Recently, Morgan Stanley, an international investment bank, released a latest research report, raised the target price of Fosun Pharma's H shares from the original HKD 16 to HKD 17, with a rise of more than 25% compared with the current H share price, and maintained a “shareholding” rating for Fosun Pharma. It is expected that from 2023 to 2025, the compound annual growth rates of the company's pharmaceutical, equipment, and hospital businesses will reach 8%, 13%, and 10%, respectively. This forecast reflects the strong growth momentum of the core business drug sales, especially the continuous growth of biosimilars and innovative drugs, and is expected to bring positive market performance to the company.
As a leading innovative-driven pharmaceutical company in China, Fosun Pharma has undergone a transformation from generics to innovative drugs since its establishment in 1994. It has now formed a diversified, multi-level open innovation model focusing on independent research and development, cooperative development, licensed introduction and deep incubation as the main elements.
Focusing on the unsatisfied medical needs, Fosun Pharma mainly focuses on core treatment fields such as tumors, self-immunity, central nervous system, and chronic illness. Since 2019, 4 to 5 innovative products and indications are launched and continued to be marketed annually. In terms of R&D model, Fosun Pharma has always adhered to an integrated innovation model, in addition to having an R&D team of over 1000 people, the company also actively introduces global advanced technologies and therapies, and specifically establishes funds to incubate innovative drugs and technology platforms, focusing on original innovation.
Therefore, Fosun Pharma established Fosun Rehabilitative Capital, which focuses on investment in the big health sector in 2019 and currently manages 11 RMB funds with total assets under management exceeding RMB 10 billion. Through conducting full-stage and full-industry chain investment, Fosun Rehabilitative Capital assists Fosun Pharma to complete horizontal industry expansion, vertical industrial extension in the medical and big health sectors, and ecological circle construction of the future.
At present, many RMB funds managed by Fosun Rehabilitative Capital cover different investment stages from early to mature, forming a unique model of dual-wheel driving of investment and industry, and research and operation support. Among them, the Fosun Rehabilitative Capital New Drug Innovation Fund focuses on original innovation by deep incubation throughout the life cycle, focusing on gene therapy, cell therapy and innovative biopharmaceuticals. Its participants include social capital and local governments, and the scale of the first phase is RMB 1.5 billion, incubating 10 companies, including 6 technology platform-type companies.
Fosun Pharma's innovative research and development and industrial operation capabilities in the biomedical field have been deeply recognized by Shenzhen. In 2023, Fosun Rehabilitative Capital successfully became the first batch of managers of Shenzhen's “20+8” industry fund. Fosun Rehabilitative Capital, as the GP of the fund, will build an innovative ecology with Shenzhen. On March 12 this year, Fosun Pharma announced the establishment of a RMB 5 billion biomedical industry fund with Shenzhen Guiding Fund, jointly promoting the high-quality development of the medical and health industry in the Greater Bay Area, with Shenzhen Guiding Fund contributing 50% of the total amount. In order to better transform the results of original innovation, Fosun Pharma has also located its Greater Bay Area headquarters in Shenzhen, relying on this city of innovation to further increase investment in the biomedical and precision medicine fields.
As a globally-oriented pharmaceutical and health industry group rooted in China and driven by innovation, Fosun Pharma has been continuously promoting the research and transformation of several global-first and China-first innovative technologies and products in recent years. Under the integrated innovation model, Fosun Pharma will continue to explore and improve the accessibility of innovative drugs and cutting-edge therapies, expand the innovation ecosystem of China's pharmaceutical industry, and benefit more patients in China and around the world.