China / Hong Kong Biotech Sector: Time to bottom fish
- Biotech stocks listed in HK dropped 58% in 1 yr, close to historical trough; stocks dual listed in the US dropped deeper, time to bottom fish
- Buy BeiGene (6160 HK) as market ignores two positives 1) unlike most Chinese peers, it can penetrate the US – one of the few market where prices can be raised; 2) It can keep its US listing while many peers will be delisted
- Catalysts ahead – expect BeiGene to obtain US approval for launch of two innovative products in July and Oct