The price of growth hormone water injection collection was reduced by 70%, and the leading enterprise Changchun High-tech was hit hard and fell to a halt

China Times (www.chinatimes.net.cn) reporter Wang Yu Yu Na reported in Beijing

The long-rumored growth hormone collection has finally arrived.

On January 19, the Guangdong Provincial Drug Trading Center issued the "Guangdong Alliance Diclofenac and Other Drugs Centralized Procurement Documents" (hereinafter referred to as the document) notice shows that the collection contains 20 specifications of growth hormone products, involving Changchun high-tech subsidiaries Kinsey Pharmaceutical, Anke Biological, Novo Nordi, Haiji Biological, United Saier, South Korea LG Life and other enterprises.

In this collection, the price of growth hormone water injections fell by 70%, far exceeding the 10% decline of powder needles, and the decline exceeded market expectations. It is worth noting that Kinsey Pharmaceutical's water injection revenue accounts for up to 70%. Therefore, Changchun Gaoxin suffered a critical blow from collective mining, and the stock price fell for two consecutive days.

Based on this, will Changchun High-tech consider withdrawing water needle products from collection? The relevant person in charge of the Secretary Office of the Board of Directors of Changchun High-tech told China Times: "At present, the centralized procurement of drugs has not officially started the bidding process, and the specific impact will also depend on the actual participation in the bidding, the results of the selection, the price of the selection, etc. The follow-up matters and the degree of impact on the company are still uncertain, there is no expectation of a serious impact on the company's operating performance, the company will actively pay attention to the follow-up progress, carefully study the relevant documents and regulations, and reasonably formulate the implementation plan." ”

70% reduction in the price of water injections

According to the "Guangdong Alliance Diclofenac and Other Drugs Centralized Procurement Document" issued by the Guangdong Provincial Drug Trading Center, the scope of the varieties of this drug collection is 276 chemical drugs and therapeutic biological products with large amounts and high purchase amounts in the national basic medical insurance drug catalog, and the growth hormone that has attracted much attention is also prominently listed. It includes 20 kinds of growth hormone products, involving Kinsey Pharmaceutical, Anko Bio, Novo Nordisk, Hyder Bio, United Saier, South Korea LG Life and other enterprises.

At present, domestic growth hormone is mainly divided into three dosage forms: powder needle, water needle and long-acting water injection. The Guangdong Alliance collected powder needles and water needles into the same group, and specified the highest effective declaration price for products of different dosage forms and specifications.

Specifically, the powder injection with the largest pre-collection amount in the first year procurement period is an AK Bio's growth hormone product with a specification of 6IU, and the pre-collection amount is 393828 pieces, with a maximum declared price of 86.07 yuan; the largest pre-mined water needle is Kinsey Pharmaceutical's growth hormone product with a specification of 30IU/10mg/3ml, and the pre-harvested amount is 88648 pieces. The maximum declared price is 295 yuan.

At present, on the market, the price of powder needles of the same specifications of Anke Bio is 97 yuan, and the price of water needles of the same specifications of Kinsey Pharmaceutical is 1031 yuan. In other words, the reduction of the collection of water needles reached 70%, while the reduction of powder needles was only 10%.

Moreover, in kinsey pharmaceutical revenue, water needles account for more than 70%. Therefore, the water needle was included in the collection with a 70% reduction, which is undoubtedly a critical blow to Changchun High-tech.

On the day of the release of the collection documents, Changchun High-tech fell to a halt, and Anke Bio fell by 7.5%. After the opening of the market on January 20, Changchun Gaoxin fell to a halt again, and Anke Bio also fell by 7.17%.

Dongguan Securities believes that the price reduction of the water needle is larger, exceeding market expectations. At present, the market pattern of growth hormone is caused by market-oriented competition, and the role of medical insurance is small. If some companies adopt a more aggressive strategy to open up competitive channels through the hospital market and seize the market share of the hospital of the unsolicited enterprises, the market pattern of growth hormone may change.

Growth hormone faucets

At present, in China's growth hormone market, Changchun high-tech market accounts for 79%, Anke Biological market accounts for 12%, and the market share of the two companies is as high as 91%.

Last May was a brilliant moment for Changchun Gaoxin. On May 17 of that year, Changchun High-tech's stock price reached an all-time high of 522.17 yuan per share. But then on the 19th, the sudden rumors made Changchun Gaoxin's stock price fall to a halt. At that time, the Internet suddenly circulated a document about the Guangdong Alliance collection, which included the growth hormone collection.

At that time, Changchun High-tech urgently held a video conference for institutional investors to respond to the collection and flash crash of stock prices. The company said that after analysis, it is believed that the collection of powder needles is more likely, and the current proportion of powder needle products in the company's revenue is not high. Facts have proved that changchun high-tech's prediction at that time was not accurate.

On August 5 of the same year, a central media published an article exposing the abuse of children's growth hormone on the market, pointing out that many hospitals and enterprises would abuse the "height injection" that should be used in medicine to treat short stature, and abuse it on children who were not suitable for the indication, and the next day Changchun Gaoxin fell to a halt again.

Whether it is collection or social news, it has made this growth hormone leader sound. As of January 20 this year, Changchun High-tech stock price closed at 204.84 yuan / share, according to the high point of decline has exceeded 50%, and has bid farewell to the 100 billion market echelon.

Throughout the past, the broad prospects and excess profits of growth hormone have maintained a high growth rate in Changchun's high-tech revenue. From 2016 to 2020, the net profit growth rate was 26.11%, 36.53%, 52.05%, 76.36%, and 71.64%, respectively, and the gross profit margin of the product was as high as 92.27%. However, in the third quarter of 2021, the net profit growth rate of Changchun Gaoxin began to slow down, and the company's net profit attributable to the mother in the first three quarters of last year was 3.147 billion yuan, and the growth rate dropped to 39.25%.

At the same time, the growth hormone market is called "blue ocean" because of its large incremental space and high gross profit margin, which has attracted many enterprises to layout successively. Growth hormone products such as Tianjing Biology, Tebao Biologics, and Weisheng Pharmaceutical are in the third phase of clinical practice, and many pharmaceutical companies such as Fu'an Pharmaceutical, Tonghua Dongbao, Renhe Pharmaceutical, and Yifan Pharmaceutical are also involved in growth hormone research and development.

Nowadays, there is pressure to collect and collect, and then there is a chase after the game, and the growth hormone leader Changchun Gaoxin is facing a big test.