China Healthcare:Monthly Hospital Rx Tracker,June 2017

Growth moderation in June

    Total hospital drugs sales grew 2.1%, 1.8% and 7.3% in 2Q17, 1Q17and 2016.Oncology drugs such as Ai Tan (Apatinib) remained our focus and maintainedstrong growth momentum in 2Q17. Hengrui's Ai Tan and Kai Te Li, SBP'sRunzhong, 3SBio's EPIAO and TPIAO and CSPC's NBP recorded growth of 121%,16%, 5%, -8%, 12% and 16% in 2Q17vs. 164%, 25%, 11%, -4%, 3% and 18%in 1Q17and 637%, 25%, 26%, 5%, 33% and 33% in 2016. However, we cautioninvestors that the aforementioned data might be selectively indicative only forcorrelation with reported data.

    Hengrui: New drug Ai Tan (Apatinib) outstanding

    The sales growth of flagship products Ai Tan, Ai Li, Ai Su, Ai Heng, the atracuriumseries and Kai Te Li was 121%, 15%, 3%, 0%, 9% and 16% in 2Q17vs. 164%,13%, -2%, -1%, 6% and 25% in 1Q17and 637%, 13%, 4%, 0%, 5% and 25% in2016. On a three-month rolling basis, average growth for Ai Li and Ai Su was 13%and -1% in 2Q17vs. 12% and -3% in 1Q17and 15% and 6% in 12M16.

    SBP: Runzhong picked up; Kaifen remains solid

    Growth of major drugs Runzhong, Ganmei, Kaishi and Kaifen reached 5%, 0%,-12% and 16% in 2Q17vs. 11%, 0%, -7% and 25% in 1Q17and 26%, 1%, -1% and31% in 2016. On a three-month rolling basis, the average growth of Runzhongand Ganmei was 6% and 1% in 2Q17vs. 10% and -3% in 1Q17and 34% and5% in 12M16.

    3SBio: Yisaipu flat; SEPO continued strong growth

    3SBio recorded growth for EPIAO and TPIAO at -8% and 12% in 2Q17vs. -4%and 3% in 1Q17and 5% and 33% in 2016. Yisaipu's growth was flat in 2Q17vs.-5% in 1Q17and 2% in 2016. SEPO delivered decent growth of 72% YoY in 2Q17,compared with 38% in 1Q17.

    CSPC: Oncology franchise intact

    Flagship products NBP, Xuanning and Oulaining grew 16%, -1% and -7% in 2Q17vs. 18%, -1% and -12% in 1Q17and 33%, 6% and 4% in 2016. Oncology drugsDuomeisu and Jinyouli continued robust growth at 49% and 99% in 2Q17, vs.46% and 91% in 1Q17and 120% and 180% during 2016. On a 3-month rollingbasis, average growth of NBP and Oulaining was 15% and -9% in 2Q17vs. 21%and -10% in 1Q17and 36% and 8% in 12M16.