Periodic/Sector reports
China Healthcare - Bi-Weekly: Profit-taking Drags HSHCI; ESMO Data Brightens Biopharma Outlook
MARKET WEIGHT (Maintained)
Analyst
Analyst
Highlights
- The HSHCI fell 10.6% during 1-15 October, significantly underperforming the HSI, mainly due to profit-taking. Insilico, XtalPi, Akeso, and WuXi Bio, which led September’s outperformers, are the major laggards.
- Chinese biopharmas will deliver their strongest ESMO showing yet, with 29 studies accepted as late-breaking abstracts. With market focus shifting from business development to robust Phase III data delivery, China's innovation strength should continue to support the sector's positive outlook.
- Maintain MARKET WEIGHT.
Bi-Weekly Recap
- Patent cliff pressures big pharma as Chinese biopharmas capitalise. The biopharma patent cliff is peaking, with US$500b in branded drug sales at risk from generics and biosimilars in 2026-32. Merck's Keytruda (US$31.7b in 2025 sales, 49% of revenue) loses US exclusivity in 2028. Bristol Myers Squibb faces the steepest proportional cliff, with Eliquis and Opdivo (2025 sales of US$14.4b and US$10b, respectively, or together ~50% of revenue) expiring around 2028. These major drug makers are responding via pipeline execution, business development, and cost cuts.
Meanwhile, Chinese biopharmas are capitalising through record licensing deals, platform partnerships, and biosimilar expansion. To replenish pipelines, MNCs are increasingly pursuing multi-programme bundled deals and platform-level partnerships rather than single-asset purchases. Chinese biosimilar makers are expanding globally. Henlius targets US entry in 2026-27, and the EU thereafter, expecting overseas revenue to double annually on China's 40% cost advantage.
- Chinese companies are having their strongest ESMO showing this year. The European Society For Medical Oncology (ESMO) Congress 2026, to be held on 23-27 Oct 26 in Madrid, has recently released study titles of the late-breaking abstracts (LBA), which included 29 studies led by Chinese researchers, up from 23 and seven studies in 2025 and 2024 respectively. This continues to show the growing global influence and research capabilities of Chinese oncologists.
Highlights
- The HSHCI fell 10.6% during 1-15 October, significantly underperforming the HSI, mainly due to profit-taking. Insilico, XtalPi, Akeso, and WuXi Bio, which led September’s outperformers, are the major laggards.
- Chinese biopharmas will deliver their strongest ESMO showing yet, with 29 studies accepted as late-breaking abstracts. With market focus shifting from business development to robust Phase III data delivery, China's innovation strength should continue to support the sector's positive outlook.
- Maintain MARKET WEIGHT.
Bi-Weekly Recap
- Patent cliff pressures big pharma as Chinese biopharmas capitalise. The biopharma patent cliff is peaking, with US$500b in branded drug sales at risk from generics and biosimilars in 2026-32. Merck's Keytruda (US$31.7b in 2025 sales, 49% of revenue) loses US exclusivity in 2028. Bristol Myers Squibb faces the steepest proportional cliff, with Eliquis and Opdivo (2025 sales of US$14.4b and US$10b, respectively, or together ~50% of revenue) expiring around 2028. These major drug makers are responding via pipeline execution, business development, and cost cuts.
Meanwhile, Chinese biopharmas are capitalising through record licensing deals, platform partnerships, and biosimilar expansion. To replenish pipelines, MNCs are increasingly pursuing multi-programme bundled deals and platform-level partnerships rather than single-asset purchases. Chinese biosimilar makers are expanding globally. Henlius targets US entry in 2026-27, and the EU thereafter, expecting overseas revenue to double annually on China's 40% cost advantage.
- Chinese companies are having their strongest ESMO showing this year. The European Society For Medical Oncology (ESMO) Congress 2026, to be held on 23-27 Oct 26 in Madrid, has recently released study titles of the late-breaking abstracts (LBA), which included 29 studies led by Chinese researchers, up from 23 and seven studies in 2025 and 2024 respectively. This continues to show the growing global influence and research capabilities of Chinese oncologists.
MARKET WEIGHT (Maintained)
Analyst
Analyst
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