Pan-Asia Index Flows & Special Situations, Quiddity Advisors

Janaghan Jeyakumar, CFA

Pan-Asia Index Flows & Special Situations

Quiddity Advisors

Pan-Asia Catalysts/Events

Event-Driven

<ul>
<li>The HS HK-Listed Biotech Index ("Hang Seng Biotech Index") represents the 50 largest biotech companies listed in Hong Kong (HKEX).</li>
<li>The official index changes and indicative weights for the December 2024 index rebal event will be announced on Friday 22nd November 2024.</li>
<li>In this insight, we take a look at our updated flow expectations.</li>
</ul>


The HS HK-Listed Biotech Index ("Hang Seng Biotech Index") represents the 50 largest biotech companies listed in Hong Kong (HKEX).
The official index changes and indicative weights for the December 2024 index rebal event will be announced on Friday 22nd November 2024.
In this insight, we take a look at our updated flow expectations.


Quiddity Leaderboard Hang Seng Biotech Dec 24: Positive Flows for Beigene and Innovent Biologics

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

Innovent Biologics Inc / Equity Bottom-Up

<ul><li>To cancel the related-party transaction to protect the interests of investors.</li><li>Innovent previously announced its wholly-owned subsidiary Fortvita would sell 20.39% of shares for a transaction price of US$20.5mn, with the subscribing party being Lostrancos.</li><li>Dr. Yu Dechao, the Chairman and Executive Director, will hold 82.93% of Lostrancos. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

To cancel the related-party transaction to protect the interests of investors.Innovent previously announced its wholly-owned subsidiary Fortvita would sell 20.39% of shares for a transaction price of US$20.5mn, with the subscribing party being Lostrancos.Dr. Yu Dechao, the Chairman and Executive Director, will hold 82.93% of Lostrancos. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Innovent Biologics (1801 HK) - Strong fundamentals enriched by a wealth of R&D catalysts

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>The third batch of TCM VBP expansion and successive price reduction will continue to be implemented. The price dominance of exclusive TCM patent medicines may collapse based on this VBP.</li>
<li>Since 2019, the ADC drug market has entered a period of rapid growth, the significance of which is that the good story of ADC CXO is able to continue.</li>
<li>Innovent divested important subsidiary at low price, which apparently "irritated" investors. Valuation of Innovent will move towards traditional enterprise such as CSPC. Time to offload Innovent as investment logic changes.</li>
</ul>


The third batch of TCM VBP expansion and successive price reduction will continue to be implemented. The price dominance of exclusive TCM patent medicines may collapse based on this VBP.
Since 2019, the ADC drug market has entered a period of rapid growth, the significance of which is that the good story of ADC CXO is able to continue.
Innovent divested important subsidiary at low price, which apparently "irritated" investors. Valuation of Innovent will move towards traditional enterprise such as CSPC. Time to offload Innovent as investment logic changes.


China Healthcare Weekly (Nov.3) - TCM VBP Update, ADC CXO's Logic Is Solid, "Ugly Move" Of Innovent

<ul><li>Strong product sales growth continued. In 1H24, Innovent recorded total revenue of RMB3.95bn, including RMB3.81bn product sales (+55% YoY, +17% HoH), representing 53% of our previous full-year estimate, surpassing our expectations.</li><li>The strong product sales growth was mainly driven by the sintilimab and other new products.</li><li>According to Eli Lilly, sales of sintilimab in 1H24 reached US$240mn (or RMB1.71bn), +46% YoY, bolstered by expanded NRDL coverage and stable pricing. </li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Strong product sales growth continued. In 1H24, Innovent recorded total revenue of RMB3.95bn, including RMB3.81bn product sales (+55% YoY, +17% HoH), representing 53% of our previous full-year estimate, surpassing our expectations.The strong product sales growth was mainly driven by the sintilimab and other new products.According to Eli Lilly, sales of sintilimab in 1H24 reached US$240mn (or RMB1.71bn), +46% YoY, bolstered by expanded NRDL coverage and stable pricing. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Innovent Biologics (1801 HK) - 2025 EBITDA Breakeven Goal Unchanged

Healthcare Equity Analyst - Emerging & Dev Markets, daaimon

Avien Pillay

Healthcare Equity Analyst - Emerging & Dev Markets

daaimon

daaimon is an independent research company focusing on healthcare and consumer sectors across developed and emerging markets. We produce insightful research which challenges conventional thinking. In particular, we look for new ideas by testing consensus forecasts and markets expectations.

<ul>
<li>Dupert, a drug for the special treatment of non-small cell cancer has been approved by the NMPA.</li>
<li>In 2022, China recorded the highest number of new cancer cases, and their exceptional high incidence of smoking is of particular concern.</li>
<li>Innovent’s portfolio of nine oncology drugs is very attractive in the biggest cancer market.</li>
</ul>


Dupert, a drug for the special treatment of non-small cell cancer has been approved by the NMPA.
In 2022, China recorded the highest number of new cancer cases, and their exceptional high incidence of smoking is of particular concern.
Innovent’s portfolio of nine oncology drugs is very attractive in the biggest cancer market.


Innovent Biologics (1801 HK) Adds to Its Oncology Portfolio

China

Innovent Biologics, Inc. operates as a biopharmaceutical company. The Company develops, manufactures, and distributes monoclonal antibody drug candidates for the treatment of oncology, ophthalmology, autoimmune, cardiovascular, and other diseases. Innovent Biologics serves customers in China.

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Innovent Biologics Inc (1801 HK)

Quiddity Leaderboard Hang Seng Biotech Dec 24: Positive Flows for Beigene and Innovent Biologics

QuantumPharm (2228 HK) and Fangzhou (6086 HK) are expected ADDs. 3D Medicines (1244 HK) and CARSgen Therapeutics (2171 HK) are expected DELs.

Janaghan Jeyakumar, CFA

Innovent Biologics (1801 HK) - Strong fundamentals enriched by a wealth of R&D catalysts

Innovent previously announced its wholly-owned subsidiary Fortvita would sell 20.39% of shares for a transaction price of US$20.5mn, with the...

CMB International

China Healthcare Weekly (Nov.3) - TCM VBP Update, ADC CXO's Logic Is Solid, "Ugly Move" Of Innovent

The 3rd batch of TCM VBP will hit the performance of exclusive TCM varieties.Due to the "ugly move" of Innovent's management, we advise investors...

Xinyao (Criss) Wang

Innovent Biologics (1801 HK) - 2025 EBITDA Breakeven Goal Unchanged

Strong product sales growth continued. In 1H24, Innovent recorded total revenue of RMB3.95bn, including RMB3.81bn product sales (+55% YoY, +17% HoH)

CMB International

Innovent Biologics (1801 HK) Adds to Its Oncology Portfolio

Innovent’s portfolio of nine approved oncology drugs, and pipeline of late-stage oncology drugs makes it a very attractive asset in the biggest...

daaimon

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