HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Shanghai Junshi Biosciences  / Equity Bottom-Up

Last month, <a href="https://www.smartkarma.com/entities/shanghai-junshi-bioscience-a" target="_blank" data-smartkarma-citation="entities:31070:1" rel="noopener">Shanghai Junshi Bioscience (688180 CH)</a> released the performance announcement in 2020. Junshi is expected to achieve the revenue in 2020 of RMB1.595 billion, up 105.77% YoY. The Company's net loss attributed to shareholders could reach RMB1.672 billion, up 123.8% YoY. Meanwhile, the R&amp;D expenses are expected to reach RMB1.824 billion in 2020, up 92.79% YoY, which even exceeded the total revenue in 2020. It is also worth mentioning that the moment of glory of Junshi seems to be when it was listed on the SSE STAR Market in July 2020, with the market value of about RMB150 billion, and then its share price went all the way down to hit the bottom in December 2020 at RMB 64.8/share. On March 19, 2021, Junshi’s market value was RMB79 billion, down about 50% since July 2020. So could Junshi turn things around?

Last month, Shanghai Junshi Bioscience (688180 CH) released the performance announcement in 2020. Junshi is expected to achieve the revenue in 2020 of RMB1.595 billion, up 105.77% YoY. The Company's net loss attributed to shareholders could reach RMB1.672 billion, up 123.8% YoY. Meanwhile, the R&amp;D expenses are expected to reach RMB1.824 billion in 2020, up 92.79% YoY, which even exceeded the total revenue in 2020. It is also worth mentioning that the moment of glory of Junshi seems to be when it was listed on the SSE STAR Market in July 2020, with the market value of about RMB150 billion, and then its share price went all the way down to hit the bottom in December 2020 at RMB 64.8/share. On March 19, 2021, Junshi’s market value was RMB79 billion, down about 50% since July 2020. So could Junshi turn things around?

Shanghai Junshi Bioscience - Here Are the Challenges

Thematic (Sector/Industry)

With the gradual marketing of biological drugs, almost all of the world's top ten blockbuster drugs were dominated by biological drugs. From the global total sales of blockbuster drugs announced in 2020, the top three were AbbVie's Humira ($19,832 million sales in 2020), Merck’s Keytruda ($14,380 million sales in 2020) and BMS’s Revlimid ($12,106 million sales in 2020). Throughout the world, biological drugs have become the main direction of future development. In China, domestic pharmaceutical enterprises have also laid out biological drug products in their pipelines. The following mainly analyzed the development situation and investment opportunities in this market.

With the gradual marketing of biological drugs, almost all of the world's top ten blockbuster drugs were dominated by biological drugs. From the global total sales of blockbuster drugs announced in 2020, the top three were AbbVie's Humira ($19,832 million sales in 2020), Merck’s Keytruda ($14,380 million sales in 2020) and BMS’s Revlimid ($12,106 million sales in 2020). Throughout the world, biological drugs have become the main direction of future development. In China, domestic pharmaceutical enterprises have also laid out biological drug products in their pipelines. The following mainly analyzed the development situation and investment opportunities in this market. 

Industry Report - Insights on China Biological Drug Market

Bio-Thera Solutions Ltd / Equity Bottom-Up

In the first quarter of 2021, following the failure of the BAT8001 phase III clinical trial, <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> announced the suspension of R&amp;D of two other projects in the pipeline, BAT8003 and BAT1306. It is estimated that Bio-Thera has invested about RMB340 million in these three projects. Currently, Bio-Thera has only one product (Qletli) on the market. In the financial reports of 2020, the revenue was RMB185 million and Qletli contributed about RMB183 million, almost the entire revenue of the Company. Meanwhile, the net loss in 2020 was RMB513 million, and the Company has been suffering from losses for five consecutive years. So, what's next for Bio-Thera after R&amp;D setbacks and years of losses?

In the first quarter of 2021, following the failure of the BAT8001 phase III clinical trial, Bio-Thera Solutions Ltd (688177 CH) announced the suspension of R&amp;D of two other projects in the pipeline, BAT8003 and BAT1306. It is estimated that Bio-Thera has invested about RMB340 million in these three projects. Currently, Bio-Thera has only one product (Qletli) on the market. In the financial reports of 2020, the revenue was RMB185 million and Qletli contributed about RMB183 million, almost the entire revenue of the Company. Meanwhile, the net loss in 2020 was RMB513 million, and the Company has been suffering from losses for five consecutive years. So, what's next for Bio-Thera after R&amp;D setbacks and years of losses?

Bio-Thera Solutions (688177.CH) - What's Next for Bio-Thera After R&D Setbacks and Years of Losses?

1. Industry viewpoints:<ul>
<li>In response to the rising incidence of infertility in recent years, the Central Committee of the China Democratic League plans to submit a proposal during the Two Sessions in March this year.</li>
<li>China's market for orphan drugs has huge potential and still remains untapped.</li>
<li>At present, in the domestic market of neurointerventional devices, multinational enterprises occupy the dominant position, and the overall scale of domestic enterprises is not large. The main reason is their product development strategy.</li>
</ul>2. Company news: News about the new acquisition and updated progress of new drugs from <a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec Co. Ltd. (2359 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>, <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a> and <a href="https://www.smartkarma.com/entities/akeso-biopharma-inc" target="_blank" data-smartkarma-citation="entities:28830:1" rel="noopener">Akeso Biopharma Inc (9926 HK)</a>. 3. Market review:Last week, stock price for healthcare sector in A share decreased 2.1%, while CSI 300 decreased 1.39% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:
In response to the rising incidence of infertility in recent years, the Central Committee of the China Democratic League plans to submit a proposal during the Two Sessions in March this year.
China's market for orphan drugs has huge potential and still remains untapped.
At present, in the domestic market of neurointerventional devices, multinational enterprises occupy the dominant position, and the overall scale of domestic enterprises is not large. The main reason is their product development strategy.
2. Company news: News about the new acquisition and updated progress of new drugs from WuXi AppTec Co. Ltd. (2359 HK), Innovent Biologics Inc (1801 HK), BeiGene Ltd (6160 HK) and Akeso Biopharma Inc (9926 HK). 3. Market review:Last week, stock price for healthcare sector in A share decreased 2.1%, while CSI 300 decreased 1.39% 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>In the aspect of Chinese patent medicines, the main varieties of proprietary Chinese medicine are expected to be the first to be included in VBP, and medicines of stable quality are a higher priority.</li>
<li>Chemiluminescence is in the stage of rapid growth and the trend of intensive procurement of IVD consumables could drive import substitution.</li>
<li>The wellness tourism market has a good development environment and a huge growth potential.</li>
</ul>2. Company news:News about the updated progress of COVID-19 vaccine and new drugs from <a href="https://www.smartkarma.com/entities/cansino-biologics-inc" target="_blank" data-smartkarma-citation="entities:27739:1" rel="noopener">CanSino Biologics Inc (6185 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>, <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/akeso-biopharma-inc" target="_blank" data-smartkarma-citation="entities:28830:1" rel="noopener">Akeso Biopharma Inc (9926 HK)</a>.3. Market review:Last week, stock price for healthcare sector in A share decreased 8.2%, while CSI 300 decreased 7.65% over the same period of time. 4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:
In the aspect of Chinese patent medicines, the main varieties of proprietary Chinese medicine are expected to be the first to be included in VBP, and medicines of stable quality are a higher priority.
Chemiluminescence is in the stage of rapid growth and the trend of intensive procurement of IVD consumables could drive import substitution.
The wellness tourism market has a good development environment and a huge growth potential.
2. Company news:News about the updated progress of COVID-19 vaccine and new drugs from CanSino Biologics Inc (6185 HK), Innovent Biologics Inc (1801 HK), Antengene (6996 HK), and Akeso Biopharma Inc (9926 HK).3. Market review:Last week, stock price for healthcare sector in A share decreased 8.2%, while CSI 300 decreased 7.65% over the same period of time. 4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China

Akeso Inc. operates operatesa s a biotech company. The compnay develops treatments and therapies for various types of diseases. Akeso serves cutomers worldwide

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Akeso Biopharma Inc (9926 HK)

Shanghai Junshi Bioscience - Here Are the Challenges

The article analyzed the concerns and challenges that Junshi has to face in terms of PD-1, COVID-19 antibody drug, other products in the pipeline...

Xinyao (Criss) Wang

Industry Report - Insights on China Biological Drug Market

The article analyzed China biological drug market in terms of monoclonal antibody, bispecific antibody,ADC,domestic application to NMPA and also...

Xinyao (Criss) Wang

Bio-Thera Solutions (688177.CH) - What's Next for Bio-Thera After R&D Setbacks and Years of Losses?

The article analyzed the concerns after the suspension of R&D of its three core products, the challenges of its listed product Qletli,and also the...

Xinyao (Criss) Wang

China Healthcare Weekly (Mar.5)

The article analyzed a new proposal about China infertility, domestic market for orphan drugs, neurointerventional devices, news about WuXi AppTec,...

Xinyao (Criss) Wang

China Healthcare Weekly (Feb.26)

This article analyzed the VBP policy on Chinese patent medicines, the growth potential in the chemiluminescence and intensive procurement of IVD...

Xinyao (Criss) Wang

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