HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

1. Industry viewpoints:<ul>
<li>The National Healthcare Security Administration recently released a document about the intensive procurement of high-value orthopedic consumables, so finally it is approaching.</li>
<li>The market of orthopedic implant consumables is still dominated by imported enterprises, and domestic enterprises have a certain gap in market competitiveness compared with foreign giants.</li>
<li>As the market size of China's oncology treatment industry grows, the proportion of targeted drugs and immunotherapy drugs are expected to increase in the future, and private oncology hospitals could get more development opportunities.</li>
</ul>2. Company news: News about the new equity agreement, strategic cooperation and progress of new drug from <a href="https://www.smartkarma.com/entities/wuxi-apptec" target="_blank" data-smartkarma-citation="entities:23679:1" rel="noopener">Wuxi Biologics (2269 HK)</a>, <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a> and <a href="https://www.smartkarma.com/entities/jhbp-cy-holdings-ltd" target="_blank" data-smartkarma-citation="entities:29201:1" rel="noopener">JHBP (Genor) (6998 HK)</a>.3. Market review:Last week, stock price for healthcare sector in A share decreased 0.83%, while CSI 300 decreased 2.71% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:
The National Healthcare Security Administration recently released a document about the intensive procurement of high-value orthopedic consumables, so finally it is approaching.
The market of orthopedic implant consumables is still dominated by imported enterprises, and domestic enterprises have a certain gap in market competitiveness compared with foreign giants.
As the market size of China's oncology treatment industry grows, the proportion of targeted drugs and immunotherapy drugs are expected to increase in the future, and private oncology hospitals could get more development opportunities.
2. Company news: News about the new equity agreement, strategic cooperation and progress of new drug from Wuxi Biologics (2269 HK), BeiGene Ltd (6160 HK) and JHBP (Genor) (6998 HK).3. Market review:Last week, stock price for healthcare sector in A share decreased 0.83%, while CSI 300 decreased 2.71% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:<ul>
<li>Last week, the bidding for the 4th volume-based purchase (VBP) was officially opened.</li>
<li>China's CTLA-4 antibody drug industry is in the early stage, but is expected to expand rapidly from 2021. </li>
<li>China's orthopedic implant device market is in a stage of rapid growth in recent years. However, the future large price reduction if included in the volume-based purchase should also be take into consideration.</li>
</ul>2. Company news:News about the progress of new drugs, COVID-19 vaccine, strategic collaboration and acquisition from <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>, <a href="https://www.smartkarma.com/entities/antengene-corp-ltd" target="_blank" data-smartkarma-citation="entities:29705:1" rel="noopener">Antengene (6996 HK)</a>, <a href="https://www.smartkarma.com/entities/cansino-biologics-inc" target="_blank" data-smartkarma-citation="entities:27739:1" rel="noopener">CanSino Biologics Inc (6185 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>.3. Market review:Last week, stock price for healthcare sector in A share increased 3.75%, while CSI 300 increased 2.46% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:
Last week, the bidding for the 4th volume-based purchase (VBP) was officially opened.
China's CTLA-4 antibody drug industry is in the early stage, but is expected to expand rapidly from 2021. 
China's orthopedic implant device market is in a stage of rapid growth in recent years. However, the future large price reduction if included in the volume-based purchase should also be take into consideration.
2. Company news:News about the progress of new drugs, COVID-19 vaccine, strategic collaboration and acquisition from Innovent Biologics Inc (1801 HK), Antengene (6996 HK), CanSino Biologics Inc (6185 HK) and China Medical System (867 HK).3. Market review:Last week, stock price for healthcare sector in A share increased 3.75%, while CSI 300 increased 2.46% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Founder

Kemp Dolliver, CFA

Cherrystone Hill Research

Equity Bottom-Up

Alibaba Health Information Tec / Equity Bottom-Up

This Insight summarizes the takeaways from a recent China healthcare industry conference focused on biopharmaceuticals and medical devices, and builds on our Originals Insight <a href="https://www.smartkarma.com/insights/asian-healthcare-coming-of-age" target="_blank" data-smartkarma-citation="insights:45676" rel="noopener">Asian Healthcare - Coming of Age</a>.  Topics addressed include value-based purchasing for drugs and devices; development of commercial health insurance; internet hospitals and online pharmacies; DRGs for hospitals; issues for medical device companies; and amendments to China's patent laws.

This Insight summarizes the takeaways from a recent China healthcare industry conference focused on biopharmaceuticals and medical devices, and builds on our Originals Insight Asian Healthcare - Coming of Age.  Topics addressed include value-based purchasing for drugs and devices; development of commercial health insurance; internet hospitals and online pharmacies; DRGs for hospitals; issues for medical device companies; and amendments to China's patent laws.

1. Industry viewpoints:<ul>
<li>A related news has been released this week that in 2021, China’s new intensive procurement policy would be applied to orthopedic implant consumables.</li>
<li>With the growth of China's pharmaceutical market, more and more innovative companies focusing on gene therapy are emerging in China, bringing market opportunities for CDMO on gene therapy.</li>
<li>As a financial tool, Commercial insurance will become a key part of pharmaceutical enterprises' marketing to support and maintain patient relationship in the future.</li>
</ul>2. Company news:News about the progress of new drugs and COVID-19 vaccine from Hengrui, Innovent Biologics and Fosun Pharma.3. Market review:Last week, stock price for healthcare sector in A share decreased 2.92%, while CSI 300 increased 0.76% over the same period of time.4. Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:
A related news has been released this week that in 2021, China’s new intensive procurement policy would be applied to orthopedic implant consumables.
With the growth of China's pharmaceutical market, more and more innovative companies focusing on gene therapy are emerging in China, bringing market opportunities for CDMO on gene therapy.
As a financial tool, Commercial insurance will become a key part of pharmaceutical enterprises' marketing to support and maintain patient relationship in the future.
2. Company news:News about the progress of new drugs and COVID-19 vaccine from Hengrui, Innovent Biologics and Fosun Pharma.3. Market review:Last week, stock price for healthcare sector in A share decreased 2.92%, while CSI 300 increased 0.76% over the same period of time.4. Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

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

Hangzhou Kangji Medical Instrument Co., Ltd. / Equity Capital Markets

Hangzhou Kangji Medical Instrument Co., Ltd.

<div><a href="https://www.smartkarma.com/entities/hangzhou-kangji-medical-instrument-co-ltd" target="_blank" data-smartkarma-citation="entities:28938:1" rel="noopener">Kangji Medical (9997 HK)</a> is the largest domestic minimally invasive surgical instruments and accessories (MISIA) platform in China, with a 2.7% share of China’s MISIA market in 2019, according to CIC. Kangji will commence trading on Monday, 29 June. Kangji priced its IPO at HK$13.88, at the top-end of the indicative price range of HK$12.36-13.88 per share. Kangji raised net proceeds of HK$2,955.5 million ($381 million).</div><div><div><div class="content-highlight">In <a href="https://www.smartkarma.com/insights/kangji-medical-ipo-initiation-the-cutting-edge" target="_blank" rel="noopener">our initiation note</a>, we stated that Kangji has strong fundamentals and is a good IPO candidate, in our view. In light of Kangji's attractive fundamentals and the improving sentiment towards H-listed medtech peers (based on the multiple expansion), we think that the IPO price is attractive. </div></div></div>

Kangji Medical (9997 HK) is the largest domestic minimally invasive surgical instruments and accessories (MISIA) platform in China, with a 2.7% share of China’s MISIA market in 2019, according to CIC. Kangji will commence trading on Monday, 29 June. Kangji priced its IPO at HK$13.88, at the top-end of the indicative price range of HK$12.36-13.88 per share. Kangji raised net proceeds of HK$2,955.5 million ($381 million).In our initiation note, we stated that Kangji has strong fundamentals and is a good IPO candidate, in our view. In light of Kangji's attractive fundamentals and the improving sentiment towards H-listed medtech peers (based on the multiple expansion), we think that the IPO price is attractive. 

China

Beijing Chunlizhengda Medical Instruments Co.,Ltd. designs, develops, manufactures and markets patented implants and instruments for joint replacement, spinal fixation and trauma.

Beijing Chunlizhengda Medical Instruments (1858 HK)

Beijing Chunlizhengda Medical Instruments

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Beijing Chunlizhengda Medical Instruments (1858 HK)

China Healthcare Weekly (Mar.19)

The article analyzed intensive procurement of high-value orthopedic consumables & its market pattern, trend of China's oncology treatment...

Xinyao (Criss) Wang

China Healthcare Weekly (Feb.5)

This article analyzed the results of the 4th volume-based purchase, the CTLA-4 antibody drug industry, the orthopedic implant device market, news...

Xinyao (Criss) Wang

China Healthcare: Macro Themes

This Insight summarizes the takeaways from a recent China healthcare industry conference. There is much talk of pressures on the industry, but...

Kemp Dolliver, CFA

China Healthcare Weekly (Nov.27)

This article summarized the new healthcare policy released in China last week, major industry viewpoints, company news and capital market review of...

Xinyao (Criss) Wang

Kangji Medical IPO: Trading Debut

Kangji Medical (9997 HK) is the largest domestic minimally invasive surgical instruments and accessories (MISIA) platform in China, with a 2.7%...

Arun George

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