$ASCLETIS-B(01672)$ This is one of my current favourite HK-China listed companies. It has been some time since I had shared anything about this company. Fast forward since the last update, its weight loss drug is almost ready, clearing most major obstacles with flying colour.
If you see the charts below, the previous spike to $18 and the recent spike to $15 prior to the current correction are both due to the better than expected test data from the weight loss drug, which are significantly better than the current ones in the market from $Novo-Nordisk A/S(NVO)$ and $Eli Lilly(LLY)$
Today's announcement is about another new drug development. Another important medical condition, autoimmune diseases, with great outcome in the initial phase. Yes, the stock price has corrected substantially today but it has nothing to do with today's announcement. It is simply traders and speculators taking the opportunity to sell after the recent run-up in price given the increasing volatility and uncertainty related to US market. Most biotech companies in HK are seeing similar correction after their recent collective run-up in prices.
Make no mistake, China drug development is here to stay. In fact, they will just get better, like it or not. This can be observed from the spike in patent filing in Chinese bio-pharmaceutical sector.
Considering Ascletis' price journey from less than $3 just a couple of years ago, when no one wanted to know anything about it to today, it has indeed come a long way. It's still early days.
I am not promoting the company because I hold an interest. Weight loss is a big problem and obviously a big business. Just ask the shareholders of LLY and NOV. Alternatively, check with the shareholders of $Hims & Hers Health Inc.(HIMS)$ when FDA decided to stop them from producing weight loss compunded drugs (i.e. copycats with special limit time exemption from FDA). Weight losing business will only get bigger over time, especially with more choices and lower prices. Ascletis is at the front of the Chinese 🇨🇳 queue if it has not been bought over. With a market cap of $12.8B HKD, it is a small fish 🐟 in the pond. I see the potential for it to be the next $AKESO(09926)$ , a significant player with $100B HKD market cap. But, this can wait. We always need one big hit to kickstart its momentum and journey to a bigger relevant player. I see the weight loss drug as that vehicle.
Finally, this company is not one for short term buyers, at least not my preference. The share price will see lots of highs and lows, so not suitable for the faint hearts.
@Daily_Discussion @TigerStars @Tiger_comments @TigerClub @CaptainTiger
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
