HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>Recently, the “14th Five-year Plan” for the construction of China's medical beauty standard system was released. We analyzed the impact on related companies.</li>
<li>As <a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a> was included in "unverified list", its share price tumbled. So, it’s extremely urgent for China to realize autonomous control of important upstream raw materials and equipment. </li>
<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> should hold additional clinical trials to back its biologics application for Sintilimab (PD-1), indicating that the FDA’s attitude has changed.</li>
</ul>


Recently, the “14th Five-year Plan” for the construction of China's medical beauty standard system was released. We analyzed the impact on related companies.
As Wuxi Biologics (2269 HK) was included in "unverified list", its share price tumbled. So, it’s extremely urgent for China to realize autonomous control of important upstream raw materials and equipment. 

Innovent Biologics Inc (1801 HK) should hold additional clinical trials to back its biologics application for Sintilimab (PD-1), indicating that the FDA’s attitude has changed.


China Healthcare Weekly (Feb.11)- “14th Five-Year Plan” For Medical Beauty, Wuxi Biologics, Innovent

<ul>
<li>The expansion of the scope of positioning directly reflects the change in the importance of pharmaceutical industry in the minds of the top level, which is very pivotal.</li>
<li>The determination to abandon old development mode, and promote real innovation and high-quality internationalization remains unchanged. So, companies need to develop at a higher level and a larger stage.</li>
<li>Once achieved, it means that China's pharmaceutical industry will have another radical change after 2015, leading the industry to another new phase of growth.</li>
</ul>


The expansion of the scope of positioning directly reflects the change in the importance of pharmaceutical industry in the minds of the top level, which is very pivotal.
The determination to abandon old development mode, and promote real innovation and high-quality internationalization remains unchanged. So, companies need to develop at a higher level and a larger stage.
Once achieved, it means that China's pharmaceutical industry will have another radical change after 2015, leading the industry to another new phase of growth.


Interpretation of The "14th Five-Year Plan" For the Development of China Pharmaceutical 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

<ul>
<li>Last week, we saw some rebounds in the healthcare sector, and many investors begin to believe that a complete reversal is imminent. </li>
<li>Our view is that this is <strong>a temporary rebound</strong> after continuous pull-back due to the broken logic, rather than <strong>a complete reversal</strong>.We recommend investors to see the rebound rationally.</li>
<li>In terms of the future direction of stock price, we analyze it based on three scenarios.</li>
</ul>


Last week, we saw some rebounds in the healthcare sector, and many investors begin to believe that a complete reversal is imminent. 
Our view is that this is a temporary rebound after continuous pull-back due to the broken logic, rather than a complete reversal.We recommend investors to see the rebound rationally.
In terms of the future direction of stock price, we analyze it based on three scenarios.


The Insecure Rebound in Healthcare Sector and the Future Direction of Stock Price (2022)

Equity Bottom-Up

Shanghai Junshi Biosciences  / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/shanghai-junshi-bioscience-h" target="_blank" data-smartkarma-citation="entities:27760:1" rel="noopener">Shanghai Junshi Bioscience Co. Ltd. (1877 HK)</a> announced that it has terminated its PD-1 commercialization partnership with AstraZeneca. Lower-than-expected sales performance is seen as the key reason.</li>
<li>Junshi's commercialization team is the weakest among the domestic Top Four.As the FDA's attitude may have changed, the logic of exporting innovative domestic drugs to foreign markets could be shaken.</li>
<li>Given the poor financing environment,it's challenging for Junshi to afford large investment in R&amp;D and licensing deals by just relying on cash in hand and cashflow generating from commercialized products.</li>
</ul>



Shanghai Junshi Bioscience Co. Ltd. (1877 HK) announced that it has terminated its PD-1 commercialization partnership with AstraZeneca. Lower-than-expected sales performance is seen as the key reason.
Junshi's commercialization team is the weakest among the domestic Top Four.As the FDA's attitude may have changed, the logic of exporting innovative domestic drugs to foreign markets could be shaken.
Given the poor financing environment,it's challenging for Junshi to afford large investment in R&amp;D and licensing deals by just relying on cash in hand and cashflow generating from commercialized products.


Shanghai Junshi Bioscience (1877.HK/688180.CH) - Behind the “break Up” with AstraZeneca

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 (Feb.11)- “14th Five-Year Plan” For Medical Beauty, Wuxi Biologics, Innovent

We analyzed the “14th Five-year Plan” for medical beauty, the impact of WuXi Bio after being included in "unverified list" and the prospects of...

Xinyao (Criss) Wang

Interpretation of The "14th Five-Year Plan" For the Development of China Pharmaceutical Industry

For the newly released "14th Five-year Plan" of China pharmaceutical industry, we analyzed key points and our interpretation. Once achieved, it...

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

The Insecure Rebound in Healthcare Sector and the Future Direction of Stock Price (2022)

The rebound in China healthcare sector last week was a temporary rebound rather than a complete reversal. In terms of future direction of stock...

Xinyao (Criss) Wang

Shanghai Junshi Bioscience (1877.HK/688180.CH) - Behind the “break Up” with AstraZeneca

The insight analyzed Junshi in terms of the potential reasons behind the termination of PD-1 commercialization partnership with AstraZeneca, the...

Xinyao (Criss) Wang

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