Summary of Fosun Pharma's APAC Healthcare Corporate Day 2025 Company Overview - **Company**: Fosun Pharma (2196.HK) - **Industry**: Pharmaceuticals and Healthcare Key Points Industry and Market Dynamics - **VBP Impact**: The company noted ongoing impacts from the Volume-Based Procurement (VBP) policy on its generic drug portfolio, leading to a decline in total sales by **5.5% year-over-year** in Q3 [3] - **Sales Performance**: The pharmaceutical segment, which includes a large generic portfolio with sales exceeding **Rmb20 billion**, is facing further price cuts due to VBP renewal [3] Financial Performance - **Sales Figures**: Innovative products generated **Rmb6.7 billion** in sales, reflecting an **18% year-over-year** growth for the first nine months of 2025, partially offsetting the decline in generics [3] - **Device Business Recovery**: The device segment is showing signs of recovery, driven by increased demand for aesthetic equipment and flu vaccines [3] Growth Strategy - **CAGR Target**: The company aims for a **20% compound annual growth rate (CAGR)** for its innovative product sales from 2025 to 2027, supported by several key drivers [4] - **Biosimilars and New Products**: The growth strategy includes expanding its biosimilar portfolio and launching new products such as denosumab and pertuzumab, alongside overseas commercialization efforts [4] Research and Development - **R&D Investment**: Fosun Pharma has allocated approximately **Rmb6 billion** annually for R&D, with the majority focused on drug development, including biologics and innovative therapies [7] - **Efficiency in R&D**: The company has improved the efficiency of its R&D spending, with a focus on cutting duplicated projects based on clinical data [7] Risks and Valuation - **Price Target**: The 12-month price targets are set at **HK$27.35** and **Rmb37.63**, indicating potential upsides of **22.0%** and **33.3%** respectively [9] - **Key Risks**: Upside risks include better-than-expected sales from innovative drugs and aesthetic devices, while downside risks involve pricing pressures on generics and potential slower growth from Sinopharm [8] Additional Insights - **Asset Divestiture**: The company is considering divesting assets, although Gland Pharma is not currently prioritized for this strategy [2] - **Commercial Insurance**: Yescarta has been included in the commercial insurance drug list, which is expected to facilitate patient access [2] This summary encapsulates the critical insights from Fosun Pharma's recent corporate day, highlighting the company's strategic focus on innovation amidst regulatory challenges in the pharmaceutical landscape.