HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>The "Spring Coil Alliance Centralized Procurement" in 21 provinces led by Jilin is about to start. Such large-scale centralized procurement has certain reference significance for future nationwide centralized procurement expansion.</li>
<li>The rules and varieties of 8th national VBP could change, and biological drugs may be included in VBP together with chemical drugs.</li>
<li>The US FDA has recently tightened the policy of accelerated approval, which is correct, because at present, pharmaceutical enterprises are trying to “exploit loopholes”.</li>
</ul>


The "Spring Coil Alliance Centralized Procurement" in 21 provinces led by Jilin is about to start. Such large-scale centralized procurement has certain reference significance for future nationwide centralized procurement expansion.
The rules and varieties of 8th national VBP could change, and biological drugs may be included in VBP together with chemical drugs.
The US FDA has recently tightened the policy of accelerated approval, which is correct, because at present, pharmaceutical enterprises are trying to “exploit loopholes”.


China Healthcare Weekly (Nov.11)-Largest Spring Coil VBP; Biological Drug VBP; FDA Changes Game Rule

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>Strong sales growth continued. BeiGene continued strong sales momentum in 3Q22, similar to 2Q22, with the product revenue in 3Q22 reaching US$349.5mn (+15% QoQ in 3Q22 vs +16% QoQ in 2Q22).</li><li>Sales of zanubrutinib (BTK) in 3Q22 increased to US$155.5mn with a QoQ growth rate of 21% (vs +23% QoQ in 2Q22), mainly driven by the strong sales in the overseas markets.</li><li>Tislelizumab (PD-1) also maintained strong growth in 3Q22, with sales increased by 22% QoQ, reaching US$128.2mn (vs +20% QoQ growth rate in 2Q22).</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Strong sales growth continued. BeiGene continued strong sales momentum in 3Q22, similar to 2Q22, with the product revenue in 3Q22 reaching US$349.5mn (+15% QoQ in 3Q22 vs +16% QoQ in 2Q22).Sales of zanubrutinib (BTK) in 3Q22 increased to US$155.5mn with a QoQ growth rate of 21% (vs +23% QoQ in 2Q22), mainly driven by the strong sales in the overseas markets.Tislelizumab (PD-1) also maintained strong growth in 3Q22, with sales increased by 22% QoQ, reaching US$128.2mn (vs +20% QoQ growth rate in 2Q22).Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

BeiGene (BGNE US) – Strong Sales Momentum Maintained in 3Q22

Articles from Caixin Global, Caixin Global

Caixin Global

Articles from Caixin Global

Caixin is a media group dedicated to providing financial and business news through periodicals, online content, mobile apps, conferences, books and TV/video programs. Caixin aims to blaze a trail that helps traditional media prosper in the new media age through integrated multimedia platforms.

News from Caixin

Cross Asset Strategy

<ul><li>Power / Cover Story: The dilemma of China’s power market restructuring</li><li>Policy / Xi Jinping repeats China’s commitment to opening-up policy</li><li>Covid-19 / Beijing shames local authorities for ‘one-size-fits-all’ Covid policies</li></ul>

Power / Cover Story: The dilemma of China’s power market restructuringPolicy / Xi Jinping repeats China’s commitment to opening-up policyCovid-19 / Beijing shames local authorities for ‘one-size-fits-all’ Covid policies

CX Daily: The Dilemma of China’s Power Market Restructuring

<ul>
<li>The driving force for the big performance growth of domestic culture medium companies mainly come from the logic of import substitution. We think there are investment opportunities in this industry.</li>
<li>Due to soaring costs of electricity prices, raw material prices and transportation costs, European pharmaceutical plants are facing difficulties in sustaining production. Chinese API enterprises could face expansion opportunities.</li>
<li>For industries that have been recognized by investors,the market begins to think in terms of long logic from a broader perspective rather than simply tracking the performance of individual companies.</li>
</ul>


The driving force for the big performance growth of domestic culture medium companies mainly come from the logic of import substitution. We think there are investment opportunities in this industry.
Due to soaring costs of electricity prices, raw material prices and transportation costs, European pharmaceutical plants are facing difficulties in sustaining production. Chinese API enterprises could face expansion opportunities.
For industries that have been recognized by investors,the market begins to think in terms of long logic from a broader perspective rather than simply tracking the performance of individual companies.


China Healthcare Weekly (Nov4)-Opportunity in Culture Medium, European API, Long Logic of Investment

Innovent Biologics Inc / Equity Bottom-Up

<ul>
<li>
<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>’s share price had some rebounds last week, which could be related to some positive progress on business and the picking-up market sentiment in healthcare sector. </li>
<li>We increased overall sales forecast for Innovent by including the two new products from Sanofi. But it’s still far from the management's target of RMB20 billion sales in 5 years.</li>
<li>Innovent’s current commercialization capability is like a "semi-finished product", and has long way to go. It lacks the second big product except PD-1 to “pave the way” for next-stage development.</li>
</ul>



Innovent Biologics Inc (1801 HK)’s share price had some rebounds last week, which could be related to some positive progress on business and the picking-up market sentiment in healthcare sector. 
We increased overall sales forecast for Innovent by including the two new products from Sanofi. But it’s still far from the management's target of RMB20 billion sales in 5 years.
Innovent’s current commercialization capability is like a "semi-finished product", and has long way to go. It lacks the second big product except PD-1 to “pave the way” for next-stage development.


Innovent Biologics Inc (1801.HK) - The Concerns and the Outlook

China

BeiGene, Ltd. operates as a commercial stage biopharmaceutical company. The Company focuses on discovery, development, and commercialization of molecularly targeted and immuno-oncology drugs for the treatment of cancer. BeiGene serves patients worldwide.

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BeiGene (6160 HK)

China Healthcare Weekly (Nov.11)-Largest Spring Coil VBP; Biological Drug VBP; FDA Changes Game Rule

The largest spring coil VBP led by Jilin has certain reference significance. Biological drugs may be included in 8th national VBP.After FDA changes...

Xinyao (Criss) Wang

BeiGene (BGNE US) – Strong Sales Momentum Maintained in 3Q22

BeiGene continued strong sales momentum in 3Q22, similar to 2Q22, with the product revenue in 3Q22 reaching US$349.5mn (+15% QoQ in 3Q22 vs +16%...

CMB International

CX Daily: The Dilemma of China’s Power Market Restructuring

Cover Story: The dilemma of China’s power market restructuring. Xi Jinping repeats China’s commitment to opening-up policy

Caixin Global

China Healthcare Weekly (Nov4)-Opportunity in Culture Medium, European API, Long Logic of Investment

Culture medium will have a rapid growth period. Due to high costs, EU Pharma face difficulty in sustaining production.Mr Market begins to think...

Xinyao (Criss) Wang

Innovent Biologics Inc (1801.HK) - The Concerns and the Outlook

Even with Sanofi's products,Innovent's sales forecast is still far from management's goal.Its commercialization capability has a long way to go.A...

Xinyao (Criss) Wang

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