HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Capital Markets

Beijing Biostar Pharmaceuticals Co Ltd / Equity Capital Markets

<ul>
<li>Biostar’s revenue growth decreased obviously in the first five months in 2024. Under the fierce competition and anti-corruption campaign, the expectation for the commercialization performance of Biostar is not high.</li>
<li>Although Biostar has invested a lot of resources in market exposure, high customer concentration indicates that the Company faces challenges in marketing/customer relationship expansion. Biostar has also encountered overcapacity issues.</li>
<li>After Series E Financing, Biostar’s post-investment valuation was RMB4.49 billion. But we're not optimistic about the outlook of Biostar. This valuation could be difficult to achieve in HK stock market.</li>
</ul>


Biostar’s revenue growth decreased obviously in the first five months in 2024. Under the fierce competition and anti-corruption campaign, the expectation for the commercialization performance of Biostar is not high.
Although Biostar has invested a lot of resources in market exposure, high customer concentration indicates that the Company faces challenges in marketing/customer relationship expansion. Biostar has also encountered overcapacity issues.
After Series E Financing, Biostar’s post-investment valuation was RMB4.49 billion. But we're not optimistic about the outlook of Biostar. This valuation could be difficult to achieve in HK stock market.


Pre-IPO Beijing Biostar Pharmaceuticals (PHIP Updates) - Some Points Worth the Attention

<ul>
<li>Besides the core product Utidelone Injection, the rest pipelines are mostly related to the indications expansion/new formulations R&amp;D for Utidelone Injection. Excessive dependence on single product is hard to improve. </li>
<li>We’re not optimistic about the future sales growth of Utidelone Injection due to fierce competition/inconvenient administration methods/expired patent protection. Biostar is facing survival risks if new financing cannot be obtained.</li>
<li>Biostar’s post-investment valuation is already RMB4.49 billion. Given the gloomy sentiment and the concerns about the pipeline/prospects, we think it could fall below this valuation level after IPO in HKEX.</li>
</ul>


Besides the core product Utidelone Injection, the rest pipelines are mostly related to the indications expansion/new formulations R&amp;D for Utidelone Injection. Excessive dependence on single product is hard to improve. 
We’re not optimistic about the future sales growth of Utidelone Injection due to fierce competition/inconvenient administration methods/expired patent protection. Biostar is facing survival risks if new financing cannot be obtained.
Biostar’s post-investment valuation is already RMB4.49 billion. Given the gloomy sentiment and the concerns about the pipeline/prospects, we think it could fall below this valuation level after IPO in HKEX.


Pre-IPO Beijing Biostar Pharmaceuticals- Core Product Has Obvious Defects; Outlook Is Not Optimistic

Global Healthcare Analyst

Tina Banerjee

Thematic (Sector/Industry)

<ul>
<li>GenScript Biotech established operations site and logistics center in Australia. Eisai has received positive opinion from CHMP recommending approval of lecanemab. Otsuka forms JV to boost IV supply in US.</li>
<li>Lunit formed strategic alliance in France to expand AI solution deployment. Daiichi Sankyo and AstraZeneca submitted a new BLA for accelerated approval in the U.S. for datopotamab deruxtecan for NSCLC.</li>
<li>Cellid has completed recruiting and dosing all participants in its Phase 3 clinical trial of COVID-19 vaccine targeting Omicron variant. Alembic Pharmaceutical received FDA approval for hypertension drug.</li>
</ul>


GenScript Biotech established operations site and logistics center in Australia. Eisai has received positive opinion from CHMP recommending approval of lecanemab. Otsuka forms JV to boost IV supply in US.
Lunit formed strategic alliance in France to expand AI solution deployment. Daiichi Sankyo and AstraZeneca submitted a new BLA for accelerated approval in the U.S. for datopotamab deruxtecan for NSCLC.
Cellid has completed recruiting and dosing all participants in its Phase 3 clinical trial of COVID-19 vaccine targeting Omicron variant. Alembic Pharmaceutical received FDA approval for hypertension drug.


APAC Healthcare Weekly (Nov 17)- GenScript Biotech, Eisai, Otsuka, Daiichi Sankyo, Cellid, and Lunit

China

Beijing Biostar Pharmaceuticals Co., Ltd. operates as a biopharmaceutical company. The Company develops and sells microbial fermentation microtubule inhibitor and other products. Beijing Biostar Pharmaceuticals offers services worldwide.

Beijing Biostar Pharmaceuticals Co Ltd (1849136D CH)

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Beijing Biostar Pharmaceuticals Co Ltd (1849136D CH)

Pre-IPO Beijing Biostar Pharmaceuticals (PHIP Updates) - Some Points Worth the Attention

Biostar's revenue growth declined in 2024 due to competition/anti-corruption. Biostar faces challenges in customer expansion/overcapacity. High...

Xinyao (Criss) Wang

Pre-IPO Beijing Biostar Pharmaceuticals- Core Product Has Obvious Defects; Outlook Is Not Optimistic

Biostar highly relies on Utidelone Injection to generate revenue, but it has obvious defects in front of competitors. Due to fierce competition...

Xinyao (Criss) Wang

APAC Healthcare Weekly (Nov 17)- GenScript Biotech, Eisai, Otsuka, Daiichi Sankyo, Cellid, and Lunit

Biotech companies expand operations globally with new sites and drug approvals, advancing healthcare solutions and treatments. A phase 3 trial for...

Tina Banerjee

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

Pre-IPO Beijing Biostar Pharmaceuticals (PHIP Updates) - Some Points Worth the Attention

​Biostar's revenue growth declined in 2024 due to competition/anti-corruption. ​Biostar faces challenges in customer expansion/overcapacity. High...

Xinyao (Criss) Wang

Pre-IPO Beijing Biostar Pharmaceuticals- Core Product Has Obvious Defects; Outlook Is Not Optimistic

Biostar highly relies on Utidelone Injection to generate revenue, but it has obvious defects in front of competitors. Due to fierce competition...

Xinyao (Criss) Wang

APAC Healthcare Weekly (Nov 17)- GenScript Biotech, Eisai, Otsuka, Daiichi Sankyo, Cellid, and Lunit

​Biotech companies expand operations globally with new sites and drug approvals, advancing healthcare solutions and treatments. A phase 3 trial for...

Tina Banerjee

Biostar's revenue growth declined in 2024 due to competition/anti-corruption. Biostar faces challenges in customer expansion/overcapacity. High...

Biotech companies expand operations globally with new sites and drug approvals, advancing healthcare solutions and treatments. A phase 3 trial for...