Medicine is making a big profit again!
On January 20, the Geneva pharmaceutical patent pool (MPP) announced that it had signed agreements with 27 generic pharmaceutical enterprises to produce molnupiravir, an oral covid-19 antiviral drug, and supply it to 105 low-income and middle-income countries. a total of five Chinese pharmaceutical enterprises were shortlisted in the agreement list, Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) , Brightgene Bio-Medical Technology Co.Ltd(688166) , Shijiazhuang Longze pharmaceutical and Shanghai deseno were licensed to produce molnupiravir API and finished drug at the same time, and Langhua pharmaceutical under viabio was licensed to produce molnupiravir API. Neither MSD nor its partner Ridgeback biotherapeutics nor Emory University in the United States, which invented the drug, will receive royalties from the sale of molnupiravir by MPP Sublicensees. previously, intermediate concept stocks continued to soar without a real hammer. Now Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) and Brightgene Bio-Medical Technology Co.Ltd(688166) two listed companies have been licensed, which is undoubtedly a great benefit to their share price. In addition, the Jiangsu Aidea Pharmaceutical Co.Ltd(688488) that participates in Longze pharmaceutical may also benefit from this. However, for vaccines, masks and testing stocks, this may be a small impact.
covid-19 oral drug opens large-scale imitation
According to Reuters, the medicines patent pool (MPP) announced that it had signed agreements with 27 generic drug manufacturing companies to produce and supply high-quality and affordable molnupiravir generic drugs for oral anti covid-19 virus in 105 low-income countries or regions around the world, To promote the affordability and accessibility of oral anti-covid-19 drugs in low – and middle-income countries and help local epidemic prevention and control.
According to the results of clinical trials, this antiviral pill was urgently approved in the United States in December, which can reduce the number of hospitalizations and deaths of high-risk patients by about 30%. The transaction was negotiated between the United Nations supported drug patent pool (MPP) and Merck. After Merck signed license agreements with eight Indian pharmaceutical manufacturers last October, the transaction will expand production by increasing the number of companies producing the drug.
MPP said that the agreement stipulated that the pill would be distributed to 105 less developed countries. A spokesman later said that some companies covered by the transaction could start delivery as early as February.
An MPP official involved in negotiations with pharmaceutical manufacturers said that quoting the preliminary estimates of pharmaceutical manufacturers, it is expected that the five-day treatment of 40 molnupiravir tablets will cost about $20 in poorer countries. This is well below the $700 per course agreed to by the United States. But it is twice as high as the original estimate of the project supported by the World Health Organization (who) to purchase covid – 19 drugs and vaccines for the world.
Charles Gore, executive director of MPP, said: “We are encouraged by the rapid action taken by many new and existing partners to obtain the sublicense of molnupiravir through MPP. This is a key step to ensure global access to the much-needed covid-19 treatment. We believe that with the close cooperation between manufacturers and regulators, low – and middle-income countries will soon have access to this drug.”
Five Chinese enterprises approved to copy
According to the agreement, a total of 5 Chinese pharmaceutical enterprises were shortlisted in the agreement list, Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) , Brightgene Bio-Medical Technology Co.Ltd(688166) , Shijiazhuang Longze pharmaceutical and Shanghai deseno were licensed to produce molnupiravir API and finished drug at the same time, and Langhua pharmaceutical, a subsidiary of Weiya biology, was licensed to produce molnupiravir API. Neither MSD nor its partner Ridgeback biotherapeutics nor Emory University in the United States, which invented the drug, will receive royalties from the sale of molnupiravir by MPP Sublicensees.
So, how good is it? Guosheng securities has made a unified interpretation of several issues with high market attention:
1. MPP application process?
If pharmaceutical enterprises are willing to apply for MPP license, they can fill in EOI online and provide specific information on production capacity, production records of drugs with guaranteed quality, R & D capacity and regulatory compliance. MPP will screen qualified generic pharmaceutical enterprises through the information in EOI to authorize the implementation of license, Licensed generic drug enterprises produce and sell generic drugs to low – and middle-income countries as agreed in the license agreement. That is, the MPP organization selects and obtains authorization (regarded as obtaining pre certification) according to some qualifications and experience of previous enterprises.
2. What are the other steps after obtaining the qualification?
At present, after signing the agreement, MSD will make technical handover with the authorized enterprise and provide the enterprise with technical package. The enterprise then carries out the R & D of API and preparation according to the technical package, and submits PQ application to who after R & D. After submitting the PQ application, who may or may not conduct on-site verification, but we understand that pharmaceutical can sell corresponding products to 105 countries after submitting the PQ application. (the specific follow-up time depends on the company’s R & D capability, which is still uncertain. Please refer to the timeline answered by collen on the investor platform).
3, quantity, price and which countries are supplied?
Low – and middle-income countries. The volume and price are negotiated by the business team with governments or large drug dealers. Neither MSD nor Pfizer authorized MPP countries include China.
4. Which companies may Pfizer’s MPP have?
The MPP for Pfizer should have been submitted. According to the questions and answers answered by investors on the Kelun platform, Kelun submitted the application, and the submission of other enterprises cannot be determined for the time being.
According to Reuters, MPP is committed to increasing access to life-saving drugs in poorer countries. It also reached an agreement with Pfizer to sublicense its covid-19 tablet paxlovid to generic drug manufacturers.
Jiangsu Aidea Pharmaceutical Co.Ltd(688488) also benefit? What other potential stocks
Two of the above five companies are listed companies, namely Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) and Brightgene Bio-Medical Technology Co.Ltd(688166) , with a total of about 305000 shareholders. From this positive level, many netizens believe that shareholders can start counting boards. However, some analysts believe that since MSD does not charge money, it is estimated that generic drugs are embarrassed to sell too high, and it is estimated that they will eventually rely on small profits.
At the same time, Jiangsu Aidea Pharmaceutical Co.Ltd(688488) may also benefit. According to the company’s response on the investor interaction platform, the delivery of the company’s investment project in Shijiazhuang Longze Pharmaceutical Co., Ltd. has been completed on January 18, 2021, and the relevant industrial and commercial change procedures have been completed on February 19, 2021. Up to now, the company holds 4.76% equity of Longze pharmaceutical.
According to the above analysis of Guosheng securities, the MPP for Pfizer should have been submitted. According to the questions and answers answered by investors on the Sichuan Kelun Pharmaceutical Co.Ltd(002422) platform, collen submitted the application, and the submission of other enterprises cannot be determined for the time being. Prior to this, Aba Chemicals Corporation(300261) continued to rise sharply due to the rumor of “supplying peronic anhydride to Pfizer”, but was later denied by the company. At present, the company is still suspended. Jincheng pharmaceutical also rose sharply due to intermediates.
However, it is worth mentioning that vaccine stocks have fallen sharply when MSD covid-19 oral drug was introduced. Whether this will also have an impact on vaccines, in vitro testing and other stocks remains to be further observed.
