Basic conclusion
Medicines patent pool (MPP) is a public health organization established in 2010. It aims to increase access to life-saving drugs for low - and middle-income countries through innovative voluntary licensing and patent pool methods. Driven by public health events, MPP negotiated with patent holders to obtain licenses, then granted sublicenses to generic drug manufacturers and product developers, and supported the acquisition of these generic drugs in low - and middle-income countries. At present, MPP has authorized 13 products in the fields of HIV, hepatitis C, tuberculosis and covid-19, and 43 generic drug enterprises have been authorized, covering 148 countries and regions.
On January 20, 2022, MPP announced that it had granted 27 enterprises the right to produce the generic drugs of molnupiravir, an oral drug of MSD covid-19. The authorized enterprises could sell the generic drugs of molnupiravir in 105 low - and middle-income countries (excluding China). The authorized enterprises include five Chinese Pharmaceutical Enterprises: Borui, Fosun, Langhua, Desano and Longze. Among them, Langhua pharmaceutical is authorized to produce APIs, and the other four enterprises can produce APIs and preparations.
On March 17, 2022, MPP announced that it had granted 35 enterprises in 12 countries the right to produce the combined packaging of Pfizer covid-19 oral drug nimatovir and paxlovid. The authorized enterprises could produce and sell the generic drugs packaged by nimatovir and paxlovid to 95 low - and middle-income countries (excluding China). The authorized enterprises include five Chinese pharmaceutical enterprises, namely Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) , Apeloa Pharmaceutical Co.Ltd(000739) , Zhe Jiang Hua Hai Pharmaceuticalco.Ltd(600521) , Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) , Shanghai Desano. Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) is authorized to produce APIs, and the other four enterprises can produce APIs and preparations.
By obtaining MPP authorization, Chinese pharmaceutical enterprises can produce and sell licensed drugs to 95 low-income countries. At the same time, based on the authorization contract, MPP authorized generic pharmaceutical enterprises have the potential to enter Pfizer paxlocid original drug supply chain. Therefore, we are optimistic about Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) , Apeloa Pharmaceutical Co.Ltd(000739) , Zhe Jiang Hua Hai Pharmaceuticalco.Ltd(600521) , Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) and Shanghai Desano authorized by MPP.
In addition, MPP's authorization includes the combined packaging of naimatavir, naimatavir and ritonavir, but does not include ritonavir single drug. Enterprises authorized by MPP need to solve the source of ritonavir in the combined packaging by themselves. Therefore, we are optimistic about the upstream API and intermediate enterprises of ritonavir.
Investment advice
Based on the accessibility and convenience of oral drugs, we are optimistic about the application prospect of oral covid-19 drugs and the performance elasticity brought by the subsequent landing of Pfizer oral covid-19 drug MPP to the head enterprises of API / cdmo sector (including the possible localization of Pfizer oral drugs).
It is suggested to pay attention to: Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) , Apeloa Pharmaceutical Co.Ltd(000739) , Zhe Jiang Hua Hai Pharmaceuticalco.Ltd(600521) , Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) , Geli pharmaceutical, etc.
Risk tips
Covid-19 epidemic development and change risk. Generic drug R & D risk. Industry policy and regulatory risk. The production capacity is lower than the expected risk. Risk of orders and sales falling short of expectations. Risk of intensified market competition
