In today’s briefing:
- China Healthcare Weekly (Jun16)-WuXi Get A “Reprieve”, Vaccine Company in Trouble, Insurance Surplus
- Ascentage Pharma (6855.HK) Signs $1.3B Deal with Takeda – Finally on the Right Path
- Pre-IPO Fangzhou Inc. (PHIP Updates) – Some Points Worth the Attention
China Healthcare Weekly (Jun16)-WuXi Get A “Reprieve”, Vaccine Company in Trouble, Insurance Surplus
- Due to increasing competition/price reduction/overcapacity issue, outlook of domestic vaccine companies isn’t optimistic, which has been reflected in 24Q1 results. However, there’s also a “special one” that deserves investors’ attention.
- The status of medical insurance funds is improving rather than deteriorating, but we’re currently in the first half of the decade with the highest pressure on medical insurance.
- As the H.R.8333 proposal faced obstacles in the process of being included in NDAA, WuXi AppTec/WuXi Bio’s shares once rebounded.We remain conservative as situation is not as simple as imagined.
Ascentage Pharma (6855.HK) Signs $1.3B Deal with Takeda – Finally on the Right Path
- Ascentage was originally in an extremely difficult situation, but the cooperation with Takeda turned things around. Ascentage has obtained urgently needed cash flow to solve the survival problem.
- At this stage, it’s possible for Ascentage to hit about 50% market value of HCM. Investors are interested to know if APG-2575 would also be out-licensed, which however is not easy.
- Ascentage’s current strength isn’t sufficient to self-build sales system. While this deal is a good start, if Ascentage still chooses to do commercialization on its own, it’s time to sell.
Pre-IPO Fangzhou Inc. (PHIP Updates) – Some Points Worth the Attention
- Fangzhou cannot get around the decreasing unit-price of drugs and the increasing role of medical insurance in chronic-disease treatment.It’s challenging to find patients willing to pay out of own pockets.
- The internal dispute between the Founder and shareholders hasn’t ended, and related litigation is still pending. This makes us concerned about the stability of future business development and corporate governance.
- Fangzhou has significant cash flow pressure. In the case of increasingly fierce competition in the industry, without successful business diversification/transformation, growth prospects is gloomy, Valuation should be lower than peers.
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