Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

Simcere Pharmaceutical Group / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/simcere-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:29186:1" rel="noopener">Simcere Pharmaceutical Group (2096 HK)</a> reported an 11% y/y revenue growth to RMB5 billion, mainly driven by 54% y/y revenue growth from innovative pharmaceuticals.</li>
<li>However, gross margin contracted 160 basis point to 78.4%, reflecting pricing headwind. Heavy R&amp;D and selling and distribution expenses are taking toll on operating profit.</li>
<li>During 2021, Simcere has added six registered clinical trials for phase 3, two trails for phase 2, three trails for phase 1, and obtained 12 clinical trial approvals for drugs.</li>
</ul>



Simcere Pharmaceutical Group (2096 HK) reported an 11% y/y revenue growth to RMB5 billion, mainly driven by 54% y/y revenue growth from innovative pharmaceuticals.
However, gross margin contracted 160 basis point to 78.4%, reflecting pricing headwind. Heavy R&amp;D and selling and distribution expenses are taking toll on operating profit.
During 2021, Simcere has added six registered clinical trials for phase 3, two trails for phase 2, three trails for phase 1, and obtained 12 clinical trial approvals for drugs.


Simcere Pharmaceutical (2096 HK): Double-Digit Topline Growth; Margin Deteriorating Spoils the Party

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>According to NHSA and NHC’s new documents, the charging principle of joint replacement surgical robots is stipulated. With more hospitals introducing surgical robots,the commercialization prospects of this area becomes clearer.</li>
<li>Senate blesses bill to boost American competitiveness and curb its reliance on China for critical supplies, such as APIs. However, it may not be so easy to solve.</li>
<li>The sequela of COVID-19 could become a public health problem that cannot be ignored. For companies, instead of developing COVID-19 vaccines/drugs, entering COVID recovery market could be a good strategy.</li>
</ul>


According to NHSA and NHC’s new documents, the charging principle of joint replacement surgical robots is stipulated. With more hospitals introducing surgical robots,the commercialization prospects of this area becomes clearer.
Senate blesses bill to boost American competitiveness and curb its reliance on China for critical supplies, such as APIs. However, it may not be so easy to solve.
The sequela of COVID-19 could become a public health problem that cannot be ignored. For companies, instead of developing COVID-19 vaccines/drugs, entering COVID recovery market could be a good strategy.


China Healthcare Weekly (Apr.8)-Surgical Robots Pricing Rules,America COMPETES Act,COVID-19 Sequelae

Hansoh Pharmaceutical Group  / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hansoh-pharmaceutical-group" target="_blank" data-smartkarma-citation="entities:23675:1" rel="noopener">Hansoh Pharmaceutical (3692 HK)</a> is increasingly focusing on innovative drug, with revenue from such drugs contributing 42% of total revenue in 2021. R&amp;D accounted for 18% of revenue in 2021.</li>
<li>Thus far, in this year, Hansoh received approval for one more new rare-disease drug. Its rich pipeline has 25+ clinical programs of innovative drugs.</li>
<li>With its proven execution on innovative portfolio, sound financial positions, and recent business collaboration effort to enrich the pipeline, Hansoh seems to be an undervalued business.</li>
</ul>



Hansoh Pharmaceutical (3692 HK) is increasingly focusing on innovative drug, with revenue from such drugs contributing 42% of total revenue in 2021. R&amp;D accounted for 18% of revenue in 2021.
Thus far, in this year, Hansoh received approval for one more new rare-disease drug. Its rich pipeline has 25+ clinical programs of innovative drugs.
With its proven execution on innovative portfolio, sound financial positions, and recent business collaboration effort to enrich the pipeline, Hansoh seems to be an undervalued business.


Hansoh Pharmaceutical (3692 HK): Bottom-Fishing Idea; Market Is Overlooking Innovative Portfolio

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>In Depth: China turns to credit easing to kick-start sluggish economy</li><li>Shanghai reverses Covid separation policy to let families stay with their infected kids for treatment</li><li>Steep contraction in services follows latest Covid wave, Caixin PMI shows</li></ul>

In Depth: China turns to credit easing to kick-start sluggish economyShanghai reverses Covid separation policy to let families stay with their infected kids for treatmentSteep contraction in services follows latest Covid wave, Caixin PMI shows

CX Daily: China Turns to Credit Easing to Kick-Start Sluggish Economy

CSPC Pharmaceutical Group / Equity Bottom-Up

<ul>
<li>Due to the lack of differentiated and frontier enough target layout, the commercialization potential would be more easily questioned, with high uncertainty of having the next NBP level products.</li>
<li>CSPC has made easy money from a few large varieties/generic drugs for many years, but is destined to make the business transformation more difficult, because the “opportunity cost” is high.</li>
<li>CSPC's products have lost their pricing power. Therefore, when its valuation is very low or the entire sector is moving upward, this stock could be traded due to positive momentum.</li>
</ul>


Due to the lack of differentiated and frontier enough target layout, the commercialization potential would be more easily questioned, with high uncertainty of having the next NBP level products.
CSPC has made easy money from a few large varieties/generic drugs for many years, but is destined to make the business transformation more difficult, because the “opportunity cost” is high.
CSPC's products have lost their pricing power. Therefore, when its valuation is very low or the entire sector is moving upward, this stock could be traded due to positive momentum.


CSPC Pharmaceutical Group (1093.HK) - Conservative About the Business Transformation Outlook

China

CSPC Pharmaceutical Group Limited, through its subsidiaries, manufactures and sells pharmaceutical products.  The Company's products include vitamin C, antibiotics and common generic drugs. The Company is also engages in the development of innovative drugs and antibiotics.

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CSPC Pharmaceutical Group (1093 HK)

Simcere Pharmaceutical (2096 HK): Double-Digit Topline Growth; Margin Deteriorating Spoils the Party

Despite increasing contribution of innovative products, Simcere’s profitability is under pressure, reflecting pricing headwind. Elevated R&D and...

Tina Banerjee

China Healthcare Weekly (Apr.8)-Surgical Robots Pricing Rules,America COMPETES Act,COVID-19 Sequelae

The pricing rules of NHSA/NHC offer clearer outlook for surgical robots;The America COMPETES Act to curb reliance on China's APIs could be...

Xinyao (Criss) Wang

Hansoh Pharmaceutical (3692 HK): Bottom-Fishing Idea; Market Is Overlooking Innovative Portfolio

Hansoh has now six innovative drugs in its portfolio. With 40%+ revenue coming from new drugs, Hansoh has best-in-class margin profile. Rich...

Tina Banerjee

CX Daily: China Turns to Credit Easing to Kick-Start Sluggish Economy

In Depth: China turns to credit easing to kick-start sluggish economy. Shanghai reverses Covid separation policy to let families stay with their...

Caixin Global

CSPC Pharmaceutical Group (1093.HK) - Conservative About the Business Transformation Outlook

With unproven R&D capabilities, expired patent and negative policy, it's hard for CSPC to achieve successful transformation, or sacrifice immediate...

Xinyao (Criss) Wang

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