Daily Brief Health Care: Celltrion Inc, Hisamitsu Pharmaceutical Co, Remegen and more

In today’s briefing:

TIGER Top 10 Rebalancing: Four Names to Trade on T-1 Effective
Hisamitsu Pharmaceutical (4530 JP): Set to Benefit from Roaring OTC Business and New Rx Drug Launch
China Healthcare Weekly (Dec.2)- VBP Correction, Sales Ability Overweigh R&D, Expectation Difference

TIGER Top 10 Rebalancing: Four Names to Trade on T-1 Effective

Kakao managed to stay out of the relegation zone. Instead, Kia was pushed to the borderline. But POSCO failed to up its float rate, so Kia stayed in.
Besides that, LG Energy Solution and Celltrion made it to the index, replacing KB Financial and Shinhan Financial.
These passive flows appears to be of sufficient magnitude to cause a substantial price impact on T-1 Effectiveness. But it should also be approached with a fairly short window.

Hisamitsu Pharmaceutical Co (4530 JP) reported revenue growth of 8% y/y and 26% q/q to ¥33B in Q2FY23, mainly driven by a 14% y/y 47% q/q increase in OTC business.
This year, the company received FDA approval for Xelstrym transdermal system for ADHD. Xelstrym is the first-and-only FDA-approved transdermal amphetamine patch.
With the resumption of sporting/outdoor events in Japan, Salonpas is expected to continue its growth trajectory. For FY23, Hisamitsu is targeting Salonpas revenue of ¥32.5 billion (+4.5% y/y).

The renewal results of coronary stent centralized procurement reflected that the government’s attitude towards the price reduction in VBP has changed, who tend to correct the excessively low price.
Investors’d better not to have such a misconception that they only attach importance to R&D rather than commercialization. Only if sales ability is verified can enterprises have better valuation premium.
Investors are advised to find the targets that are in “sector resonance” but also has “difference in expectations”. Ecology of innovative drug has changed, such as Remegen (688331 CH).

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