Although the share price of Hunan Nucien Pharmaceutical Co.Ltd(688189) ( Hunan Nucien Pharmaceutical Co.Ltd(688189) . SH) is close to a new low, the old pe CDH investment still speeds up its exit.
On March 5, Hunan Nucien Pharmaceutical Co.Ltd(688189) announced that Hangzhou CDH new trend equity investment partnership (hereinafter referred to as CDH investment), which holds 7.71% of the shares, plans to reduce its holdings by up to 8.4 million shares, accounting for 6% of the total share capital of the company. If Dingge reduces its holdings, CDH investment’s shareholding ratio will drop to 1.71% and almost exitP align = “center” figure: main contents of CDH investment’s reduction plan
CDH investment has just completed the last round of share reduction. From November 16, 2021 to January 19, 2022, CDH investment reduced Hunan Nucien Pharmaceutical Co.Ltd(688189) 42 million shares, accounting for 3% of the total share capital.
Judging from the stock price performance, the recent Hunan Nucien Pharmaceutical Co.Ltd(688189) stock price is at a new low since its listing and has broken. Why did CDH choose to reduce its holdings by a large amount at such a time nodeP align = “center” figure: Trend of Hunan Nucien Pharmaceutical Co.Ltd(688189) stock price since listing
single product leads to a huge loss of 176 million in 2021
The stock price reflects the market’s concern about Hunan Nucien Pharmaceutical Co.Ltd(688189) performance.
According to the performance express, Hunan Nucien Pharmaceutical Co.Ltd(688189) 2021 achieved a total operating revenue of 688 million yuan, a year-on-year decrease of 36.81%; The net profit attributable to the owner of the parent company was -176 million yuan, which was converted from profit to loss year-on-year. Specifically, the company’s three major products performed poorly in 2021.
In 2021, the situation of national epidemic prevention and control remains grim. Since covid-19 is highly similar to the symptoms of influenza, with fever, dry cough, fatigue and other symptoms, the terminal medical institutions have taken strong control measures for the fever clinic, and the flow of people has decreased sharply, resulting in a significant reduction in the demand of the terminal medical institutions for Hunan Nucien Pharmaceutical Co.Ltd(688189) product “Liwei” (palamivir sodium chloride injection).
“Liwei” is the core product of Hunan Nucien Pharmaceutical Co.Ltd(688189) . In 2020, the company’s sales of “Liwei” products achieved a revenue of 799 million yuan, accounting for 73% of the total revenue of the current period, and the gross profit margin was as high as 94.67%.
In 2021, the sales revenue of Hunan Nucien Pharmaceutical Co.Ltd(688189) “Liwei” was halved, which became the main reason for the current loss. In the performance express, the company said that the sales revenue of “Liwei” decreased by about 433 million yuan compared with 2020, a year-on-year decrease of more than 50%, and the gross profit was directly reduced by about 350 million yuan.
In 2020, “kefule capsule” (cefaclor capsule), the product with the second highest Hunan Nucien Pharmaceutical Co.Ltd(688189) sales revenue, entered the national centralized procurement catalogue of pharmaceutical products at the end of 2020. The sales revenue in 2021 decreased by about 68.76 million yuan compared with that in 2020, a year-on-year decrease of 67.67%.
As for the product “Xinke” (simvastatin dispersible tablets), which ranked third in the sales revenue in Hunan Nucien Pharmaceutical Co.Ltd(688189) 2020, affected by the national generic drug consistency evaluation policy, the sales revenue in 2021 decreased by about 57.18 million yuan year-on-year, or 62.57%.
The revenue of existing main products has fallen sharply, and Hunan Nucien Pharmaceutical Co.Ltd(688189) needs new growth points.
However, from the perspective of Hunan Nucien Pharmaceutical Co.Ltd(688189) ‘s drugs under research, few drugs can be listed for profit in the short term, and still need to invest a lot of research and development funds.
New drug research and development must go through drug discovery, preclinical research and phase III clinical trials before it can be approved for listing. The time required for each stage of different drugs varies, and each stage usually takes several years.
Therefore, it is worth paying attention to how many new drugs can be put on the market in Hunan Nucien Pharmaceutical Co.Ltd(688189) short term. According to the semi annual report of 2021, the company has 15 projects under research, but most of them still need a long R & D process.
Hunan Nucien Pharmaceutical Co.Ltd(688189) at present, the drug closest to the market is oseltamivir phosphate dry suspension, which has submitted an application for the listing of generic drugs. The drug can be used for the treatment of influenza A and B patients aged 2 weeks and above, and the prevention of influenza A and B in children and adults aged 1 year and above.
As mentioned earlier, the demand for influenza drugs has greatly decreased under the background of covid-19 epidemic. Even if the drug goes on the market smoothly, it remains to be seen how much revenue it can Hunan Nucien Pharmaceutical Co.Ltd(688189) bring to .
Hunan Nucien Pharmaceutical Co.Ltd(688189) there are three drugs entering the clinical research stage, namely, the influenza drug pramivir inhalation solution, which is currently in the phase I / II clinical research stage; The treatment of diabetic nephropathy is the first phase of clinical research. Metafenib, an innovative tumor drug, is currently in phase Ⅰ B / Ⅱ a clinical research stage.
In addition to the above four drugs, Hunan Nucien Pharmaceutical Co.Ltd(688189) other drugs have not yet entered the clinical trial stage, and it will still take a long time to go on the market.
From the R & D investment, it can also be seen that Hunan Nucien Pharmaceutical Co.Ltd(688189) of drugs still need a large amount of capital investment before they are listed. The semi annual report of 2021 shows that the company has invested 142 million yuan in 15 projects under research, and the total investment is expected to be 1.169 billion yuan, that is to say, it still needs to invest 1 billion yuan to complete drug R & D.
Since the listing of self-developed drugs is far away, Hunan Nucien Pharmaceutical Co.Ltd(688189) plans to add new products to the company through asset restructuring.
major asset restructuring frustrated
Hunan Nucien Pharmaceutical Co.Ltd(688189) plans to inject pharmaceutical assets into the company through major asset restructuring.
The company plans to raise about 10 billion yuan in cash through the issuance of shares of Suzhou Mengxing Pharmaceutical Co., Ltd. (hereinafter referred to as “Mengxing”) in 2020. The transaction price of the acquisition is about RMB 2.643 billion, including cash consideration of RMB 923 million and share consideration of RMB 1.72 billion.
Xingmeng biology was founded in 2016. Since there are no listed products, the company has been losing money for many years. At present, the company’s products under development include 4 biological innovative drugs and 5 biological similar drugs. The fastest progress is the combined antibody syn023 for rabies prevention, which is undergoing international multicenter phase IIb / III clinical trial.
Hunan Nucien Pharmaceutical Co.Ltd(688189) in the 2020 annual report, syn023 is the world’s first anti rabies monoclonal antibody to carry out phase III clinical research in the United States and China at the same time. It is a new generation of anti rabies combination antibody recommended by the World Health Organization and is expected to become the world’s first listed anti rabies combination antibody.
Meanwhile, Hunan Nucien Pharmaceutical Co.Ltd(688189) provided Xingmeng biology with a loan of 200 million yuan for normal R & D and operation during the transition period. In July 2021, under the background of equity transaction between the two sides, RMB 200 million loan has entered Xingmeng biological account.
For Hunan Nucien Pharmaceutical Co.Ltd(688189) this asset restructuring, the Shanghai Stock Exchange issued an inquiry letter.
In the reply, the company said that it is expected that Xingmeng biology will invest about 1.040 billion yuan in cash from 2021 to 2023, and it is expected to gradually turn losses into profits from 2024 to 2025.
By the end of the third quarter of 2021, Hunan Nucien Pharmaceutical Co.Ltd(688189) monetary capital was 320 million yuan and trading financial assets were 402 million yuan. Under the background of loss and large R & D investment, investment in Xingmeng biology will naturally cause great pressure, and the latter will not create accounts receivable for the company until 2024.
The market is not optimistic about Hunan Nucien Pharmaceutical Co.Ltd(688189) , which makes its share price continue to decline and affects the progress of major asset restructuring. Previously, it was agreed by many parties that the purchase price of assets and issued shares in this major asset restructuring was 44.09 yuan / share, but the company’s share price fell endlessly, and the latest share price was only 24.66 yuan / share.
Hunan Nucien Pharmaceutical Co.Ltd(688189) said in the announcement of restructuring progress on March 5 that “the company’s share price has fallen, and the company and the counterparty need to assess the possible impact of recent market fluctuations on the main terms of this trading scheme, such as the price of assets purchased, the issuance of shares, the proportion of cash paid for shares and so on”.
However, Hunan Nucien Pharmaceutical Co.Ltd(688189) said in the reply to the inquiry letter in November 2021 that “no substantive obstacles have been found to promote this major asset restructuring”.
It is still unknown when it will turn from profit to loss and when major asset restructuring will be implemented, and Hunan Nucien Pharmaceutical Co.Ltd(688189) hidden thunder looms at a difficult time.
