The buy side says: “Li is the only sell-side analyst who has a good understanding of China’s complex health care issues.”
Bin Li finishes in first place. The Morgan Stanley analyst worked in drug development at Merck & Co. in Whitehouse Station, New Jersey, before joining Merrill Lynch in New York as a pharmaceuticals analyst in 2000; he moved to his current firm three years ago.
Li, who earned an MBA at New York University’s Stern School of Business in 2000, highlighted his buy rating on the American depositary shares of WuXi PharmaTech (Cayman) in March 2009, at $4.52, citing rising demand for the Shanghai-based company’s medical research and development outsourcing services.
In April 2010, Charles River Laboratories International of Wilmington, Massachusetts, agreed to acquire WuXi in a deal worth $21.25 a share, or roughly $1.6 billion. The takeover is expected to be completed by the end of the year.
Second Team
Jinsong Du Credit Suisse
Landing in second place is Credit Suisse’s Jinsong Du, praised for what one money manager describes as “informed and independent views.” Du initiated coverage of China’s largest pharmaceuticals manufacturer, Sinopharm Group Co., in January with a buy rating that was based in part on the Shanghai-based outfit’s market dominance. The stock shot up 7.5 percent, from HK$28.80 to HK$30.95, through May.
Third Team
Shaojing Tong BofA Merrill Lynch Global Research
Shaojing Tong of BofA Merrill Lynch Global Research, who wins the third-place position, “has a deep knowledge of the industry,” insists one buy-side backer. Tong’s best calls include a buy rating on Shandong Weigao Group Medical Polymer Co., first recommended way back in December 2008 and emphasized repeatedly since on the strength of the Weihai-based medical-device maker’s diverse portfolio of products and strong sales force. The stock shot up a healthy 64 percent in the 12 months through May.
Runner-Up
Yankun Hou Nomura
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View the complete results of the 2010 All-China Research Team Rankings