Shandong Xinhua Pharmaceutical Company Limited(000756) recent actions are frequent. First of all, before getting the approval, we vigorously warmed up and publicized “Phoenix medicine” to consumers. Therefore, the storm has not subsided. Now we are looking for cooperation to develop covid-19 therapeutic drugs
On April 27, Shandong Xinhua Pharmaceutical Company Limited(000756) announced that it would sign the strategic cooperation agreement with Henan real Biotechnology Co., Ltd. (hereinafter referred to as “real life”), and Shandong Xinhua Pharmaceutical Company Limited(000756) became the manufacturer and distributor of azvudine and other products.
Once the news was released, Shandong Xinhua Pharmaceutical Company Limited(000756) opened the trading limit, and the share price closed at 11.35 yuan / share, ushering in the fourth trading limit in six trading days.
cooperate to find new growth points
According to the public information, the main business of real biology is to develop, produce and sell anticancer drugs, antiviral drugs, therapeutic drugs for diabetes related diseases, and therapeutic drugs for cardiovascular, cerebrovascular and aging related diseases.
Azvudine, the product of this cooperation between the two enterprises, was once regarded as a “hot player” of covid-19 therapeutic drugs. According to the content of the wechat official account of real creatures, as early as the beginning of the outbreak of covid-19 in 2020, azvudine has carried out relevant exploration on the treatment of covid-19. At the same time, experts also said that according to the initial clinical trial, azvudine showed significant anti covid-19 virus activity, showed good therapeutic effect on patients, and could significantly shorten the nucleic acid negative conversion time, treatment time and hospitalization time of patients. At present, real organisms are going all out to promote the listing of azivudine in the treatment of covid-19 pneumonia as soon as possible.
The reporter noted that besides being a covid-19 drug, azivudine also has another identity – a drug for the treatment of AIDS. According to real biology, AZF, a heavy product independently developed by the company, is scheduled to be approved for listing in July 2021. It is also the world’s first dual target inhibitor targeting HIV reverse transcriptase and helper protein Vif.
For this cooperation, the two sides said that they are mainly committed to the research and development and registration of drugs based on real organisms, and have the drug registration certificate and / or patent right of azvudine and other products, as well as relevant valuable and proprietary information and data.
At the same time, Shandong Xinhua Pharmaceutical Company Limited(000756) has cGMP drug production capacity to meet the registration and sales needs of real organisms in China and potential international markets. Therefore, real life agrees that Shandong Xinhua Pharmaceutical Company Limited(000756) is its product manufacturer and distributor in China and other countries agreed by both parties.
Therefore, once azvudine is approved on covid-19 indications, Shandong Xinhua Pharmaceutical Company Limited(000756) may usher in a new profit growth point. .
Covid-19 oral medicine is also highly competitive. According to statistics, in addition to Pfizer, which has been listed, more than 10 companies in China have arranged this track, including Shanghai Junshi Biosciences Co.Ltd(688180) , developing pharmaceutical industry, Frontier Biotechnologies Inc(688221) and Shanxi Panlong Pharmaceutical Group Limited By Share Ltd(002864) and many other pharmaceutical enterprises. Although they have not been listed yet, their research process has basically reached the stage of clinical trial.
leveraging covid-19 treatment concept
On April 20 and 21, Shandong Xinhua Pharmaceutical Company Limited(000756) suddenly welcomed the two connecting sectors.
On the day of trading on the 20th, investors asked on the interactive platform whether Shandong Xinhua Pharmaceutical Company Limited(000756) the nevirapine API was supplied in cooperation with real organisms. In response, Xinhuo pharmaceutical responded that “the nevirapine API of our company was not supplied in cooperation with real organisms.”
As the market pays great attention to azvudine, all enterprises related to real bioenergy have become a hot concept. Among them, China Resources Double-Crane Pharmaceutical Co.Ltd(600062) harvested 5 daily limit boards, and Zhejiang Ausun Pharmaceutical Co.Ltd(603229) , Xinxiang Tuoxin Pharmaceutical Co.Ltd(301089) obtained 2 daily limit boards and 1 daily limit board respectively. Subsequently, China Resources Double-Crane Pharmaceutical Co.Ltd(600062) clarified on April 19 that there was no cooperation agreement between China Resources Double-Crane Pharmaceutical Co.Ltd(600062) and real creatures, and relevant concept stocks began to decline.
It should be noted that even though Shandong Xinhua Pharmaceutical Company Limited(000756) ushered in two consecutive boards on the 20th and 21st, it still said in the announcement of abnormal fluctuations in stock trading issued by the company after hours that there were no matters that should be disclosed but not disclosed. So on April 23, the main force of the secondary market left and fell by the limit on that day.
Then on the evening of April 26, Shandong Xinhua Pharmaceutical Company Limited(000756) announced the cooperation with real creatures. Subsequently, its share price ushered in two consecutive boards again.
Overall, with the support of covid-19 medical concept, the trend of Shandong Xinhua Pharmaceutical Company Limited(000756) secondary market has also changed its “declining trend”, and its share price has risen from the lowest price of 8.07 yuan / share on April 12 to the highest point of 11.35 yuan / share today, with an increase of 28.89%.
Previously, the secondary market of Shandong Xinhua Pharmaceutical Company Limited(000756) had been in a tepid state, and the highest share price in recent two years remained at 13.03 yuan / share in March 2020. In fact, this has something to do with the performance of Shandong Xinhua Pharmaceutical Company Limited(000756) in recent two years.
On March 31, in the latest financial report for 2021, Shandong Xinhua Pharmaceutical Company Limited(000756) although the revenue and net profit increased, it is not difficult to find that the net profit of Shandong Xinhua Pharmaceutical Company Limited(000756) has hardly increased significantly in recent three years compared with the revenue of the previous two years.
Specifically, from 2019 to 2021, the company’s revenue was 5.606 billion yuan, 6.005 billion yuan and 6.56 billion yuan respectively, but its net profit was only 323 million yuan, 347 million yuan and 362 million yuan respectively. Although the company’s revenue has increased significantly, the net profit is still standing still.
The low sentiment in the secondary market may also be the most direct reflection of performance. In the face of the increase in revenue, but the net profit is stagnant, the main reason is the decline in the demand for chemical raw materials and preparations in the source of revenue.
preheating “Phoenix needle” raises questions
Due to the lack of improvement in revenue, Shandong Xinhua Pharmaceutical Company Limited(000756) tried to make changes, so it focused on the medical beauty of the fire in recent years.
In order to catch up with the trend of medical beauty, as early as November 2021, Shandong Xinhua Pharmaceutical Company Limited(000756) began to warm up the company’s upcoming products. At the same time, it kept “sharing” the process of its medical beauty product “Phoenix needle” with investors on the investor interaction platform, and announced that it would launch the product at the end of 2021.
However, the actual situation is that the product has not been pushed out, and now the interactive questions with investors about the product have become “one question and three unknowns”.
In February this year, the company’s Board Secretary replied on the interactive easy, saying that the product is currently playing board in about 30 medical and institutions, and the approval documents of class II equipment are still actively promoted. That is to say, at present, the approval of the product has not been obtained, and it has been used by consumers without obtaining the approval, and its rationality has also attracted public doubts.
The doubt of “Phoenix needle” has not been answered yet. Shandong Xinhua Pharmaceutical Company Limited(000756) in the interactive easy, the company also announced that it will launch a variety of products such as skin and hair in the future.
It should be noted that according to the annual report of 2021, the current liability ratio of Shandong Xinhua Pharmaceutical Company Limited(000756) has increased from 67.97% in 2019 to 74.76% in 2021.
When facing great debt repayment pressure, the company chose to enter medical beauty. Nowadays, functional skin care products and hair products are popular segments in the field of medical beauty. At present, with Shandong Xinhua Pharmaceutical Company Limited(000756) of funds, do you have sufficient funds for the R & D, production, sales and promotion of medical beauty products?
In addition, the reporter noted that in August 2021, when real life announced that the enterprise had completed the round B financing of US $100 million, Dr. Du Jinfa, CEO and chief scientist of real life, said that the company would start the process of Hong Kong stock IPO.
When the cooperation is announced at this time, will there be closer cooperation in the follow-up? According to the current information, there is no cooperation in this aspect in the current strategic cooperation agreement between the two companies.
