In the centralized collection of growth hormone, Changchun High And New Technology Industries (Group) Inc(000661) subsidiary kinsay pharmaceutical gave up water agent. Among the dosage forms intensively purchased, the highest effective declared price of water agent decreased the most, and it is also the dosage form with the highest proportion of kinsay pharmaceutical's performance. Abandoning centralized mining means that Changchun High And New Technology Industries (Group) Inc(000661) will "bet" on its own market promotion ability. With the promotion of centralized mining, the market pattern of recombinant human growth hormone will also be impacted.
the price decreased by about 70%, giving up the centralized collection of water agent
On February 21, Changchun High And New Technology Industries (Group) Inc(000661) released the record of investor relations activities. By the registration deadline of Guangdong centralized mining alliance, the subsidiary kinsay pharmaceutical declared three powder specifications of recombinant human growth hormone, but the water agent did not declare.
This centralized purchase began at the beginning of this year. Guangdong Provincial Drug Trading Center issued the notice on the centralized procurement document of diclofenac and other drugs of Guangdong alliance, which listed a number of recombinant human growth hormone products, including kinsay pharmaceutical, a subsidiary of Changchun High And New Technology Industries (Group) Inc(000661) . The participants in this procurement are all public medical institutions (including military medical institutions) in the alliance area. Designated social medical institutions and designated pharmacies can participate voluntarily. The alliance areas include Guangdong, Shanxi, Jiangxi, Henan, Guangxi, Hainan, etc.
Recombinant human growth hormone powder injection needs to be dissolved before use, while water injection can be injected directly, and the price is much higher than that of powder injection. In the above centralized purchase documents, the powder injection and water injection compete in the same group, which means that the water injection can compete with the powder injection in the centralized purchase quotation only with a larger price decline.
As early as the disclosure of centralized purchase documents, some institutions predicted that enterprises would be more active in the application of powder injection dosage forms than water injection. According to the statistics of Dongguan Securities Research Report, the total amount of pre procurement of public medical institutions in the alliance area in the first year of the procurement period is 8247689iu, of which powder injection accounts for about 60% and water injection accounts for about 40%. There are three suppliers involved in water injection, among which the pre procurement volume of Kinsey pharmaceutical in the first year of water injection procurement period accounts for 98.24%. Taking Kinsey pharmaceutical as an example, the two specifications with large demand are 15iu and 30iu, and the declared maximum price is 173.58 yuan / needle and 295.08 yuan / needle. The current net prices of the two products are about 567 yuan / needle and 1031 yuan / needle, with a price decline of about 70%, which is much higher than the average price decline of about 10% for powder injection. Combined with the pre purchase volume in the first year, the corresponding sales amount is about 114 million yuan. If the bid is won according to the maximum price, the revenue will also be reduced by about 70%. At that time, some research institutions and insiders pointed out that compared with the revenue scale of Changchun High And New Technology Industries (Group) Inc(000661) (8.577 billion yuan in 2020), enterprises may "abandon the bid".
Changchun High And New Technology Industries (Group) Inc(000661) said it would actively participate in centralized procurement and take into account the interests of the company and shareholders.
growth hormone market pattern will be impacted
Kinsey pharmaceutical has always been the "profit cow" of Changchun High And New Technology Industries (Group) Inc(000661) . In 2020, kinsay pharmaceutical achieved a revenue of 5.803 billion yuan and a net profit of 2.76 billion yuan respectively. This figure accounted for 67.66% of the revenue and 90.58% of the net profit in the same period of Changchun High And New Technology Industries (Group) Inc(000661) . In the first quarter of 2021, the pharmaceutical industry made a contribution of 663.1 {0001} million yuan, accounting for almost 6.61 {0004.7} of the total profit of Jinsha.
Recombinant human growth hormone is a heavy product of Kinsey pharmaceutical. Public data show that the market scale of growth hormone in China will reach 8.7 billion yuan in 2020 from less than 500 million yuan in 2007. At present, Changchun High And New Technology Industries (Group) Inc(000661) has about 80% market share in China's growth hormone market.
With the promotion of centralized mining, the market pattern of recombinant human growth hormone will also be impacted. After Changchun High And New Technology Industries (Group) Inc(000661) abandons centralized procurement, other bid winning enterprises are expected to "seize" the hospital market through centralized procurement. According to the analysis of Dongguan securities, the current pattern of growth hormone is more caused by market-oriented competition and the role of medical insurance is less; In the process of centralized procurement, radical enterprises may open competition channels through the hospital market and seize the market share of unsuccessful enterprises in the hospital.
On February 22, the reporter of Beijing News repeatedly called another enterprise involved in the centralized mining Anhui Anke Biotechnology (Group)Co.Ltd(300009) , but the phone has not been connected.
This market space is also worth imagining, Changchun High And New Technology Industries (Group) Inc(000661) in the latest disclosure of investor relations activity records, according to the research results of authoritative professional institutions, the growth hormone market space is huge.
At the same time, Changchun High And New Technology Industries (Group) Inc(000661) is being promoted in the field of adult indications and is expected to become a new profit growth point in the future. In January this year, Changchun High And New Technology Industries (Group) Inc(000661) disclosed that kinsay pharmaceutical received the notice of approval for drug supplement application issued by the State Food and drug administration, adding three new indications, including adult short bowel syndrome for nutritional support. This may be the basis for Changchun High And New Technology Industries (Group) Inc(000661) to give up centralized production.
