Our additions in the healthcare sector continued to do well in the third quarter and made significant contributions to portfolio return. One example is Luye Pharma (HKSE:02186), one of the largest drug manufacturers in oncology, cardiovascular system, and alimentary tract and metabolism - the faster-growing segments in the healthcare sector. With a strong product pipeline over the next three years, together with four upcoming drug trials in the U.S., Luye is well positioned within the sector. Its recent initial public offering (“IPO”) has also provided the company with capital to purchase Jialin, a local cardiovascular drug manufacturer. Jialin’s drug portfolio can leverage Luye’s existing distribution network, giving us more confidence in Luye’s ability in growing market share. Since our participation in Luye’s IPO in early July, it has been one of the top 10 positions in our portfolio. The company’s share price gained over 65% in the third quarter.
Luye Pharma Group (“Luye Pharma”) (HKSE:02186) is a leading pharmaceutical company which focuses on the manufacturing and selling of pharmaceutical products in three of the fastest growing therapeutic areas in China including oncology, cardiovascular system, and alimentary tract and metabolism. In the first half of 2014, the group’s nationwide distribution network enabled it to sell its products to over 8,000 hospitals in the PRC. Given its strong product pipeline, proven R&D capabilities and sales and marketing networks, Luye is well positioned to continue gaining market share despite an increasingly competitive market environment.
From Value Partners (Trades, Portfolio)’ Classic Fund Q3 2014 Commentary.
