In today’s briefing:
- Antengene (6996 HK): First Drug Launched in Crowded Market of China Fails to Allure Investors
- Dingdang Health Technology (9886HK)-Business Model Face Test; Hard to Run the Ecosystem Successfully
Antengene (6996 HK): First Drug Launched in Crowded Market of China Fails to Allure Investors
- On May 13, Antengene (6996 HK) launched first drug, Xpovio in China as fourth-line treatment of relapsed/refractory multiple myeloma. Xpovio has also been launched in South Korea, Australia, and Singapore.
- Xpovio reported revenue of RMB54 million in H1 2022. Antengene has guided for 2022 revenue of RMB180–200 million from Xpovio.
- Late-Line MM therapy market is small and dominated by blockbuster drugs and low-cost generic versions of erstwhile blockbuster drugs, indicating muted growth potential for Xpovio in its current approval status.
Dingdang Health Technology (9886HK)-Business Model Face Test; Hard to Run the Ecosystem Successfully
- Dingdang has formed a system integrating front-end consultation, self-built pharmacies and back-end distribution. The “heavy asset model” leads to large liabilities, negative equity balance, cash flow pressure and poor profitability.
- Dingdang lacks core competitiveness in introducing customer flow or rapidly expanding user base. Together with fierce competition, the gap between the Company and JD Health/Alibaba Health will become bigger.
- It’s difficult to achieve high profits based on the business model when break-even is barely achieved. Dingdang has it hard to successfully run through its ecosystem.We’re bearish on the outlook.
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