1、China(PRC)|HealthcareEquity ResearchJuly 13,2025 CuiCui,CFA*|Equity Analyst+852 3767 1228|JingMa,Ph.D.*|Equity Analyst+852 3767 1277|AkashTewari|Equity Analyst1(212)284-3416|MichaelJ.Yee|Equity Analyst(415)229-1535|KellyShi,Ph.D.|Equity Analyst(212)336-6937|DavidShang*|Equity Analyst+852 3743 8017|C

2、huWang*|Equity Analyst+852 3767 1229|Shopping in Chinas Biotech SupermarketMNCs are increasingly exploring Chinas thriving biotech supermarket toalleviate drug pricing and patent expiration pressure affordably and withina manageable time frame.China data has been proven credible and showsBIC potenti

3、al.We summarize the gaps at major MNCs and asset offeringsfrom the China hub.PD-1/VEGFs and ADCs are prioritized,while OrfoGLP-1s and Orexin are rising stars.Buy Akeso,Duality,Hansoh,Hengrui,Wuxi Bio,and Wuxi XDC.Why China assets?A timely,cost-effective remedy for MNCs challenges.MNCs arefacing incr

4、easing pressure from potential declines in drug pricing and patent expirationsof blockbusters starting in 2025.We believe CN biotechs are reshaping the US biopharmalandscape,as in-licensing assets from China could offer MNCs a remedy to alleviate pressureaffordably and within a manageable time frame

5、.32%of out-licensings came from China in1H25(by deal value),vs 21%in 2023/24 and single-digit%previously.(global mkting feedback)But why now?China data has been proven credible and shows best-in-class potential,thanksto Akeso.Govt support is also critical,with VBP forced pharma transitions and the p

6、romotion ofinnovation,incl the HKExs Chapter 18A allowing pre-revenue biotechs to list on the exchange.Global spotlight on China biotech heat.Chinas cost advantages extend to labor,the supplychain,and clinical trials.China biotech assets also trade at a notable discount to global peers:upfront payme