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<Research Report>Nomura: SINO BIOPHARM Top Pick for Pharma; WUXI APPTEC Favored among CROs
Following a lackluster 2H21, China's healthcare sector has remained enervated over 1H22, primarily due to the setbacks faced by China-developed drugs when seeking approvals fro...
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<Research Report>Nomura: SINO BIOPHARM Top Pick for Pharma; WUXI APPTEC Favored among CROs
Recommend
33
Positive
82
Negative
36
 
 

Following a lackluster 2H21, China's healthcare sector has remained enervated over 1H22, primarily due to the setbacks faced by China-developed drugs when seeking approvals from U.S. Food and Drug Administration (FDA), market concerns over potentially tighter regulations, escalating domestic market competition, geopolitical tensions as well as subdued investment sentiment around the globe towards biotechnology, reported Nomura.

The broker, nonetheless, underlined that the fundamentals of pharmaceutical firms are not as fragile as suggested by their share price performance. In fact, majority of Chinese healthcare companies have posted satisfactory results over the past year. The broader pharmaceutical sector has likewise been expanding at a rapid pace, with increases in R&D and new drug applications. Nomura, therefore, viewed the sector's valuation as appealing.

Related NewsCCBI Chops BEIGENE (06160.HK) TP to $148 as 1Q Results Beat
Lacking a convincing key catalyst, the healthcare sector will likely not see a valuation re-rating in near-term, Nomura added. The broker preferred pharmas and CROs within the sector, with SINO BIOPHARM (01177.HK)  -0.120 (-3.859%)    Short selling $30.80M; Ratio 16.180%   and WUXI APPTEC (02359.HK)  +0.750 (+1.969%)    Short selling $12.56M; Ratio 3.566%   as its top picks. BEIGENE (06160.HK)  -4.450 (-4.454%)    Short selling $7.86M; Ratio 6.359%   (BGNE.US)      was favored in the biotech segment. All three stocks were rated at Buy.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-05-10 16:25.) (Real-time Streaming US Stocks Quote; Except All OTC quotes are at least 15 minutes delayed.)

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