HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

VISEN Pharmaceuticals / Equity Capital Markets

<ul>
<li>VISEN’s candidates are potential Best-In-Class or represent novel technologies, but they need to obtain doctors/authorities’ recognition.The competition pattern in growth hormone market would continue to deteriorate with increasing new entrants. </li>
<li>Once the growth hormone market is taken seriously by the regulatory authorities, the industry's growth momentum would be challenged. The actual market space could be greatly reduced as a result.</li>
<li>In front of competitors with strong sales system, commercialization is a big challenge for <a href="https://www.smartkarma.com/entities/visen-pharmaceuticals" target="_blank" data-smartkarma-citation="entities:36555:1" rel="noopener">VISEN. T</a>he Company has yet to prove this.VBP news on rhGH would weigh on market sentiment.</li>
</ul>


VISEN’s candidates are potential Best-In-Class or represent novel technologies, but they need to obtain doctors/authorities’ recognition.The competition pattern in growth hormone market would continue to deteriorate with increasing new entrants. 
Once the growth hormone market is taken seriously by the regulatory authorities, the industry's growth momentum would be challenged. The actual market space could be greatly reduced as a result.
In front of competitors with strong sales system, commercialization is a big challenge for VISEN. The Company has yet to prove this.VBP news on rhGH would weigh on market sentiment.


Pre-IPO VISEN Pharmaceuticals - The Product Pipeline and the Key Risks

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Quantitative Analysis

<ul>
<li>We analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine. </li>
<li>Financial, information technology and industrials led the inflow in Jan.</li>
<li>We highlight inflows into CATL, Moutai, Ping An Insurance, Longi Green, Wuliangye.</li>
</ul>


We analyze the monthly Shanghai/Shenzhen northbound Connect flows with our data engine. 
Financial, information technology and industrials led the inflow in Jan.
We highlight inflows into CATL, Moutai, Ping An Insurance, Longi Green, Wuliangye.


Northbound Flows Monthly: $21bn Inflows in January

Equity Bottom-Up

Anhui Anke Biotechnology (Group) / Equity Bottom-Up

<ul>
<li>The recent plunge in share price of <a href="https://www.smartkarma.com/entities/anhui-anke-biotechnology-group-co-ltd" target="_blank" data-smartkarma-citation="entities:11475:1" rel="noopener">Anhui Anke Biotechnology </a> and <a href="https://www.smartkarma.com/entities/changchun-high-new-technology-industry-group-inc-a" target="_blank" data-smartkarma-citation="entities:1371:1" rel="noopener">Changchun High &amp; New Tech (000661 CH)</a> (CCHT) was mainly due to the volume-based purchase (VBP) on recombinant human growth hormone. </li>
<li>The best result is both CCHT and Anke quit this VBP.However,if CCHT quits but Anke wins the bidding and applies low-price strategy,CCHT couldn’t keep its price system and market share. </li>
<li>Overall, growth hormone is a market with increasing competition and shrinking market size as fewer babies are born in China. So, developing more new indications would be the way out.</li>
</ul>


The recent plunge in share price of Anhui Anke Biotechnology  and Changchun High &amp; New Tech (000661 CH) (CCHT) was mainly due to the volume-based purchase (VBP) on recombinant human growth hormone. 
The best result is both CCHT and Anke quit this VBP.However,if CCHT quits but Anke wins the bidding and applies low-price strategy,CCHT couldn’t keep its price system and market share. 
Overall, growth hormone is a market with increasing competition and shrinking market size as fewer babies are born in China. So, developing more new indications would be the way out.


Anke Biotechnology (300009CH) Vs Changchun High & New Tech (000661CH)-Growth Hormone VBP and Outlook

Thematic (Sector/Industry)

<ul>
<li>Last week, Guangdong province issued a volume-based purchase (VBP) document, among which recombinant human growth hormone (rhGH) and blood products are included, causing widespread concern in the market.</li>
<li>The survival problem of listed biotech companies is becoming more urgent. In primary market, investment banks have started recommending CEOs of unlisted biotech companies to “reconsider” their IPO plans.</li>
<li>In terms of internationalization, companies with three characteristics are likely to become international pharmaceutical enterprises in 10 years.</li>
</ul>


Last week, Guangdong province issued a volume-based purchase (VBP) document, among which recombinant human growth hormone (rhGH) and blood products are included, causing widespread concern in the market.
The survival problem of listed biotech companies is becoming more urgent. In primary market, investment banks have started recommending CEOs of unlisted biotech companies to “reconsider” their IPO plans.
In terms of internationalization, companies with three characteristics are likely to become international pharmaceutical enterprises in 10 years.


China Healthcare Weekly (Jan.21)-Growth Hormone VBP,Biotech Survival,Internationalization Conditions

Industry viewpoints:
<ul>
<li>VBP on recombinant human growth hormone</li>
<li>The differentiation of business models between big pharma/biopharma and biotech companies</li>
<li>A view on the development prospects of innovative drugs in China </li>
</ul>
Company news:
News about the updated progress on new drugs of <a href="https://www.smartkarma.com/entities/hansoh-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:23675:1" rel="noopener">Hansoh Pharmaceutical (3692 HK)</a>, <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> and <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>.
Market review:
Last week, stock price for healthcare sector in A share decreased 1.98%, while CSI 300 increased 0.04% over the same period of time.
Risk disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:

VBP on recombinant human growth hormone
The differentiation of business models between big pharma/biopharma and biotech companies
A view on the development prospects of innovative drugs in China 

Company news:
News about the updated progress on new drugs of Hansoh Pharmaceutical (3692 HK), Akeso Biopharma Inc (9926 HK) and Luye Pharma (2186 HK).
Market review:
Last week, stock price for healthcare sector in A share decreased 1.98%, while CSI 300 increased 0.04% over the same period of time.
Risk disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China Healthcare Weekly (Oct15)-Growth Hormone VBP, Biotech's Business Model,Innovative Drug Outlook

China

Anhui Anke Biotechnology (Group) Company Ltd. develops, manufactures and markets pharmaceuticals and health-care products including genetic and cellular engineering research and products.

Anhui Anke Biotechnology (Group) (300009 CH)

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Anhui Anke Biotechnology (Group) (300009 CH)

Pre-IPO VISEN Pharmaceuticals - The Product Pipeline and the Key Risks

VISEN’s pipeline has strength, but fierce competition/VBP/increasingly stringent regulatory environment will bring challenges to...

Xinyao (Criss) Wang

Northbound Flows Monthly: $21bn Inflows in January

We analyzed the Shanghai/Shenzhen Connect Scheme for January and highlight flows for CATL, Moutai, Ping An Insurance, Longi Green, Wuliangye.

Ke Yan, CFA, FRM

Anke Biotechnology (300009CH) Vs Changchun High & New Tech (000661CH)-Growth Hormone VBP and Outlook

We analyzed the impact and outlook of growth hormone VBP that led to share price plunge of Anke and CCHT. We also analyzed the bidding strategy for...

Xinyao (Criss) Wang

China Healthcare Weekly (Jan.21)-Growth Hormone VBP,Biotech Survival,Internationalization Conditions

We analyzed the impact of growth hormone/blood products VBP; the "reconsideration" of biotech IPO in primary market, survival problem of listed...

Xinyao (Criss) Wang

China Healthcare Weekly (Oct15)-Growth Hormone VBP, Biotech's Business Model,Innovative Drug Outlook

The article analyzed the VBP on recombinant human growth hormone, the difference in business model of big pharma/biopharma and biotech, and the...

Xinyao (Criss) Wang

Price Gauge

52-week Range

Market Cap (USDm)

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