Sino Biopharmaceutical Has Strong Sales Footprint, but Pipeline Needs More Differentiation

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.