Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>G Sachs Gives ST Risk Analysis for 3 Types of Firms as US Reportedly Planning to Tighten Scrutiny on CN Innovative Drugs Could Pose 'Headline Risks' for CN Pharmas
Recommend 57 Positive 88 Negative 61 |
||||
|
||||
|
Goldman Sachs' research report cited The New York Times saying that the Donald Trump administration is currently discussing restrictions on Chinese pharmaceuticals and drafting an executive order aimed at limiting the entry of Chinese innovative drugs into the US market through various measures. According to media reports, however, a White House spokesperson said in a statement on Monday that the government is not actively considering the draft executive order at this time. While Goldman Sachs takes no position on the final outcome of any executive order or proposal, nor can it predict potential next steps, implementation methods, or pathways (especially as the article indicating that major US pharma companies are actively lobbying against the order), the broker believes this development could create "headline risks" for the Chinese biotech/ pharma sector and intensify stock price volatility. With a new "licensing success rate” framework previously introduced by Goldman Sachs to reflect the overseas commercial value of Chinese biotech assets achieved through global partnerships, the broker, by comparing current market capitalization with the breakdown of China/overseas business valuations, grouped the companies with a higher proportion of overseas value into three categories. Category 1 is companies with established global presence, such as BEIGENE (06160.HK) (ONC.US) and Legend Biotech (LEGN.US). They are expected to face limited impact, as they already have solid foundations in markets like the US, and the market has relatively low expectations for new deals from them. Category 2 is companies with strong global partners, including SKB BIO-B (06990.HK), 3SBIO (01530.HK), HANSOH PHARMA (03692.HK), and HENGRUI PHARMA (01276.HK). Several biotech firms listed on the Hong Kong Stock Exchange also fall into this category, such as AKESO (09926.HK) (partnered with Summit Therapeutics (SMMT.US)) and DUALITYBIO-B (09606.HK) (partnered with BioNTech (BNTX.US) and others). Category 3 is companies with high expectations for out-licensing but no deals yet, which can be further divided into two subgroups: those planning to advance global clinical trials, such as INNOVENT BIO (01801.HK), ZAI LAB (09688.HK), and CSPC PHARMA (01093.HK), and those unwilling or unable to pursue global clinical trials, such as ASCLETIS-B (01672.HK), ANTENGENE-B (06996.HK), and CSTONE PHARMA-B (02616.HK). The broker aims to provide investors with a framework for assessing the potential impact of policy risk on the short-term share price sensitivity of the related companies, but the core of the long-term valuation remains dependent on 1) data quality and the value of the pipeline's clinical differentiation; 2) company execution; and 3) financial position (cash reserves, balance sheet, and break-even status). AAStocks Financial News |
||||
Copied to Clipboard
 |
||||
