, China

HSBC releases China pharma market outlook for H2

Small cap companies with low valuations could outperform, but leading companies may provide more stable returns.

HSBC has revealed a report on the Chinese pharmaceutical market analysing H1 results and providing an outlook for H2. According to the report, the corporation takes a conservative outlook on the upcoming H1 result. HSBC expects the therapeutic areas excluding oncology and chronic disease drugs, will be weak due to the COVID-19 impact and group purchasing organisation (GPO). However, they signal long-term growth prospects to remain intact.

The firm also indicated that share price performance might face uncertainty as regulatory initiatives tend to be more active in H2. They expect GPO to be expanded to more drugs, but the impact on oral drugs should decline, while BE reviews for injectables should accelerate to pave the way for injectable GPO.

HSBC also told that National Healthcare Security Administration (NHSA) may continue to work on solutions for biological drugs GPO, but they don’t expect any material action in 2020. Updates on Diagnosis-related Groups (DRGs) test runs and guidance on nationwide implementation is also expected.

The corporation further revealed Sino Biopharm (SBP) and CSPC to be their top picks in preferred stocks due to their expected accelerated growth. They also like Shanghai Pharma and The United Laboratories (TUL) for their low valuations.

HSBC’s expectation says SBP should see a moderate recovery from Q1 to deliver high single-digit top-line growth, driven by the ramp-up of new generics and continued momentum of anlotinib.

CSPC is also expected to deliver close to 20% finished drug growth, driven by the growth in the oncology portfolio and improvement of common generics, while NBP’s growth could slow.

Hansoh should have weak H1 results due to major drugs’ GPO implementation, while new drugs’ acceleration takes time, the report added.

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Get Health Care Asia Magazine in your inbox
It was recognised for its cutting-edge medical device packaging design, Dispenser Integrated System Kit (DISK).
There has been an expanding research base across India, China, and Japan.
It combines third-party assured data verification with blockchain technology.
Consultation is available for only $0.014 (INR1).
The number of hospitals operating on hip fracture that have access to a fracture liaison service has been steadily rising from 2013 to 2020.
GMT Manila’s award-winning initiative, in collaboration with Endec Inc. and Scilore LLC, is a rapidly deployable turnkey solution for RT-PCR Testing that made it more available across the Philippines. 
As The National Cardiovascular Referral Center in Indonesia, NCCHK has been acknowledged by Asia's Healthcare Industry.
Currently, North America dominates the market across the globe.
More medical devices are being bought for home use.
It has also introduced a new hotline service.
The firm was recognised for its multiple initiatives in braving the COVID-19 crisis.
It took home the Training Initiative of the Year trophy for its non-invasive therapy treatment for benign prostatic hyperplasia (BPH).
The country’s SII makes up about half of Covax supply.
It owns 39 hospitals and eight clinics across England, Wales, and Scotland.
The company plans to set up over 100 in-school clinics.