Jiangsu Wuzhong invests 250 million new research drugs with a market capacity of only 100 million

A clarification announcement did not dispel the market's concern about the failure of research and development of new anticancer drugs in Wuzhong, Jiangsu Province The so-called new anticancer drugs are still in a fog behind the continuous precipice of the company's stock price Wuzhong, Jiangsu Province, has attracted market attention since it announced the independent research and development of the national class I new biological anticancer drug "recombinant human endostatin injection" in early 2011 It has even been regarded as the leading brother of the anticancer concept stock, and its stock price has been repeatedly wildly hyped in the secondary market However, there is no real performance support behind the pure concept hype According to statistics from China business daily, the net profit of Wuzhong, Jiangsu Province after deducting non recurring profit and loss (deducting non recurring profit and loss) has been negative for seven consecutive years since 2006 In recent years, it mainly relies on government subsidies to maintain a low profit state The company's high hopes for anticancer drugs are still in the experimental stage, whether they can succeed is not known Limited market share of anticancer drugs As the leader of anti-cancer concept stocks, the crazy performance of Wuzhong in Jiangsu Province makes the market amazing Since January this year, the stock price of the company has soared from 5 yuan to nearly 20 yuan, with a cumulative increase of about 4 times After that, Wuzhong, Jiangsu Province, fell 7.41%, 10.01% and 6.46% in three consecutive trading days on June 27, June 28 and July 1, respectively During this period, news about the company's failure in research and development of new anti-cancer drugs began to spread on the Internet On July 2, the company issued an urgent clarification announcement, saying, "the company's failure in research and development of anti-cancer drugs is not true, and the current research and development of new drugs are all normal." In fact, the anticancer drugs in Wuzhong, Jiangsu Province are still only in the experimental stage, and some analysts in the pharmaceutical industry point out that the market share of their anticancer drugs is extremely limited even if they are successfully tested On March 1, 2011, the company announced that "recombinant human endostatin injection" has been approved by SFDA to carry out phase III clinical trial research of the product It is expected that phase III trial will be completed by the end of 2013, and the trial will be successfully accepted by relevant departments, and then submitted to the State Food and Drug Administration for approval Only after obtaining the production approval can the production and marketing be started The company also said that the success rate of phase III clinical trials is much higher than that of phase II trials It is understood that the new drug is mainly used in the treatment of non-small cell lung cancer However, the actual progress is not as smooth as the company expected Wuzhong, Jiangsu Province, said in its 2012 annual report: "the recombinant human endostatin injection is currently in the stage of phase III clinical trial Due to the strict enrollment standard of the clinical trial and many competitive projects in the hospital, there is a gap between the number of cases enrolled in the project and the original plan in the reporting period, and the clinical trial results are still full of uncertainty." Huang Liping (pseudonym), an analyst with a long-term focus on cancer concept unit, told reporters: "the number of phase III clinical cases of Jiangsu Wuzhong anti lung cancer drug did not reach the standard, indicating that the degree of patients receiving the drug was not as good as expected, and the whole clinical trial process was very slow." In fact, the market volume of drugs for non-small cell lung cancer is not as large as expected According to relevant industry figures, the drugs currently on the market for the treatment of non-small cell lung cancer include: imported varieties of erlotinib and gefitinib; domestic varieties of exetane hydrochloride and endu Soochow securities research report pointed out that "Xiansheng pharmaceutical" edu "has been successfully listed in 2005 It is the first approved recombinant human vascular endothelial inhibitor in the world and the first anti-tumor drug of endostatin in the world Both recombinant human endostatin and endu are targeted drugs for non-small cell lung cancer, which are very similar in molecular structure and mechanism of action The domestic sales price of NDU is 1126 yuan / piece, 14-28 pieces are needed to complete the treatment course, the cost of a patient is about 12000 yuan / month, and the sales volume in 2012 is about 200 million yuan Industry insiders pointed out that the sales volume of Rendu reached 200 million yuan as early as 2007 The slow growth of sales volume in the past five years is mainly due to the fact that most of the market share of targeted therapeutic drugs is occupied by foreign pharmaceutical giants, and the living space of domestic drugs is severely squeezed "On the surface, the incidence of cancer patients is increasing, but the market capacity of such drugs is not as large as you can imagine Most patients can't bear the cost of tens of thousands of yuan per month." Huang Liping told reporters Huang Liping further said: "if Jiangsu Wuzhong new drug test is successful and put into production, it will face the situation of seizing market share with its competitor endu At present, four phases of clinical research have been completed in NDU Under the condition that the prices of domestic drugs are similar, it is not easy for new drugs to obtain enough market space, and it is more difficult to replace the same kind of foreign drugs " 7 years of continuous loss of main business "Based on the sales situation of NDU, it is estimated that Wuzhong new drug in Jiangsu Province will obtain a market share of up to 100 million yuan by sharing the market equally." Southwest market people told reporters This is not good news for Wuzhong, Jiangsu Province, which is determined to gamble on new anti-cancer drugs It is reported that Jiangsu Wuzhong's total investment in the new product project is expected to be about 250 million yuan On the one hand, the recovery of new drug project investment is far away; on the other hand, the main business of Wuzhong in Jiangsu Province is increasingly bleak As can be seen from the financial statements of Wuzhong, Jiangsu Province, its non net profit deduction has been negative for 7 consecutive years since 2006 Last year's financial report showed that in 2012, Jiangsu Wuzhong deducted non net profit of - 4.52 million yuan, while its attributable net profit was 46.84 million yuan In fact, 15.59 million yuan of non recurring gains and losses last year came from government subsidies In recent years, Wuzhong, Jiangsu Province, mainly relies on government subsidies to maintain a low profit state The subsidies obtained in recent three years are: 37.26 million yuan, 30.09 million yuan and 15.59 million yuan respectively In addition, the company's first quarter report this year shows that the company's operating revenue is 745 million yuan, a year-on-year decrease of 17%; the net profit attributable to the shareholders of the listed company is 820000 yuan, a year-on-year decrease of 76% The company's gross profit rate is also very poor, with the gross profit rates of 8.44%, 7.26% and 9073% respectively from 2010 to 2012 In fact, the main business of Wuzhong is precious metal processing, followed by the pharmaceutical industry and real estate industry, and clothing trade In terms of gross profit margin and profit contribution ratio, the company's main profit comes from the pharmaceutical industry and real estate industry, with 31.03% and 23.62% respectively "The gross profit margin of the pharmaceutical industry in Wuzhong, Jiangsu Province has been maintained at about 30% in recent years, which is the lowest level compared with the biopharmaceutical industry," Huang Liping told reporters In 2012, the average gross profit margin of biopharmaceutical industry was close to 50% The sales expenses of Chinese pharmaceutical industry were extremely high Assuming that the gross profit margin level could not be effectively improved, the company's profits could not be estimated optimistically " "At present, the company mainly relies on the real estate business, metal processing business and government subsidies to carry out blood transfusion for its new drug research and development The precious metal processing business has a stable customer base, mainly for some electronic component manufacturers, with fast capital turnover (about 10 days), which can bring stable income to the company Because the real estate project cooperates with the government, the profit is also quite considerable " Huang Liping told reporters The reporter called Wuzhong, Jiangsu Province, to verify the above issues Zhu Jufang, the company's secretary, said, "at present, it is inconvenient to be interviewed in the window period published by the China Daily All matters are subject to the company's announcement."