[ET Net News Agency, 17 March 2020] Nomura initiated coverage on Sino Biopharmaceutical
(01177) with a "buy" rating and a target price of HK$14.5.
Despite a potential sales decline of GPO (group purchasing organization) products in
2020-21, the research house thinks Sino Biopharm's current blockbusters, including
anlotinib and budesonide, are likely to record robust growth.
Nomura also expects the operating margin to improve in 2020, which may help to smooth
potential bottom-line fluctuations. It forecast 2020-22 sales of anlotinib to reach
RMB4.2/4.8/5.3bn, driven by the expansion of the patient group and potential volume gain
from NRDL's (national reimbursement drug list) inclusion. (KL)