HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Equity Bottom-Up

In August, 2021, after <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> announced that the Company and Seagen Inc. had entered into an exclusive worldwide licensing agreement to develop and commercialize disitamab vedotin (RC48), the share price of RemeGen rose to HK$145.50/share, its second-highest ever. Meanwhile, in June, RemeGen submitted a prospectus to the SSE STAR Market, which was its second IPO application after its listing on the HKEX in November 2020. In September, RemeGen completed its reply to the first round enquiry by Shanghai Stock Exchange. Although RemeGen always seems to inadvertently bring "stimulation" to the market, from this enquiry and the business analysis, we could still find some concerns that worth investors’ attention.

In August, 2021, after Remegen Co Ltd (9995 HK) announced that the Company and Seagen Inc. had entered into an exclusive worldwide licensing agreement to develop and commercialize disitamab vedotin (RC48), the share price of RemeGen rose to HK$145.50/share, its second-highest ever. Meanwhile, in June, RemeGen submitted a prospectus to the SSE STAR Market, which was its second IPO application after its listing on the HKEX in November 2020. In September, RemeGen completed its reply to the first round enquiry by Shanghai Stock Exchange. Although RemeGen always seems to inadvertently bring "stimulation" to the market, from this enquiry and the business analysis, we could still find some concerns that worth investors’ attention. 

Remegen Co Ltd (9995.HK) - Insights About the First Round Enquiry by Shanghai Stock Exchange

Sihuan Pharmaceutical Hldgs / Equity Bottom-Up

<a href="https://www.smartkarma.com/entities/sihuan-pharmaceutical-hldgs" target="_blank" data-smartkarma-citation="entities:33:1" rel="noopener">Sihuan Pharmaceutical Hldgs (460 HK)</a>’s share price fell for two consecutive days on Sep.27 and Sep.28, decreasing 11% and 17.98%, respectively. According to public news, recently, Sihuan filed a lawsuit against CBC Group for infringement of trade secrets and such lawsuit has been formally accepted by the Beijing Intellectual Property Court. Meanwhile, there are also concerns on the acquisition of Hugel by CBC Group that may affect Sihuan’s exclusive distribution rights in China for Botulinum Toxin Type A (Letybo) and Hyaluronic Acid. On Sep.30, Sihuan made an announcement to claim that the Company does not expect its exclusive distribution rights will be affected by the Hugel Acquisition. This insight mainly analyzed the potential impact of the acquisition, the business and the outlook of the Company.

Sihuan Pharmaceutical Hldgs (460 HK)’s share price fell for two consecutive days on Sep.27 and Sep.28, decreasing 11% and 17.98%, respectively. According to public news, recently, Sihuan filed a lawsuit against CBC Group for infringement of trade secrets and such lawsuit has been formally accepted by the Beijing Intellectual Property Court. Meanwhile, there are also concerns on the acquisition of Hugel by CBC Group that may affect Sihuan’s exclusive distribution rights in China for Botulinum Toxin Type A (Letybo) and Hyaluronic Acid. On Sep.30, Sihuan made an announcement to claim that the Company does not expect its exclusive distribution rights will be affected by the Hugel Acquisition. This insight mainly analyzed the potential impact of the acquisition, the business and the outlook of the Company.

Sihuan Pharmaceutical (460.HK) - The Dispute with CBC Group, the Business and the Outlook

Jiangsu Hengrui Medicine / Equity Bottom-Up

On August 19, 2021, <a href="https://www.smartkarma.com/entities/jiangsu-hengrui-medicine-co-ltd" target="_blank" data-smartkarma-citation="entities:14128:1" rel="noopener">Jiangsu Hengrui Medicine (600276 CH)</a> released its 2021/1H financial results. The revenue was RMB13.3 billion, up 17.58% YoY. Net profit was RMB2.66 billion, up just 0.37% YoY, almost no growth, which was highly unusual. The sales of the key product PD-1 also showed negative growth with the price reduction of about 85% due to the volume-based purchase (VBP). Therefore, after the 2021/1H performance was released, Hengrui’s share price tumbled to a new 52-week low of RMB44.33/share by the end of August 30, 2021 . This insights mainly analyze the concerns and the outlook of the Company.

On August 19, 2021, Jiangsu Hengrui Medicine (600276 CH) released its 2021/1H financial results. The revenue was RMB13.3 billion, up 17.58% YoY. Net profit was RMB2.66 billion, up just 0.37% YoY, almost no growth, which was highly unusual. The sales of the key product PD-1 also showed negative growth with the price reduction of about 85% due to the volume-based purchase (VBP). Therefore, after the 2021/1H performance was released, Hengrui’s share price tumbled to a new 52-week low of RMB44.33/share by the end of August 30, 2021 . This insights mainly analyze the concerns and the outlook of the Company.

Jiangsu Hengrui Medicine (600276.CH) - The Concerns and the Outlook

Thematic (Sector/Industry)

Industry viewpoints:<ul>
<li>The National Health Care Security Administration pointed out that the volume-based purchase (VBP) of Chinese patent medicine will be carried out.</li>
<li>The market is quite concerned about the centralized procurement of medical equipment.</li>
<li>Regarding the centralized procurement of medical devices, how can investors clearly distinguish the information and be more rational about the companies involved? We summarized some conditions that can be used for reference.</li>
</ul>Company news:News about the updated progress on cooperation agreement and new drugs of <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>, <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/shanghai-junshi-bioscience-h" target="_blank" data-smartkarma-citation="entities:27760:1" rel="noopener">Shanghai Junshi Bioscience Co. Ltd. (1877 HK)</a> and <a href="https://www.smartkarma.com/entities/hutchmed-china-ltd" target="_blank" data-smartkarma-citation="entities:133:1" rel="noopener">Hutchmed China Ltd (13 HK).</a>Market review:Last week, stock price for healthcare sector in A share decreased 1.47%, while CSI 300 increased 0.5% over the same period of time. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
The National Health Care Security Administration pointed out that the volume-based purchase (VBP) of Chinese patent medicine will be carried out.
The market is quite concerned about the centralized procurement of medical equipment.
Regarding the centralized procurement of medical devices, how can investors clearly distinguish the information and be more rational about the companies involved? We summarized some conditions that can be used for reference.
Company news:News about the updated progress on cooperation agreement and new drugs of Remegen Co Ltd (9995 HK), Innovent Biologics Inc (1801 HK), Shanghai Junshi Bioscience Co. Ltd. (1877 HK) and Hutchmed China Ltd (13 HK).Market review:Last week, stock price for healthcare sector in A share decreased 1.47%, while CSI 300 increased 0.5% over the same period of time. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Equity Capital Markets

Transcenta Holding / Equity Capital Markets

Recently, <a href="https://www.smartkarma.com/entities/transcenta-holding-limited" target="_blank" data-smartkarma-citation="entities:33523:1" rel="noopener">Transcenta Holding (THL HK)</a> has passed the listing hearing of the HKEX and is expected to be listed on the main board in the near future. Transcenta is a clinical stage global biopharmaceutical company that integrates the capacities of discovery, research, development, manufacturing and business development, with nine product candidates in the pipeline, eight of which are oncology drug candidates. This insight mainly analyzed the important product candidates (such as MSB2311, TST001, TST005 and MSB0254) in the pipeline and related concerns.

Recently, Transcenta Holding (THL HK) has passed the listing hearing of the HKEX and is expected to be listed on the main board in the near future. Transcenta is a clinical stage global biopharmaceutical company that integrates the capacities of discovery, research, development, manufacturing and business development, with nine product candidates in the pipeline, eight of which are oncology drug candidates. This insight mainly analyzed the important product candidates (such as MSB2311, TST001, TST005 and MSB0254) in the pipeline and related concerns. 

Pre-IPO Transcenta Holding - Insights on Pipeline and the Concerns

China

RemeGen Co., Ltd. operates biotechnology businesses. The Company develops therapeutic antibody drugs such as antibody drug conjugates (ADC), antibody fusion proteins, monoclonal antibodies and double antibodies. RemeGen provides solutions autoimmune diseases, tumor diseases, and ophthalmic diseases.

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Remegen (9995 HK)

Remegen Co Ltd (9995.HK) - Insights About the First Round Enquiry by Shanghai Stock Exchange

This article mainly analyzed RemeGen in terms of its reply to Shanghai Stock Exchange’s first round enquiry, the core products, the pipeline, the...

Xinyao (Criss) Wang

Sihuan Pharmaceutical (460.HK) - The Dispute with CBC Group, the Business and the Outlook

This article mainly analyzed the dispute between Sihuan and CBC Group, the potential impact of the Hugel Acquisition, Sihuan's medical beauty...

Xinyao (Criss) Wang

Jiangsu Hengrui Medicine (600276.CH) - The Concerns and the Outlook

The article analyzed Hengrui in terms of its 2021/1H performance, pipeline, key products, industry policy impact, innovation trend, development...

Xinyao (Criss) Wang

China Healthcare Weekly (Aug.13)

The insight analyzed the VBP of Chinese patent medicine, market concerns on centralized procurement of medical equipment, and necessary conditions...

Xinyao (Criss) Wang

Pre-IPO Transcenta Holding - Insights on Pipeline and the Concerns

The article mainly analyzed Transcenta Holding in terms of its important product candidates MSB2311, TST001, TST005 and MSB0254,including the...

Xinyao (Criss) Wang

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