Brokers' Take

Brokers' Choice

China foray to boost Asiapharm'S outlook

17 January 2005
The Straits Times

UOB Kay Hian, Jan 12

UOB Kay Hian has maintained its 'buy' recommendation on AsiaPharm Group in the wake of the company's growing penetration into China's hospitals through the National Health Insurance scheme.

AsiaPharm's recent alliance with a leading Italian pharmaceutical company, Biomedica Foscama, is also expected to boost the company's sales and profit.

The strategic alliance between the two companies is to jointly develop, manufacture and distribute Biomedica's drugs in Asia and Europe.

'This is a significant step forward for AsiaPharm to move its products into the export market, where it had previously exported raw materials,' the UOB report said.

AsiaPharm's share price gained 8.6 per cent over the week to close at 69.5 cents last Friday.

Rating: BUY

Compiled by JOYCE KOH