Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) ( Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) ), an old characteristic API enterprise located in “Yaodu town” in Taizhou, Zhejiang Province, “double main business of medicine and dye”, was the first impression of many investors on the company. In fact, in the past two years, Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) ‘s business structure is quietly changing, and the contribution of pharmaceutical business has increased rapidly. In the first quarter of 2022, Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) achieved a good start. According to the performance forecast, the company expects to achieve a net profit of 857819 million yuan-103 million yuan in the first quarter of this year, with a year-on-year increase of 50.00% – 80.00% and a month-on-month increase of 243.67% – 312.41%.
Recently, securities times · e company visited Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) , and visited some positive changes in the company in the past year. The relevant person in charge told the securities times · e reporter that the revenue of the company’s pharmaceutical and dye business accounted for almost half to half, but the revenue of the pharmaceutical business has increased rapidly since last year. The revenue of the pharmaceutical business accounted for nearly 70% in the first quarter of this year and will continue to increase in the future.
fist products have steadily improved their market competitiveness
Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) ‘s pharmaceutical business involves the R & D, commercial production and sales of characteristic APIs, pharmaceutical intermediates and difficult preparations, and provides customized R & D and production services (CMO / cdmo) for world-renowned pharmaceutical enterprises.
“The company is good at chemical synthesis production. The outstanding advantages of large-scale production further drive sales and new product introduction. The market competitiveness of fist products is improved, and the characteristic API projects stored will also be implemented and released after years of promotion.” Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) relevant person in charge told reporters.
It is understood that Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) is one of the earliest characteristic API enterprises in China to realize the export of API to the high-end market in Europe and the United States, focusing on anti infection, hypoglycemic, cardiovascular, digestive tract, mental nerve and other treatment fields. The existing fist API products involve anti infection products such as penem series products and clindamycin series products, hypoglycemic series products such as voglibose and repaglinide, and animal protection series based on florfenicol.
In the next few years, the focus of our company’s strategy is to continue to expand the range of products in the back-end, and the revenue of our products will continue to grow steadily in the next few years. The person in charge told reporters.
It is reported that Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) earlier mastered the core technologies of 4-AA, map and keto, the key intermediates of Penan series products. After years of cultivation and expansion of the industrial chain, it has become a world-famous comprehensive manufacturer of Penan products with complete categories and full coverage of the industrial chain.
In addition to the penem series, clindamycin series is also a star product of Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) in the anti infection category, which passed the FDA certification as early as 2004 Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) the output of clindamycin series products has been firmly in the leading position in the global high-end market. “The market of clindamycin series is relatively stable, and the demand is expected to recover after the epidemic. In the high-end markets in Europe and the United States, our advantages in quality and scale are more obvious. For new market participants, the entry barriers are high and the paving cycle is long. From capacity construction, application for registration to final approval for listing, the whole process takes at least 3-5 years.” The person in charge said.
In addition, Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) ‘s florfenicol, characteristic high margin sketch voglibose and amorofen hydrochloride also occupy an important market position in the global market segments.
Taking florfenicol as an example, in the regulatory market Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) has accumulated brand and system advantages for many years, has a leading position, and is also one of the first enterprises to pass the FDA certification. “The non regulatory market is greatly affected by disorderly competition, price war and other factors. Since last year, with the cost advantage brought by the company’s optimization of the industrial platform, we began to re-examine the business strategy of the non regulatory market. The global market scale of florfenicol is 6000 tons. Recently, the company’s new enzymatic process has made a major breakthrough and has a strong competitive advantage. The company focuses on florfenicol and looks forward to its application in the pharmaceutical industry of the company in the future The weight of business has increased rapidly “. The person in charge said.
optimize the industrial chain and break through the bottleneck of production capacity
“In recent years, the competitiveness of the company’s flagship products has been continuously enhanced, and the newly introduced products have grown rapidly, which is mainly due to the optimization of the company’s industrial chain platform.” Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) relevant person in charge.
It is reported that at present Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) has two core pharmaceutical plants in Taizhou, South Sichuan plant and Waisha plant, a modern pharmaceutical production base that has passed the official GMP certification of China, the United States, the European Union and Japan, an integrated production platform of the whole industrial chain of “intermediates + APIs + preparations”, and a multi-functional pilot workshop to meet the needs of various synthetic reactions, which can provide chemical APIs and preparations for global pharmaceutical enterprises Customized R & D and customized production services of chemical agents (CMO / cdmo).
In addition to the above two built core pharmaceutical plants, Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) is building a third core plant. In November 2021, Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) announced that the company plans to purchase about 500 mu of land use right in yaojiagang chemical park, Zhijiang City, Hubei Province through Yichang Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) Co., Ltd., a new wholly-owned subsidiary, and invest in the construction of Hubei pharmaceutical and chemical comprehensive production base project, with the construction of various API, pharmaceutical intermediate and fine chemical production lines in two phases.
” Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) continued to invest in the construction of production lines and supporting facilities with high intensity, and the annual capital expenditure exceeded 400 million for three consecutive years. In the past year, the company has made a lot of advance layout in terms of industrial chain extension, environmental protection and production technology.” Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) relevant person in charge.
For example, Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) around the core products, successively expanded the production capacity layout of upstream core intermediates to further open up the vertical industrial chain. The sterile API workshop and sterile powder injection workshop have been completed, the preparation phase I multi dosage workshop has been put into use, and the main project of the preparation phase II multi dosage workshop has been completed.
“The large-scale production of pharmaceutical intermediates and APIs requires strong back-end processing capacity. In recent years, we have invested nearly 1 billion yuan in safety and environmental protection and reserved processing margin in advance. Now there will be no constraints and bottlenecks in EHS, whether it is the large-scale production of original fist products or the development of new products”.
It takes time to integrate the industrial chain and consolidate the foundation. Therefore, the performance of Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) last year was under pressure until the bottom was reached in the second quarter of 2021. However, since the second half of 2021, Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) the industrial chain optimization effect has appeared, the capacity utilization has improved, the profitability has gradually recovered and improved, and the continuous quarter on quarter growth has been realized. After excluding the amortization impact of the employee stock ownership plan, the net profit recorded in 2021 was 302 million yuan.
In the first quarter of 2022, Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) achieved a good start. According to the performance forecast, the company expects to achieve a net profit of 857819 million yuan-103 million yuan in the first quarter of this year, with a year-on-year increase of 50.00% – 80.00% and a month-on-month increase of 243.67% – 312.41%.
In this regard, Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) said in the announcement that the optimization of the company’s industrial chain and the layout of new products were effective in the first quarter, and the performance increased steadily; At the same time, the company seized the opportunity to release production capacity and increase sales. In particular, the leading products in the pharmaceutical sector achieved prosperous production and sales, sufficient orders and higher unit price, overcome the adverse effects of the rise of raw materials and exchange rate fluctuations, and gradually improve its profitability.
force CMO / cdmo business
Since this year, Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) has been frequently asked by investors about covid-19 drugs on the investor interaction platform, which has something to do with the customer resources and competitive advantages accumulated by the company in CMO / cdmo business.
It is understood that Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) o is one of the earliest enterprises in China to carry out international cdmo/cmo business. As early as 2008, it signed a strategic cooperation agreement with Germany Boehringer Ingelheim (BI), and the two sides have cooperated for more than 10 years. At present, the company is a strategic partner of Bi in chemical medicine in China and a primary external supplier of Pfizer. The company has formed strategic cooperation with Huayi Taikang, a Chinese difficult preparation cdmo / CMO company, to jointly build a cdmo service platform and carry out in-depth cooperation in customer development and project introduction. At the same time, explore a diversified business model complementary to equity cooperation and project cooperation with Chinese innovative pharmaceutical enterprises and large cro companies.
“In terms of CMO / cdmo business, Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) prefers the original drug products in the back-end, clinical phase III or patent period, and the demand is relatively clear. Generally, large varieties and large tonnage products will be selected. The reason for this positioning is that the company has the advantages of registration of laws and regulations in the high-end markets of Europe, America and Japan and the Chinese market, cost optimization of the whole industrial chain and rapid large-scale production.” Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) relevant person in charge told reporters.
The production of pharmaceutical intermediates and APIs involves various reactions such as high temperature, cryogenic, biological enzymes, green oxidation, ozonation, nitration, hydrogenation, chlorination, addition, diazotization, fluorination, self chiral reaction, etc. Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) has many years of production experience and technical treatment capacity Zhejiang Hisoar Pharmaceutical Co.Ltd(002099) continue to strengthen the capacity-building of CMO / cdmo, deepen the field of small molecule CMO / cdmo, undertake the commercial capacity transfer of multinational pharmaceutical enterprises, and meet the needs of process research and development and large-scale production of innovative pharmaceutical enterprises. CMO / cdmo team structure, capacity scale, service capacity and other comprehensive strength were further improved, and the number of potential projects and customers maintained a growth trend.
