In today’s briefing:
- China Healthcare Weekly (Dec.15)-BMS/Biokin $8.4B Eye-Popping Deal, NRDL Negotiation Result, Haoyuan
- Boryung Pharmaceutical (003850 KS): Prescription Drugs Took a Breather in Q3; Poised to Rebound
China Healthcare Weekly (Dec.15)-BMS/Biokin $8.4B Eye-Popping Deal, NRDL Negotiation Result, Haoyuan
- 2023 NRDL negotiation results were released. We’re seeing the rules of NRDL renewal negotiations tilt toward innovative drugs, leading to lower price reduction, but there has been no fundamental change.
- The record-breaking US$8.4 billion deal involving BMS and Sichuan Biokin Pharmaceutical (688506 CH) (SystImmune) is not without risk, though. We still recommend to remain rational.
- The issue facing Shanghai Haoyuan Chemexpress (688131 CH) is higher revenue but lower margins. Valuation will likely experience further declines due to lock-up expiry and share reduction.
Boryung Pharmaceutical (003850 KS): Prescription Drugs Took a Breather in Q3; Poised to Rebound
- In 3Q23, Boryung Pharmaceutical (003850 KS) reported 15% YoY growth in revenue to KRW208B, driven by 7% YoY growth in prescription drugs, the slowest growth in the last three years.
- Prescription drug revenue growth slowed due to the huge shortfall in revenue from the diabetes drug Trulicity caused by supply shortage. We expect slowdown in Trulicity revenue is temporary.
- Despite losing patent protection in February 2023 on ARB monotherapy, Kanarb drug family is showing no fatigue due to increasing preference for combination drugs in the market.