HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

<ul>
<li>Last week, the focus of the 2022 Volume-Based Purchase (VBP) was finalized. We summarized the key points and major VBP projects to be promoted this year.</li>
<li>For IVD companies that seize the golden COVID-19 testing opportunity, they have already accumulated large amount of cash flow. It means M&amp;A opportunities but also bubbles in the industry. </li>
<li>The market value of a lot of medical device companies in HKEX has already been very small. Is the market overly pessimistic?</li>
</ul>


Last week, the focus of the 2022 Volume-Based Purchase (VBP) was finalized. We summarized the key points and major VBP projects to be promoted this year.
For IVD companies that seize the golden COVID-19 testing opportunity, they have already accumulated large amount of cash flow. It means M&amp;A opportunities but also bubbles in the industry. 
The market value of a lot of medical device companies in HKEX has already been very small. Is the market overly pessimistic?


China Healthcare Weekly (Apr.15)- 2022 VBP Focus, Post-COVID IVD Outlook, Undervalued Medical Device

Equity Bottom-Up

<ul>
<li>Due to its early involvement in license-in mode, Zai Lab could in-license many high-quality candidates at a low price in the early stage, thus leading to today's achievements.</li>
<li>However, the increasingly low cost performance of in-licensed products has made the capital “reconsider”, because it is increasingly difficult to maintain high growth as before based on license-in mode.</li>
<li>Zai Lab could be a good short-term trade,especially when it reaches licensing deals or launch new products,but doubts about long-term prospects could discourages investors from holding it for long term.</li>
</ul>


Due to its early involvement in license-in mode, Zai Lab could in-license many high-quality candidates at a low price in the early stage, thus leading to today's achievements.
However, the increasingly low cost performance of in-licensed products has made the capital “reconsider”, because it is increasingly difficult to maintain high growth as before based on license-in mode.
Zai Lab could be a good short-term trade,especially when it reaches licensing deals or launch new products,but doubts about long-term prospects could discourages investors from holding it for long term.


Zai Lab Ltd (ZLAB.US/9688.HK) - Will Zai Lab Go into a Vicious Circle?

Global Healthcare Analyst

Tina Banerjee

Shanghai Junshi Biosciences  / Equity Bottom-Up

<ul>
<li>
<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)'s</a> oncology drug candidate toripalimab marketing application is currently under priority review by the FDA, with a target action date of April 30, 2022.</li>
<li>However, FDA may reject toripalimab application, as it is predominantly based on China clinical trial data. Toripalimab may also face delay in FDA decision due to delayed regulatory inspection.</li>
<li>PD-1 drug market in the U.S. is intensely competitive, making the commercialization prospect of a new drug quite difficult. Toripalimab reported muted performance in China due to pricing headwind.</li>
</ul>



Shanghai Junshi Bioscience Co. Ltd. (1877 HK)'s oncology drug candidate toripalimab marketing application is currently under priority review by the FDA, with a target action date of April 30, 2022.
However, FDA may reject toripalimab application, as it is predominantly based on China clinical trial data. Toripalimab may also face delay in FDA decision due to delayed regulatory inspection.
PD-1 drug market in the U.S. is intensely competitive, making the commercialization prospect of a new drug quite difficult. Toripalimab reported muted performance in China due to pricing headwind.


Shanghai Junshi Bioscience (1877 HK): Uncertainties Prevailing Ahead of First U.S. Drug Approval

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.

Quantitative Analysis

<ul>
<li>We analyse the changes of A/H premium on 136 stocks over the last week.</li>
<li>Average A/H premium was 4.7ppt lower last week, led by consumer discretionary, material and healthcare. </li>
<li>37 stocks reached 52 week high last week but most have retreated since, representing arb opportunities in volatile market. </li>
</ul>


We analyse the changes of A/H premium on 136 stocks over the last week.
Average A/H premium was 4.7ppt lower last week, led by consumer discretionary, material and healthcare. 
37 stocks reached 52 week high last week but most have retreated since, representing arb opportunities in volatile market. 


A/H Premium Weekly: Arb Opportunities Last Week

<ul>
<li>We analyse the changes of A/H premium on 136 stocks over the last week.</li>
<li>A/H premium increase was led by consumer Staples and consumer discretionary and industrials sectors.</li>
<li>We highlight A/H premium at 52 week peak: BYD, Xinjiang Gold Wind, Ganfeng Lithium. </li>
</ul>


We analyse the changes of A/H premium on 136 stocks over the last week.
A/H premium increase was led by consumer Staples and consumer discretionary and industrials sectors.
We highlight A/H premium at 52 week peak: BYD, Xinjiang Gold Wind, Ganfeng Lithium. 


A/H Premium Weekly: BYD, Xinjiang Gold Wind, Ganfeng Lithium

China

Shanghai Junshi Biosciences Co., Ltd. operates as a biopharmaceutical company. The Company develops and sells small molecule drugs, antibody drug conjugates, and other products. Shanghai Junshi Biosciences markets its products worldwide.

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Shanghai Junshi Biosciences (1877 HK)

China Healthcare Weekly (Apr.15)- 2022 VBP Focus, Post-COVID IVD Outlook, Undervalued Medical Device

The focus of 2022 VBP was finalized. In post-COVID era, how would cash-rich IVD companies with find new growth point?After continuous pullback,...

Xinyao (Criss) Wang

Zai Lab Ltd (ZLAB.US/9688.HK) - Will Zai Lab Go into a Vicious Circle?

Due to increasing cost and potential legal risks, relying on license-in mode is not as glamorous as before.The transition to independent R&D takes...

Xinyao (Criss) Wang

Shanghai Junshi Bioscience (1877 HK): Uncertainties Prevailing Ahead of First U.S. Drug Approval

Going by the FDA’s recent action, Junshi Bioscience’s toripalimab has a chance to get rejected by the FDA. It may miss the approval timeline....

Tina Banerjee

A/H Premium Weekly: Arb Opportunities Last Week

We highlight average A/H premium was 4.7ppt lower last week, led by consumer discretionary, material and healthcare. 37 stocks reached 52w high...

Ke Yan, CFA, FRM

A/H Premium Weekly: BYD, Xinjiang Gold Wind, Ganfeng Lithium

We highlight A/H premium increase led by consumer Staples and consumer discretionary and industrials sectors, and stocks at 52 week high: BYD,...

Ke Yan, CFA, FRM

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52-week Range

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