Sino Biopharmaceutical Ltd
01177: XHKG (HKG)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
HK$4.69 | Nqrg | Fkpszdqk |
Strong sales force, business development, and cash position, but pipeline needs more innovation
Business Strategy and Outlook
Sino Biopharmaceutical, or SBP, is one of the four "big pharma" drugmakers in China, and operates in a fast-growing and rapidly changing environment. Drug manufacturing is growing faster than GDP, and we project it to grow at high single digits over the next decade. Additionally, the industry is undergoing massive regulatory change. The most impactful policy is centralized procurement, which is drastically cutting prices for commonly used chemical generics and has hurt SBP's growth.