prepared in advance.
Due to Hengrui’s  "DNA"  and development mode, it could have “stable growth” after getting out of the difficult situation, but hard to achieve “explosive growth or significant return”.


Jiangsu Hengrui Medicine (600276.CH) - Here’s when Hengrui May Recover

<ul>
<li>Recently, Premier Li Keqiang delivered the government work report, which mentioned 2022 pharmaceutical industry's priorities. We summarized the key points below.</li>
<li>The skyrocketed experimental monkey price should be noticed, which would put more pressure on biotech companies. CXO also needs to control costs, both its own personnel and the monkeys.</li>
<li>The market value of a pharmaceutical enterprise is not determined by technology patent,but by the market competitiveness of products, which is based on R&amp;D capabilities and deep technology accumulation.</li>
</ul>


Recently, Premier Li Keqiang delivered the government work report, which mentioned 2022 pharmaceutical industry's priorities. We summarized the key points below.
The skyrocketed experimental monkey price should be noticed, which would put more pressure on biotech companies. CXO also needs to control costs, both its own personnel and the monkeys.
The market value of a pharmaceutical enterprise is not determined by technology patent,but by the market competitiveness of products, which is based on R&amp;D capabilities and deep technology accumulation.


China Healthcare Weekly (Mar.11) - 2022 Government Work Report, Expensive Monkeys, Technology Patent

China

BeiGene, Ltd. operates as a commercial stage biopharmaceutical company. The Company focuses on discovery, development, and commercialization of molecularly targeted and immuno-oncology drugs for the treatment of cancer. BeiGene serves patients worldwide.

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BeiGene (6160 HK)

AbbVie Inc (ABBV US): Great Value Stock to Buy in Choppy Market

Abbvie’s reducing dependence on Humira, visibility on non-Humira portfolio, coupled with high dividend yield and attractive valuation make it a top...

Tina Banerjee

The Impact of HFCAA on China ADR (China Healthcare Companies)

We analyzed the points in HFCAA that are difficult for China to accept.Such irreconcilable contradiction could lead to a trend of delisting from...

Xinyao (Criss) Wang

China ADRs & HFCAA: Pace of Homecoming Listings Should Pick Up & Implications

The SEC naming 5 companies under the HFCAA put China ADRs under pressure last week. The news that the CAC had nixed DIDI's HK listing plans added...

Brian Freitas

Jiangsu Hengrui Medicine (600276.CH) - Here’s when Hengrui May Recover

We analyzed the possible future development trajectory of Hengrui's performance. Due to its "DNA" and development mode, after recovering,...

Xinyao (Criss) Wang

China Healthcare Weekly (Mar.11) - 2022 Government Work Report, Expensive Monkeys, Technology Patent

We listed the key points about healthcare industry in 2022 government work report. Companies should notice the skyrocketed experimental monkey...

Xinyao (Criss) Wang

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