HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Changchun High & New Tech A / Equity Bottom-Up

Recently, <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 A (000661 CH)</a> (CCHT) is quite “popular”, because there is news about the growth hormone abuse and the possibility of volume-based purchase (VBP) on growth hormone, resulting in the continuous correction of CCHT’s share price. As of August 13, 2021, the Company’s share price has fallen by over 31% this year. So, does the logic of this Company change? This insight mainly analyzed the business performance, the potential risks and the outlook of CCHT.

Recently, Changchun High &amp; New Tech A (000661 CH) (CCHT) is quite “popular”, because there is news about the growth hormone abuse and the possibility of volume-based purchase (VBP) on growth hormone, resulting in the continuous correction of CCHT’s share price. As of August 13, 2021, the Company’s share price has fallen by over 31% this year. So, does the logic of this Company change? This insight mainly analyzed the business performance, the potential risks and the outlook of CCHT.

Changchun High & New Tech (000661.CH) - Logic Change?

Thematic (Sector/Industry)

Industry viewpoints:
<ul>
<li>The State Council released the supporting measures for the three-child policy so as to further optimize the family planning policy.</li>
<li>With the implementation of favorable policies on promoting the high-quality development of public hospitals, we are optimistic about the long-term development of the medical service and medical device industry.</li>
<li>The National Health Care Security Administration recently issued a new DIP regulation, which will guide the pilot areas to further standardize the implementation of payment based on disease classification.</li>
</ul>
Company news: 
News about the updated progress on drugs of <a href="https://www.smartkarma.com/entities/sinocelltech-group-ltd" target="_blank" data-smartkarma-citation="entities:33456:1" rel="noopener">Sinocelltech Group (688520 CH)</a>, <a href="https://www.smartkarma.com/entities/everest-medicines-ltd" target="_blank" data-smartkarma-citation="entities:29224:1" rel="noopener">Everest Medicines (1952 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/china-medical-system-holdings" target="_blank" data-smartkarma-citation="entities:18736:1" rel="noopener">China Medical System (867 HK)</a>.
Market review:
Last week, stock price for healthcare sector in A share decreased 2.42%, while CSI 300 decreased 0.11% over the same period of time.
Risk disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:

The State Council released the supporting measures for the three-child policy so as to further optimize the family planning policy.
With the implementation of favorable policies on promoting the high-quality development of public hospitals, we are optimistic about the long-term development of the medical service and medical device industry.
The National Health Care Security Administration recently issued a new DIP regulation, which will guide the pilot areas to further standardize the implementation of payment based on disease classification.

Company news: 
News about the updated progress on drugs of Sinocelltech Group (688520 CH), Everest Medicines (1952 HK), Antengene (6996 HK) and China Medical System (867 HK).
Market review:
Last week, stock price for healthcare sector in A share decreased 2.42%, while CSI 300 decreased 0.11% over the same period of time.
Risk disclosure:
Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

As a well-known clinical-stage biopharmaceutical company in China, <a href="https://www.smartkarma.com/entities/i-mab" target="_blank" data-smartkarma-citation="entities:28384:1" rel="noopener">I-Mab (IMAB US)</a> has been developing rapidly in recent years. Meanwhile, its share price skyrocketed from the issue price of $14/share in the beginning of 2020 to $46.62/share on March 26, 2021, up about 233% in more than a year and with the market value of $3.35 billion. The reason why I-MAB is worth investors' attention in 2021 is that the Company has come to a key phase from R&amp;D to commercialization. The following mainly included insights on its core products TJC4, TJ202 and TJ101.

As a well-known clinical-stage biopharmaceutical company in China, I-Mab (IMAB US) has been developing rapidly in recent years. Meanwhile, its share price skyrocketed from the issue price of $14/share in the beginning of 2020 to $46.62/share on March 26, 2021, up about 233% in more than a year and with the market value of $3.35 billion. The reason why I-MAB is worth investors' attention in 2021 is that the Company has come to a key phase from R&amp;D to commercialization. The following mainly included insights on its core products TJC4, TJ202 and TJ101.

I-Mab (IMAB US) - Insights On Core Products TJC4, TJ202 and TJ101

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

Shanghai Henlius Biotech  / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/shanghai-henlius-biotech" target="_blank" data-smartkarma-citation="entities:27888:1" rel="noopener">Shanghai Henlius Biotech (1566213D HK)</a> is a biopharmaceutical company and a non-wholly owned subsidiary of <a href="https://www.smartkarma.com/entities/shanghai-fosun-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:8045:1" rel="noopener">Shanghai Fosun Pharmaceutical (Group) (2196 HK)</a>, a 61% shareholder. In July 2019, Henlius resubmitted its application to list on the Hong Kong Stock Exchange to raise a rumoured $500 million.<div class="content-highlight">Henlius’ core products include commercialised and near-commercial stage biosimilars. In China, Henlius’ core products will address four out of the top five largest biosimilars by forecasted sales revenue from 2023 to 2030, according to Frost &amp; Sullivan. Overall, we believe that most of the core products have strong prospects.</div>

Shanghai Henlius Biotech (1566213D HK) is a biopharmaceutical company and a non-wholly owned subsidiary of Shanghai Fosun Pharmaceutical (Group) (2196 HK), a 61% shareholder. In July 2019, Henlius resubmitted its application to list on the Hong Kong Stock Exchange to raise a rumoured $500 million.Henlius’ core products include commercialised and near-commercial stage biosimilars. In China, Henlius’ core products will address four out of the top five largest biosimilars by forecasted sales revenue from 2023 to 2030, according to Frost &amp; Sullivan. Overall, we believe that most of the core products have strong prospects.

Shanghai Henlius Biotech IPO Initiation: Going Large

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

The oncology treatment landscape in China is evolving rapidly as the government has prioritized access to innovative drugs to meet this significant unmet need. In particular, investors considering the <a href="https://www.smartkarma.com/entities/27888" target="_blank" data-smartkarma-citation="entities:27888:1">Shanghai Henlius Biotech (1566213D HK)</a> listing should be aware of the emergence of a drug that potentially is superior to <a href="https://www.smartkarma.com/entities/27906" target="_blank" data-smartkarma-citation="entities:27906:1">Roche Holding AG (ROG SW)</a>'s Herceptin (and Shanghai Henlius' HLX02) for the treatment of patients with HER2-positive breast cancer (and ultimately HER2-positive gastric cancer). While there should be good demand for cheaper alternatives to Herceptin, the availability of a superior alternative potentially shortens the lifecycle of Herceptin biosimilars. China has only recently "modernized" its drug approval and reimbursement, so there is little precedent to rely upon to estimate the speed and magnitude of changes in the market. As brokers rollout forecasts for the company and HLX02, investors should ask if the numbers somehow reflect this risk.We do not have a view of the offering, but tag this Insight as Bearish because we are highlighting a potential risk.

The oncology treatment landscape in China is evolving rapidly as the government has prioritized access to innovative drugs to meet this significant unmet need. In particular, investors considering the Shanghai Henlius Biotech (1566213D HK) listing should be aware of the emergence of a drug that potentially is superior to Roche Holding AG (ROG SW)'s Herceptin (and Shanghai Henlius' HLX02) for the treatment of patients with HER2-positive breast cancer (and ultimately HER2-positive gastric cancer). While there should be good demand for cheaper alternatives to Herceptin, the availability of a superior alternative potentially shortens the lifecycle of Herceptin biosimilars. China has only recently "modernized" its drug approval and reimbursement, so there is little precedent to rely upon to estimate the speed and magnitude of changes in the market. As brokers rollout forecasts for the company and HLX02, investors should ask if the numbers somehow reflect this risk.We do not have a view of the offering, but tag this Insight as Bearish because we are highlighting a potential risk.

China

Inner Mongolia Furui Medical Science Co Ltd. manufactures and sells hepatology C hinese medicines. The Company's products include anti-fibrosis drug, anti fattyliver disease medicine, and liver fibrosis testing instruments.

Inner Mongolia Furui Medical Scie (300049 CH)

Shanghai Shyndec Pharmaceutical Co.,Ltd. develops, manufactures and distributes pharmaceuticals. The Company's products include antibiotics, hypertension drugs, diet pills, anti-aging drugs, biological products and medicine preparations.

Shanghai Shyndec Pharmaceutical (600420 CH)

Yifan Pharmaceutical Co.,Ltd. manufactures fine biochemicals. The Company's main products include food additives, pharmaceuticals, fine chemical products, calcium pantothenate, and polymer materials. The Company also offers technology development and transfer, in addition to technical advice and services.

Apeloa Pharmaceutical Co., Ltd. manufactures and markets raw material medicines and preparations, including antitumour, antivirus, anti-infectious, cardiovascular, and other medicines.

Shenzhen Hepalink Pharmaceutical Co., Ltd researches, produces and sells heparin pharmaceuticals products.  The Company's products include heparin sodium active pharmaceutical ingredient.

Tonghua Golden-Horse Pharmaceutical Industry Co., Ltd. develops, manufactures and markets medicines, biochemical preparations, and health care products.

Tonghua Golden Horse Pharmcl Indu (000766 CH)

Chongqing Taiji Industry (Group) Co., Ltd. manufactures and markets medicines, healthcare products, medical packing products, and medical instruments.  The Company also imports and exports Chinese medicine materials and medical packing materials.

Chongqing Taiji Industry (Group) A (600129 CH)

Jilin Aodong Pharmaceutical Group Co Ltd develops and manufactures traditional Chinese pharmaceuticals and raises deer. The Company's main products  include brain enhancement, blood enrichment, and other medicines. In addition, Jilin Aodong constructs and operates toll roads.

Jilin Aodong Medicine Industry Group Co (000623 CH)

Tonghua Dongbao Pharmaceutical Co., Ltd. manufactures and markets western medici nes, Chinese medicines, biological products, and plastic building materials.

Tonghua Dongbao Pharmaceutical (600867 CH)

Mayinglong Pharmaceutical Group Company Limited manufactures and markets traditional Chinese medicines and western medicines for the treatment of hemorrhoids and cough.

China Traditional Chinese Medicine Co. Limited, through its subsidiaries, manufactures and sells medicine and pharmaceutical products in China.

China Traditional Chinese Medicine (570 HK)

Neuren Pharmaceuticals Ltd. is a biopharmaceutical company.  The Company researches neurological and metabolic disorders.

SSY Group Limited researches, develops, manufactures, and sells a wide range of pharmaceutical products.  The Company sells non PVC soft bags, PP plastic bottles, and glass bottle infusions.

Supernus Pharmaceuticals Inc. is a specialty pharmaceutical company. The Company develops and markets proprietary drugs for the treatment of central nervous system diseases and disorders. Supernus has developed a portfolio of clinical stage drugs to address neurological and psychological problems such as epilepsy, conduct disorder, Parkinson's disease, ADHD, depression and anxiety.

TSUMURA & CO. manufactures and sells pharmaceutical products including Chinese medicines.  The Company also manufactures and sells bathing products, cosmetics, and other healthcare and toiletry products.  Tsumura & Co. sells its products in Japan and overseas markets.

Square Pharmaceuticals Ltd. manufactures pharmaceuticals. The Company's products include Alimentary preparations, Antiallergy preparations, Antidiabetic preparations, and Antihaemorrhagic.

Haw Par Corporation Limited is an investment holding company whose subsidiaries manufacture, market, and trade healthcare products under the Tiger and Kwan Loong brand names.  The Company also manufactures dietary supplements and pharmaceuticals, and operates recreational centers.  Haw Par invests in properties and securities.

Sanofi India Limited manufactures pharmaceuticals and chemicals. The Company has a worldwide presence, an extensive portfolio of prescription medicines, a portfolio of vaccines, major biological products, generics medicines, consumer healthcare, animal healthcare, and has a presence in both traditional and emerging markets.

Astrazeneca Pharma India Ltd manufactures basic drugs, pharmaceutical formulations, fine chemicals and industrial chemicals.  The Company's popular drugs include "Betaloc Durules," "Sensorcaine," "Theobric," "Restomycin," "Bromenyl" and "Febrafen."

The United Laboratories International Holdings Limited produces and distributes pharmaceutical products. The Company's products include finished products, APIs, intermediates, and capsules.

The United Laboratories International Holdings Limited (3933 HK)

The United Laboratories International Holdings Limited

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)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Anhui Anke Biotechnology (Group) (300009 CH)

Changchun High & New Tech (000661.CH) - Logic Change?

The article analyzed Changchun High & New Tech in terms of its 2021/1H financial results,media exposure of growth hormone abuse, possibility of...

Xinyao (Criss) Wang

China Healthcare Weekly (July.23)

The article analyzed the supporting measures for the three-child policy, the mainstay position of public hospitals, the new DIP regulation...

Xinyao (Criss) Wang

I-Mab (IMAB US) - Insights On Core Products TJC4, TJ202 and TJ101

As I-MAB has come to a key phase from R&D to commercialization, this article analyzed both the strength and the concerns for its core products...

Xinyao (Criss) Wang

Shanghai Henlius Biotech IPO Initiation: Going Large

Shanghai Henlius Biotech (1566213D HK) is a biopharmaceutical company and a non-wholly owned subsidiary of Shanghai Fosun Pharmaceutical (Group)...

Arun George

HLX02: Innovation Could Overtake

The oncology treatment landscape in China is evolving rapidly as the government has prioritized access to innovative drugs to meet this significant...

Kemp Dolliver, CFA

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)