Paroxetine, a new depression drug of Huahai pharmaceutical, was approved by FDA

According to reports, the original research company of paroxetine tablets is Apotex technologies, which can be used to treat depression, obsessive-compulsive disorder, panic disorder or social anxiety disorder Huahai pharmaceutical said that the acquisition of the preparation number marks that the company has the qualification to sell the product in the U.S market The product is expected to be available for sale in the United States in December 2014 Although the approval of paroxetine can be regarded as another milestone for Huahai pharmaceutical industry to enter the U.S market, we maintain the neutral rating of the stock because we don't think paroxetine will be the main driver of the company's revenue after 2015 Paroxetine, a selective serotonin reuptake inhibitor (SSRI), is a generic drug of Paxil, a drug owned by GlaxoSmithKline The latter was approved on December 29, 1992, and sold in the Chinese market under the trade name of Seroxat, mainly for the treatment of depression, obsessive-compulsive disorder and social anxiety disorder Paxil reached a peak of £ 2.06 billion in 2002 (US / European market sales of £ 1.413 billion / 375 million respectively), and then began to face generic competition in 2003 Since then, Paxil's global sales have declined steadily, with total sales of £ 285 million by 2013 In addition to generic competition, Paxil also faces competition from other SSRI drugs, such as Prozac from Lilly, Zoloft from Pfizer, and Celexa and lexapro from forest lab According to Ames market research, the total market value of paroxetine in the United States in 2013 was US $187 million, 68% of which was in the form of sustained-release tablets / controlled-release tablets There are more than ten paroxetine ordinary tablet manufacturers in the United States In 2013, zydus, the company with the largest sales volume, achieved only $23 million in revenue, accounting for 39% of the market share of ordinary tablets We assume that Huahai pharmaceutical will occupy 5% / 10% of the market share of paroxetine general tablets (based on 2013 data), and in the model, we predict that the drug will increase sales revenue by 3 million / 6 million USD for 2015 / 16.