First quarter net profit of Berry Pharmaceuticals increased by 111.07% YoY

April 19, 2020, Boray Pharma released its first-quarter 2020 report, achieving revenue of 130 million yuan, up 45.16 percent year-on-year, and net profit of 34.03 million yuan, up 111.07 percent year-on-year, and net profit of 32.66 million yuan, up 119.71 percent year-on-year. Bore Pharmaceuticals said the increase in operating income over the same period was mainly due to the company's product sales revenue increased.In February, the market value of Bore Pharmaceuticals soared by 10 billion yuan due to the hot spot of Reedsiwe. However, at the beginning of March, the Shanghai Stock Exchange issued a briefing on the speculation of anti-epidemic concept stocks of enterprises to criticize, Boray Pharmaceuticals information disclosure is unclear and inaccurate, its board secretary Wang Zhengye was also criticized in the briefing. After the loss of the hot spot, Boray Pharmaceuticals' share price plummeted and its market value shrank.At present, due to the lack of patients in the group, Redsiway in China 2 clinical trials stopped, the domestic Redsiway concept unit has also been a certain impact. However, despite the hype anti-epidemic concept unit "turned over", and in the special period of the outbreak, Boray Pharmaceuticals 2020Q1 still achieved a double increase in net revenue, and significantly exceeded expectations. As for the reasons for the increase in performance, Dong said further that it was due to the continuation of the trend of good sales of major products in 2019.

the headwinds of the U.S. economy, Boray Pharmaceuticals' "business"According to the data, Bore Pharmaceuticals is a pharmaceutical company dedicated to the research and development, production of high-end generic drugs and new drugs, mastering more than 40 kinds of high-end chemical drugs, including Enticave, Capofen net production core technology. The main products are antifellar, antiviral and immunosuppressive drugs. It is worth noting that on November 8 last year, Berry Pharmaceuticals landed on the board.At present, the company's high-barrier generic drug product line continues to expand, in the global market, and gradually from raw materials to downstream preparations.In the current global spread of the epidemic, Boray Pharmaceuticals can still maintain strong performance growth. Fang Zheng Securities analysis, on the one hand, may be its fermentation semi-synthetic and other product lines of good competitive pattern, generic products are mostly in the early stages of the market, to ensure that the company continued to sell volume.On the other hand, it is its ability to attract downstream pharmaceutical companies to cooperate with companies in various forms, to deliver technology transfer, product sales and equity into various forms of revenue and performance at all stages of the product life cycle, and to diversify revenue streams to ensure that their performance is affected as little as possible by emergencies.In addition to the increase in revenue from its main business, technology transfer, service revenue and product equity-sharing revenue also increased significantly in the 2019 annual report released by Boray Pharmaceuticals. During the reporting period, technology transfer or services contributed 79.1483 million yuan in revenue to Bora Pharmaceuticals, an increase of 147.13 percent year-on-year. The business's gross margin was 89.25%, up 28.76 percentage points year-on-year.It can be seen that technology transfer, services, etc. are a major feature of Boray Pharmaceuticals to drive performance, this year Boray Pharmaceuticals in this regard is also spare no effort, only recently there are two related cooperation. On April 18, its subsidiary Xintai Pharmaceuticals and Changjiang Health's Hailing Pharmaceuticals signed a "Contract for the Transfer of Technology to Drug Listing Licensees", and the technology transfer of the listed license holders of Xintai Pharmaceutical's core products for injection of acetic acid capofen net (50 mg, 70 mg) On March 31st Berry Pharmaceuticals announced that it had signed an exclusive cooperation agreement in the United States for product development and commercialization with "Company A" (due to commercial confidentiality requirements). And the development of Aychbring is difficult, can be called "the chemical synthesis of Mount Qomolangma."

characteristics of raw materials and pharmaceutical enterprises toOn the other hand, sales of Berry Pharmaceuticals' original product line are expected to continue to grow in 2020. Fang Zheng Securities expects its newly approved products such as sulfonda liver sodium last year to be the new growth point. In terms of research products, osetawe capsules and mixed suspensions have been submitted for listing in China, Shu more glucose herna raw materials have also been submitted in China and the United States to market applications, are expected to support its next phase to maintain rapid growth. It is expected to continue to achieve revenue growth of about 30% and profit growth of more than 50% in the future.In addition, in recent years in the domestic medical reform, environmental protection and other policies, RAW began to standardize and concentration. A number of securities analysts are optimistic about the quality of excellent, sufficient capacity, low cost and high technical barriers, such as focus on specialty API companies.Up to now, more than 100 pharmaceutical listed companies have announced the first quarter of 2020 earnings forecast, in the characteristics of the API sector, in addition to Boray Pharmaceutical Q1 surge, Huahai Pharmaceuticals in the volume of procurement and other factors, the net profit is also expected to increase 45% to 65% YoY.Affected by the short-term impact of the epidemic, as well as in the domestic related policies, the domestic API industry began to usher in a period of rapid development, especially in the hands of specialty API enterprises. For example, Boray Pharmaceuticals, unlike the layout of bulk raw materials enterprises, its focus on high-tech barrier products, few domestic competitors, and overseas markets for a long time is its main market for sales, industrial chain multi-link layout, are its advantages.
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Sina Pharmaceutical News)