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EqualOcean

Research from EqualOcean

EqualOcean is an investment research firm and information service provider focusing on China's Technology, Automotive and Consumer Internet sectors. With unique research and due diligence methodology, we provide tailored insights into a wide range of industries and companies, empowering our clients' value-added decisions.

Founded in 2014, EqualOcean is headquartered in Beijing and has offices in Shanghai, Shenzhen and New York.

Thematic (Sector/Industry)

<ul><li>GT (Cell and Gene Therapy) is a sector with high growth potential.</li><li>CAR-T, as one of the main CGT currently, presents great value for both doctors and patients.</li><li>This article showcases the industry pain points and opportunities faced in the CAR-T sub-sector.</li></ul>

GT (Cell and Gene Therapy) is a sector with high growth potential.CAR-T, as one of the main CGT currently, presents great value for both doctors and patients.This article showcases the industry pain points and opportunities faced in the CAR-T sub-sector.

Opportunities and Challenges Hidden in the CGT Industry in China

HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

<ul>
<li>New policy was released to support the development of surgical robots in China, which would be short-term catalyst for related companies, but it may not bring high profits.</li>
<li>In fact, since March, it may not be appropriate for healthcare companies to use the COVID-19 as a reason if their performance in the following months is not as expected.</li>
<li>Before DRGs/DIP policy becomes very “lethal”, there is a “policy vacuum period” in the next two or three years, which is a good opportunity to go long in China healthcare.</li>
</ul>


New policy was released to support the development of surgical robots in China, which would be short-term catalyst for related companies, but it may not bring high profits.
In fact, since March, it may not be appropriate for healthcare companies to use the COVID-19 as a reason if their performance in the following months is not as expected.
Before DRGs/DIP policy becomes very “lethal”, there is a “policy vacuum period” in the next two or three years, which is a good opportunity to go long in China healthcare.


China Healthcare Weekly (Jan.27) - Surgical Robots New Policy, COVID-19 Update, Policy Vacuum Period

<ul>
<li>Centralized procurement of interprovincial dental implants would open the bid on Jan.11. Korean brands and European brands are all included. There is “no safe haven” for products with consumption attributes.</li>
<li>In 2023, we are optimistic that China healthcare would gain more household expenditure in the “Long COVID” effect, thus generating excess returns under the logic of expanding domestic demand.</li>
<li>2023 should be better than 2022. There’re strong expectations but weak realities in 2023Q1-Q2, during which more trading opportunities occur. However, in Q3-Q4, investors may need to be careful.</li>
</ul>


Centralized procurement of interprovincial dental implants would open the bid on Jan.11. Korean brands and European brands are all included. There is “no safe haven” for products with consumption attributes.
In 2023, we are optimistic that China healthcare would gain more household expenditure in the “Long COVID” effect, thus generating excess returns under the logic of expanding domestic demand.
2023 should be better than 2022. There’re strong expectations but weak realities in 2023Q1-Q2, during which more trading opportunities occur. However, in Q3-Q4, investors may need to be careful.


China Healthcare Weekly (Jan.6) - Dental Implant VBP, “Long COVID” Effect, 2023 Is Better than 2022

Global Healthcare Analyst

Tina Banerjee

<ul>
<li>As we are heading into 2023, let us look back on the performance of some of our global healthcare stocks recommended throughout 2022.</li>
<li>Four stocks on which I am bullish, generated more than 50% return since their recommendations. 10 stocks on which I am bearish plunged more than 20%.</li>
<li>For 2023, investors should continue to focus on established healthcare companies, having strong and flexible balance sheet with muti-year revenue visibility.</li>
</ul>


As we are heading into 2023, let us look back on the performance of some of our global healthcare stocks recommended throughout 2022.
Four stocks on which I am bullish, generated more than 50% return since their recommendations. 10 stocks on which I am bearish plunged more than 20%.
For 2023, investors should continue to focus on established healthcare companies, having strong and flexible balance sheet with muti-year revenue visibility.


2022 in Rear Mirror View: Top Performers From My Global Healthcare Coverage Universe

Equity Bottom-Up

<ul>
<li>
<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> and Summit Therapeutics entered into a collaborative and licensing agreement for AK112, which has set a new record for China's innovative drug license-out cooperation. </li>
<li>While the market remained positive about the transaction, there are also doubts. We deep dive the potential logic of the deal. </li>
<li>We recommended investors not to neglect “the nature of the deal” and “the real motivation” behind. It’s also important to see whether the subsequent operations can make some achievements overseas.</li>
</ul>



Akeso Biopharma Inc (9926 HK) and Summit Therapeutics entered into a collaborative and licensing agreement for AK112, which has set a new record for China's innovative drug license-out cooperation. 
While the market remained positive about the transaction, there are also doubts. We deep dive the potential logic of the deal. 
We recommended investors not to neglect “the nature of the deal” and “the real motivation” behind. It’s also important to see whether the subsequent operations can make some achievements overseas.


Akeso Biopharma (9926.HK) - Behind the Deal with Summit: A Snake Swallows an Elephant?

China

Legend Biotech Corporation operates as a biopharmaceutical company. The Company engages in discovery and development of novel cell therapies for oncology and other indications. Legend Biotech serves customers in the State of New Jersey.

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Legend Biotech Corp (LEGN US)

Opportunities and Challenges Hidden in the CGT Industry in China

GT (Cell and Gene Therapy) is a sector with high growth potential. CAR-T, as one of the main CGT currently, presents great value for both doctors...

EqualOcean

China Healthcare Weekly (Jan.27) - Surgical Robots New Policy, COVID-19 Update, Policy Vacuum Period

New policy released to support development of surgical robot. COVID-19 is no longer an excuse for company's poor performance. It's a good time to...

Xinyao (Criss) Wang

China Healthcare Weekly (Jan.6) - Dental Implant VBP, “Long COVID” Effect, 2023 Is Better than 2022

Dental implant VBP would open the bid on Jan.11. Korean/European brands are included. China healthcare would gain more household expenditure due to...

Xinyao (Criss) Wang

2022 in Rear Mirror View: Top Performers From My Global Healthcare Coverage Universe

From my coverage universe, two Taiwanese stocks generated 59% and 71% returns in nearly six months. New product launch and geography expansion are...

Tina Banerjee

Akeso Biopharma (9926.HK) - Behind the Deal with Summit: A Snake Swallows an Elephant?

The deal between Akeso and Summit set a new record of China license-out. We deep dive the logic of the deal. Investors are advised not to neglect...

Xinyao (Criss) Wang

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