Tonghua Dongbao (600867) Important Matters Comment-Insulin Glargine Approved to Market and Try to Open New Development Opportunities
The company is a pioneer in domestic insulin leadership and chronic disease management layout. Insulin glargine was approved for listing and gradually became the company’s market promotion and channel sinking advantage for many years. It quickly entered the market and has a long-term development prospect. It maintains the EPS forecast for 2019-2021 to be 0.48/0.59/0.72 yuan, corresponding to PE 25/20/17 times, 南宁桑拿 maintaining the “overweight” level. Insulin glargine was approved for marketing.The company’s announcement has obtained the insulin glargine registration approval issued by the State Food and Drug Administration on December 6, 2019. The heavy product was successfully approved, and then gradually replaced the company’s years of market promotion and channel sinking advantages to enter the market quickly.The product was clinically approved in June 2014. The production site inspection and field sampling were completed in May and June 2019, and the three-in-one review was completed in September 2019. The company has invested about 71.81 million yuan in research and development costs.Insulin glargine is a new type of insulin analogue with long-lasting effect, no gradient in blood concentration, and stable reduction of blood glucose in patients. The original manufacturer is Sanofi-Aventis, France. The global value of this product was 49 in 2018.$ 9.5 billion, is the star product of the global diabetes market.Sanofi-Aventis’ insulin glargine was listed in China in 2004. Since then, domestic companies Gan Li Pharmaceutical and Zhuhai Federation have been approved to list related products in 2005 and 2017, respectively. The second-generation insulin has initially recovered, and the long-term R & D layout is worth looking forward to.In the first three quarters of 2019, the parent company realized operating income19.5.1 billion yuan (+12.37%), net profit 6.6.3 billion (+5.34%). At present, the second-generation insulin business has gradually stabilized and rebounded, and is expected to gradually achieve double-digit growth.In addition, the company has a wealth of product reserves. Currently, the asparagus rapid-effect ratio has been reported in April 2019. Aspart 50 has completed clinical research and is expected to enter the production phase in the first half of 2020. Aspart 30 is expected to be available around the end of 2019.Complete the enrollment of all cases, it is expected to enter the stage of reporting labor by the end of 2020 or the first half of 2021; liraglutide is expected to complete the phase III clinical trials by the end of 2020 and enter the stage of reporting labor by 2021.The company has been cultivating the diabetes market for many years. The overall product planning and layout is perfect, and there is good room for long-term development. The operation level has been gradually improved, and the repurchase has shown development confidence.In the first three quarters of 2019, the company made corresponding market preparations for the insulin glargine listing. Current sales expenses increased significantly and the company’s operating level continued to improve. The company’s net operating cycle in the first three quarters of 2019 was 430.In 06 days, the year fell 52.88 days, of which inventory and accounts receivable turnover days decreased by 29.69 days and 0.66 days, payable turnover days increased by 22 over decades.53 days, the improvement of inventory turnover level contributed significantly to the improvement of the overall operation level.In addition, the company has recently announced a repurchase program, the total amount of shares to be repurchased is not less than 2 trillion, not more than 2.The repurchase price is not more than RMB 23 yuan / share (inclusive). The repurchased shares will be used to distribute incentives. This repurchase will enhance investor confidence and further improve the company’s long-term incentive mechanism. Risk factors.The progress of research and development is expected to reduce the price of insulin tenders and prolong the management of chronic diseases. Investment Advice.The company is a pioneer in domestic insulin leadership and chronic disease management layout. Insulin glargine was approved for listing and gradually became 杭州桑拿网 the company’s market promotion and channel sinking advantage for many years. It quickly entered the market and has a long-term development prospect. It maintains the EPS forecast for 2019-2021 to 0.48/0.59/0.72 yuan, corresponding to PE 25/20/17 times, maintaining the “overweight” level.