HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>The anti-corruption campaign has significantly accelerated since the beginning of this year. After Central Commission for Discipline Inspection has been involved, the anti-corruption efforts in pharmaceutical/device sectors would be unprecedented.</li>
<li>The main targets are leaders of hospitals/governments. The impact of anti-corruption on companies is indirect. As long as senior management are not investigated/arrested, the impact on stock price isn’t significant.</li>
<li>However, investors not only need to consider the problem of sales growth slowing down in the context of anti-corruption, but also consider whether companies is engaging in financial fraud. </li>
</ul>


The anti-corruption campaign has significantly accelerated since the beginning of this year. After Central Commission for Discipline Inspection has been involved, the anti-corruption efforts in pharmaceutical/device sectors would be unprecedented.
The main targets are leaders of hospitals/governments. The impact of anti-corruption on companies is indirect. As long as senior management are not investigated/arrested, the impact on stock price isn’t significant.
However, investors not only need to consider the problem of sales growth slowing down in the context of anti-corruption, but also consider whether companies is engaging in financial fraud. 


Anti-Corruption in China Healthcare – the Impact and the Outlook

External broker reports(aggregated public sources), CMB International

CMB International

External broker reports(aggregated public sources)

Incorporated in Hong Kong, supported by the mainland and targeting in global market, CMB International Capital Corporation Limited (“CMBI”) is an integrated financial institution providing comprehensive and professional services. As a wholly-owned subsidiary of China Merchants Bank ("CMB"), by leveraging on the Group’s synergy and coordination in domestic and overseas markets, as well as CMB’s strong resources and outstanding social reputation, CMBI and its subsidiaries have been actively implementing diversified business strategies and set up an overall layout of main business segments including Corporate Finance, Asset Management, Wealth Management, Global Markets and Structured Finance, etc. Adhering to the philosophy of “being clients oriented and increasing our own values by the way of creating value for clients”, CMBI endeavors to provide quality and integrated financial services to institutional, corporate and individual customers both domestic and overseas including Hong Kong IPO sponsorship and underwriting, share placement and rights issue for listed companies, financial advisors, bonds issuance services, asset management, direct investment, wealth management, equity sales and trading, etc.

Equity Bottom-Up

<ul><li>InnoCare recorded total revenue of RMB189mn in 1Q23, including RMB151mn sales from orelabrutinib (-9% QoQ, +44% YoY).</li><li>The QoQ decrease in sales of orelabrutinib was mainly due to the COVID-19 outbreak and Chinese New Year break in 1Q.</li><li>InnoCare continued to improve its cost efficiency in 1Q23. </li></ul>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.

InnoCare recorded total revenue of RMB189mn in 1Q23, including RMB151mn sales from orelabrutinib (-9% QoQ, +44% YoY).The QoQ decrease in sales of orelabrutinib was mainly due to the COVID-19 outbreak and Chinese New Year break in 1Q.InnoCare continued to improve its cost efficiency in 1Q23. 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.

InnoCare Pharma (9969 HK) – Eyes on Next Steps of Orelabrutinib for MS

<ul>
<li>It is the time to reassess the commercialization performance and the outlook of China biotech companies, including BeiGene, Innovent, Henlus, Zai Lab, Hutchmed, Junshi, RemeGen, Innocare, Akeso. </li>
<li>We summarized the data of these biotech companies’ product revenue and profit performance to judge whether their commercialization capability is sufficient to afford production, sales teams and long-term R&amp;D activities. </li>
<li>Most China Biotech cannot be said to achieve "commercialization success", but they have showed some difference.We hope investors could have a better understanding about China biotech and make better decisions. </li>
</ul>


It is the time to reassess the commercialization performance and the outlook of China biotech companies, including BeiGene, Innovent, Henlus, Zai Lab, Hutchmed, Junshi, RemeGen, Innocare, Akeso. 
We summarized the data of these biotech companies’ product revenue and profit performance to judge whether their commercialization capability is sufficient to afford production, sales teams and long-term R&amp;D activities. 
Most China Biotech cannot be said to achieve "commercialization success", but they have showed some difference.We hope investors could have a better understanding about China biotech and make better decisions. 


China Biotech – The Commercialization Performance and The Outlook

China/Asia TMT

Shawn Yang

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>LKNCY: Luckin Coffee launch new flavor Mint Coconut latte, and co-brand with Doraemon, but with no expectation to be the next blockbuster(+)</li>
<li>BGNE/9969HK:Abbview &amp; J&amp;J voluntarily withdrew two major indication of IMBRUVICA, a known positive to BeiGene but within our expectations (+)</li>
<li>ZLAB: GSK's court battle loss to AZ likely will not affect Zai Lab's royalty obligation on Zejula (/)</li>
</ul>


LKNCY: Luckin Coffee launch new flavor Mint Coconut latte, and co-brand with Doraemon, but with no expectation to be the next blockbuster(+)
BGNE/9969HK:Abbview &amp; J&amp;J voluntarily withdrew two major indication of IMBRUVICA, a known positive to BeiGene but within our expectations (+)
ZLAB: GSK's court battle loss to AZ likely will not affect Zai Lab's royalty obligation on Zejula (/)


China TMT Update(Apr.12/Pt2)-LKNCY/BGNE/9969HK/ZLAB - Abbview & J&J Voluntarily Withdrew

<ul><li>InnoCare recorded total revenue of RMB625mn in FY22, including RMB566mn sales from orelabrutinib (+164% YoY vs RMB215mn in FY21).</li><li>Sales of orelabrutinib in 4Q22 was RMB166mn, slightly lower compared to RMB183mn in 3Q22 mainly due to COVID-19 interruptions.</li><li>The strong sales growth of orelabrutinib in FY22 was mainly driven by the increasing market penetration of the drug after NRDL inclusion effective since Jan 2022.</li></ul>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.

InnoCare recorded total revenue of RMB625mn in FY22, including RMB566mn sales from orelabrutinib (+164% YoY vs RMB215mn in FY21).Sales of orelabrutinib in 4Q22 was RMB166mn, slightly lower compared to RMB183mn in 3Q22 mainly due to COVID-19 interruptions.The strong sales growth of orelabrutinib in FY22 was mainly driven by the increasing market penetration of the drug after NRDL inclusion effective since Jan 2022.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.

InnoCare Pharma (9969 HK) – Positive PoC data of orelabrutinib for MS

China

InnoCare Pharma Limited researches, develops, manufactures, and distributes pharmaceuticals. The Company produces antibiotic drugs, respiratory drugs, cardiovascular drugs, vitamin tablets, health care drugs, and other related products. InnoCare Pharma markets its products throughout China.

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InnoCare Pharma Ltd (9969 HK)

Anti-Corruption in China Healthcare – the Impact and the Outlook

The share prices of China healthcare are now plummeting due to anti-corruption campaign, which will reach a climax in 23H2 (We'll post updates in...

Xinyao (Criss) Wang

InnoCare Pharma (9969 HK) – Eyes on Next Steps of Orelabrutinib for MS

The QoQ decrease in sales of orelabrutinib was mainly due to the COVID-19 outbreak and Chinese New Year break in 1Q. InnoCare continued to improve...

CMB International

China Biotech – The Commercialization Performance and The Outlook

In the context of the fading dividend of medical system reform and the lack of next big variety, the previous wave of innovative drug boom is hard...

Xinyao (Criss) Wang

China TMT Update(Apr.12/Pt2)-LKNCY/BGNE/9969HK/ZLAB - Abbview & J&J Voluntarily Withdrew

Luckin Coffee launch new flavor Mint Coconut latte(+); Abbview & J&J voluntarily withdrew two major indication of IMBRUVICA(+); ZLAB: GSK's court...

Blue Lotus Research Institute

InnoCare Pharma (9969 HK) – Positive PoC data of orelabrutinib for MS

InnoCare recorded total revenue of RMB625mn in FY22, including RMB566mn sales from orelabrutinib (+164% YoY vs RMB215mn in FY21).

CMB International

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