The internationalization of China's local pharmaceutical enterprises is the next city.
On January 20 local time, the pharmaceutical patent pool (MPP) announced that the American pharmaceutical giant MSD signed agreements with 27 generic drug manufacturing companies around the world to produce and supply high-quality and affordable oral anti covid-19 generic drugs for 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. Among them, five Chinese enterprises were selected, including Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) , Brightgene Bio-Medical Technology Co.Ltd(688166) , Desano, Longze pharmaceutical and Langhua pharmaceutical. Langhua pharmaceutical is only authorized to supply APIs, and other Chinese companies are also authorized to produce APIs and preparations.
In this regard, Brightgene Bio-Medical Technology Co.Ltd(688166) the relevant person in charge of the board secretary office told the Huaxia times that everything is subject to the company's announcement. The relevant person in charge of Shijiazhuang Longze pharmaceutical told the Huaxia times that the company mainly makes antiviral agents. This cooperation is also a part of the international layout, and will continue in-depth cooperation in the future.
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. On the day of the announcement, related concept stocks opened sharply higher in early trading on the 21st. Brightgene Bio-Medical Technology Co.Ltd(688166) rose by the word limit, closing at 38.28 yuan / share, with a total market value of 15.695 billion; Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) fell slightly in the afternoon, and the closing increase was still 5.98%; It closed at 51.42 yuan / share, with a total market value of 131.8 billion. In addition, Jiangsu Aidea Pharmaceutical Co.Ltd(688488) who participated in Longze pharmaceutical also benefited from this, with an overall increase of 10.79% to close at 16.74 yuan / share, with a total market value of 7.031 billion.
accelerated international layout of pharmaceutical enterprises
Drug patent pool (MPP) is a public health organization supported by the United Nations. It is committed to increasing access to life-saving drugs and promoting drug development for low - and middle-income countries. So far, MPP has signed agreements with a number of patent holders, involving 13 kinds of HIV antiretroviral drugs, one HIV technology platform, three direct acting antiviral agents for hepatitis C, one tuberculosis treatment, two long-term technologies, two COVID-19 experimental oral antiviral therapy and one COVID-19 antibody diagnostic test.
Molnupiravir is an oral ribonucleoside analogue under development, which can inhibit the replication of sars-cov-2 (the pathogenic factor of covid-19 virus). It was jointly developed by MSD and Ridgeback. It is the first oral anti covid-19 drug approved in the world. It was first approved by the UK drug and Health Products Administration (MHRA) in November 2021, In the last December, it obtained the emergency use authorization of the U.S. Food and Drug Administration (FDA) and the emergency special approval of the Ministry of health, labor and welfare of Japan. It is reported that neither MSD nor its partner Ridgeback biotherapeutics, nor Emory University in the United States, which invented the drug, will obtain royalties from the sale of molnupiravir by the MPP sublicensee holder. In other words, the above five Chinese pharmaceutical enterprises can copy MSD covid-19 oral medicine for free.
At noon on the 21st, Brightgene Bio-Medical Technology Co.Ltd(688166) issued a risk warning announcement, saying that this covid-19 oral drug imitation license is a non exclusive license; The licensed area is 105 low - and middle-income countries / regions, excluding China; The pricing of the product is expected to be lower than that of the original research product or in other middle and high-income countries. The specific price and production cost cannot be determined temporarily, and the impact on future performance cannot be predicted. On the same day, Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) also issued a similar announcement, which said that as of the date of this announcement, the group had no orders in hand for cooperative drugs and had not carried out relevant production. In view of the purpose of this license to help 105 low - and middle-income countries / regions affordable access to cooperative drugs, the relevant pricing is expected to be lower than that of the original research products or in other high-income countries. Therefore, the impact of this license on the current and future revenue and profit of the group cannot be predicted.
The relevant person in charge of Shijiazhuang Longze pharmaceutical told our reporter that this cooperation is a part of the international layout and will continue to deepen in the future. Jiangsu Aidea Pharmaceutical Co.Ltd(688488) is a shareholder of the company. The rise in the share price is related to the company's winning the patent right of MSD generic medicine. As for when the product will be launched, it needs to go through the process. After signing the agreement, MSD will provide the technical package for the production of API and the research and development of preparation according to the technical package. After completion, it may also need to submit PQ application to who, so it is difficult to say the time node at present. The company will carry out step by step and complete it with quality and quantity.
However, with the release of patents, this may be a big impact on vaccines, masks and testing stocks. On the 22nd, the covid-19 detection and covid-19 drug sectors fell to the limit in early trading. The covid-19 pneumonia detection index fell 5%, and 22 of the 26 concept stocks closed down. Stocks such as Medicalsystem Biotechnology Co.Ltd(300439) , Anhui Anke Biotechnology (Group)Co.Ltd(300009) , Sinocare Inc(300298) , Xilong Scientific Co.Ltd(002584) , Shanghai Kehua Bio-Engineering Co.Ltd(002022) fell more than 5%. The vaccine sector also fell sharply. The wind vaccine index closed down 2.91% in early trading, and 14 of the 17 concept stocks fell. Changchun High And New Technology Industries (Group) Inc(000661) continued to fall by the limit, North China Pharmaceutical Company.Ltd(600812) fell by more than 9%.
Sun Jian, chief analyst of Zheshang Securities Co.Ltd(601878) pharmaceutical, told Huaxia times: "Obtaining MPP authorization is a manifestation of the applicant company's global compliance production capacity. Benefiting from the supporting advantages of China chemical industry and the accelerated expansion of compliance capacity, we expect China API and cdmo companies to have a deeper influence in the global drug supply chain. From the perspective of internationalization of API and preparation, the sales of the company after being authorized depends on the establishment and operation of each company's international sales network For the supply chain management capability, it is suggested to look at the changes in the participation of China Meheco Group Co.Ltd(600056) manufacturing companies in the international drug supply chain from the perspective of deepening supply chain cooperation and building an international system. "
Some insiders also pointed out that based on the treatment mechanism and the availability of oral drugs, the application prospect of oral small molecule covid-19 drugs can be optimistic, but from its economy, it is still uncertain whether it can be popularized on a large scale in the world. According to the prescription information of molnupiravir published at the end of November 2021, the drug costs US $712 per box and needs to be taken twice a day, 4 capsules each time for 5 consecutive days. The generic drugs authorized this time are mainly supplied to low - and middle-income countries, which are partial to public welfare and bring limited profit space to the company.
China actively promotes covid-19 oral drugs
The data show that at present, the average vaccination rate in the world has reached 60%, the average vaccination rate in high-income countries and middle and high-income countries has exceeded 75%, and the average vaccination rate in low-income countries has also reached 50%, but the average vaccination rate in low-income countries is only 9.5%.
Due to the low vaccine penetration rate, low - and middle-income countries are still the hardest hit areas of the covid-19 epidemic. Government departments, together with some well-known pharmaceutical enterprises, are making unremitting efforts to promote vaccination. It is reported that in addition to signing covid-19 oral drug related agreements with MSD, MPP also signed relevant agreements with Pfizer on covid-19 oral drug paxlovid. On January 18 local time, Pfizer signed a voluntary license agreement with the pharmaceutical patent pool (MPP) to help expand its accessibility in 95 low - and middle-income countries, accounting for about 53% of the world's population.
With the release of vaccine patents, more and more pharmaceutical enterprises will join in international cooperation, make use of their own innovation ability and international experience, actively participate in the global action against the epidemic and contribute to the fight against covid-19 epidemic. From the perspective of main business composition, among the five Chinese pharmaceutical enterprises approved for production this time, Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) is a comprehensive pharmaceutical enterprise, with pharmaceutical manufacturing and R & D accounting for more than 70% of the revenue, and the revenue of medical diagnosis, medical devices and medical services accounting for about 27%. Brightgene Bio-Medical Technology Co.Ltd(688166) it mainly produces antifungal, antiviral and immunosuppressive drugs. The business scope of Shijiazhuang Longze pharmaceutical is mainly the R & D, production and sales of APIs, tablets, granules and capsules. Viabio is a foreign-funded enterprise, mainly producing western medicine. Jiangsu Aidea Pharmaceutical Co.Ltd(688488) mainly engaged in human crude protein, HIV diagnostic equipment and reagents.
As Guo Guangchang, chairman of Fosun international, said publicly: "in the face of the epidemic, happiness is actually two words: 'warmth'. Enterprises do not want to do much business or grow fast. All we do is to create value for customers and bring more warmth to the world from customers' needs."
In addition, the reporter learned that although the licensed area authorized by MSD this time does not include China, China's covid-19 oral drugs are also actively promoted. At present, a number of domestic covid-19 oral drugs are in the clinical stage, including Shanghai Junshi Biosciences Co.Ltd(688180) , developing pharmaceutical companies and so on. According to statistics, the enterprises that distribute covid-19 oral small molecule drugs in China mainly include developing pharmaceutical industry, real biology, Shanghai Junshi Biosciences Co.Ltd(688180) , Xiansheng pharmaceutical industry and Fujian Cosunter Pharmaceutical Co.Ltd(300436) pharmaceutical industry. Among them, the development of pharmaceutical industry, prochloramide and real biological azvudine have started phase III clinical trials abroad; Vv116 of Shanghai Junshi Biosciences Co.Ltd(688180) is undergoing clinical trials in China and Uzbekistan. The 3CL protease inhibitor candidate drugs of Xiansheng pharmaceutical and Fujian Cosunter Pharmaceutical Co.Ltd(300436) pharmaceutical industry are currently in the preclinical research stage.
