[ET Net News Agency, 17 December 2018] Citi Research cited Stephen Tse, executive
director of Sino Biopharmaceutical (SBP)(01177) noting that 90% price cut on Runzhong
(Entecavir) is mainly due to competition from Haisco at a significantly low price and
SBP's strategy of being the winner in key products.
Tse also highlighted that (1) 2019 revenue and profit will deliver double-digit growth,
(2) Runzhong is still profitable under the tender price of Rmb0.62 through selling expense
savings; (3) demand of Runzhong post bulk procurement could boost to 4-5 times of current
volume; and (4) SBP current max capacity for Entecavir is at 2.5 times of current volume.
Citi believes current valuation on SBP is compelling as well as the whole pharma sector.
It maintained its "buy" call on SBP with an unchanged target price of HK$13.2. (KL)
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01177 SINO BIOPHARM
Nominal 
2.810 +0.130 (+4.851%) Others
17/12/2018 17:14
[I-bank focus]Runzhong profitable under tender price - SBP
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