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CONTRIBUTORS

Nicholas Chui

Portfolio Manager
China Equities

Key takeaways

  • Uncommon Insight is a new report series from Templeton Global Investments that demonstrates the value of our on-the-ground presence in 17 Countries to our investment process.
  • Our uncommon Insight on Sunresin highlights a company standing at the intersection of two markets experiencing structural growth: weight-loss drugs and advanced purification technologies.
  • The company is China’s leading producer of adsorption separation resins (ASRs) and a critical supplier of intermdiates used in glucagon-like peptide (GLP-1) production.
  • This report surfaces the differentiated operational advantages, often invisible in financial statements, that underpin Sunresin’s position as a strategic supplier to Eli Lilly and Chinese Contract Development Manufacturing Organisations.

Sunresin—a leader in a fast-growing industry

Diabetes and obesity have been described as a global epidemic, with 2.5 billion people forecast to suffer from the conditions by 2030.1 The launch of GLP-1 diabetes management and weight-loss drugs by Eli Lilly and Novo Nordisk has the potential to change this narrative.

Sunresin, a Chinese adsorption separation resins manufacturer, is a key beneficiary of the growth in demand for weight-loss drugs. Our uncommon insight on the company and its processes is two-fold: the low cost of Solid Phase Carriers as a percentage of drug sales, which reduces the incentive for customers to switch suppliers; and the eight year research and development cycle for adsorption separation resins, which slows the entry of new competitors to the industry. Our uncommon processing of inputs is gleaned from our on-the-ground coverage, combined with an uncommon understanding of the trends reshaping the global pharmaceutical industry.

Endnotes

  1. Source: International Diabetes Foundation.

 

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This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. It does not constitute legal or tax advice. This material may not be reproduced, distributed or published without prior written permission from Franklin Templeton.

The views expressed are those of the investment manager and the comments, opinions and analyses are rendered as at publication date and may change without notice. The underlying assumptions and these views are subject to change based on market and other conditions and may differ from other portfolio managers or of the firm as a whole. The information provided in this material is not intended as a complete analysis of every material fact regarding any country, region or market. There is no assurance that any prediction, projection or forecast on the economy, stock market, bond market or the economic trends of the markets will be realized. The value of investments and the income from them can go down as well as up and you may not get back the full amount that you invested. Past performance is not necessarily indicative nor a guarantee of future performance. All investments involve risks, including possible loss of principal.

Any research and analysis contained in this material has been procured by Franklin Templeton for its own purposes and may be acted upon in that connection and, as such, is provided to you incidentally. Data from third party sources may have been used in the preparation of this material and Franklin Templeton ("FT") has not independently verified, validated or audited such data. Although information has been obtained from sources that Franklin Templeton believes to be reliable, no guarantee can be given as to its accuracy and such information may be incomplete or condensed and may be subject to change at any time without notice. The mention of any individual securities should neither constitute nor be construed as a recommendation to purchase, hold or sell any securities, and the information provided regarding such individual securities (if any) is not a sufficient basis upon which to make an investment decision. FT accepts no liability whatsoever for any loss arising from use of this information and reliance upon the comments, opinions and analyses in the material is at the sole discretion of the user.

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