First Read: Hangzhou Tigermed Consulting - A "2026 AIC: Operation on track..."

Research evidence excerpt

First Read: Hangzhou Tigermed Consulting - A "2026 AIC: Operation on track..."

Forecast returns

Forecast price appreciation 67.7%

Forecast dividend yield 0.9%

Forecast stock return 68.6%

Market return assumption 6.8%

Forecast excess return 61.8%

Company Description

Hangzhou Tigermed Consulting (Tigermed) is a leading clinical research organisation (CRO) in

China, providing phase I-IV clinical trials, data management and biostatistics, registration and

filing services. Participating in many national projects with innovative drug clinical research

abilities, Tigermed is one of only a few Chinese CROs able to conduct global multi-centre

clinical trials, serving international drugmakers such as Roche and Takeda, and to be part of

the global drug R&D value chain. Its clinical research segment covers almost all clinical trials in

China's Good Clinical Practice guidelines.

Valuation Method and Risk Statement

We believe risks for China's CRO sector include: 1) lower-than-expected demand from

pharmaceutical R&D; 2) a global slowdown in outsourcing to the CRO sector; 3) fiercer-than-

expected competition among China CROs; 4) a worse-than-expected geopolitical

environment for China CROs with/approaching overseas clients; and 5) major quality issues

by regulators that could impact the industry’s reputation.

We value Tigermed A using DCF methodology. We believe major downside risks include: 1)

Softer-than-expected biopharma funding status; 2) major failure and termination at the class

level of drug candidates; 3) fiercer-than-expected competition and heavier-than-expected

price cuts; and 4) more severe international geopolitical tensions impeding business progress.

First Read: Hangzhou Tigermed Consulting - A 28 May 2026 abc 2