Changchun Hi-tech’s share price plummeted under the "fog" of growth hormone gathering, chairman of the board increased his holdings of 5700 shares

On May 21st, affected by the rumors of concentrated procurement of "growth hormone" and the reduction of core shareholders, "Yaomao" Changchun High-tech (000661.
SZ) saw a rare limit, and the day's transaction amount hit a record high, which was regarded as market panic.
Sell ​​off
.

In the next few trading days, Changchun High-tech's stock price continued to decline, plummeting nearly 20% for several consecutive days

Regarding the above two negatives, the Changchun High-tech Investor Communication Department stated that the company's production and operation are normal, and the reason for the stock price fluctuations is mainly attributed to the rumors of "growth hormone" centralized procurement
.

Also affected by this rumor, another growth hormone company Anke Bio (300009.
SZ) also plummeted by more than 20% in consecutive days
.

Up to now, the authenticity of the rumored Guangdong Provincial Social Security Bureau's intention to include growth hormone in the category of centralized procurement is still to be tested, but will "growth hormone" enter the centralized procurement? What will be the impact on companies such as Changchun High-tech and Anke Biology after the collection? Waiting for the issue has triggered a big discussion
.

What is growth hormone? How big is the market in our country?

According to the doctor's official website, growth hormone (HGH) is a peptide hormone containing 191 amino acid molecules, synthesized, stored and secreted by growth hormone cells in the pituitary gland
.

Recombinant human growth hormone produced by gene recombination secretion expression technology can promote the growth and development of animals and humans and the proliferation of cells

The use of growth hormone in the field of pediatrics can be used for replacement therapy, which can significantly promote the growth of children's height and improve the growth and development of various tissues and organs
.

When suffering from pituitary dwarf in childhood, growth hormone should be used for treatment

       It is reported that in the current growth hormone market in China, Changchun Hi-tech’s Jinsai Pharmaceuticals has a market share of 79%, Anke Biology has a market share of 12%, and the United Xaar market has a market share of 7%
.

       The types of growth hormone are divided into powder injection, water injection and long-acting injection.
From the point of view of effect:

       The powder injection has the worst effect and requires daily injection, but the price is cheap, 20,000 to 30,000 yuan per year, and there are 5 or 6 domestic approved companies
.

       Water acupuncture has better curative effect and requires daily injection.
The price is slightly more expensive, between 40,000 yuan and 60,000 yuan per year.
The only domestic approved companies are Changchun High-tech, Anke Biology and NovoNordisk
.

       The price of long-acting water injection is the most expensive, more than 150,000 yuan per year
.

In China, it is the exclusive product of Jinsai Pharmaceutical, which solves the pain points of daily injections for more than 60 years.

       At present, the entire market is shifting from powder injection-based to water injection-based formulations
.

       Will growth hormone be included in the collection?

       It is worth noting that the powder injection form currently in the medical insurance catalog corresponds to primary growth hormone deficiency
.

Only after rigorous medical examinations have confirmed that it is congenital insufficient secretion of growth hormone, which affects the growth and development of children, medical insurance will reimburse related growth hormone medications

       Now most of the existing growth hormone prescriptions are not prescribed to children with "primary" growth hormone deficiency, but to a large number of consumer demands for height improvement, which belong to the category of medical aesthetics, so in the past these belonged to consumers on their own.
It is not covered by medical insurance
.

       It is reported that at present, more than 90% of domestic growth hormone products are paid for by patients, and most of them are sold outside the hospital
.

Data from Anke Biology and Changchun High-tech both show that the proportion of sales in hospitals is less than 30%

       In addition, according to Yaozhi.
com, the country is still actively exploring the procurement of Chinese patent medicines and biological medicines in quantities, and the consistency of Chinese patent medicines and biological medicines is not the same as chemical medicines, which can have a unified quality standard.
In the absence of a corresponding guidance document, the inclusion of growth hormone in centralized procurement or the inclusion of biological drugs in centralized procurement is debatable under the current circumstances
.

       However, in view of the fact that Wuhan has started the centralized procurement of insulin, and Henan has also reported that it is purchasing growth hormone in quantities, it is not impossible for Guangdong Province to include growth hormone in the centralized procurement
.

       At the same time, according to Yaozhi.
com’s interview with Beijing Dingchen Management Consulting Co.
, Ltd.
founder and well-known strategic marketing expert Shi Lichen, the domestic powder injection has been included in the national medical insurance catalog, which means that it is a therapeutic drug
.

Therapeutic drugs, especially those with high sales volume and high clinical value, will definitely be included in centralized procurement

       Regarding the rumors of the centralized procurement, Changchun Hi-tech stated that it has not received any official documents and notices regarding the centralized procurement of growth hormone.
Even if Guangdong Province really intends to collect the growth hormone, it is only limited to powder injection
.

       In 2020, judging from the performance of Jinsai Pharmaceutical, a subsidiary of Changchun High-tech, water injection products accounted for more than 75% of growth hormone sales revenue, long-acting products accounted for about 12%, and powder injection products accounted for about 10%
.

       The main dosage form of Anke Biological is powder injection, which accounts for more than 40% of the company's performance
.

       From the performance point of view, the contribution of powder injection to Changchun High-tech's revenue is relatively low.
Regarding the future impact of powder injection into the collection, Changchun High-tech stated that the price of growth hormone for powder injection has been reduced in response to the collection , And also made a plan for the future collection of powder injections
.

       From the perspective of market size, the centralized procurement of powder injections will hit Anke Biologically more.
However, Anke Biological also mentioned that growth hormone, as a biological product, is different from chemical drugs.
The bottleneck of production capacity determines that this market cannot be extreme.
The situation of "price for quantity" has reservations about the view that similar chemicals will be exchanged for quantity and the price of growth hormone will be greatly reduced, and they can also take this opportunity to develop the high-end market
.

       In general, the current market generally believes that centralized procurement has little effect on Changchun Hi-tech, but its stock price is still falling
.

It is worth mentioning that on the evening of May 25, Changchun High-tech announced that the company’s chairman Ma Ji and supervisor Zhao Shuping increased their holdings of the company’s shares by 5,700 shares and 1,100 shares, respectively, at an average price of 433.

       But today, Changchun Hi-tech still opened low.
As of the close, it fell 1.
13% and quoted at 428.
66 yuan per share, which is nearly a hundred yuan away from the record high of 522.
2 yuan per share on May 17
.

       Reference materials:

       Yaozhi.
com: "The 20 billion market is "crisis-seeking"! Can growth hormone really be included in the collection? 》

       Touzhong.
com: "Under the "fog" of centralized procurement, will the growth hormone market change?"

       MedTrend Medical Trends: "Growth hormone may be included in the centralized procurement of 16 provinces.
How do you treat the stock price of "Yao Mao" Changchun High-tech Co.
, Ltd.
? 》