Daily Brief Health Care: Acotec Scientific Holdings, Oneness Biotech, Zai Lab and more

In today’s briefing:

Acotec Scientific (6669.HK) – What Value Boston Scientific Will Bring Is Crucial to Future Valuation
Oneness Biotech (4743 TT): Global Expansion of Marketed Product & Pipeline Progress
Zai Lab (9688.HK/ZLAB.US) 2022/2023Q1 – The True Colors and the Risks Behind

Acotec Scientific (6669.HK) – What Value Boston Scientific Will Bring Is Crucial to Future Valuation

With the launch of new products and their accelerated admission to hospitals, Acotec’s revenue streams become more diversified, which would enhance its own risk resistance ability and core competitiveness.
Considering market size/increasing competition, Acotec’s growth ceiling is obvious if relies solely on domestic market. It becomes crucial whether Boston Scientific’s acquisition would bring expected value or have other intentions.
How much room for improvement in future valuation depends on Acotec’s performance in overseas markets. After all, if there is no internationalization breakthrough, Acotec’s valuation logic would not be reshaped.

Oneness Biotech (4743 TT) recorded 10% revenue growth in Q1. However, operating loss widened. With global expansion of the marketed drug, the company is expected to turn profitable in 2024.
In January 2023, Oneness received marketing approval for Fespixon in Singapore, with launch expected in 2H23. Fespixon is also expected to receive approval in Philippines this year.
Oneness is conducting phase 3 trial for Fespixon in the U.S., with targeting NDA submission in 2026. Fespixon has an estimated addressable market opportunity of $14.8B for diabetic foot ulcer.

2023 is a crucial year for Zai Lab.It’s the first time for Zai Lab to demonstrate the profitability of license-in model.If it fails, investors would lose confidence in the company.
There is little correlation between the four commercialized products, which makes commercialization difficult and leads to low efficiency/high costs for sales team. So, breakeven could be more distant than expected.
Zai Lab’s current pipelines are hard to make money. There are concerns whether its business model is sustainable in the long term. As its valuation lacks an “anchor”, risk is high.

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