Recently, Shandong Buchang Pharmaceuticals Co.Ltd(603858) (hereinafter referred to as ” Shandong Buchang Pharmaceuticals Co.Ltd(603858) “) announced that the application for clinical trial of “bc0305 capsule” and “bc0306 capsule” of its wholly-owned subsidiary Shandong Danhong Pharmaceutical Co., Ltd. was accepted by the State Drug Administration.
It is reported that BC0305 is designed to improve blood glucose control in patients with type 2 diabetes based on diet and exercise. Bc0306 is mainly used to treat nonalcoholic steatohepatitis.
As one of the leading enterprises of traditional Chinese medicine starting from cardiovascular and cerebrovascular Chinese patent medicine, Shandong Buchang Pharmaceuticals Co.Ltd(603858) continues to occupy a leading position in the field of cardiovascular and cerebrovascular medicine. At present, it has formed a three-dimensional product pattern based on the cardiovascular and cerebrovascular market, covering the traditional advantageous fields of Chinese patent medicine, focusing on major diseases and cultivating large varieties.
industry dividend highlights the head of Chinese patent medicine, and the enterprise has a stable position
Traditional Chinese medicine industry has a long history and is China’s cultural treasure. Since 2015, the state has issued a series of new policies for the traditional Chinese medicine industry and its upstream and downstream industrial chains. Especially during the covid-19 epidemic, traditional Chinese medicine has played an important role in epidemic prevention and control, and favorable policies at the national level are more intensive. At the same time, China’s per capita disposable income has been increasing, and residents’ awareness and demand for health care have also been gradually increasing. In view of the unique characteristics of traditional Chinese medicine, its demand continues to expand from “treatment” to “prevention and health care”. Different from the “passive treatment” of Western medicine, traditional Chinese medicine can cover “passive treatment + active health management”, which also means that the industrial chain of traditional Chinese medicine can be extended to great health and traditional Chinese medicine consumer goods, and the consumption attribute is becoming more and more obvious.
Inheritance, innovation, coordinated development of traditional Chinese and Western medicine and going abroad have become national strategies. The traditional Chinese medicine industry in the policy dividend period is expected to usher in greater development opportunities.
In terms of industry status, Shandong Buchang Pharmaceuticals Co.Ltd(603858) ranked second in the “top 100 Chinese traditional medicine enterprises in 2020”. The data show that in the first half of 2021, the total sales revenue of Shandong Buchang Pharmaceuticals Co.Ltd(603858) Naoxintong capsule, Wenxin granule, Danhong injection and Guhong injection reached 3.279 billion yuan, accounting for about 44.39% of the total revenue in the first half of Shandong Buchang Pharmaceuticals Co.Ltd(603858) ; In addition, two exclusive varieties in the field of chemical drugs and biological drugs – compound brain peptide ganglioside injection and compound tripeptide injection, the total revenue of the six products in the first half of Shandong Buchang Pharmaceuticals Co.Ltd(603858) 2021 reached 4.427 billion yuan, accounting for nearly 60% of the company’s total revenue.
The product quality has also been recognized by the society and the industry. Taking its trump brand “Naoxintong Capsule” as an example, after many links such as enterprise application, Department recommendation, preliminary review and expert review, it was finally listed in the list of the first batch of “Shaanxi industrial products”, becoming a “Shaanxi industrial products” representing leading technology, good performance, excellent quality and good benefits. This further confirms Shandong Buchang Pharmaceuticals Co.Ltd(603858) ‘s leading position in Chinese patent medicine enterprises.
layout of “great health” new drugs will gradually release
With the promulgation of policies such as “healthy China 2030” planning outline, healthy China has become a national strategy. The outline proposes to develop TCM health care and disease prevention services, promote the inheritance and innovation of TCM, promote the capacity-building of TCM clinical research bases and scientific research institutions, and deploy the task of TCM modernization. Policy level is constantly guiding consumers from passive treatment to active self diagnosis and treatment. The industrial chain layout of Chinese medicine industry extends from disease control to health management, health consumption and other fields, and prevents chronic diseases such as cardiovascular and cerebrovascular, tumor, bone, chronic respiratory system, digestive system, diabetes, mental / endocrine system, etc. The diagnosis, treatment and rehabilitation stage will form a higher demand for medical and health care consumption, which is expected to become a new market for the consumption upgrading of the traditional Chinese medicine industry.
However, in recent years, under the background that the traditional Chinese medicine industry has also been strengthened by policies and is about to enter national mining, the reshuffle of the traditional Chinese medicine industry has been irreversible. Facing the coming great changes in the industry, it is imperative for traditional Chinese medicine enterprises to accelerate their diversified transformation. According to the data released by China business information network and Xiangcai Securities Research Institute, the great health market of traditional Chinese medicine will increase from 1029 billion yuan in 2014 to 3024 billion yuan in 2020, with a compound annual growth rate of 19.7%. It is expected to be 3.8 trillion yuan in 2021. Calculated according to the average annual growth rate of 15% – 20%, the scale of the great health market of traditional Chinese medicine is expected to exceed 7.5 trillion yuan by 2025. Therefore, in the direction of transformation, the synergy in the field of health is the best and the fastest. The most direct benefit will be the traditional Chinese medicine enterprises with strong brand, and build a large health industry through brand extension.
Shandong Buchang Pharmaceuticals Co.Ltd(603858) the 2021 semi annual report proposed the strategy of “expanding to high-tech pharmaceutical industries such as biological drugs and vaccines based on traditional Chinese medicine”, and adhered to the development direction of “focusing on large industries and cultivating large varieties”. Always adhere to the core strategy of traditional Chinese medicine, invest in high-tech biological drugs and vaccines, and layout the large health field. The business layout covers the whole industrial chain of pharmacy, service, retail and equipment.
Therefore, in recent years Shandong Buchang Pharmaceuticals Co.Ltd(603858) is not only based on its own industry, but also vigorously expanding new drugs Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) , and constantly increasing product R & D investment in chemical drugs, biological drugs and other fields. On March 2, 2021, Shandong Buchang Pharmaceuticals Co.Ltd(603858) covid-19 pneumonia epidemic fighting heavy variety Xuanfei Baidu granule was approved for listing through special approval procedures, and the advantages of the listing of this new anti epidemic product will be gradually released in the future.
Shandong Buchang Pharmaceuticals Co.Ltd(603858) the two products accepted in clinical trials mentioned in this announcement are non insulin hypoglycemic drugs and drugs mainly used to treat nonalcoholic steatohepatitis diseases. According to the data query of Intranet, the annual sales trend of [urban public, urban community, county-level public and township health] in China shows that the sales of non insulin hypoglycemic drugs from 2018 to 2020 were 25.4 billion yuan, 29.4 billion yuan and 26.1 billion yuan respectively. At present, there is no drug on the market with the same target as bc0306 in the treatment of nonalcoholic steatohepatitis outside China. Therefore, once these two new products are officially launched, they will certainly promote the continuous development and growth of the company’s main pharmaceutical industry.
develop well, build a moat for R & D and innovation
According to the announcement released by Shandong Buchang Pharmaceuticals Co.Ltd(603858) this time, as of December 21, 2021, Shandong Buchang Pharmaceuticals Co.Ltd(603858) has invested about 26.5503 million yuan in research and development on bc0305 project and about 27.9984 million yuan in research and development on bc0306 project.
In addition, according to its 2020 annual report, Shandong Buchang Pharmaceuticals Co.Ltd(603858) R & D investment has increased year by year in recent years. The total R & D expenditure in 2018, 2019 and 2020 was 576 million yuan, 639 million yuan and 722 million yuan respectively, with a year-on-year increase of 4.24%, 10.87% and 35.18% respectively. In the traditional Chinese medicine industry, Shandong Buchang Pharmaceuticals Co.Ltd(603858) R & D strength is strong, and R & D investment has always been in a leading position. Driven by the policy of integrity and innovation, Shandong Buchang Pharmaceuticals Co.Ltd(603858) continues to increase R & D investment, adhere to the clinical value oriented, “human experience” and “Three Combinations” of traditional Chinese medicine evaluation evidence system, and construct the theory of traditional Chinese medicine, which is an important innovation path towards high-quality development.
On the premise that the industry is good, Shandong Buchang Pharmaceuticals Co.Ltd(603858) future development is undoubtedly good. With the promotion of its strategic transformation, Shandong Buchang Pharmaceuticals Co.Ltd(603858) drug R & D keeps pace, the support for future performance growth is being steadily built, and the company’s leading position in Chinese patent medicine enterprises will be further consolidated.
(International Finance News)
