HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<p><strong>Industry viewpoints:</strong></p>
<ul>
<li>The State Council has released a landmark document to define its medical insurance plan for the next four years.</li>
<li>It can be seen that the NHSA has clarified the direction and the coverage of "basic" medical insurance on some high-value consumables such as dental implants.</li>
<li>Related policies are released to support domestic medical devices and consumables. </li>
</ul>
<p><strong>Company news:</strong></p>
<p style="text-align: start;">News about the updated progress on new drugs and cooperation agreement of <a href="https://www.smartkarma.com/entities/jiangsu-hengrui-medicine-co-ltd" target="_blank" data-smartkarma-citation="entities:14128:1" rel="noopener">Jiangsu Hengrui Medicine (600276 CH)</a>, <a href="https://www.smartkarma.com/entities/jw-therapeutics" target="_blank" data-smartkarma-citation="entities:29679:1" rel="noopener">JW Therapeutics (2126 HK)</a> and <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>.</p>
<p><strong>Market review:</strong> </p>
<p style="text-align: start;">Last week, stock price for healthcare sector in A share increased 0.05%, while CSI 300 increased 0.27% over the same period of time. </p>
<p><strong>Risk disclosure:</strong></p>
<p style="text-align: start;">Policy risk, R&amp;D risk, Company risk and COVID-19 risk.</p>

Industry viewpoints:

The State Council has released a landmark document to define its medical insurance plan for the next four years.
It can be seen that the NHSA has clarified the direction and the coverage of "basic" medical insurance on some high-value consumables such as dental implants.
Related policies are released to support domestic medical devices and consumables. 

Company news:
News about the updated progress on new drugs and cooperation agreement of Jiangsu Hengrui Medicine (600276 CH), JW Therapeutics (2126 HK) and Innovent Biologics Inc (1801 HK).
Market review: 
Last week, stock price for healthcare sector in A share increased 0.05%, while CSI 300 increased 0.27% over the same period of time. 
Risk disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China Healthcare Weekly (Oct.1) - A Landmark Document Released, Dental Implants, Core Data Security

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

<div><p><a href="https://www.smartkarma.com/entities/abbisko-cayman-limited" target="_blank" data-smartkarma-citation="entities:33511:1" rel="noopener">Abbisko Cayman (ABB HK)</a> is a clinical-stage biopharmaceutical company focused on the discovery and development of innovative and differentiated small molecule oncology therapies. Abbisko has developed a pipeline of 14 candidates focused on oncology, including five candidates at the clinical stage The core products are ABSK091, a pan-FGFR inhibitor licensed from <a href="https://www.smartkarma.com/entities/astrazeneca-plc" target="_blank" data-smartkarma-citation="entities:21824:1" rel="noopener">AstraZeneca PLC (AZN LN)</a> and ABSK011, an FGFR4 inhibitor. </p></div><div><p>Abbisko has launched an HKEx IPO to raise net proceeds of HK$1,585.1 million ($204 million) at the mid-point of the IPO price range of HK$12.16-12.46 per share.</p></div><div><p>Eleven cornerstone investors have agreed to invest about $128 million in the IPO (57.32% of the offer shares at the mid-point of the IPO price range). Seven out of the eleven cornerstones are existing investors. They are Janchor Partners, Lilly Asia Ventures, Temasek, Lake Bleu Capital, OrbiMed, Warburg Pincus and BlackRock. The four cornerstones which are not existing shareholders are AIHC Capital, UBS AM, Hudson Bay and Vivo Funds.</p></div><div><div><div class="content-highlight"><p>In <a href="https://www.smartkarma.com/insights/abbisko-ipo-a-promising-but-longer-term-prognosis" target="_blank" data-smartkarma-citation="insights:58004" rel="noopener">Abbisko IPO: A Promising but Longer Term Prognosis</a>, we stated that while both core products are at an early stage of development, promising results from trials, management’s track record and the exceptional line-up of blue-chip backers suggest that the product candidates have the potential to succeed in a fiercely competitive market. We concluded that Abbisko is worth a closer look. However, our valuation analysis suggests that the IPO price range is full and we would remain on the sidelines awaiting a better entry opportunity. </p></div></div></div>

Abbisko Cayman (ABB HK) is a clinical-stage biopharmaceutical company focused on the discovery and development of innovative and differentiated small molecule oncology therapies. Abbisko has developed a pipeline of 14 candidates focused on oncology, including five candidates at the clinical stage The core products are ABSK091, a pan-FGFR inhibitor licensed from AstraZeneca PLC (AZN LN) and ABSK011, an FGFR4 inhibitor. Abbisko has launched an HKEx IPO to raise net proceeds of HK$1,585.1 million ($204 million) at the mid-point of the IPO price range of HK$12.16-12.46 per share.Eleven cornerstone investors have agreed to invest about $128 million in the IPO (57.32% of the offer shares at the mid-point of the IPO price range). Seven out of the eleven cornerstones are existing investors. They are Janchor Partners, Lilly Asia Ventures, Temasek, Lake Bleu Capital, OrbiMed, Warburg Pincus and BlackRock. The four cornerstones which are not existing shareholders are AIHC Capital, UBS AM, Hudson Bay and Vivo Funds.In Abbisko IPO: A Promising but Longer Term Prognosis, we stated that while both core products are at an early stage of development, promising results from trials, management’s track record and the exceptional line-up of blue-chip backers suggest that the product candidates have the potential to succeed in a fiercely competitive market. We concluded that Abbisko is worth a closer look. However, our valuation analysis suggests that the IPO price range is full and we would remain on the sidelines awaiting a better entry opportunity. 

<p><a href="https://www.smartkarma.com/entities/abbisko-cayman-limited" target="_blank" data-smartkarma-citation="entities:33511:1" rel="noopener">Abbisko Cayman (ABB HK)</a> is a clinical-stage biopharmaceutical company focused on the discovery and development of innovative and differentiated small molecule oncology therapies. Abbisko has developed a pipeline of 14 candidates focused on oncology, including five candidates at the clinical stage The core products are ABSK091, a pan-FGFR inhibitor licensed from <a href="https://www.smartkarma.com/entities/astrazeneca-plc" target="_blank" data-smartkarma-citation="entities:21824:1" rel="noopener">AstraZeneca PLC (AZN LN)</a> and ABSK011, an FGFR4 inhibitor. Abbisko is pre-marketing an HKEx IPO to raise $300 million, according to press reports. </p><p>Abbisko has a credible management team with a commendable commercialisation track record. The three co-founders together have made contributions to several discovery programs, several of which led to successful commercialisation. Abbisko also has several blue-chip backers such as Lilly Asia Ventures, Sinopharm Capital, Qiming Venture Capital, GIC, Temasek, <a href="https://www.smartkarma.com/entities/carlyle-group-inc" target="_blank" data-smartkarma-citation="entities:33402:1" rel="noopener">Carlyle Group Inc (CG US)</a>, Lake Bleu Capital and OrbiMed. </p><div class="content-highlight"><p>While both core products are at an early stage of development, promising results from trials, management’s track record and the exceptional line-up of blue-chip backers suggest that the product candidates have the potential to succeed in a fiercely competitive market. Overall, we believe that Abbisko is worth a closer look. </p></div>

Abbisko Cayman (ABB HK) is a clinical-stage biopharmaceutical company focused on the discovery and development of innovative and differentiated small molecule oncology therapies. Abbisko has developed a pipeline of 14 candidates focused on oncology, including five candidates at the clinical stage The core products are ABSK091, a pan-FGFR inhibitor licensed from AstraZeneca PLC (AZN LN) and ABSK011, an FGFR4 inhibitor. Abbisko is pre-marketing an HKEx IPO to raise $300 million, according to press reports. Abbisko has a credible management team with a commendable commercialisation track record. The three co-founders together have made contributions to several discovery programs, several of which led to successful commercialisation. Abbisko also has several blue-chip backers such as Lilly Asia Ventures, Sinopharm Capital, Qiming Venture Capital, GIC, Temasek, Carlyle Group Inc (CG US), Lake Bleu Capital and OrbiMed. While both core products are at an early stage of development, promising results from trials, management’s track record and the exceptional line-up of blue-chip backers suggest that the product candidates have the potential to succeed in a fiercely competitive market. Overall, we believe that Abbisko is worth a closer look. 

Abbisko IPO: A Promising but Longer Term Prognosis

Equity Bottom-Up

<p>Recently, <a href="https://www.smartkarma.com/entities/innocare-pharma-ltd" target="_blank" data-smartkarma-citation="entities:28355:1" rel="noopener">InnoCare Pharma Ltd (9969 HK)</a> released 2021/1H financial results. The revenue was RMB102 million, up 13490.51% YoY, which was mainly due to the sales growth of orelabrutinib. Net loss was narrowed from RMB337 in 2020/1H to RMB213 million in 2021/1H, indicating improvement. Meanwhile, InnoCare is also going to be listed on the SSE STAR market, which is expected to be another biopharmaceutical company with "A+H" shares listing. This insight mainly analyzed the core product, pipeline and the concerns of the Company.</p>

Recently, InnoCare Pharma Ltd (9969 HK) released 2021/1H financial results. The revenue was RMB102 million, up 13490.51% YoY, which was mainly due to the sales growth of orelabrutinib. Net loss was narrowed from RMB337 in 2020/1H to RMB213 million in 2021/1H, indicating improvement. Meanwhile, InnoCare is also going to be listed on the SSE STAR market, which is expected to be another biopharmaceutical company with "A+H" shares listing. This insight mainly analyzed the core product, pipeline and the concerns of the Company.

InnoCare Pharma Ltd (9969.HK) - Risk of Becoming Mediocre

<p><strong>Industry viewpoints:</strong></p><ul>
<li>After all the companies in China healthcare industry released their 2021 interim reports, here are the summary and the enlightenment. </li>
<li>With the continuous advancement of medical reform, the reform of public hospital compensation system is an inevitable trend.</li>
<li>The regulated market represented by the United States is the main destination of export of China's varieties of injection.</li>
</ul><p><strong>Company news:</strong></p><p style="text-align: start;">News about the updated progress on new drugs of <a href="https://www.smartkarma.com/entities/kintor-pharmaceutical" target="_blank" data-smartkarma-citation="entities:28884:1" rel="noopener">Kintor Pharmaceutical (9939 HK)</a>, <a href="https://www.smartkarma.com/entities/luye-pharma-group-ltd" target="_blank" data-smartkarma-citation="entities:488:1" rel="noopener">Luye Pharma (2186 HK)</a>, <a href="https://www.smartkarma.com/entities/brii-biosciences" target="_blank" data-smartkarma-citation="entities:33014:1" rel="noopener">Brii Biosciences (2137 HK)</a> and <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>. </p><p><strong>Market review:</strong></p><p style="text-align: start;">Last week, stock price for healthcare sector in A share increased 3.00%, while CSI 300 increased 3.52% over the same period of time.</p><p><strong>Risk disclosure:</strong> </p><p style="text-align: start;">Policy risk, R&amp;D risk, Company risk and COVID-19 risk.</p>

Industry viewpoints:
After all the companies in China healthcare industry released their 2021 interim reports, here are the summary and the enlightenment. 
With the continuous advancement of medical reform, the reform of public hospital compensation system is an inevitable trend.
The regulated market represented by the United States is the main destination of export of China's varieties of injection.
Company news:News about the updated progress on new drugs of Kintor Pharmaceutical (9939 HK), Luye Pharma (2186 HK), Brii Biosciences (2137 HK) and Innovent Biologics Inc (1801 HK). Market review:Last week, stock price for healthcare sector in A share increased 3.00%, while CSI 300 increased 3.52% over the same period of time.Risk disclosure: Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China Healthcare Weekly (Sep10)-2021H1 Results Summary,Hospital Compensation Reform,Injection Export

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)

China Healthcare Weekly (Oct.1) - A Landmark Document Released, Dental Implants, Core Data Security

The insight analyzed a landmark document about medical insurance plan for the next four years,the direction and the coverage of basic medical...

Xinyao (Criss) Wang

Abbisko IPO: Valuation Insights

Abbisko plans to raise $204m (net) at the mid-point of the IPO price range. Our valuation analysis suggests that the IPO price range is full and we...

Arun George

Abbisko IPO: A Promising but Longer Term Prognosis

While both core products are at an early stage of development, promising trials, management’s track record and blue-chip backers suggest that the...

Arun George

InnoCare Pharma Ltd (9969.HK) - Risk of Becoming Mediocre

This article analyzed InnoCare in terms of its core product orelabrutinib, key product candidates in the pipeline, the competitive landscape, the...

Xinyao (Criss) Wang

China Healthcare Weekly (Sep10)-2021H1 Results Summary,Hospital Compensation Reform,Injection Export

The article analyzed the summary and enlightenment of 2021H1 reports of healthcare companies, reform of public hospital compensation system, export...

Xinyao (Criss) Wang

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