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.

Pre-IPO Shandong Boan Biotechnology - Conservative About the Outlook

China Healthcare Weekly (Feb.17) - CXO Vs Pharma, Medical Insurance Account Reform, Time to Reflect

Luye Pharma (2186.HK) - Could the Magic of Hillhouse Last Long?

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

Equity Capital Markets

<ul>
<li>The decline in revenue from multiple categories of drugs due to VBP indicates that <a href="https://www.smartkarma.com/entities/luye-pharma-group-ltd" target="_blank" data-smartkarma-citation="entities:488:1" rel="noopener">Luye Pharma (2186 HK)</a> urgently needs a group of new products to reverse the overall weak performance. </li>
<li>Without the advantages in R&amp;D efficacy and product competitiveness, the current pipeline would generate little value. It’s hard to convince people that the fundamentals of Luye have truly changed.</li>
<li>We are not optimistic about Luye’s outlook, which lacks long investment logic. Meanwhile, we think that this Placement is not cost-effective due to more potential downside to valuation.</li>
</ul>


The decline in revenue from multiple categories of drugs due to VBP indicates that Luye Pharma (2186 HK) urgently needs a group of new products to reverse the overall weak performance. 
Without the advantages in R&amp;D efficacy and product competitiveness, the current pipeline would generate little value. It’s hard to convince people that the fundamentals of Luye have truly changed.
We are not optimistic about Luye’s outlook, which lacks long investment logic. Meanwhile, we think that this Placement is not cost-effective due to more potential downside to valuation.


Luye Pharma Placement (2186.HK) - The Potential Downside to Valuations Is Large