Changchun High-tech, the "Northeast Medicine Mao", suddenly collapsed and stopped today. As of the close, Changchun High-tech reported 227.6 yuan / share, with a total market value of 92.1 billion. Compared with the previous trading day, the market value shrank by 10.2 billion, and the stock price hit a new low since March 2020.
On the news side, the rumors of "growth hormone inclusion" since last year have finally come to fruition. According to the notice on the "Guangdong Alliance Diclofenac and Other Drugs Centralized Procurement Documents" released on the website of the Guangdong Provincial Drug Trading Center, a number of recombinant human growth hormones are included in the collection catalogue, including the recombinant human growth hormone injection of Changchun Kinsey Pharmaceutical, a subsidiary of Changchun High-tech Holdings.
Rumors landed that growth hormone was incorporated into the collection
On January 19, the Guangdong Provincial Drug Trading Center issued the notice of "Guangdong Alliance Diclofenac and Other Drugs Centralized Procurement Documents". The notice shows that the alliance areas participating in the drug collection and reporting include Guangdong, Shanxi, Jiangxi, Henan, Guangxi, Hainan, Guizhou, Qinghai, Ningxia, Xinjiang and Xinjiang Production and Construction Corps, and the 276 drugs with large dosage and high purchase amount in the national basic medical insurance drug catalog are procured in quantity. The notice gives detailed explanations for the 276 drug procurement lists and unified representative products, the highest effective declaration price/ the highest daily average cost of drugs, the reporting volume of public medical institutions in the alliance area, the reporting volume of medical insurance designated social medical institutions in the alliance area, and the reporting volume of designated retail pharmacies in the alliance area. According to the documents, the main body of procurement participating in this time is all public medical institutions (including military medical institutions) in the alliance area, and medical insurance designated social medical institutions and designated pharmacies can voluntarily participate.
The reporter combed and found that in the 276 drug procurement list, the recombinant human growth hormone of Kinsey Pharmaceutical, a subsidiary of Changchun High-tech, was included in the collection.
Source: Guangdong Pharmaceutical Trading Center official website
Previously, Changchun Gaoxin announced on January 12 that Changchun Kinsey Pharmaceutical Co., Ltd., a holding subsidiary of the company, received the "Notice of Approval of Drug Supplement Application" approved by the State Food and Drug Administration, approving the approved indications for Kinsey Pharmaceutical to inject human growth hormone to increase the domestic same variety, including: for short stature in children caused by cartilage hypoplasia; for growth disorders in girls caused by hypogonadism (Turner syndrome); and for adult short bowel syndrome receiving nutritional support.
The company has no response to institutional analysis or the need to reduce the price to protect the market
Incorporate the main cause of collection or market sell-off. The reporter combed the 2021 semi-annual report of Changchun High-tech and found that more than 70% of the income of Changchun High-tech comes from its subsidiary Kinsey Pharmaceutical, and the main products of Kinsey Pharmaceutical are powder injections, water injections, long-acting water injections and other growth hormone products and products in the fields of assisted reproduction and women's health. During the reporting period, the net profit of Kinsey Pharmaceutical accounted for more than 95% of the overall Changchun High-tech.
This time the growth hormone is included in the collection, will Changchun High-tech maintain market share by reducing prices? In this regard, Aoyi news reporter called the secretary office of the changchun high-tech board of directors, but there was no response. Shi Lichen, a marketing expert in the pharmaceutical industry, believes that judging from the current market share of Changchun High-tech, once it enters the collection and is equally divided with other competitors, its profit growth will inevitably be affected.
Some analysts of investment institutions said that from the public highest effective declaration price / highest daily average cost catalog, the maximum limit price of water injection is too low, and Changchun High-tech may be able to use powder injection dosage form growth hormone as the main force of bidding. "According to the requirements, the price reduction is 10% to 19%, and 25% to 70% of the original purchase volume can be obtained." Changchun High-tech can consider reducing the price of powder needles by about 19% in exchange for its own original 70% share. ”
At the beginning of the year, the company repurchased shares
The reporter learned that there are currently three dosage forms of recombinant growth hormone approved, namely lyophilized powder needles, water needles, and long-acting water injections, and the prices are increased in turn. According to the survey of Southwest Securities, the per capita cost of powder injection dosage form is about 55,000 yuan, and the per capita annual cost of long-acting water injection dosage form is about 150,000 yuan. According to the research report of the Institute of Guojin Securities, in 2020, Kinsey Pharmaceutical will occupy a total of 76.13% of the growth hormone market, occupy 99.88% of the sales of sample hospitals in the water injection market, and currently occupy an exclusive position in the long-acting water injection market.
Kinsey Pharmaceutical, which controls the right to speak in the market, is already a veritable "cash cow" for its parent company Changchun High-tech. In the first half of 2021, Changchun Gaoxin achieved operating income of 4.963 billion yuan and net profit attributable to the mother of 1.923 billion yuan, of which Kinsey Pharmaceutical contributed about 76% of the operating income and about 97% of the net profit. From the perspective of kinsey pharmaceutical growth hormone product structure, water injection products accounted for more than 75% of growth hormone sales revenue in 2020, long-acting products accounted for about 12%, and powder needle products accounted for about 10%. Compared with 2019, the revenue of water needle products increased by more than 20%, the revenue of long-term products increased by about 29%, and the revenue of powder needle products increased by about 19%.
It is worth noting that Changchun Gaoxin issued an announcement on January 4 that as of December 31, 2021, the number of shares repurchased by the company was about 820,000 shares, accounting for 0.2% of the company's total share capital, the highest transaction price for the purchase of shares was 308.35 yuan / share, the lowest transaction price was 269.73 yuan / share, and the total amount paid was about 240 million yuan.
Aoyi news reporter Lin Shiyan