After the board was connected last Wednesday, the market opened on Monday, March 7, and China Meheco Group Co.Ltd(600056) ( China Meheco Group Co.Ltd(600056) . SH) rose again.
In response to the recent market rumors that it is negotiating cooperation with a multinational pharmaceutical company covid-19 virus treatment drugs, on Friday (March 4), China Meheco Group Co.Ltd(600056) issued an announcement on abnormal fluctuations in stock trading, saying that after verification, relevant matters are being communicated and discussed, such as Shunli’s cooperation, The final use and sales of relevant drugs are also affected by factors such as epidemic prevention and control, and there is uncertainty, which has no significant impact on the company’s recent operating performance
Previously, on February 11, the State Food and Drug Administration conducted emergency review and approval in accordance with the relevant provisions of the drug administration law and the special drug approval procedures, and conditionally approved the import registration of the combined packaging of nevitavir tablets / ritonavir tablets (i.e. paxlovid) for Pfizer covid-19 virus treatment drug.
market news pointed out that the object of China Meheco Group Co.Ltd(600056) negotiation and cooperation is Pfizer covid-19 oral drug paxlovid in this regard, the 21st Century Business Herald reporter also interviewed Pfizer. Pfizer related people said that they were unable to confirm the matter at present. If there is further information, they will be informed at the first time. In addition, a pharmaceutical industry analyst told the 21st Century Business Herald that although the company has not been publicly confirmed, the two companies may have reached a strategic cooperation agreement.
In any case, China Meheco Group Co.Ltd(600056) ‘s announcement also confirms the fact that it is seeking to introduce covid-19 therapeutic drugs recently, covid-19 pharmaceutical sector of A-share continued to be hot, and related concept stocks continued to rise as of the closing on March 7, Zhejiang Jianfeng Group Co.Ltd(600668) rose by the limit, Chengda pharmaceutical, Staidson(Beijing) Biopharmaceuticals Co.Ltd(300204) rose by more than 6%, and Frontier Biotechnologies Inc(688221) rose by more than 5%.
In addition, recently, relevant research institutions also said that Pfizer authorized the imitation of covid-19 oral drug paxlovid through MPP (Geneva drug patent pool organization), and the list of enterprises is expected to accelerate the implementation. Pfizer has previously authorized 95 countries to produce paxlovid generic drugs through the MPP organization. Considering that the population of 95 MPP member countries has exceeded half of the global total population and the market demand is huge, its final authorization list is expected to be announced in the near future.
Minsheng securities also believes that in January, MPP authorized 27 enterprises to imitate the production of molnupiravir, an oral drug of mosadon covid-19, and the authorized enterprises can sell molnupiravir’s generic drugs in 105 low – and middle-income countries (excluding China). Driven by the imitation production of Pfizer covid-19 oral medicine authorized by MPP, the upstream API and intermediate industry chain is about to usher in huge demand and profit elasticity.
covid-19 oral medicine hundreds of billions of new outlets
Paxlovid is an oral small molecule anti COVID-19 virus therapy for the treatment of mild to moderate New Coronavirus pneumonia (COVID-19) in adults with severe risk factors, such as elderly, chronic kidney disease, diabetes, cardiovascular disease, and chronic lung disease.
Paxlovid is a compound preparation of 3CL protease inhibitor pf-07321332 and low-dose ritonavir. Ritonavir helps to slow down the metabolism or decomposition of pf-07321332 and maintain its effective concentration in vivo for a long time to its antiviral activity.
According to the research results of paxlovid, a new oral antiviral candidate of covid-19 published by Pfizer in 2021, the interim analysis shows that the drug reduces the risk of hospitalization and death of high-risk covid-19 patients by 89%. This data is even better than covid-19 neutralizing antibody, which is significantly better than molnupiravir
On December 15, 2021, Pfizer also released the final analysis results of epic-hr study, which are consistent with the interim analysis results announced in November 2021. Among patients treated within three days of symptom onset, paxlovid can reduce the risk of hospitalization or death from any cause related to covid-19 by 89% compared with placebo.
In terms of secondary endpoints, paxlovid reduced the risk of covid-19-related hospitalization or death from any cause by 88% compared with placebo, higher than 85% observed in the interim analysis.
The results of sars-cov-2 viral load test on 499 patients in epic-hr trial showed that the viral load of paxlovid group on day 5 decreased about 10 times from baseline compared with placebo, indicating that paxlovid has strong activity against sars-cov-2, which is the strongest reduction of viral load in oral covid-19 preparation reported so far
At present, Pfizer covid-19 oral drug paxlovid has been approved for application in the United States, Israel, Canada, Europe and Japan.
According to the 2021 performance report data released by Pfizer on February 8, Pfizer achieved a revenue of $81.3 billion in 2021, up 92% year-on-year. Among them, after the oral antiviral drug paxlovid obtained the EUA approval of FDA on December 22, 2021, it has won the order of 20 million courses of treatment from the U.S. government, and is expected to realize the production capacity of 120 million courses of treatment by the end of the year. According to the therapeutic dose provided by the supply contract signed or committed by the end of January, Pfizer paxlovid’s financial expected revenue in 2022 is about $22 billion. In addition, Pfizer provided preclinical EC50 data of paxlovid for different mutants, including Omicron mutant.
It is estimated that the global oral drug market will reach billions of dollars, which is equivalent to 10 billion yuan. After covid-19 oral medicine has become another super outlet, Chinese manufacturers of raw materials and intermediates related to covid-19 oral medicine may become the object of market attention.
AVIC Securities Research Report also pointed out that compared with covid-19 prevention and treatment methods such as neutralizing antibody, small molecule oral drugs have unique advantages:
First, if the site of virus mutation is at the key position, the neutralizing antibody may fail, and small molecule oral drugs can deal with the virus mutation;
Second, the production capacity of neutralizing antibodies is limited, while the production capacity of oral drugs is less limited and the cost is low;
Third, neutralizing antibodies are expensive and require intravenous injection, with low accessibility. Oral drugs can be administered quickly after infection or covid-19 symptoms, with high accessibility.
However, paxlovid faces capacity pressure in the short term, and the industrial chain of large-scale process is expected to generate huge benefits. Pfizer expects paxlovid to produce 6 million courses in the first quarter of 2022, 30 million courses in the first half of 2022 and 120 million courses in the whole year. With the continuation of the global covid-19 epidemic, the pressure on production capacity will further increase. In this way, it also brings opportunities to relevant cdmo enterprises in China.
covid-19 oral drug concept stocks benefited
In fact, since November 2021, the news that Pfizer has reached huge orders with many cdmo enterprises in China has spread widely.
On November 16, 2021, Asymchem Laboratories (Tianjin) Co.Ltd(002821) announced that the wholly-owned subsidiary will provide contract customized R & D and production (cdmo) services for a small molecule chemical innovative drug of a large pharmaceutical company in the United States, The cumulative contract amount of cdmo service of the product is about RMB 3.1 billion ( Asymchem Laboratories (Tianjin) Co.Ltd(002821) 2020 total revenue is RMB 3.15 billion, and this order is almost equal to its one-year revenue in 2020). On November 28, 2021, Asymchem Laboratories (Tianjin) Co.Ltd(002821) said that it continued to provide contract customized R & D and production (cdmo) services for a small molecule chemical innovative drug of a pharmaceutical company, and the amount of new orders was equivalent to about 2.72 billion yuan. On February 20, 2022, Asymchem Laboratories (Tianjin) Co.Ltd(002821) again announced that it continued to provide contract customized R & D and production (cdmo) services for a small molecule chemical innovative drug of a pharmaceutical company, with a new order amount equivalent to about 3.542 billion yuan.
combining these three cdmo orders, Asymchem Laboratories (Tianjin) Co.Ltd(002821) can obtain a total revenue of more than 9 billion yuan, which is equivalent to three times of Asymchem Laboratories (Tianjin) Co.Ltd(002821) 2020 revenue of 3.15 billion yuan and twice of 2021 estimated revenue of 4.505 billion yuan. Dongguan Securities Research Report believes that Asymchem Laboratories (Tianjin) Co.Ltd(002821) continues to sign large orders, which provides a guarantee for the high growth of performance in 2022.
In addition to Asymchem Laboratories (Tianjin) Co.Ltd(002821) , Porton Pharma Solutions Ltd(300363) has also become a major beneficiary february 11, Porton Pharma Solutions Ltd(300363) before the announcement of Pfizer covid-19 oral drug approval in China, the company announced that it had received a new batch of purchase orders from Pfizer and would provide contract customized R & D and production (cdmo) services. As of the disclosure date of the announcement, the total amount of new orders obtained by boten was US $681 million, more than 50% of the audited operating revenue of the company in the latest fiscal year. The delivery time of this order is 2022. Affected by this good news, the daily limit of Porton Pharma Solutions Ltd(300363) opened on the same day.
This time, according to public information, China Meheco Group Co.Ltd(600056) is a state-controlled listed company listed on the Shanghai Stock Exchange. In recent years, it has initially established an integrated industrial pattern of trade, industry, technology and service led by international trade, supported by the pharmaceutical industry and linked by the pharmaceutical business. The industrial form involves the whole industrial chain of planting and processing, R & D, production, sales, logistics, import and export trade, academic promotion, technical services and so on.
As of September 30, 2021, China Meheco Group Co.Ltd(600056) achieved an operating income of 26.728.5 billion yuan and a net profit attributable to shareholders of the parent company of 83561 million yuan in the first three quarters, a year-on-year decrease of 409982% and a basic earnings per share of 0.7821 yuan. Also affected by Pfizer’s order news, it ushered in a number of trading boards.
Due to the involvement of trade secrets, Asymchem Laboratories (Tianjin) Co.Ltd(002821) , Porton Pharma Solutions Ltd(300363) etc. do not indicate the basic information and product related information of the counterparty of the large order, and do not directly point out that the order is related to paxlovid, but from the details of amount, time and so on, the industry almost unanimously believes that these orders point to Pfizer covid-19 oral drug paxlovid
AVIC Securities believes that in the short to medium term, the global spread of the epidemic is still severe. With paxlovid approved to be listed in China, it is suggested to continue to pay attention to the investment opportunities of covid-19 small molecule drug industry chain and the listed companies deeply involved in covid-19 prevention and treatment drug supply chain.
\u3000\u3000 “Chinese enterprises are expanding their production very fast. Chinese api enterprises have complete supporting facilities and good epidemic prevention and control in China, so they can undertake more production business of covid-19 oral API and intermediate and ensure supply. In a word, if multinational pharmaceutical enterprises are willing to place production orders for covid-19 antiviral oral API and intermediate Chinese api enterprises must be able to meet the market demand. Moreover, driven by the covid-19 oral drug, the overall value of China’s API industry will be improved to a certain extent. ” China Meheco Group Co.Ltd(600056) health products import and Export Chamber of Commerce Branch Secretary General Zhu Renzong said in an interview with 21st Century Business Herald reporters earlier.
