Original Linglong Rice Intranet
Highlights
A few days ago, Kangenbei released its 2023 performance report, with annual revenue of 6.733 billion yuan, a year-on-year increase of 12.2%, and a net profit attributable to the parent company of 592 million yuan, a year-on-year increase of 65.19%. As of the end of the reporting period, the company had nearly 100 products with the characteristics of "three independences", and the cumulative number of projects under research reached 200, of which innovative drugs and improved new drugs accounted for 6%. In the field of traditional Chinese medicine, Kangenbei has 46 exclusive varieties (including exclusive dosage forms), and the market of improved new drugs is expected, and in terms of chemical drugs, 22 varieties have been evaluated/deemed to have been evaluated, 14 varieties are under review with new registration classification, and Class 1 new drugs have entered phase I clinical trials.
Net profit soared by 65 percent! Nearly 100 varieties of "three independences" were eye-catching
Founded in 1969, after more than 50 years of development, Kangenbei has grown into a large-scale traditional Chinese medicine enterprise integrating drug research and development, production and sales, and has successfully built a product structure with modern Chinese medicine and botanical medicine as the core, with characteristic chemical drugs (APIs and preparations) and characteristic health consumer goods as important supports, covering digestive metabolism, respiratory, cardiovascular and cerebrovascular, genitourinary, anti-infection, musculoskeletal and other therapeutic fields.
On April 20, Kangbei released its 2023 performance report, with the company's annual operating income of 6.733 billion yuan, a year-on-year increase of 12.2%, and net profit attributable to the parent company of 592 million yuan, a year-on-year increase of 65.19%.
The revenue of each business segment increased by different margins compared with the same period last year. All categories of traditional Chinese medicine are the core business of Kangenbei, with revenue of 3.625 billion yuan (+16.6%) in 2023, of which the revenue of proprietary Chinese medicine is 2.717 billion yuan (+13.45%), the revenue of Chinese herbal medicines and Chinese medicine decoction pieces is 851 million yuan (+26.79%), the revenue of traditional Chinese medicine health products and Chinese medicine extracts is 57 million yuan (+32.94%), and the revenue of specialty chemical drugs is 2.391 billion yuan (+2.98%), of which the revenue of chemical pharmaceutical preparations is 1.767 billion yuan (+2.92%) ), the revenue of APIs and veterinary drug preparations was 624 million yuan (+3.18%), the revenue of specialty consumer health products was 580 million yuan (+21.28%), and the revenue of other businesses was 137 million yuan (49.29%).
In recent years, Kangenbei has taken the initiative to adjust and optimize its business and product structure, continue to focus on the core business of traditional Chinese medicine and health, and promote the project of large brands and large varieties. In 2023, the company has 17 varieties with sales revenue of more than 100 million yuan, an increase of 2 compared with 2022. Among them, the sales revenue of the core products of the whole category of traditional Chinese medicine segment, Enteritis series products, increased by 28% year-on-year, and the sales revenue of Musk Tongxin Dripping Pill and Astragala Capsule maintained growth, while the sales revenue of acetylcysteine effervescent tablets, the core products of the specialty chemical medicine sector, increased by 16% year-on-year, and the sales revenue of Galantamine hydrobromide tablets increased by 55% year-on-year.
At present, more than 60 products (calculated according to the generic name of the product) have been included in the 2018 version of the National Basic Drug Catalog, more than 160 varieties have been included in the 2023 version of the National Medical Insurance Catalog, and nearly 100 products with the characteristics of "three uniques" (exclusive varieties, exclusive dosage forms, and exclusive specifications). According to the data of Minenet, at present, only Kangenbei (excluding shareholding companies, the same below) has 54 varieties of production approvals in China, including 46 Chinese patent medicines and 8 chemical drugs.
In China, only Kangenbei has varieties with production approval documents (excluding non-preparation products)
Source: Minenet China Listed Drugs (MID) Database
In 2023, the company's R&D investment will be 312 million yuan, a year-on-year increase of about 19%. As of the end of the reporting period, Kangenbei has carried out a total of 200 projects under research, of which innovative drugs and improved new drugs account for 6%, chemical generic drugs account for 42%, traditional Chinese medicine secondary development projects account for 29%, evidence-based medicine projects account for 16%, and other projects account for 7%.
R&D investment in recent years (unit: 100 million yuan)
Source: Company announcement, compiled by Minenet
With 1.5 billion exclusive Chinese patent medicines, improved new drugs can be expected to be launched
Continuing to focus on the industrial development strategy with traditional Chinese medicine and health as the core business has become the main theme of Kangenbei's development in recent years. In the Chinese patent medicine business segment, at present, Kangenbei holds a number of exclusive best-selling varieties such as Enteritis Ning Tablets and Musk Tongxin Dripping Pills, covering multiple therapeutic fields such as digestive system, cardiovascular and cerebrovascular system, respiratory system, and urinary system.
Enteritis Ning Tablets is the fist product of Kangenbei, which is a national medical insurance class B and OTC class A (double-span) varieties, which have the effects of clearing heat and dampness, promoting qi, etc., and are suitable for diarrhea and dysentery caused by dampness and heat in the large intestine. In recent years, the company has seized the market opportunity to increase brand promotion, and carried out brand co-construction and scenario-based marketing with pharmaceutical e-commerce and chain pharmacies, and the series of products have maintained rapid growth. According to data from Minenet, in recent years, the sales of China's retail pharmacy terminals (urban physical pharmacies + online pharmacies) have increased at a double-digit growth rate, exceeding 1.5 billion yuan in 2023, a year-on-year increase of 32%. In the ranking of intestinal Chinese patent medicine products, Enteritis Ning Tablets has ranked first for many years, and its market share has increased year by year.
Sales of terminal intestinal tablets in China's retail pharmacies in recent years (unit: 10,000 yuan)
Source: Minenet Grid Bureau Database
The second-class protected variety of traditional Chinese medicine, Musk Tongxin Dripping Pill, has been included in the national medical insurance category B catalog, which has the effects of aromatic qi and pulse, blood circulation and blood stasis and pain relief, and is suitable for coronary heart disease, stable exertional angina pectoris (qi deficiency and blood stasis syndrome), chest pain, chest tightness, palpitations, shortness of breath, fatigue and fatigue. In recent years, the sales of Musk Macaroni Dripping Pills in China's three major terminal and six major markets have increased year by year, exceeding 300 million yuan in 2022 and continuing to grow at a growth rate of 20% in the first half of 2023.
In the research and development of modern traditional Chinese medicine, in recent years, Kangenbei has obtained the production approval of the total flavonoid extract of yellow hollyhock flower and the total flavonoid oral patch of yellow hollyhock flower. In December 2023, Kangenbei announced that the total flavonoids of yellow hollyhock flower oral patches were included in the national medical insurance category B catalog through negotiation, and the medical insurance payment standard was 1.75 yuan per piece.
Since 2018, some new Chinese medicine drugs have been declared by Kangenbei
Source: Minenet China Declaration Progress (MED) database
In addition, the 2.1 improved new drug of traditional Chinese medicine has submitted an NDA, which is derived from the changed dosage form of the over-the-counter drug throat clearing and pharyngeal mixture on the market, which has the effects of nourishing yin, clearing the throat and detoxifying, and is suitable for acute pharyngitis caused by yin deficiency and lung fever, with symptoms such as sore throat, cough, hoarseness, dry throat burning, ear stuffiness and ear pain. According to data from Minenet, in 2022, the sales of throat Chinese patent medicines in China's three major terminals and six major markets will be close to 7 billion yuan.
Class 1.2 new drug Ivy Leaf Oral Liquid has been approved for clinical use for the treatment of cough and phlegm caused by acute tracheitis-bronchitis. According to data from Minenet, in 2022, the sales of cough, expectorant and asthma Chinese patent medicines in China's three major terminal and six major markets will exceed 24 billion yuan.
14 new products were launched in a sprint, and Class 1 new drugs attacked the 40 billion market
In the field of chemical drugs, there are currently 22 generic drugs that have been evaluated/deemed to have been evaluated, focusing on the therapeutic fields of digestive system and metabolic drugs, systemic anti-infective drugs, musculoskeletal system and other therapeutic fields, among which pantoprazole sodium enteric-coated tablets and compound sulfamethoxazole tablets are the first to be evaluated.
Kang Enbei has commented on the situation
Note: The band * is the winning variety of national mining
Source: Minenet Consistency Evaluation Progress Database
In the national centralized procurement that has been carried out, a total of 8 varieties of Kangenbei have been successfully selected, including "barefoot" varieties such as acetylcysteine granules and rivaroxaban tablets (referring to the relatively low or 0 sales proportion of this variety before centralized procurement).
In addition, there are 14 varieties of Kangenbei that have been submitted for production with new registration classifications and are under review (excluding joint declaration), which will be deemed to have passed the consistency evaluation after being approved for production. Among them, perindopril amlodipine tablets (III.) have not been approved by domestic enterprises, and only 2 domestic enterprises have production approvals for adenosylcobalamin capsules.
The varieties that have been newly classified and are under review
Source: Minenet China Declaration Progress (MED) database
In terms of research and development of new chemical drugs, the Class 1 new drug EVT-401 tablets is in phase I clinical trials for rheumatoid arthritis. According to data from Minenet, in 2022, the sales scale of musculoskeletal system drugs (chemical drugs + biological drugs) in China's three major terminal and six major markets will exceed 40 billion yuan.
Since 2022, some new chemical drugs have been declared by Kangenbei
Source: Minenet China Declaration Progress (MED) database
EVT-401 is a novel, oral, potent and selective P2X7 receptor antagonist. At present, there are no drugs with the same target approved in the world, and the products under development will enter phase II clinical trials as soon as possible, including Eli Lilly's LY-3857210, Johnson & Johnson's JNJ-55308942, Pfizer's CE-224535, AstraZeneca's MT-002, etc., while in the domestic market, EVT-401 tablets are the first P2X7 receptor antagonist to enter clinical trials.
In addition, Kangenbei has also approved the clinical trial of 1 improved new drug pirfenidone solution for inhalation for the treatment of idiopathic pulmonary interstitial fibrosis. Pirfenidone is a pyridone compound with broad-spectrum anti-fibrotic effect, and the pirfenidone preparations that have been approved for marketing in China include pirfenidone tablets and pirfenidone capsules, with a total sales of pirfenidone in China's three major terminal markets exceeding 550 million yuan in 2022 and exceeding 400 million yuan in the first half of 2023.
Sources: Minenet database, company announcements, etc
Note: The statistical scope of "China's Three Terminals and Six Major Markets" is as follows: urban public hospitals and county-level public hospitals, urban community centers and township health centers, urban physical pharmacies and online pharmacies, excluding private hospitals, private clinics, village clinics, and county and rural pharmacies; The statistics are as of April 30, if there is any omission, please correct!