In today’s briefing:
- Polaris Group (6550 TT): An Attractive Bet With Differentiated Approach To Cancer Therapy
- Beijing Tongrentang (600085.CH)- Neither Brand Nor Angong Niuhuang Pills Can Secure Future Prospects
Polaris Group (6550 TT): An Attractive Bet With Differentiated Approach To Cancer Therapy
- Polaris Group (6550 TT) is developing novel anti-cancer therapies, with its lead drug candidate, Pegargiminase (ADI‑PEG 20) in late-stage clinical development for a wide range of cancers.
- The various cancers targeted by Pegargiminase combination therapy have combined annual new cases of more than 19 million. The treatment market size is estimated to reach $20 billion in 2025.
- Polaris aims to get at least two biologics license applications (BLA) approvals by 2025. With cash balance of NT$7.7 billion, the company is well-resourced to fund its ongoing clinical activities.
Beijing Tongrentang (600085.CH)- Neither Brand Nor Angong Niuhuang Pills Can Secure Future Prospects
- 2018 was a watershed for Tongrentang. After the incident of using expired honey was exposed and the corruption scandal afterwards, Tongrentang’s performance declined significantly and didn’t recover until 2021.
- Angong Niuhuang Pill is the major performance driver and also Tongrentang’s core product. Due to the economic downturn, the price increase of Angong Niuhuang Pills could lead to inventory overstocking.
- The high growth in 2021 may not be sustained. We lowered our forecast for 2022. Without core competitiveness and high moat, we are conservative about Tongrentang’s long-term outlook.
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