HK/China Healthcare Analyst (ex-Fosun Pharma)

Xinyao (Criss) Wang

Over 15 years' experience in both finance and healthcare, covering clinic operations, investment and equity research in both China and overseas.

China Healthcare Weekly (May.5)- 2nd Wave of COVID, Valuation Logic of China's Core Assets, Lifetech

Acotec Scientific (6669.HK) - What Value Boston Scientific Will Bring Is Crucial to Future Valuation

China Healthcare Weekly (May.19) - "Hedge Logic" Of CXO, Beijing's DRG+VBP Policy, Zylox-Tonbridge

Pre-IPO Kelun Biotech - Debut Is the Peak, and Then It Wanes?

Merck Puts Eye-Popping $9.3B in ADC Deal with Kelun - The "New Story" Is About to Begin

Sichuan Kelun Pharmaceutical (002422.CH) - The Deal with Merck Brightens the Outlook; A Dark Horse?

Battle Lines Drawn As BABA Builds Out First/Last-Mile Capacity; But Who Will Fund 75+ Bn CNY CapEx?

Equity Bottom-Up

Sichuan Kelun Pharmaceutical / Equity Bottom-Up

<ul>
<li>The real foothold of a pharmaceutical company lies in  “Development” rather than “Research”. After the clinical development has reached the first-class level, what remains is the vision of the leaders.</li>
<li>For China biotech, we think they would go through four stages- Stage 1 (2015 – 2019), Stage 2 (2019 - present), Stage 3 (2026-2028) and Stage 4 (starting from 2030).</li>
<li>If without Merck’s deal, Kelun’s profit improvement was mainly due to effective cost control. If Kelun could maintain double-digit revenue growth, with net profit margin around 10%, it’s already good.</li>
</ul>


The real foothold of a pharmaceutical company lies in  “Development” rather than “Research”. After the clinical development has reached the first-class level, what remains is the vision of the leaders.
For China biotech, we think they would go through four stages- Stage 1 (2015 – 2019), Stage 2 (2019 - present), Stage 3 (2026-2028) and Stage 4 (starting from 2030).
If without Merck’s deal, Kelun’s profit improvement was mainly due to effective cost control. If Kelun could maintain double-digit revenue growth, with net profit margin around 10%, it’s already good.


China Healthcare Weekly (Apr.28) - Four Stages of China Biotech, The Real Foothold of R&D, Kelun