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

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)

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

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