[ET Net News Agency, 17 September 2018] Credit Suisse lowered its target price for
China Medical System (CMS)(00867) to HK$15 from HK$16.4, and maintained its "outperform"
rating.
The research house has recently organized a conference call with CMS' m, who presented a
clear picture on the possibilities of a new policy and the company's strategy accordingly.
Credit Suisse learnt that the new policy has uncertainties, and (1) drugs which will
impact the company are likely to be added to the list in 1.5-2 years; (2) brand name and
quality still have value as doctors may still prescribe drugs based on efficacy and
quality; (3) For original drug companies, they have the choice to reject price cuts and
choose other channels such as retail pharmacies.
The near-term impact for CMS is limited, as currently no drug is on the list. There is a
possibility that Deanxit and Plendil would be added later, but the impact would be well
controlled. (KL)
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00867 CMS
Nominal 
7.690 +0.260 (+3.499%) Others
17/09/2018 14:40
[I-bank focus]Credit Suisse lowers CMS (00867) to HK$15
| Remark: | Real time quote last updated: 10/05/2024 17:59 |
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