HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Thematic (Sector/Industry)

Industry viewpoints:<ul>
<li>The National Health Care Security Administration issued relevant guidance to include designated retail pharmacies in the medical insurance drug supply guarantee scope at the national level. </li>
<li>Last week, news released that the information collection of the 5th national volume-based purchase (VBP) is about to start.</li>
<li>To get a good night's sleep, young people in China are happy to spend money on related products and services.</li>
</ul> Company news:News about the updated progress on drugs of <a href="https://www.smartkarma.com/entities/antengene-corp-ltd" target="_blank" data-smartkarma-citation="entities:29705:1" rel="noopener">Antengene (6996 HK)</a>, <a href="https://www.smartkarma.com/entities/harbour-biomed-holdings-limited" target="_blank" data-smartkarma-citation="entities:29717:1" rel="noopener">Harbour Biomed Holdings Limited (2142 HK)</a>, <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> and <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>.Market review:Last week, stock price for healthcare sector in A share increased 7.58%, while CSI 300 increased 2.29% 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 issued relevant guidance to include designated retail pharmacies in the medical insurance drug supply guarantee scope at the national level. 
Last week, news released that the information collection of the 5th national volume-based purchase (VBP) is about to start.
To get a good night's sleep, young people in China are happy to spend money on related products and services.
 Company news:News about the updated progress on drugs of Antengene (6996 HK), Harbour Biomed Holdings Limited (2142 HK), Everest Medicines (1952 HK) and Shanghai Junshi Bioscience Co. Ltd. (1877 HK).Market review:Last week, stock price for healthcare sector in A share increased 7.58%, while CSI 300 increased 2.29% over the same period of time. Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Equity Capital Markets

On April 28, <a href="https://www.smartkarma.com/entities/lepu-biopharma-co-ltd" target="_blank" data-smartkarma-citation="entities:33231:1" rel="noopener">Lepu Biopharma (LBP HK)</a>, a subsidiary of <a href="https://www.smartkarma.com/entities/lepu-medical-technology-a" target="_blank" data-smartkarma-citation="entities:16654:1" rel="noopener">Lepu Medical Technology A (300003 CH)</a>, submitted its application to the main board of the Hong Kong Stock Exchange for listing. Actually, many companies in the medical device industry are good at capital operation, such as M&amp;A or spin-off and listing, which has been reflected in the leading medical device companies such as <a href="https://www.smartkarma.com/entities/shenzhen-mindray-bio-medic-a" target="_blank" data-smartkarma-citation="entities:28017:1" rel="noopener">Shenzhen Mindray Bio-Medical Electronics (300760 CH)</a> and <a href="https://www.smartkarma.com/entities/microport-scientific-corp" target="_blank" data-smartkarma-citation="entities:4487:1" rel="noopener">Microport Scientific (853 HK)</a>. However, Lepu Medical is the only one that enters the fields of both drugs and preparations, and according to the pipeline, the focus is not only on generic drugs, but also on biological drugs of higher competitive dimension (e.g. Lepu Biopharma is in this field.). It is also worth mentioning that this is the second company of Lepu factions to be listed in Hong Kong. The first one was <a href="https://www.smartkarma.com/entities/pw-medtech-group-ltd" target="_blank" data-smartkarma-citation="entities:9891:1" rel="noopener">Pw Medtech (1358 HK)</a> (Zhang yue’e is Pu Zhongjie’s wife) and the share price has been very weak since its listing. So can Lepu Biopharma have a better performance?

On April 28, Lepu Biopharma (LBP HK), a subsidiary of Lepu Medical Technology A (300003 CH), submitted its application to the main board of the Hong Kong Stock Exchange for listing. Actually, many companies in the medical device industry are good at capital operation, such as M&amp;A or spin-off and listing, which has been reflected in the leading medical device companies such as Shenzhen Mindray Bio-Medical Electronics (300760 CH) and Microport Scientific (853 HK). However, Lepu Medical is the only one that enters the fields of both drugs and preparations, and according to the pipeline, the focus is not only on generic drugs, but also on biological drugs of higher competitive dimension (e.g. Lepu Biopharma is in this field.). It is also worth mentioning that this is the second company of Lepu factions to be listed in Hong Kong. The first one was Pw Medtech (1358 HK) (Zhang yue’e is Pu Zhongjie’s wife) and the share price has been very weak since its listing. So can Lepu Biopharma have a better performance?

Pre-IPO Lepu Biopharma - There Are Still Many Uncertainties

Industry viewpoints:<ul>
<li>At present, the market is too enthusiastic about innovative drugs, which could result in a serious decline in the rate of return on investment and output.</li>
<li>The demand of CDMO of cell and gene therapy would be higher than that of biological drug CDMO in the future.</li>
<li>China's meal replacement market is currently the fastest growing in the world.</li>
</ul>Company news:News about the updated progress on new drugs of <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><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>, <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 <a href="https://www.smartkarma.com/entities/beigene-ltd" target="_blank" data-smartkarma-citation="entities:27352:1" rel="noopener">BeiGene Ltd (6160 HK)</a>.Market review:Last week, stock price for healthcare sector in A share increased (+4.72%), while CSI 300 decreased (-0.23%) over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry viewpoints:
At present, the market is too enthusiastic about innovative drugs, which could result in a serious decline in the rate of return on investment and output.
The demand of CDMO of cell and gene therapy would be higher than that of biological drug CDMO in the future.
China's meal replacement market is currently the fastest growing in the world.
Company news:News about the updated progress on new drugs of Shanghai Junshi Bioscience Co. Ltd. (1877 HK), Jiangsu Hengrui Medicine (600276 CH), Akeso Biopharma Inc (9926 HK) and BeiGene Ltd (6160 HK).Market review:Last week, stock price for healthcare sector in A share increased (+4.72%), while CSI 300 decreased (-0.23%) over the same period of time.Risk disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Equity Bottom-Up

Jiangsu Hengrui Medicine / Equity Bottom-Up

Recently, <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>'s share price has seen a significant pullback. Since April 9th, 2021, the Company's stock price had fallen for six consecutive trading days, with a cumulative decline of more than 10%, and its market value dropped by about RMB63 billion. So what happened to Hengrui? And what is the future business prospects of this Company? The following mainly included some important insights that deserve to pay attention to.

Recently, Jiangsu Hengrui Medicine (600276 CH)'s share price has seen a significant pullback. Since April 9th, 2021, the Company's stock price had fallen for six consecutive trading days, with a cumulative decline of more than 10%, and its market value dropped by about RMB63 billion. So what happened to Hengrui? And what is the future business prospects of this Company? The following mainly included some important insights that deserve to pay attention to.

Jiangsu Hengrui Medicine (600276.CH) - Insights on Recent Pullback and Future Business Prospects

Industry Viewpoints:<ul>
<li>With the gradual promotion of the intensive procurement of high-value consumables, some medical device companies are facing pressure. However, we still believe that the golden investment trend of the medical device industry in China is unchanged.</li>
<li>If it is the age of macromolecular drugs currently, then the future could be the cell and gene therapy.</li>
<li>Cosmetic contact lenses have entered an outbreak cycle with a CAGR of over 40% and sales of over RMB20 billion by 2020.</li>
</ul>Company News:News of updated progress of new drugs from <a href="https://www.smartkarma.com/entities/antengene-corp-ltd" target="_blank" data-smartkarma-citation="entities:29705:1" rel="noopener">Antengene (6996 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/cspc-pharmaceutical-group-ltd" target="_blank" data-smartkarma-citation="entities:229:1" rel="noopener">CSPC Pharmaceutical Group (1093 HK)</a>.Market Review:Last week, stock price for healthcare sector in A share decreased 1.71%, while CSI 300 decreased 1.37% over the same period of time.Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

Industry Viewpoints:
With the gradual promotion of the intensive procurement of high-value consumables, some medical device companies are facing pressure. However, we still believe that the golden investment trend of the medical device industry in China is unchanged.
If it is the age of macromolecular drugs currently, then the future could be the cell and gene therapy.
Cosmetic contact lenses have entered an outbreak cycle with a CAGR of over 40% and sales of over RMB20 billion by 2020.
Company News:News of updated progress of new drugs from Antengene (6996 HK), Shanghai Junshi Bioscience Co. Ltd. (1877 HK) and CSPC Pharmaceutical Group (1093 HK).Market Review:Last week, stock price for healthcare sector in A share decreased 1.71%, while CSI 300 decreased 1.37% over the same period of time.Risk Disclosure:Policy risk, R&amp;D risk, Company risk and COVID-19 risk.

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 (May.14)

This article analyzed new guidance on retail pharmacies in the medical insurance, information collection of the 5th national VBP, China's sleep...

Xinyao (Criss) Wang

Pre-IPO Lepu Biopharma - There Are Still Many Uncertainties

This article analyzed Lepu Biopharma in terms of its core product candidates in the pipeline, the challenges, concerns and future outlook for this...

Xinyao (Criss) Wang

China Healthcare Weekly (Apr.30)

The insight analyzed industry viewpoints including the concerns on ROE of innovative drugs, the demand of CDMO of cell and gene therapy, China's...

Xinyao (Criss) Wang

Jiangsu Hengrui Medicine (600276.CH) - Insights on Recent Pullback and Future Business Prospects

For the recent big pullback in share price of Hengrui, this article mainly analyzed the potential reasons, performance of PD-1, competitors,...

Xinyao (Criss) Wang

China Healthcare Weekly (Apr.16)

The article analyzed the investment opportunities in China medical device industry under VBP, future trend of cell and gene therapy, market...

Xinyao (Criss) Wang

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