Most of China’s healthcare firms’ long-term outlook growth remains intact

UOBKayHian cited Aier Eye Hospital, Mindray, and Innovent as top firms.

Online broker, UOBKayHian, said most healthcare firms in China have seen steady progress in their research & development and business expansion activities, which can help with their long-term outlook. 

Companies that have promising long-term outlooks are Aier Eye Hospital, Mindray, Innovent, TUL, CSPC, and Shineway.

“We raised WuXi AppTec’s target price from HK$92.70 to HK$110.00 given its continued efforts in seeking business expansion opportunities and believe its peptide capacity expansion from 20,000L to 32,000L will allow the company to improve its competitiveness in the global market and support its long-term growth,” read the statement.

Landscape of biotech firms and drugs

Meanwhile, the prices of healthcare shares in China slumped following the companies’ expectations that the US interest rate would be higher, UOBKayHian, an online broker, said.

“Chinese biotech companies sped up the pace of globalisation via out-licensing, yet we see an increasing number of out-licence deals being terminated” read the statement.

Out-licenced deals on me-too drugs have also ceased possibly due to internal R&D strategy adjustment, low market sentiment, and concerns about high development risk, and slower growth of the biotech sector in the US as interest rate hikes continue to weaken the funding environment.