[ET Net News Agency, 21 January 2020] Citi Research raised its target price for Sino
Biopharmaceutical (01177) to HK$16.6 from HK$13.2 and maintained its "buy" rating.
The research house said Entecavir is facing centralized procurement (GPO) price rollout
nationwide, but management is confident in 2020 net profit growth of 20%. They noted key
growth drivers are (1) Anlotinib's expected 2020 growth of 50% based on 2019 estimated
sales of Rmb2.8-3bn, (2) contribution from newly approved drugs (e.g. Abiraterone,
Lenalidomide, Bortezomib, and Apixaban), and (3) potential sales of Rmb500-1,000mn from
Budesonide (estimated launch by January 2020).
Besides, management guided the impact of national roll-out of 4+7 price is manageable
and the company has recently won the tender in Hubei with the price of Rmb7 per 5mg
(versus Rmb0.2 per 5mg of new 4+7 price). (KL)