On March 16, Tasly Pharmaceutical Group Co.Ltd(600535) announced that it had received a notice from Tasly Pharmaceutical Group Co.Ltd(600535) holding group that 103 million shares of the company’s unsold tradable shares pledged to China Railway Trust Co., Ltd. had gone through the procedures for the cancellation of share pledge registration. The number of shares released accounted for 15.07% of its shares and 6.83% of the company’s total share capital.
According to the reporter’s statistics, from July 2021 to now, Tasly Pharmaceutical Group Co.Ltd(600535) has issued five shareholder pledge lifting announcements, with a total of about 262 million shares lifted, accounting for about 18.47% of the total share capital of the company.
As of the closing on March 16, Tasly Pharmaceutical Group Co.Ltd(600535) shares closed at 13.61 yuan / share, up 1.87%.
traditional Chinese medicine business faces ceiling
Tasly Pharmaceutical Group Co.Ltd(600535) (hereinafter referred to as Tasly Pharmaceutical Group Co.Ltd(600535) ), mainly focusing on the big health industry and centered on the pharmaceutical industry, including modern traditional Chinese medicine, chemicals, biopharmaceuticals, health products, health food, etc. The business scope includes the production of dropping pills, granules, hard capsules, soft capsules, tablets and pills. The main products include Compound Danshen dropping pills, Yangxue Qingnao Granules, Diqing, Shuilinjia, etc.
It is reported that the core product of Tasly Pharmaceutical Group Co.Ltd(600535) , compound Danshen dropping pills, has always been the main source of its revenue and the main product of Tasly Pharmaceutical Group Co.Ltd(600535) . The product is a compound traditional Chinese medicine developed exclusively by the company, which is mainly used to prevent and treat cardiovascular diseases. According to the financial report of Tasly Pharmaceutical Group Co.Ltd(600535) 2020, its sales volume is about 108 million boxes. Based on the winning price of 26 yuan, the sales volume of this product in 2020 is about 2.8 billion.
In addition, Tasly Pharmaceutical Group Co.Ltd(600535) has always wanted to lead compound Danshen dropping pills to open up overseas markets, but now it has failed for more than 20 years. The latest progress is that Tasly Pharmaceutical Group Co.Ltd(600535) has registered the phase III clinical study of Compound Danshen Dropping Pills in the prevention and treatment of acute altitude reaction on the US clinical trial registration website.
With the implementation of the procurement policy of traditional Chinese medicine, it seems that Tasly Pharmaceutical Group Co.Ltd(600535) ‘s traditional Chinese medicine business is about to face a ceiling.
In February 2021, Diyi pharmaceutical, a wholly-owned subsidiary of the company, participated in the bidding of national centralized drug procurement, and its product temozolomide capsule (hereinafter referred to as Tiqing) was purchased in three specifications.
It is reported that Tiqing was listed in 2004 and passed the generic drug consistency evaluation on February 26, 2019. It is the first temozolomide capsule product in China that passed the consistency evaluation. In 2020, its sales volume was 511500 bottles, with a year-on-year decrease of 9.99%.
In September 2021, Guangdong Pharmaceutical Trading Center issued a notice on Soliciting Opinions on the volume procurement document (Exposure Draft) of 58 pharmaceutical groups such as Guangdong alliance Qingkailing (hereinafter referred to as the “exposure draft”). The notice included a number of Chinese patent medicines, including compound Danshen dropping pills Tasly Pharmaceutical Group Co.Ltd(600535) as a major seller of Compound Danshen dropping pills, it must be in line with its duty.
According to statistics, in addition to Tiqing and compound Danshen dropping pills, Tasly Pharmaceutical Group Co.Ltd(600535) tadalafil tablets, indapamide tablets and other four products have also won the bid for centralized procurement of national drugs.
The result of winning the bid can also be imagined, which will not only compress the price space, but also affect the company’s performance. In 2020, Tasly Pharmaceutical Group Co.Ltd(600535) total revenue was 13.576 billion yuan, a year-on-year decrease of 28.54%, and net profit was only 1.126 billion yuan.
subsidiaries can give high expectations
Tasly Pharmaceutical Group Co.Ltd(600535) biology is a subsidiary of Tasly Pharmaceutical Group Co.Ltd(600535) holding more than 90%. Founded in 2001, it is an innovative biological medicine enterprise with a complete research, production and marketing integration platform. Its main business focuses on the whole life cycle of biological drugs, covering the whole process of drug discovery, product development, clinical research, commercial production and sales.
After the critical growth ceiling of the main traditional Chinese medicine business, it is conceivable that its biological sector has been given high expectations. But judging from the current performance of Tasly Pharmaceutical Group Co.Ltd(600535) creatures, it is too early to place high hopes.
According to the prospectus, Tasly Pharmaceutical Group Co.Ltd(600535) bio’s only listed product is Prozac (recombinant human urokinase for injection), a new generation of specific thrombolytic drugs for the treatment of acute ST segment elevation myocardial infarction.
It is reported that puyouke, as the first class I biological drug approved by China during the Eleventh Five Year Plan period, was also included in the national medical insurance catalogue in July 2017. At present, due to the influence of centralized purchase, the medical insurance payment price of this product has been reduced from 1020 yuan / piece to 508 yuan / piece, and the price reduction rate has reached 50%. In addition, the gross profit margin has also decreased, and its gross profit margin has also decreased from 71.49% in 2019 to 47.56% in 2020.
When the products are gone, there is still research and development. For Tasly Pharmaceutical Group Co.Ltd(600535) biology, which has high hopes, the cumulative R & D investment in the last three years accounts for no less than 15% of the cumulative operating revenue in the last three years. The other 18 products are in the R & D stage and have not been approved for listing. However, according to the latest research and development results, the results are not ideal.
In January 29th of this year, Tasly Pharmaceutical Group Co.Ltd(600535) biological subsidiary Tasly Pharmaceutical Group Co.Ltd(600535) Genesis (Tianjin) biopharmaceutical Co., Ltd. announced that a therapeutic hepatitis B vaccine (T101) failed to reach the scheduled period based on the ongoing Phase II phase trial, and decided to suspend clinical trials of T101.
For T101 failed to achieve the expected efficacy, that is, there was no significant difference in the decrease of HBsAg compared with baseline between T101 medication group and nucleoside analogue basic medication group. In fact, this result was slightly revealed in the clinical data released at the 2019 liver beauty conference. However, it is puzzling that China still needs to continue to carry out phase II clinical trials. In the research of T101, the R & D investment is 310 million yuan, including 511571 million yuan of R & D expenses and 259 million yuan of capitalization.
However, Tasly Pharmaceutical Group Co.Ltd(600535) still has a “special preference” for Tasly Pharmaceutical Group Co.Ltd(600535) biology. Tasly Pharmaceutical Group Co.Ltd(600535) chose to split Tasly Pharmaceutical Group Co.Ltd(600535) biology from Hong Kong stock market to science and Innovation Board twice, but finally took the initiative to terminate the listing audit, and twice failed in IPO.
On January 6, 2021, the listing audit center of Shanghai Stock Exchange issued the decision to terminate the initial public offering of Tasly Pharmaceutical Group Co.Ltd(600535) bio Pharmaceutical Co., Ltd. (hereinafter referred to as ” Tasly Pharmaceutical Group Co.Ltd(600535) bio”) and listing on the science and innovation board. The reason was that Tasly Pharmaceutical Group Co.Ltd(600535) bio initiative applied to withdraw the listing application documents.
From the examination of the listing application documents to the active withdrawal of the documents, Tasly Pharmaceutical Group Co.Ltd(600535) biology only experienced about 4 months, and it withdrew its listing application from the Hong Kong Stock Exchange before the IPO of the science and innovation board.
The R & D failed and the listing failed, but this seems to be nothing to Tasly Pharmaceutical Group Co.Ltd(600535) . According to the latest news of the investment interactive platform, Tasly Pharmaceutical Group Co.Ltd(600535) board secretary said that Tasly Pharmaceutical Group Co.Ltd(600535) biology has signed a listing guidance agreement with Citic Securities Company Limited(600030) on applying for listing on the science and innovation board. At present, it is in the process of listing guidance, and relevant work is also advancing simultaneously.
In addition, Tasly Pharmaceutical Group Co.Ltd(600535) the secondary market has been in a “tepid” state since the second half of 2021, and the share price basically hovers between 13 yuan / share and 14 yuan / share. Due to the influence of the traditional Chinese medicine sector, its share price began to rise briefly in 2022, once rising to 17.24 yuan / share, but then ushered in a decline.
The reporter sent an interview letter to the enterprise on the current centralized purchase of traditional Chinese medicine and the spin off and listing of its subsidiaries. As of the press time, no reply has been received.
