Sihuan

Re: Sihuan

Postby helios » Tue May 26, 2009 1:26 am

Yo. One has to be very careful when vested in pharmaceuticals.

E.G.: You got to know what's in their product innovation pipeline, small molecules drugs (traditional medicine market) are very competitive now against pricing war. You also need to follow-up on the phases of their clinical trials (usually phase 2B/ 2C) depending on the clinical 'disease'; each country regulatory landscape with a timeframe of at least 5 years ahead, in this case China FDA guys ...

RE: Drugs, Biologics. These are classified under FDA NDA (new drug application) or BLA, and the applicant fees weigh a bombshell! Just the initial FDA preparation fees will cost at least $1 Million (& we haven't talked about filing, maintenance fees down the road).

One good way, of analysing pharma companies, is to look at their licensing-partnership strategies; whether they are striking enough deals to offset cashburn due to drugs regulatory requirements. Many Co. went bust this financial cycle as they are heavily committed in their trials without realising the sales of the products in time ... ... hence, a common 'trick' is to look at the Co. if they have any lead products that are on FDA fast track under 'Orphan Drug' designation ...

I like Sihuan; but on the other hand, there are so many San Diego companies listed on Nasq. And now, i somehow tend to compare china Co. against similar competitors/ comparables in the U.S. first. See if the global pharma industry can support the existence of both U.S. and P.R.C. ... do your own gut feel & assess if the China guys have a [true] competitive advantage in terms of utility, moat, other than just mere low in pricing ...
[Finance disclaimer: The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought regarding investing of any stocks/ funds and/or whatsoever. The author has no vested interest in the mentioned stock at the time of writing.
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Re: Sihuan

Postby stilicon » Tue May 26, 2009 2:45 am

Hi, San San,
I agree with most of what you said.
I come from the pharmaceutical industry. But in Europe. If I invest in a chinese pharmaceutical co., I will certainly not be able to follow closely their drug-pipeline, their connections with the people of the China-FDA, and so on. Those things can be importants, I concur.
But they are more important if you want to "play" or "trade" a news, than if you merely want to play the global development of the chinese pharmaceutical industry - which I consider a done deal over 10 years or more. Of course, you are right, some players will fail. Especially the smaller ones. And Sihuan is not really big.

As for the "San Diego companies listed on Nasq.", I am aware they do exist, but :
a) beware of them. There is a lot of BS in this industry. Really a lot. I knew some of those cos, that were mere marketing tricks, with no real production capacities behind. I used to always ask to visit the factory before dealing with them, then you get some real surprises... True, I will never even try to visit a chinese co. such as SIHUAN.
but also consider that ...
b) US cos hardly matter in the long term, in my opinion. The PRC will want to develop its own industry. Because it just makes sense. They have all the power to do that, through regulation. My own experience with the FDA (US-FDA) is that they are very nationalistic. If an european product want to get a FDA approval, but similar products made in the US already exist, they declare openly, that the US market doesn't need this new product. (So, by the way, forget about supposed FREE-MARKETS in the USA, at least in this very regulated industry). I experienced this 10 years ago. It is probably worse today. Why the chinese would not indulge in a similar protectionism ? I bet they will. So, I am dubious that a "global pharmaceutical industry" exists. Cooperation, licensing, co-marketing, private-label production etc exist, but these are simply ways of doing commerce. So, I do not see US cos as competition to chinese cos. Eventually, they could be mere allies/suppliers, through licensing deals.
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Re: Sihuan

Postby winston » Tue Aug 25, 2009 8:40 am

SIHUAN PHARMACEUTICAL (SIHP.SI) - Sihuan Pharmaceutical, a developer of cardiocerebral vascular drugs, said it has received a takeover offer at S$0.975 a share from investment holding company China Pharma, which is backed by Morgan Stanley Private equity Asia and controlling shareholders of Sihuan.
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