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.

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Equity Capital Markets

Beijing Biostar Pharmaceuticals Co Ltd / Equity Capital Markets

Beijing Biostar Pharmaceuticals Co Ltd (1849136D CH)

<ul>
<li>Besides the core product Utidelone Injection, the rest pipelines are mostly related to the indications expansion/new formulations R&amp;D for Utidelone Injection. Excessive dependence on single product is hard to improve. </li>
<li>We’re not optimistic about the future sales growth of Utidelone Injection due to fierce competition/inconvenient administration methods/expired patent protection. Biostar is facing survival risks if new financing cannot be obtained.</li>
<li>Biostar’s post-investment valuation is already RMB4.49 billion. Given the gloomy sentiment and the concerns about the pipeline/prospects, we think it could fall below this valuation level after IPO in HKEX.</li>
</ul>


Besides the core product Utidelone Injection, the rest pipelines are mostly related to the indications expansion/new formulations R&amp;D for Utidelone Injection. Excessive dependence on single product is hard to improve. 
We’re not optimistic about the future sales growth of Utidelone Injection due to fierce competition/inconvenient administration methods/expired patent protection. Biostar is facing survival risks if new financing cannot be obtained.
Biostar’s post-investment valuation is already RMB4.49 billion. Given the gloomy sentiment and the concerns about the pipeline/prospects, we think it could fall below this valuation level after IPO in HKEX.


Pre-IPO Beijing Biostar Pharmaceuticals- Core Product Has Obvious Defects; Outlook Is Not Optimistic