HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

1. Industry viewpoints:<ul>
<li>It is expected that the market size of IBD (Inflammatory Bowel Disease) drug therapy in China would keep growing in the next five years.</li>
<li>Since COVID-19 virus was detected in imported reagents this time, considering safety factors, the trend of import substitution for reagent varieties is expected to accelerate.</li>
<li>In the field of high-end antibiotics, Chinese enterprises have yet to make breakthroughs.</li>
</ul>2. Company news:News about the progress of new drugs from <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a>, <a href="https://www.smartkarma.com/entities/harbour-biomed-holdings-limited" target="_blank" data-smartkarma-citation="entities:29717:1" rel="noopener">Harbour Biomed (2142 HK)</a>, <a href="https://www.smartkarma.com/entities/antengene-corp-ltd" target="_blank" data-smartkarma-citation="entities:29705:1" rel="noopener">Antengene (6996 HK)</a> and <a href="https://www.smartkarma.com/entities/shanghai-junshi-bioscience-h" target="_blank" data-smartkarma-citation="entities:27760:1" rel="noopener">Shanghai Junshi Bioscience Co. Ltd. (1877 HK)</a>.3. Market review:Last week, stock price for healthcare sector in A share decreased 7.1%, while CSI 300 decreased 3.91% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:
It is expected that the market size of IBD (Inflammatory Bowel Disease) drug therapy in China would keep growing in the next five years.
Since COVID-19 virus was detected in imported reagents this time, considering safety factors, the trend of import substitution for reagent varieties is expected to accelerate.
In the field of high-end antibiotics, Chinese enterprises have yet to make breakthroughs.
2. Company news:News about the progress of new drugs from BeiGene Ltd (6160 HK), Harbour Biomed (2142 HK), Antengene (6996 HK) and Shanghai Junshi Bioscience Co. Ltd. (1877 HK).3. Market review:Last week, stock price for healthcare sector in A share decreased 7.1%, while CSI 300 decreased 3.91% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:<ul>
<li>The National Healthcare Security Administration (NHSA) released new interim procedures about the medical insurance coverage for the retail pharmacies, which will come into effect on February 1st, 2021.</li>
<li>The epidemic since the end of 2019 has brought a large demand for blood products.</li>
<li>With the improvement of affordability, the expansion of medical insurance coverage and the increase of R&amp;D investment, the biological drug market size is expected to further expand.</li>
</ul>2. Company news:News about the progress of new drugs and new license agreement of Fosun Kite, <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a>, <a href="https://www.smartkarma.com/entities/innovent-biologics-inc" target="_blank" data-smartkarma-citation="entities:27452:1" rel="noopener">Innovent Biologics Inc (1801 HK)</a> and <a href="https://www.smartkarma.com/entities/betta-pharmaceuticals-co-ltd" target="_blank" data-smartkarma-citation="entities:25883:1" rel="noopener">Betta Pharmaceuticals (300558 CH)</a>.3. Market review:Last week, stock price for healthcare sector in A share decreased 2.41%, while CSI 300 decreased 0.68% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:
The National Healthcare Security Administration (NHSA) released new interim procedures about the medical insurance coverage for the retail pharmacies, which will come into effect on February 1st, 2021.
The epidemic since the end of 2019 has brought a large demand for blood products.
With the improvement of affordability, the expansion of medical insurance coverage and the increase of R&amp;D investment, the biological drug market size is expected to further expand.
2. Company news:News about the progress of new drugs and new license agreement of Fosun Kite, BeiGene Ltd (6160 HK), Innovent Biologics Inc (1801 HK) and Betta Pharmaceuticals (300558 CH).3. Market review:Last week, stock price for healthcare sector in A share decreased 2.41%, while CSI 300 decreased 0.68% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Bottom-Up

BeiGene has outlicensed ex-China rights to its PD-1 tislelizumab to Novartis on favorable terms, validating the competitive position of this compound in a crowded market. Further, the agreement marks a growing trend of Chinese companies outlicensing products to multinationals, which can have a leveraged benefit on their P&amp;Ls and valuations.

BeiGene has outlicensed ex-China rights to its PD-1 tislelizumab to Novartis on favorable terms, validating the competitive position of this compound in a crowded market. Further, the agreement marks a growing trend of Chinese companies outlicensing products to multinationals, which can have a leveraged benefit on their P&amp;Ls and valuations.

BeiGene: Novartis Grabs Tislelizumab Rights

We spend a substantial portion of our time thinking about oncology in China: one of the largest unmet needs in healthcare globally. The World Health Organization estimates that there are 4.3 million new cases and 2.9 million deaths annually. Historically, treatment options have been limited compared to the US, EU, and many of China’s neighbors. Fortunately, the government has implemented several reforms in recent years to accelerate development and importation of innovative treatments and to provide reimbursement for them. This Insight includes names to consider for two approaches to invest in this opportunity:1) Invest in the leading multi-asset oncology companies.2) Invest in a basket of companies with narrower oncology offerings.

We spend a substantial portion of our time thinking about oncology in China: one of the largest unmet needs in healthcare globally. The World Health Organization estimates that there are 4.3 million new cases and 2.9 million deaths annually. Historically, treatment options have been limited compared to the US, EU, and many of China’s neighbors. Fortunately, the government has implemented several reforms in recent years to accelerate development and importation of innovative treatments and to provide reimbursement for them. This Insight includes names to consider for two approaches to invest in this opportunity:1) Invest in the leading multi-asset oncology companies.2) Invest in a basket of companies with narrower oncology offerings.

BeiGene: Cancer Treatment in China--The Underestimated Opportunity

Equity Capital Markets

Bio-Thera Solutions Ltd / Equity Capital Markets

In February 2020, <a href="https://www.smartkarma.com/entities/bio-thera-solutions-ltd" target="_blank" data-smartkarma-citation="entities:29127:1" rel="noopener">Bio-Thera Solutions Ltd (688177 CH)</a> completed its listing on the SSE STAR Market. Then in 2020/2H, Bio-Thera planned to list on the Hong Kong Stock Exchange, becoming another biopharmaceutical company with "A+H" listing. Currently the Company’s market value was about RMB13.5 billion. So how about this company? The following provides the insights on its pipeline and related competitive landscape.

In February 2020, Bio-Thera Solutions Ltd (688177 CH) completed its listing on the SSE STAR Market. Then in 2020/2H, Bio-Thera planned to list on the Hong Kong Stock Exchange, becoming another biopharmaceutical company with "A+H" listing. Currently the Company’s market value was about RMB13.5 billion. So how about this company? The following provides the insights on its pipeline and related competitive landscape. 

Pre-IPO Bio-Thera Solutions - Insights on Pipeline and the Competitive Landscape

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)

China Healthcare Weekly (Jan.29)

The article analyzed industry viewpoints in terms of IBD drug therapy, import substitution for reagent varieties and high-end antibiotics market,...

Xinyao (Criss) Wang

China Healthcare Weekly (Jan.15)

This article analyzed the new interim procedures released by NHSA, trend of blood products and biological drug market, and also include company...

Xinyao (Criss) Wang

BeiGene: Novartis Grabs Tislelizumab Rights

BeiGene's deal with Novartis for PD-1 tislelizumab validates its competitive position, and marks a rising trend of Chinese companies licensing...

Kemp Dolliver, CFA

BeiGene: Cancer Treatment in China--The Underestimated Opportunity

We think that cancer is underdiagnosed and undertreated in China. We analyze the data and propose two approaches for investing in this theme.

Kemp Dolliver, CFA

Pre-IPO Bio-Thera Solutions - Insights on Pipeline and the Competitive Landscape

This article summarized the insights on major products of Bio-Thera Solutions in the pipeline and related competitive landscape with other key...

Xinyao (Criss) Wang

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