External broker reports(aggregated public sources), CMB International

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External broker reports(aggregated public sources)

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Equity Bottom-Up

Hansoh Pharmaceutical Group  / Equity Bottom-Up

<ul><li>Strong sales growth of innovative drugs in 1H24. Hansoh reported RMB6.51bn revenue in 1H24, including US$185mn upfront payment from GSK regarding the out-licensing of HS-20093 (B7-H3 ADC).</li><li>In 1H24, Hansoh recorded RMB5.10bn (+13.8% YoY) revenue from product sales, representing 48% of our previous FY24 estimate, in line with our expectations.</li><li>In 1H24, 77% of the total revenue came from innovative drugs. Excluding collaboration revenue, the sales from innovative drugs recorded strong growth of +31.6% YoY in 1H24.</li></ul><p><em>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.</em></p>

Strong sales growth of innovative drugs in 1H24. Hansoh reported RMB6.51bn revenue in 1H24, including US$185mn upfront payment from GSK regarding the out-licensing of HS-20093 (B7-H3 ADC).In 1H24, Hansoh recorded RMB5.10bn (+13.8% YoY) revenue from product sales, representing 48% of our previous FY24 estimate, in line with our expectations.In 1H24, 77% of the total revenue came from innovative drugs. Excluding collaboration revenue, the sales from innovative drugs recorded strong growth of +31.6% YoY in 1H24.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.

Hansoh Pharma (3692 HK) - Strong Sales Growth of Innovative Drugs

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>Hansoh’s performance in 2023 beat expectations, which was mainly driven by collaboration revenue. Revenue proportion of innovative drug business made breakthrough and has become the major performance driver.</li>
<li>Ameile’s future revenue growth is critical to Hansoh, but it faces increasing competition. EGFR/c-MET BsAb represents the future trend. If HS-20117 is successful, then the story of EGFR would continue.</li>
<li>In 2024, Hansoh is expected to receive an upfront payment of US$185 million from GSK. According to the management, revenue is expected to have double digit growth this year.</li>
</ul>


Hansoh’s performance in 2023 beat expectations, which was mainly driven by collaboration revenue. Revenue proportion of innovative drug business made breakthrough and has become the major performance driver.
Ameile’s future revenue growth is critical to Hansoh, but it faces increasing competition. EGFR/c-MET BsAb represents the future trend. If HS-20117 is successful, then the story of EGFR would continue.
In 2024, Hansoh is expected to receive an upfront payment of US$185 million from GSK. According to the management, revenue is expected to have double digit growth this year.


Hansoh Pharmaceutical (3692.HK) - Growth Would Remain Strong in 2024, but Ameile Is Facing Headwinds

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>
<a href="https://www.smartkarma.com/entities/hansoh-pharmaceutical-group-co" target="_blank" data-smartkarma-citation="entities:23675:1" rel="noopener">Hansoh Pharmaceutical Group (3692 HK)</a> reported a whopping 55% YoY net profit growth to RMB3 billion on just 13% YoY revenue growth to RMB6 billion in 2H23.</li>
<li>Revenue from innovative drugs zoomed 52% YoY to RMB4 billion and its proportion to total revenue increased to 73% in 2H23 from 54% in 2H22 and 62% in 1H23.</li>
<li>Although Hansoh is not expected to receive marketing approval for any in-house innovative product in 2024, existing portfolio of innovative drugs will continue to drive the growth of the company.</li>
</ul>



Hansoh Pharmaceutical Group (3692 HK) reported a whopping 55% YoY net profit growth to RMB3 billion on just 13% YoY revenue growth to RMB6 billion in 2H23.
Revenue from innovative drugs zoomed 52% YoY to RMB4 billion and its proportion to total revenue increased to 73% in 2H23 from 54% in 2H22 and 62% in 1H23.
Although Hansoh is not expected to receive marketing approval for any in-house innovative product in 2024, existing portfolio of innovative drugs will continue to drive the growth of the company.


Hansoh Pharmaceutical (3692 HK): Performance Improves in 2H23; Innovative Drugs to Continue to Roar

Thematic (Sector/Industry)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/samsung-biologics-co-ltd" target="_blank" data-smartkarma-citation="entities:22932:1" rel="noopener">Samsung Biologics (207940 KS)</a> signed a contract manufacturing agreement worth KRW1.7T ($1.2B) with an Asian pharmaceutical company. <a href="https://www.smartkarma.com/entities/celltrion-inc" target="_blank" data-smartkarma-citation="entities:991:1" rel="noopener">Celltrion Inc (068270 KS)</a> has announced KRW100B ($72M) share buyback, starting October 28.</li>
<li>
<a href="https://www.smartkarma.com/entities/astellas-pharma-inc" target="_blank" data-smartkarma-citation="entities:6091:1" rel="noopener">Astellas Pharma (4503 JP)</a> received FDA approval for Vyloy for gastric cancer. <a href="https://www.smartkarma.com/entities/shionogi-co-ltd" target="_blank" data-smartkarma-citation="entities:19535:1" rel="noopener">Shionogi &amp; Co (4507 JP)</a> received FDA Fast Track designation for its RSV drug candidate, S-337395.</li>
<li>
<a href="https://www.smartkarma.com/entities/zai-lab-ltd-94df40cf-c15e-462f-b3de-8d2d434ae935" target="_blank" data-smartkarma-citation="entities:36261:1" rel="noopener">Zai Lab (9688 HK)</a> announced positive topline data from global Phase 1a/1b study of ZL-1310 in small cell lung cancer. <a href="https://www.smartkarma.com/entities/legend-biotech-corp" target="_blank" data-smartkarma-citation="entities:28963:1" rel="noopener">Legend Biotech Corp (LEGN US)</a> sheds Genscript Biotech as its majority shareholder.</li>
</ul>



Samsung Biologics (207940 KS) signed a contract manufacturing agreement worth KRW1.7T ($1.2B) with an Asian pharmaceutical company. Celltrion Inc (068270 KS) has announced KRW100B ($72M) share buyback, starting October 28.

Astellas Pharma (4503 JP) received FDA approval for Vyloy for gastric cancer. Shionogi &amp; Co (4507 JP) received FDA Fast Track designation for its RSV drug candidate, S-337395.

Zai Lab (9688 HK) announced positive topline data from global Phase 1a/1b study of ZL-1310 in small cell lung cancer. Legend Biotech Corp (LEGN US) sheds Genscript Biotech as its majority shareholder.


APAC Healthcare Weekly (Oct 27)- Samsung Biologics, Celltrion, Astellas, Otsuka, Legend, and Zai Lab

Blue Lotus China New Economy Research, Blue Lotus Research Institute

Eric Wen

Blue Lotus China New Economy Research

China growth and global non-US Internet equities

Blue Lotus Research Institute

Blue Lotus Research is a Hong Kong Type 4 Licensed investment advisory firm focusing on Chinese growth equities and global non-US Internet equities

<ul>
<li>ZaiLab's (ZLAB) share price rallied 15% on promising data from the Phase I trial of its DLL3 ADC licensed from Chinese startup MediLink. The data is positive but still early;</li>
<li>Besides being early, competitions in DLL3 ADC, B7H3 ADC and DLL3/CD3 BsAb are all fierce, with much bigger rivals at much advanced clinical stages. Thus ZLAB faces an execution challenge;</li>
<li>ZLAB's sourcing from domestic biotech is a major step forward that can fundamentally alter its business model. But to confirm the validity of this transition still needs more evidence.</li>
</ul>


ZaiLab's (ZLAB) share price rallied 15% on promising data from the Phase I trial of its DLL3 ADC licensed from Chinese startup MediLink. The data is positive but still early;
Besides being early, competitions in DLL3 ADC, B7H3 ADC and DLL3/CD3 BsAb are all fierce, with much bigger rivals at much advanced clinical stages. Thus ZLAB faces an execution challenge;
ZLAB's sourcing from domestic biotech is a major step forward that can fundamentally alter its business model. But to confirm the validity of this transition still needs more evidence.


ZaiLab's DLL3 ADC Is a Major Positive, but the Market Over-Reacted to Its Prospects

China

Hansoh Pharmaceutical Group Company Limited operates as a pharmaceutical company. The Company manufactures and sells anti-infectives, anti-neoplastic agents, diabetes drugs, and other products. Hansoh Pharmaceutical Group markets its products throughout China.

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Hansoh Pharmaceutical Group (3692 HK)

Hansoh Pharma (3692 HK) - Strong Sales Growth of Innovative Drugs

Strong sales growth of innovative drugs in 1H24. Hansoh reported RMB6.51bn revenue in 1H24, including US$185mn upfront payment from GSK regarding...

CMB International

Hansoh Pharmaceutical (3692.HK) - Growth Would Remain Strong in 2024, but Ameile Is Facing Headwinds

Driven by collaboration revenue/breakthrough in innovative drug business, Hansoh's 2023 results beat expectations. But Ameile’s future growth...

Xinyao (Criss) Wang

Hansoh Pharmaceutical (3692 HK): Performance Improves in 2H23; Innovative Drugs to Continue to Roar

Hansoh Pharmaceutical reported an impressive 55% YoY net profit growth in 2H23, driven by revenue from innovative drugs, which grew 52% YoY and...

Tina Banerjee

APAC Healthcare Weekly (Oct 27)- Samsung Biologics, Celltrion, Astellas, Otsuka, Legend, and Zai Lab

Samsung Biologics secures largest ever contract, Celltrion announced KRW100B buyback, Astellas Pharma got label expansion approval for Vyloy,...

Tina Banerjee

ZaiLab's DLL3 ADC Is a Major Positive, but the Market Over-Reacted to Its Prospects

ZaiLab surged 15% on positive Ph I data for its DLL3 ADC from MediLink, but faces tough competition and execution challenges. Transition to...

Blue Lotus Research Institute

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52-week Range

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Hansoh Pharma (3692 HK) - Strong Sales Growth of Innovative Drugs

Strong sales growth of innovative drugs in 1H24. Hansoh reported RMB6.51bn revenue in 1H24, including US$185mn upfront payment from GSK regarding...

CMB International

Hansoh Pharmaceutical (3692.HK) - Growth Would Remain Strong in 2024, but Ameile Is Facing Headwinds

​Driven by collaboration revenue/breakthrough in innovative drug business, Hansoh's 2023 results beat expectations. But Ameile’s future growth...

Xinyao (Criss) Wang

Hansoh Pharmaceutical (3692 HK): Performance Improves in 2H23; Innovative Drugs to Continue to Roar

​Hansoh Pharmaceutical reported an impressive 55% YoY net profit growth in 2H23, driven by revenue from innovative drugs, which grew 52% YoY and...

Tina Banerjee

APAC Healthcare Weekly (Oct 27)- Samsung Biologics, Celltrion, Astellas, Otsuka, Legend, and Zai Lab

Samsung Biologics secures largest ever contract, Celltrion announced KRW100B buyback, Astellas Pharma got label expansion approval for Vyloy,...

Tina Banerjee

ZaiLab's DLL3 ADC Is a Major Positive, but the Market Over-Reacted to Its Prospects

​ZaiLab surged 15% on positive Ph I data for its DLL3 ADC from MediLink, but faces tough competition and execution challenges. Transition to...

Blue Lotus Research Institute

Driven by collaboration revenue/breakthrough in innovative drug business, Hansoh's 2023 results beat expectations. But Ameile’s future growth...

Hansoh Pharmaceutical reported an impressive 55% YoY net profit growth in 2H23, driven by revenue from innovative drugs, which grew 52% YoY and...

ZaiLab surged 15% on positive Ph I data for its DLL3 ADC from MediLink, but faces tough competition and execution challenges. Transition to...