\u3000\u3 Shengda Resources Co.Ltd(000603) 590 Beijing Konruns Pharmaceutical Co.Ltd(603590) )
Core view
Event: the company issued an announcement on the purchase of innovative assets of traditional Chinese medicine and planned to purchase the intellectual property rights and all rights under the new Chinese medicine class 1.2 jingucao Total Iridoid Glycoside tablets (hereinafter referred to as "Jincao tablets") from harmony Zhongchuang with its own capital of 134 million yuan (including but not limited to the approval document for clinical trials of Jincao tablets, relevant technical achievements, patent rights and patent application rights). At present, "Jincao tablet" has completed phase II clinical trial, obtained phase II clinical summary report, and will enter phase III clinical trial soon. The summary report of phase II clinical trial shows that Jincao tablet has definite clinical efficacy, good safety and tolerance in the treatment of chronic pelvic pain, the sequelae of pelvic inflammatory diseases, and has obvious clinical development value and prospect.
Comments:
Jincao tablet has clear active ingredients and provides a new natural drug for the treatment of chronic pelvic pain. Jincao tablet is an oral traditional Chinese medicine tablet made from the effective part preparation extracted from the whole herb of Ajuga. Its main component is "Total Iridoid Glycosides". It is a class 1.2 natural plant medicine with clear effective components. The phase II clinical summary report shows that the treatment of chronic pelvic pain, the sequelae of pelvic inflammatory diseases, has definite clinical efficacy, good safety and tolerance, and has obvious clinical development value and prospect. Chronic pelvic pain (CPP) is a common and complex symptom in women. According to the guidelines for the diagnosis and treatment of chronic pelvic pain, about 18-35% of pelvic inflammatory diseases will develop into chronic pelvic pain. At present, the mainstream treatment methods are physical therapy, estrogen treatment (progesterone, progesterone) and opioid pain relief. The total iridoid glycosides, the effective components of Jincao tablet, are extracted from natural plants and are non hormonal and opioid pain relief natural drugs. It is expected to have a good prospect after listing.
Jincao tablet is a rare innovative variety of traditional Chinese medicine, which can effectively broaden the company's future product pipeline. CDE review reports over the years show that from 2016 to 2020, the number of traditional Chinese medicine NDA approved by CDE review was 2, 1, 2, 2 and 4 respectively, with a total of only 11 in five years. The ind data of traditional Chinese medicine also declined year after year, with only 28 in 2020. Jincao tablet is a rare innovative variety of traditional Chinese medicine. At present, the company's revenue mainly comes from "suling" and covert interest business. The projects under research include kc1036. The phase I clinical trial of dose escalation of advanced solid tumors was launched in the first research center in July, 20. The first subject was enrolled in September. As of July, 2021, kc1036 has completed five dose levels. It has been preliminarily verified that the drug tolerance and safety are good, and it is among the subjects who can evaluate the curative effect, Two patients with advanced tumor have achieved partial remission, and the clinical effect is accurate; On February 24 this year, it was announced to enter the phase Ib / II clinical study. Cx1003 is currently in phase I clinical stage and is normally promoted according to the clinical plan. The acquisition of Jincao tablet new drug in the late clinical stage will significantly reduce the project risk and effectively broaden the company's future product pipeline.
Profit forecast: we temporarily maintain the previous profit forecast. It is estimated that from 2021 to 2023, the company's revenue will be RMB 1.08/12.7/1.45 billion, with a year-on-year increase of 33.5% / 17.5% / 14.7% respectively, and the net profit attributable to the parent company will be RMB 222 / 266 / 303 million, with a year-on-year increase of 21.3% / 19.7% / 13.7% respectively. Yesterday's closing price was about 29.85 times that of 2021e. The valuation is reasonably low and the "buy" rating is maintained.
Risk warning: the price of drugs is lower than expected; Product quality risk; The R & D progress is less than expected; Systemic risk.
