Performance soared 539.5%! Backed by 6 billion varieties, the myth of the resurgence of Eastern Sunshine Medicine?

On the evening of August 26, Dong sunshine Pharmaceutical, a Hong Kong-listed company, released its 2022 interim results announcement: the company's revenue was 1.
293 billion yuan, an increase of 539.
5% year-on-year; Gross profit was 960.
7 million, an increase of 853.
1%
year-on-year.

Behind the take-off of performance, it is inseparable from the "full support" of its core products, Kewei (oseltamivir phosphate) granules and capsules: total sales were 1.
0059 billion, an increase of 1775.
5% year-on-year, accounting for 77.
8%
of the total revenue.

Since the outbreak of the new crown epidemic, the number of influenza patients in China has dropped
significantly with the significant promotion of epidemic prevention measures such as wearing masks.
Companies that directly lead to the treatment of influenza drugs have encountered a cold wave in the
market.

Especially in the first half of 2021, the number of influenza cases in China was only 160,100 cases, which directly led to a cliff-like decline in demand for Kewei, the core product of Dongguang Medicine, and the performance was "difficult to say"
.

In the past two years, under the "roller coaster" plot of great ups and downs, can The East Sunshine Medicine, which has soared by 539.
5% in the first half of the year, have another myth?

Eating by the sky? The myth of oseltamivir has resurfaced

Oseltamivir is a neuraminidase inhibitor first developed by Gilead and commercialized globally by Roche, making it the world's first approved anti-influenza virus drug
.

In 2006, Dongguang Pharmaceutical obtained Roche's patent authorization license for oseltamivir in China, and the drug achieved
localization.

In particular, the exclusive dosage form of Kewei granules owned by Dongyang Pharmaceutical became the only granular dosage
form in the market to obtain production approval after it was approved for listing in 2008.

Under the flu epidemic, the advantages of Eastern Sunshine Medicine oseltamivir in terms of safety and efficacy and dosage form quickly occupied the domestic market, and its performance showed explosive growth
.

According to relevant statistics, in 2016, the sales of oseltamivir of Dongguang Pharmaceutical in China's public medical institutions were 667.
22 million yuan, accounting for 85.
54% of the market share; By 2021, sales will be 904.
49 million yuan, with a market share of 95.
88% (see Figure 1 for details
).
In 2021, the original research Roche is only 36.
95 million yuan, accounting for 3.
92% of the
market share.

Figure 1 Sales of oseltamivir in domestic public medical institutions of Eastern Sunshine Medicine

After the outbreak of new crown pneumonia, with the substantial promotion of epidemic prevention measures such as wearing masks, the number of influenza patients around the world has dropped sharply, and influenza drugs, including Dongguang Medicine Kewei, have encountered a "cold wave"
in the market.

In particular, in 2020, the operating income of Dongguang Pharmaceutical plummeted by 62% to 2.
348 billion yuan; by 2021, the revenue will be 914 million yuan, which is not even worth the 942 million revenue five years ago (see Figure 2 for details
).

Figure 2 Revenue of East Sunshine Medicine in the past 6 years

In the first half of 2022, with the normalization of epidemic prevention and control measures, the domestic economic development continued to pick up, people's lives gradually normalized, and anti-influenza drugs became
popular again.

Coupled with the outbreak of influenza in many cities in the south, the fever patients in many provinces and cities "bursting", the miracle drug oseltamivir once again "out of the horse", the sales share rose sharply, and the performance of East Sunshine Medicine soared by 539.
5% thanks to this
.

Can the king return with insulin?

Under the "roller coaster" plot affected by the epidemic and influenza, the performance is somewhat helpless
, backed by the Eastern Sunshine Medicine of oseltamivir.

Moreover, latecomers flocked to it
.

According to statistics, at present, there are 75 domestic oseltamivir declared manufacturers
.

In China, there are 22 domestic batch numbers and 8 import batch numbers, involving Dongguang Pharmaceutical, Shanghai Zhongxi Pharmaceutical, CSPC Pharmaceutical Group, Kelun Pharmaceutical, Beite Pharmaceutical, Qilu Pharmaceutical, Borui Pharmaceutical, etc
.

In addition to the original research, the number of consistency evaluation (including the same) of product specifications has reached 20, including Kelun Pharmaceutical, CSPC Ouyi, etc.
, and the "latecomers" of oseltamivir have flocked to it
.

Superimposed, in the just-concluded seventh batch of national mining, oseltamivir capsules more than 10 companies bid, the lowest price of 0.
99 yuan / piece, product profits sharply reduced
.

With oseltamivir alone, the Eastern Sun Medicine obviously cannot be mythically revived
.
Where is the next step?

All along, the R&D pipeline of Dongguang Pharmaceutical has focused on four therapeutic areas: infection, cardiovascular, oncology and metabolism
.

Figure 3 East Sunshine Pharmaceutical Product Line

Image source: East Sunshine Medicine's official website

According to the annual report, in the first half of 2022, Dongyang Medicine made an important breakthrough
in the field of endocrine and metabolic diseases.

In the field of endocrine and metabolic diseases, Dongyang Pharmaceutical is committed to the research and development of insulin products, with complete insulin product line rules, covering the second and third generation of insulin
.

Figure 4 East Sunshine Drug Insulin Product Pipeline

Image source: East Sunshine Medicine 2022 semi-annual report

Its self-developed insulin series products, including recombinant human insulin injection and insulin glargine injection, have been listed; Insulin aspart injection, insulin aspart 30 injection and sperm protein recombinant human insulin injection (premixed 30R) are in the domestic production registration review stage
.

In order to further enrich the product pipeline in the field of diabetes, Dong sun pharmaceutical has acquired a number of diabetes treatment drugs, and the pyroglutamic acid junglitin and liraglutide are in the third phase of clinical stages
.

However, in the context of the sixth batch of national mining (insulin special) has been carried out, the domestic insulin market competition has been very fierce
.

In the TOP3 with the largest decline, insulin aspart decreased by 72%, which is the variety
under study of Dongyang Medicine.

Under the insulin collection, the fate of the second and third generations of insulin of Dongyang Medicine is still unknown
.

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