Healthcare - China (H): What Drives Market Interest: Three Paths, One Globalization Story

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Healthcare - China (H): What Drives Market Interest: Three Paths, One Globalization Story

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Healthcare - China (H)

What Drives Market Interest: Three Paths,

One Globalization Story

Industry Overview

Market focus remains on globalization opportunities 03 July 2026

Against a weak macro backdrop, including persistent medical insurance pricing pressure Equity

and soft consumption, investors’ focus shifts further toward companies with credible China

globalization exposure. This view was reinforced during our marketing activities in New Healthcare

York, Singapore and HK in June. Below, we summarize three key globalization themes. David Li >>

Research Analyst

Overseas revenue as the clearest globalization path Merrill+852 3508Lynch4531(Hong Kong)

Companies with significant overseas revenue exposure remain among the most direct davidbo.li@bofa.com

beneficiaries of the globalization theme. CRO/CDMO companies are the most prominent Ethan Cui >>

examples, supported by their global customer base and diversified revenue mix. Under ResearchMerrill LynchAnalyst(Hong Kong)

our coverage, WuXi Apptec, Pharmaron, and WuXi Bio generated 87.4%/84.8%/87.7% of ethan.cui@bofa.com

revenue from overseas markets in 2025, respectively. Meanwhile, with the Biosecure Act Sandra Sun >>

and the 1260H list’s limited impact on the sector, investor sentiment toward these Merrill Lynch (Hong Kong)

companies has improved. We believe high overseas revenue exposure, resilient global sandra.sun@bofa.com

demand and ample order backlogs provide relatively strong growth visibility. Beyond the

CRO/CDMOs, BeOne is a notable example within the pharma/biotech space, with strong

CRO: Contract Research Organizationoverseas revenue contribution driven by Brukinsa’s rapid US sales ramp-up and