HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

Bio-Thera Solutions Ltd / Equity Bottom-Up

In the first quarter of 2021, following the failure of the BAT8001 phase III clinical trial, <a href="https://www.smartkarma.com/entities/bio-thera-solutions-ltd" target="_blank" data-smartkarma-citation="entities:29127:1" rel="noopener">Bio-Thera Solutions Ltd (688177 CH)</a> announced the suspension of R&amp;D of two other projects in the pipeline, BAT8003 and BAT1306. It is estimated that Bio-Thera has invested about RMB340 million in these three projects. Currently, Bio-Thera has only one product (Qletli) on the market. In the financial reports of 2020, the revenue was RMB185 million and Qletli contributed about RMB183 million, almost the entire revenue of the Company. Meanwhile, the net loss in 2020 was RMB513 million, and the Company has been suffering from losses for five consecutive years. So, what's next for Bio-Thera after R&amp;D setbacks and years of losses?

In the first quarter of 2021, following the failure of the BAT8001 phase III clinical trial, Bio-Thera Solutions Ltd (688177 CH) announced the suspension of R&amp;D of two other projects in the pipeline, BAT8003 and BAT1306. It is estimated that Bio-Thera has invested about RMB340 million in these three projects. Currently, Bio-Thera has only one product (Qletli) on the market. In the financial reports of 2020, the revenue was RMB185 million and Qletli contributed about RMB183 million, almost the entire revenue of the Company. Meanwhile, the net loss in 2020 was RMB513 million, and the Company has been suffering from losses for five consecutive years. So, what's next for Bio-Thera after R&amp;D setbacks and years of losses?

Bio-Thera Solutions (688177.CH) - What's Next for Bio-Thera After R&D Setbacks and Years of Losses?

Last week, <a href="https://www.smartkarma.com/entities/remegen-co-ltd" target="_blank" data-smartkarma-citation="entities:29191:1" rel="noopener">Remegen Co Ltd (9995 HK)</a>'s core product RC18 has received conditional marketing approval in China for the treatment of SLE. RC18 is the first domestic innovative drug for the treatment of SLE approved for marketing in China in more than 60 years, with excellent therapeutic effect and is expected to fill the treatment gap. In addition, the Company officially launched its A-share IPO plan and is expected to list on the SSE STAR Market. The good news was also reflected in the stock price, in the last three trading days, the stock price of RemeGen increased by nearly 25%.

Last week, Remegen Co Ltd (9995 HK)'s core product RC18 has received conditional marketing approval in China for the treatment of SLE. RC18 is the first domestic innovative drug for the treatment of SLE approved for marketing in China in more than 60 years, with excellent therapeutic effect and is expected to fill the treatment gap. In addition, the Company officially launched its A-share IPO plan and is expected to list on the SSE STAR Market. The good news was also reflected in the stock price, in the last three trading days, the stock price of RemeGen increased by nearly 25%. 

Remegen Co Ltd (9995.HK) - Commercialized RC18 + IPO On SSE STAR Market = New Chapter & Challenges

Thematic (Sector/Industry)

1. Industry viewpoints:<ul>
<li>Recently, there is news that insulin could be included in the volume-based purchase (VBP).</li>
<li>With the continuous improvement of the innovation capability of domestic pharmaceutical enterprises and the gradual recognition by foreign enterprises, "going global" has gradually become a common way in the domestic pharmaceutical industry.</li>
<li>As the residents' medical expenses continue to increase, commercial health insurance has become an important part to relieve the pressure of medical insurance fund.</li>
</ul>2. Company news:News about the new agreement and updated progress of new drugs 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/alphamab-oncology" target="_blank" data-smartkarma-citation="entities:28213:1" rel="noopener">Alphamab Co Ltd (9966 HK)</a>, <a href="https://www.smartkarma.com/entities/luye-pharma-group-ltd" target="_blank" data-smartkarma-citation="entities:488:1" rel="noopener">Luye Pharma (2186 HK)</a> and <a href="https://www.smartkarma.com/entities/remegen-co-ltd" target="_blank" data-smartkarma-citation="entities:29191:1" rel="noopener">Remegen Co Ltd (9995 HK)</a>.3. Market review:Last week, stock price for healthcare sector in A share decreased 3.7%, while CSI 300 decreased 2.21% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:
Recently, there is news that insulin could be included in the volume-based purchase (VBP).
With the continuous improvement of the innovation capability of domestic pharmaceutical enterprises and the gradual recognition by foreign enterprises, "going global" has gradually become a common way in the domestic pharmaceutical industry.
As the residents' medical expenses continue to increase, commercial health insurance has become an important part to relieve the pressure of medical insurance fund.
2. Company news:News about the new agreement and updated progress of new drugs from Wuxi Biologics (2269 HK), Alphamab Co Ltd (9966 HK), Luye Pharma (2186 HK) and Remegen Co Ltd (9995 HK).3. Market review:Last week, stock price for healthcare sector in A share decreased 3.7%, while CSI 300 decreased 2.21% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Genor Biopharma Holdings  / Equity Bottom-Up

<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> is a biopharmaceutical company that focuses on the R&amp;D and commercialization of oncology and autoimmune drugs, with a number of products in the late stage of clinical development and close to commercialization. Perhaps because of such characteristics, Genor is favored by reputable investment institutions such as Hillhouse Capital, Temasek, etc.. However, the stock price of Genor reached its peak when it was listed. It only rose in the first two days and then fell all the way. By March 9th, 2021, the closing price of Genor was HK$16.74/share, which was about 50% lower than the peak of HK$32.2/share at the beginning of listing. So, why is that?

JHBP (Genor) (6998 HK) is a biopharmaceutical company that focuses on the R&amp;D and commercialization of oncology and autoimmune drugs, with a number of products in the late stage of clinical development and close to commercialization. Perhaps because of such characteristics, Genor is favored by reputable investment institutions such as Hillhouse Capital, Temasek, etc.. However, the stock price of Genor reached its peak when it was listed. It only rose in the first two days and then fell all the way. By March 9th, 2021, the closing price of Genor was HK$16.74/share, which was about 50% lower than the peak of HK$32.2/share at the beginning of listing. So, why is that?

Genor Biopharma (6998.HK) - Here Is Why the Stock Price Decreased by About 50%

1. Industry viewpoints:<ul>
<li>In response to the rising incidence of infertility in recent years, the Central Committee of the China Democratic League plans to submit a proposal during the Two Sessions in March this year.</li>
<li>China's market for orphan drugs has huge potential and still remains untapped.</li>
<li>At present, in the domestic market of neurointerventional devices, multinational enterprises occupy the dominant position, and the overall scale of domestic enterprises is not large. The main reason is their product development strategy.</li>
</ul>2. Company news: News about the new acquisition and updated progress of new drugs from <a href="https://www.smartkarma.com/entities/wuxi-apptec-co-ltd-bf4a1265-beef-48b6-b82d-29308426030f" target="_blank" data-smartkarma-citation="entities:27795:1" rel="noopener">WuXi AppTec Co. Ltd. (2359 HK)</a>, <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/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/akeso-biopharma-inc" target="_blank" data-smartkarma-citation="entities:28830:1" rel="noopener">Akeso Biopharma Inc (9926 HK)</a>. 3. Market review:Last week, stock price for healthcare sector in A share decreased 2.1%, while CSI 300 decreased 1.39% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

1. Industry viewpoints:
In response to the rising incidence of infertility in recent years, the Central Committee of the China Democratic League plans to submit a proposal during the Two Sessions in March this year.
China's market for orphan drugs has huge potential and still remains untapped.
At present, in the domestic market of neurointerventional devices, multinational enterprises occupy the dominant position, and the overall scale of domestic enterprises is not large. The main reason is their product development strategy.
2. Company news: News about the new acquisition and updated progress of new drugs from WuXi AppTec Co. Ltd. (2359 HK), Innovent Biologics Inc (1801 HK), BeiGene Ltd (6160 HK) and Akeso Biopharma Inc (9926 HK). 3. Market review:Last week, stock price for healthcare sector in A share decreased 2.1%, while CSI 300 decreased 1.39% over the same period of time.4. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China

Innovent Biologics, Inc. operates as a biopharmaceutical company. The Company develops, manufactures, and distributes monoclonal antibody drug candidates for the treatment of oncology, ophthalmology, autoimmune, cardiovascular, and other diseases. Innovent Biologics serves customers in China.

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Innovent Biologics Inc (1801 HK)

Bio-Thera Solutions (688177.CH) - What's Next for Bio-Thera After R&D Setbacks and Years of Losses?

The article analyzed the concerns after the suspension of R&D of its three core products, the challenges of its listed product Qletli,and also the...

Xinyao (Criss) Wang

Remegen Co Ltd (9995.HK) - Commercialized RC18 + IPO On SSE STAR Market = New Chapter & Challenges

The article analyzed RemeGen's first commericalized product RC18, the challenges in R&D failure, fierce competition, commercialization and...

Xinyao (Criss) Wang

China Healthcare Weekly (Mar.12)

The article analyzed viewpoints of potential VBP on insulin, internationalization of domestic pharmaceutical companies, commercial health...

Xinyao (Criss) Wang

Genor Biopharma (6998.HK) - Here Is Why the Stock Price Decreased by About 50%

This article analyzed the concerns of Genor Biopharma in terms of core products, competitive landscape, industry characteristics and the potential...

Xinyao (Criss) Wang

China Healthcare Weekly (Mar.5)

The article analyzed a new proposal about China infertility, domestic market for orphan drugs, neurointerventional devices, news about WuXi AppTec,...

Xinyao (Criss) Wang

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