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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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