The gross profit margin reaches 90%, and the proportion of R&D is close to Hengrui! Yuandong's net profit soared

Yuandong Bio, which just landed on the Sci-tech version in September last year, recently released a 2020 performance report.

The gross profit margin is as high as 90%, and the potential of Yuandong's best-selling products has exploded

Figure 1: Yuandong Biologics and Hengrui Medicine's gross profit margin and R&D investment ratio (unit: %)

Source: Company Annual Report

Although Yuandong Bio's operating income is less than 1 billion yuan, and its volume is not very large among listed pharmaceutical companies, its gross profit margin has been rising all the way, attracting investors' attention; in addition, the company has always been driven by R&D innovation, and its R&D The proportion of investment has been maintained at a relatively high level, and the proportion of R&D investment in 2019 is even comparable to that of Hengrui, the “first R&D brother”.

Figure 2: The sales contribution rate of Yuandong Bio's main products in 2020H1

Source: Mi Nei.

Bisoprolol is Yuandong Bio's flagship product, with a sales contribution rate of over 22% in the first half of 2020.

Ibandronate sodium injection was included in the National Medical Insurance Catalogue in 2017, and the overall sales volume increased rapidly.

Yuandong Bio's ibuprofen injection was approved in 2018, and it won the indications for heat and analgesia.

Table 1: The musculoskeletal system products approved by Yuandong Biologics in 2019

Source: Minet database

The musculoskeletal system is Yuandong Biologics's largest proportion of pharmaceuticals in public medical institutions in China.

2021 starts off! 2 major injections have been reviewed, and 2 high-end imitations have been declared for listing

Yuandong Biotech mentioned in the performance bulletin that in 2020, the company will obtain production approvals for 6 new products including Memantine Hydrochloride Sustained Release Capsules and Glycopyrronium Bromide Injection.

Table 2: Products approved by Yuandong Biotech in 2021

Source: Meinenet MED2.

Yuandong Bio's caffeine citrate injection was approved for marketing in 2016 and was the first imitation in China.

Table 3: Status of products declared for listing in 2021

Source: Meinenet MED2.

Phenylephrine hydrochloride injection on the domestic market is only approved by Shanghai Hefeng Pharmaceutical, and no company has reviewed it yet.

Throwing 300 million yuan to increase research and development, 8 new products are coming soon, Class 1 new drugs are worth looking forward to

According to the company's annual report data, Yuandong Biotech has never been stingy in R&D investment in recent years, and the proportion of R&D has almost reached the "R&D brother" Hengrui, and the early-declared products have gradually entered the harvest period.

On January 27, 2021, Yuandong Biopharmaceuticals issued an announcement stating that in order to accelerate the implementation of the strategic goal of becoming a global specific patented prescription drug company, and to further improve the ability and speed of drug R&D and innovation, the wholly-owned subsidiary, Chengdu Shuode Pharmaceutical Co.
, Ltd.
In 2.
5 years, it invested 336.
42 million yuan to build an internationally standard pharmaceutical R&D technology platform and a high-end oral liquid workshop, a high-activity and high-toxic injection workshop, and a high-end solid preparation workshop that comply with the US FDA cGMP and EU GMP standards.
The products are mainly concentrated in the fields of anesthesia and analgesia, cardiovascular and children's medicines.
The product dosage forms mainly include solid tablets, injections, powders, oral liquids, etc.
After the completion of the project, the company's R&D technology platform will meet international standards, and its R&D and innovation capabilities will be further enhanced.
At the same time, it will have international standard manufacturing capabilities to fill the company's international high-end oral liquids, high-activity and high-toxic injections, and high-end solid preparations.
Whitespace.

Table 4: As of 2020, Yuandong Biologics has declared for listing and is reviewing products

Source: Meinenet MED2.
0 Chinese Drug Evaluation Database

Shugeng Sodium Gluconate Injection is the world's first specific binding neuromuscular block antagonist developed by Merck and Organon.
It is used to antagonize the neuromuscular block induced by rocuronium or vecuronium.
The global sales of the products are close to 1.
2 billion U.
S.
dollars.
In May 2017, the original research product was approved to enter the domestic market.
In 2019, the terminal sales growth rate of public medical institutions in China was as high as 804.
21%.
At present, 15 companies including Yuandong Biotechnology have applied for listing under 4 types of imitations.
From the time of undertaking, Kelun first applied for the first in 2018, Yangtze River, Nanjing Zhengda Tianqing Pharmaceutical, Hengrui, Qilu, Renfu The acceptance numbers of other domestic giants are under review, and the dispute for the first imitation of Shugeng Sodium Gluconate Injection is quite fierce.

Vivaroxenic acid powder is one of the very few effective drugs approved by the US FDA for the treatment of infantile spasms (IS) and some adults whose seizures cannot be controlled after using various epilepsy therapies.
This product has not been used yet.
Domestically, it has been approved for import, and currently only Yuandong Biotech has applied for the imitation of this product for marketing.

In addition, the company's future products are expected to include eutagliptin tablets, CX3002 tablets, and macromolecular biological drugs EP-9001A monoclonal antibody injection.

Table 5: Yuandong Biotech's products of Class 1 new drugs under development

Source: China Drug Clinical Trial Publicity Library of Meinenet

It is reported that yogliptin tablets are a long-acting hypoglycemic drug that can be taken orally once a week.
At present, this class 1 new drug has entered the phase II clinical trial phase.
It is expected that the phase II clinical report will be issued in June 2021, and it will be applied for listing in 2025.

CX3002 tablet is a factor Xa inhibitor, used to prevent the formation of acute deep vein thrombosis.
The phase I clinical trial has been completed.
The new drug has a clear mechanism of action, outstanding efficacy, and a lower risk of bleeding.
It is reported that the new drug, apixaban and rivaroxaban belong to the same class of drugs.
The global sales of the two major products in 2020 will exceed 14 billion U.
S.
dollars and 7.
7 billion U.
S.
dollars, respectively.

EP-9001A monoclonal antibody injection is a new product that Yuandong Biologics is currently making rapid progress in the field of macromolecular biopharmaceuticals.
It is expected to apply for clinical application in 2021.
It is reported that the new drug is a humanized monoclonal antibody drug with a new mechanism of action.
The anti-nerve growth factor (NGF) antibody selectively binds to and inhibits nerve growth factor (NGF) and blocks the pain signals produced by certain organs in the body.
Enter the spinal cord and brain to play an analgesic effect.
If the product is successfully approved, it will enrich the company's product pipeline in the field of anesthesia and analgesia and enhance market competitiveness.

Source: company announcement, Minet database