A few questions if I may: 1) Do you know the educational background of Ms Li Kei Ling and Mr Chen Shaojun? 2) Do you know the revenue contribution (in % terms) of the major drugs in their portfolio? 3) Are you concerned that their RMB 150 million JV foray into biotech drug development is indicative of an increased willingness to make speculative investments with their cash? Especially since neither the Chairwoman or CEO appear to have a scientific background? 4) Does management/IR speak to investors outside of the AGM?
1. Ms Li worked in the bulk medicine manufacturing before venturing out as an entrepreneur. As for Mr Chen, he came from a marketer and sales background. If you look at the management team, they are primarily in the manufacturing and sales background.
2. In the past, the "An" series will make up about 50% of their revenue, Leiyide at around 25%. For the current year 2020, "An" series should maintain around 45% - 50% of the revenue with Leiyide at around 10% - 15%. The national tender prices and retail prices is vastly different thus complicating some analysis and projection.
To highlight the skewed nature of China tender system, the largest player domestic player supplying to government hospital for Entecavir lost the tender and Chinese consumer had been complaining on forums that they no longer had a choice but to consume Dawnray product in some province Dawnray had chosen to enter.
3. The foray into biotech drugs is a national directive that Dawnray has to follow. We believe that the way they had structured it actually showed prudence on their part. The 150m JV is with the newly listed Akesobio. We can grab quite a few information from Akesobio IPO doc.
(AK102) may potentially be the first domestically-developed PCSK9 inhibitor marketed to the substantial cardiovascular patient population in China which is the segment Dawnray is in. AK102 is also at phase 2 clinical stage which is closer to the pivotal stage. So we do not think the management had been reckless in making the decision. Or they have been quite lucky so far...
4. We had talked to the lady in charge of IR. If you are interested, you can send your questions to my email - ongweehiang@gmail.com and we can loop you into the email chain.
A few questions if I may: 1) Do you know the educational background of Ms Li Kei Ling and Mr Chen Shaojun? 2) Do you know the revenue contribution (in % terms) of the major drugs in their portfolio? 3) Are you concerned that their RMB 150 million JV foray into biotech drug development is indicative of an increased willingness to make speculative investments with their cash? Especially since neither the Chairwoman or CEO appear to have a scientific background? 4) Does management/IR speak to investors outside of the AGM?
1. Ms Li worked in the bulk medicine manufacturing before venturing out as an entrepreneur. As for Mr Chen, he came from a marketer and sales background. If you look at the management team, they are primarily in the manufacturing and sales background.
2. In the past, the "An" series will make up about 50% of their revenue, Leiyide at around 25%. For the current year 2020, "An" series should maintain around 45% - 50% of the revenue with Leiyide at around 10% - 15%. The national tender prices and retail prices is vastly different thus complicating some analysis and projection.
To highlight the skewed nature of China tender system, the largest player domestic player supplying to government hospital for Entecavir lost the tender and Chinese consumer had been complaining on forums that they no longer had a choice but to consume Dawnray product in some province Dawnray had chosen to enter.
3. The foray into biotech drugs is a national directive that Dawnray has to follow. We believe that the way they had structured it actually showed prudence on their part. The 150m JV is with the newly listed Akesobio. We can grab quite a few information from Akesobio IPO doc.
(AK102) may potentially be the first domestically-developed PCSK9 inhibitor marketed to the substantial cardiovascular patient population in China which is the segment Dawnray is in. AK102 is also at phase 2 clinical stage which is closer to the pivotal stage. So we do not think the management had been reckless in making the decision. Or they have been quite lucky so far...
4. We had talked to the lady in charge of IR. If you are interested, you can send your questions to my email - ongweehiang@gmail.com and we can loop you into the email chain.