HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>While the final results of 2021 national medical insurance negotiation have yet to be announced, here are what's circulating in the market.</li>
<li>The centralized procurement on spring coil in Hebei province would start soon, which means that the centralized procurement in the field of neuro-intervention in China has officially begun.</li>
<li>There is a phenomenon of "valuation upside down" in the primary and secondary market of healthcare investment, so we recommend investors to be more cautious and rational.</li>
</ul>


While the final results of 2021 national medical insurance negotiation have yet to be announced, here are what's circulating in the market.
The centralized procurement on spring coil in Hebei province would start soon, which means that the centralized procurement in the field of neuro-intervention in China has officially begun.
There is a phenomenon of "valuation upside down" in the primary and secondary market of healthcare investment, so we recommend investors to be more cautious and rational.


China Healthcare Weekly (Nov.12)-Medical Insurance Negotiation,Spring Coil VBP,Valuation Upside Down

Asia Pac IPO & Placement Research, China biotech, Aequitas Research

Ke Yan, CFA, FRM

Asia Pac IPO & Placement Research, China biotech

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

HeMo Bioengineering / Equity Capital Markets

HeMo Bioengineering, a China-based interventional medical device company, plans to raise up to USD 300m via a Hong Kong listing.The company's main products are catheters for the aspiration thrombectomy for acute ischemic stroke. The thrombectomy market is experiencing rapid growth and the company targets a less competitive thrombectomy segment but effectively it is facing intense competition with stent retrievers. We are of the view that the company's product is not competitive and innovative enough to acquire large market share from other players despite the penetration rate of the aspiration thrombectomy in China is much lower than that in the US. The company's management does have a track record in developing medical devices in the past but we think its current product line does indicate few inventions.

HeMo Bioengineering, a China-based interventional medical device company, plans to raise up to USD 300m via a Hong Kong listing.The company's main products are catheters for the aspiration thrombectomy for acute ischemic stroke. The thrombectomy market is experiencing rapid growth and the company targets a less competitive thrombectomy segment but effectively it is facing intense competition with stent retrievers. We are of the view that the company's product is not competitive and innovative enough to acquire large market share from other players despite the penetration rate of the aspiration thrombectomy in China is much lower than that in the US. The company's management does have a track record in developing medical devices in the past but we think its current product line does indicate few inventions.

HeMo Bioengineering (禾木生物工程) Pre-IPO: Signs of Lacking Innovation

Industry viewpoints:<ul>
<li>The recent centralized procurement on spring coil in Hebei province could be a warning to the relevant enterprises.</li>
<li>The NHSA pointed out that it will explore feasible ways to include dental items into the payment scope of commercial insurance.</li>
<li>We expect to see AI deeply integrated into the new drug development process and revolutionize the industry in the future.</li>
</ul>Company news:News about the updated progress on new drugs and cooperation agreement of <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>, <a href="https://www.smartkarma.com/entities/cspc-pharmaceutical-group-ltd" target="_blank" data-smartkarma-citation="entities:229:1" rel="noopener">CSPC Pharmaceutical Group (1093 HK)</a> and <a href="https://www.smartkarma.com/entities/everest-medicines-ltd" target="_blank" data-smartkarma-citation="entities:29224:1" rel="noopener">Everest Medicines (1952 HK)</a>. Market review:Last week, stock price for healthcare sector in A share increased 3.74%, while CSI 300 decreased 0.37% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
The recent centralized procurement on spring coil in Hebei province could be a warning to the relevant enterprises.
The NHSA pointed out that it will explore feasible ways to include dental items into the payment scope of commercial insurance.
We expect to see AI deeply integrated into the new drug development process and revolutionize the industry in the future.
Company news:News about the updated progress on new drugs and cooperation agreement of Akeso Biopharma Inc (9926 HK), CSPC Pharmaceutical Group (1093 HK) and Everest Medicines (1952 HK). Market review:Last week, stock price for healthcare sector in A share increased 3.74%, while CSI 300 decreased 0.37% over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

China Healthcare Weekly (Sep.24) - VBP on Neuro-Intervention, Payment System Changes, AI in Drug R&D

Shanghai NewMed Medical / Equity Capital Markets

Shanghai NewMed, a China-based heart valve medical device company, plans to raise up to USD 200m via a Hong Kong listing.The company's core TAVR (transcatheter aortic valve replacement) product Prizvalve is a few years behind its competitors, despite its unique balloon expandable design. The selling point for the company is that in the international market such design is better than the self-expandable design which is mainstream in China. On the other hand, the company is leading the TMVR (transcatheter mitral valve replacement) development which is potentially a bigger market than the TAVR. The company has quality institutional investors alongside individual investors, as well as an experienced management team. We think investors should follow the IPO.

Shanghai NewMed, a China-based heart valve medical device company, plans to raise up to USD 200m via a Hong Kong listing.The company's core TAVR (transcatheter aortic valve replacement) product Prizvalve is a few years behind its competitors, despite its unique balloon expandable design. The selling point for the company is that in the international market such design is better than the self-expandable design which is mainstream in China. On the other hand, the company is leading the TMVR (transcatheter mitral valve replacement) development which is potentially a bigger market than the TAVR. The company has quality institutional investors alongside individual investors, as well as an experienced management team. We think investors should follow the IPO.

NewMed (纽脉医疗) Pre-IPO: Uphill Battle for TAVR but Leads the TMVR

Jenscare Scientific / Equity Capital Markets

Jenscare, a China based structural heart disease focused medical device company, plans to raise up to USD 300m via a Hong Kong listing.There have been many aortic heart valve replacement (TAVR) companies listed in Hong Kong but we think Jenscare has a differentiated portfolio in the area of heart valve replacement. Its TTVR product for the tricuspid valve will be leader the market for a few years and its TAVR product has a different indication for aortic regurgitation vs the aortic stenosis from other TAVR players. With quality pre-IPO investors, experienced management team and differentiated portfolio, we think investors should follow the IPO.

Jenscare, a China based structural heart disease focused medical device company, plans to raise up to USD 300m via a Hong Kong listing.There have been many aortic heart valve replacement (TAVR) companies listed in Hong Kong but we think Jenscare has a differentiated portfolio in the area of heart valve replacement. Its TTVR product for the tricuspid valve will be leader the market for a few years and its TAVR product has a different indication for aortic regurgitation vs the aortic stenosis from other TAVR players. With quality pre-IPO investors, experienced management team and differentiated portfolio, we think investors should follow the IPO.

Jenscare (宁波健世科技) Pre-IPO: Differentiated Heart Valve Portfolio

China

Peijia Medical Ltd. produces and sells medical devices. The Company develops and sells heart valve disease treatment medical devices and other products. Peijia Medical Technology markets its products throughout China. 

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Peijia Medical (9996 HK)

China Healthcare Weekly (Nov.12)-Medical Insurance Negotiation,Spring Coil VBP,Valuation Upside Down

This insight mainly analyzed some news circulating about 2021 national medical insurance negotiation results, VBP on spring coil in Hebei and...

Xinyao (Criss) Wang

HeMo Bioengineering (禾木生物工程) Pre-IPO: Signs of Lacking Innovation

We look at HeMo Bioengineering's main products. We are not convinced that its aspiration catheter products are innovative and competitive.

Ke Yan, CFA, FRM

China Healthcare Weekly (Sep.24) - VBP on Neuro-Intervention, Payment System Changes, AI in Drug R&D

This article analyzed the centralized procurement on spring coil in Hebei province, commercial insurance coverage for dental items, AI in new drug...

Xinyao (Criss) Wang

NewMed (纽脉医疗) Pre-IPO: Uphill Battle for TAVR but Leads the TMVR

NewMed plans to raise at least USD 200m via a Hong Kong listing. We take a look at its Prizvalve, replacement valve for the aortic valve, and Mi...

Ke Yan, CFA, FRM

Jenscare (宁波健世科技) Pre-IPO: Differentiated Heart Valve Portfolio

Jenscare has a differentiated heart valve portfolio with leadership in the tricuspid heart valve replacement segment. We think the company is...

Ke Yan, CFA, FRM

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