Gao Yi's new favorite! Where is the invisible champion of the scarce eye drug circuit, Kanghong Pharmaceuticals?

Guide: It's all Kang Hongxiang, where in the end is xiang, you know? Kanghong Pharmaceuticals is a leading company in the sub-circuit, with a long-term stable market share of anti-VEGF drugs in the eye, which has been broken in the last two years but quickly leveled off.
in the study of new adaptive diseases has entered clinical III. The fastest end of the year, new adaptives into health insurance will help the company to take back the first throne.
has a good room for development in overseas markets, and Kang Hong is conducting experimental and clinical research at several global research centers.
new pipeline is focused on ophthalmology, brain and oncology, while maintaining a strong position while increasing the correlation between businesses, synergies will be reflected in performance in the near future.
founded in 1996, the main business includes biological products, Chinese medicine, chemicals and ophthalmology medical devices research and development, production and sales.
mainly covers areas such as the central nervous system, digestive system and ophthalmology.
he is best known for his gold sign, Compaq, and today we cut through the company's strategy and development from three aspects of his main business.
01, the demand for anti-VEGF under the eye is urgent, health insurance to promote sales promotion of the three major anti-VEGF drug monopoly market, Compaqsip's prominent position of under-eye new blood vessel disease has become one of the world's elderly population blinding one of the important reasons, mainly due to abnormal new blood vessels in the retina of the macular part of the growth, resulting in a series of new blood vessels, damage to normal sensory cells affect vision, light affect vision, heavy lead to lesions.
of hypervascular diseases at the end of the eye are found in patients with pre-existing underlying diseases such as diabetes, hypertension, high myopia, and age macular degeneration.
once new blood vessels appear, it is difficult to heal itself.
So we will use the under-eye anti-VEGF (vascular endotrophic growth factor, is a bio-chemical substance that promotes the growth of new blood vessels), anti-VEGF drugs can effectively inhibit the formation of new blood vessels and promote the decline of existing new blood vessels, the existing drug treatment methods mainly to inject anti-VEGF drugs under the eye. in the
eye vascular lesions market, three drugs from three companies account for 90.93 percent of the market, namely Compaxip (from Kanghong Pharmaceuticals), Rebead monoantigen and Abersip, and the rest of the market is filled with seven-leaf yokosin double osine drops, injected with vitipofen and compound camphoroline injections, as well as dexamisong glass implants, and other drugs market size is small.
because the three drugs already occupy an absolute market share in the market, the room for market growth is mainly provided by penetration.
china's penetration rate of 2%, while Europe and the United States can reach 31%, penetration rate has a lot of room for improvement.
cost-effective CompaqSip, where is "high"? At present, the market has been listed under the eye anti-VEGF drugs have three, are Leizhu single resistance, Abersip and Compaxip.
compassip is the world's third and China's first anti-VEGF under-eye medication.
its therapeutic structure is achieved through the VEGF subject structure human immunoprotein Fc, from the drug structure, Compaxip's therapeutic capacity is higher than Abersip.
clinical trials are important experiments to compare the drug between drugs, and overseas clinical trials of head-to-head non-poor ability show that Compaxip has less potential use and lower frequency.
in the 5-6 years since the product went on sale, there was no significant difference between the success rate and the other two drugs.
At the end of 2019, the National Health Insurance Administration officially added Leizhu monoantigen, Compaxip and Abersip to its health insurance, with adaptations including adult diabetic macular edema (DME), vascular nasal vascular (CNV), vision impairment caused by secondary retinal venous obstruction (RVO) macular edema and macular degeneration (nAMD) age associated with adult newborn blood vessels (wetness).
in terms of adaptives, Compaxip is only one less adaptive than Rebead mono-resistance, and the price side is the lowest of the three drugs, occupying a price advantage, the theory after the inclusion of health insurance.
26 percent of patients with retinal venous obstruction (RVO), which makes Compassip short of nearly one-third of the patient base.
But according to the company's latest meeting minutes, compassy retinal venous obstruction (RVO) research has entered clinical phase III, as soon as the end of the year, the follow-up will become the company and Leizhu single anti-competition strong pusher.
the listing of new adaptive disorders tends to affect sales volume and market share, for example, in 2018 Leizhu single anti-maximum adaptive adult diabetic macular edema (DME) listed, at this time Leizhu single resistance to a total of 4 adaptive disorders.
in the year after the approval of the allergy, The Thunderbolt's sales surged, surpassing Compaq's sales for the first time, and compassip's sales in the following year.
shows that once Compaq's new adaptive disease companies go on sale, market share will crush the sales volume of Thunderbead.
the current market pattern of the three major drugs in terms of patient coverage is a larger share of Leizhu monoantigen and compassip, respectively, and Abersip has a smaller share.
From the above patient coverage permeability, the domestic base of patients with under-eye disease is large, after the inclusion of health insurance penetration rate should be improved, the U.S. market 30% penetration rate, the increase in penetration rate will bring about explosive growth in performance.
we'll see if penetration is expected to increase.
of drug penetration mainly depends on the frequency of drug use, promotion strategy and market expansion of three aspects.
3-5 pills per patient per year on the frequency of drug use, experimental data show that Compaxip medication is used less often than the other two drugs in theory.
But from the use of drugs to calculate, the same frequency of Compaxip's medication than other drugs more than 200 cheaper, the gap is not large, and its own drug price is more expensive patients on the drug price demand elasticity is not large, mainly look forward to the promotion of the strategy brought about by the increase.
to rely on market expansion mainly to focus on the U.S. and European market development to bring new market expansion, the domestic three major drug market concentration has reached the ceiling, it is difficult to expand more.
promotion strategy of medical expense assistance for Medicare patients earning less than 100,000 per year will help Compaq improve the frequency and stickiness of patient medications and bring new growth to performance.
. New entry still need time, short-term market pattern is difficult to break China's drug application for adhesives when according to each adaptation clinical stage after the application from the safety and value assessment, often after the drug market companies continue to develop new adaptive reports, the increase of adaptive diseases is also one of the factors to enhance drug competitiveness.
other new drugs related to VEGF are still in clinical trials, and the fastest-growing are Roche Faricimab and Qilu Pharmaceuticals' QL1205/QL1207.
since oral drugs are cheaper per unit than VEGF injectable drugs and are easy to absorb some patients, we need to follow up on the development of Qilu Pharmaceuticals.
it could take as long as 2-3 years for new drugs to come on the market, meaning it's hard to see new drugs of the same kind breaking the existing competitive landscape in the short term.
speed no threat does not mean that there has been no, after all, the domestic market is limited, in order to break through the growth of the "ceiling" Kanghong decided to expedition to the international market, the current compassip and Abersip head-to-head experiment has reached clinical III.
overseas market capacity is more attractive than domestic, so access to overseas markets is also a very important reason for Compaq's expansion.
31 per cent in terms of penetration, and the European market is expected to achieve higher penetration.
Currently Compaq-Sip eye injections are being conducted in North America, Europe and other regions on macular degeneration (wAMD) trials of Clinical Phase III. Phase III, phase III clinical completion will be the United States FDA, European EMA and other countries to apply for registration and listing, after which the market will be more than doubled.
Compaxip's new adaptive retinal venous obstruction (RVO) is also being used in clinical trials with adult diabetic macular edema (DME) in many parts of the world, entering Clinical Phase III as soon as 2020, and the new adaptation market will further expand its market share in the global market.
02, other businesses go hand in hand, to assist Kanghong performance growth , chemical drug sector auxiliary revenue growth, the competitive landscape accounted for the optimization of the pharmaceutical sector in 2019 to achieve revenue of 1.207 billion, through a ratio of 3.16 percent growth, accounting for 40 percent of the overall revenue, is one of the main sources of revenue at this stage of the company.
the core varieties of the
-chemical drug plate are mostly neurologic therapeutic drugs and gastrointestinal drugs, the core varieties are arithpenic acidic acidic acid cleazine (mainly to treat schizophrenia), hydrochloric acid venlafasin slow release tablets (mainly to treat depression and anxiety disorders, etc andacid mosapili dispersion tablets (gastrointestinal motivational drugs).
sales of 430 million yuan, 350 million yuan and 320 million yuan, respectively, accounting for 91% of the total pharmaceutical sector.
is the exclusive reagent of Kanghong Pharmaceuticals, and in other reagents of the same effect, all hospitals compete with Otsuka Pharmaceuticals for the two largest share.
the other two respectively in the hospital drug accounted for a good share, sales growth is stable.
. The revenue growth of the Chinese medicine sector was stable, with the Chinese medicine sector achieving 892 million yuan in 2019, up 3.36% YoY, compared with 2018.
The main four products accounted for 92% of the entire Chinese medicine plate, the core products are pine-age haemophilus capsules (blood pressure lipids-related), shu liver depression is more difficult (depression-related), a clear capsule (heat detoxification-related) and gallbladder capsules (gallstones, gallbladderitis-related).
underperformed in 2018, but the Chinese medicine business has improved due to the economic recovery in 2019 and the company's development strategy.
: Here it seems that although the growth rate of chemical and Chinese medicine is still stable, but these two sectors are actually a drag on cash flow of the sector.
only 1-2 of these products, it is too difficult to have a strong competitive position in the market.
good in the company to do drug transformation, layout of new innovative drug research, so that the follow-up performance has a certain imagination space.
03, stable leading position, innovative layout of brain and tumor pipeline , ophthalmology brain two-handed grasp, tumor innovation and broader field of ophthalmology treatment is still the company's key investment direction, other areas of pipeline is actively layout.
has also laid out ophthalmology medical devices in the field of ophthalmology, and in 2017 the company won a controlling stake in Israel's IOPtima, which owns CO2 laser deep sclerosis technology CLASS and new anti-glare technology, helping to expand into new areas of ophthalmology treatment.
also includes observation of the under-eye, licensing, access to retinal images of auxiliary detection equipment, for the diagnosis of under-eye disease and surgical drug use has a synergistic effect.
's adaptation to the gold Compaxip drug retinal venous obstruction (RVO) has reached Clinical Phase III, and clinical studies are expected to be completed by the end of this year and early next year, while other drugs in oncology and brain medicine are actively being pipelined.
The fastest brain drug hydrobromobiate vossetine tablets have progressed to clinical III.phase, in the company's product pipeline innovation of Chinese medicine penta plus noodic particles and hydrobromobiate vossetine tablets is conducive to perfecting the existing psychiatric nerve products pipeline layout, the subsequent tumor field introduction of tumor vaccine KH901 and independent research and development of the treatment of colorectal cancer innovative biological drug KH903 are in the field of the company's oncology to provide technical support for the subsequent field of cancer product layout.
pipeline is not yet reflected in the market value, the follow-up can wait for the company's growth.
04, financial valuation analysis compassip after the listing of the rapid release and health insurance volume led to stable growth of the company, the proportion is expected to exceed the chemical drugs.
total revenue for the full year 2019 was 3,257 million, up 11.65 percent year-on-year.
shows that the impact of innovative drugs on pharmaceutical companies is very significant, when the biopharmace idlydicides sector accounted for 35.46 percent of revenue, the future is expected to surpass the pharmaceutical sector.
in terms of the proportion of revenue forecasts, Wind and brokerages expect the proportion of gold-medal biopharmaceers Compaxip to increase year by year, while the annual sales volume of the other two types of drugs is expected to decline.
's gross margin and net profit margin remained stable overall, compassip's gross margin reached about 95% and high gross margin supported net profit growth.
, research and development costs grew rapidly, with research and development costs increasing by 24.56 percent year-on-year faster than revenue growth.
13.95 percent year-on-year, also outpacing revenue growth.
sales costs mainly foreshadow the company's promotion and channels will be a higher level, in order to gain more market share to help.
impact on the company's net profit in the short term, but in the long term, subsequent approvals of new adaptive and innovative drugs will bring the harvest season, so that the company led the return of profitability.
price reduction did not have a very big impact on profits, which also made the company more investment in the layout of new pipelines, driving the company's revenue growth.
In accordance with the business forecast of the comparable company, combined with Wind consensus expectations that the company in 19-21 is expected to benefit from the new batch of adaptive disorders into the health insurance after the increase in sales, the company's 19-21 year revenue is expected to grow from 3.2 billion to 4.6 billion yuan, growth rate of about 16%, the overall PE in about 45 times.
dynamic price-to-earnings ratio at this stage is around 60 times, compared with the company's own financial data to see the valuation is overvalued some, but compared with other companies in the industry price-earnings ratio is still cheaper.
: We believe that Kanghong Pharmaceutical's track is a very small track compared to innovative drugs and CRO, so the market share change in the stock market competition and the expansion of overseas markets is particularly important.
company is from the previous chemical transformation of innovative drugs so the rise of Compaxip is only the beginning, the brand's pipeline layout and progress is not connected to the special improvement, research and development strength is there, but in other pipelines also belong to the technical gap needs more clinical research support.
talking about the big things that will make stock prices fluctuate, you can look forward to the success of the new adaptive RVO research, after all, the new adaptive may make Compaqsip's market share more than Leizhu single resistance to become the domestic market leader.
focus on the results of other similar drugs, if the study may have a greater impact on the competitive landscape later.
is still undervalued for the same company, but.