MPP announced that molnupiravir authorized pharmaceutical enterprises are expected to drive the upstream volume of the industrial chain. Recently, the drug patent pool Organization (MMP) announced that it has signed agreements with 27 pharmaceutical companies to allow 105 low – and middle-income countries or regions around the world to obtain the imitation right of molnupiravir, an oral drug of MSD covid-19. Among the 27 pharmaceutical enterprises authorized by MMP this time, 5 are Chinese pharmaceutical enterprises, namely Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) , Brightgene Bio-Medical Technology Co.Ltd(688166) , Shijiazhuang Longze pharmaceutical, Shanghai Desano and Langhua pharmaceutical. Molnupiravir is relatively simple to synthesize. Taking uridine as the starting material, it needs dimethoxypropane, anhydrous acetone, isobutyric anhydride, isopropanol and other raw materials to finally obtain API. China is the largest supply source of uridine in the world, Xinxiang Tuoxin Pharmaceutical Co.Ltd(301089) , Meiya pharmaceutical, Zhejiang Cheng Yi Pharmaceutical Co.Ltd(603811) have production capacity, and Zhejiang Tianyu Pharmaceutical Co.Ltd(300702) has become the cdmo supplier of molnupiravir in MSD.
Pfizer covid-19 drug paxlovid is composed of two drugs. The synthetic route is complex and the barrier is high. Paxlovid consists of nirmatrelvir and ritonavir. Nirmatrelvir is composed of three fragments, SM1 and SM2 are its core fragments. SM1 synthesis has barriers such as ultra-low temperature and cyanide raw material reaction qualification, and SM2 azabicyclic synthesis has high technical barriers. At present, Pfizer’s paxlovid has also been authorized to MPP organization. Considering the drug effect, paxlovid is expected to obtain greater penetration and demand. At present, many pharmaceutical enterprises in China are applying for generic drug authorization. Once the authorization announcement is implemented, it will further benefit the raw material enterprises with relevant raw material production capacity.
The breakthrough of domestic oral covid-19 is imminent, which is expected to improve the outlook of the upstream API industry chain. Shanghai Junshi Biosciences Co.Ltd(688180) vv116 has been authorized in Uzbekistan. It is the third oral covid-19 drug in the world and the first domestic one authorized for emergency use. Azvudine, a domestic anti AIDS class 1 new drug of real biology, has also carried out covid-19 clinical trial, and the API suppliers include Zhejiang Ausun Pharmaceutical Co.Ltd(603229) , Xinxiang Tuoxin Pharmaceutical Co.Ltd(301089) . Who recommends Incyte / Lilly baritinib as covid-19 critical drug, Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) as the cdmo core supplier of baritinib.
Investment suggestion: it is suggested to pay attention to covid-19 drug upstream suppliers Asymchem Laboratories (Tianjin) Co.Ltd(002821) , Wuxi Apptec Co.Ltd(603259) , Porton Pharma Solutions Ltd(300363) , Zhejiang Tianyu Pharmaceutical Co.Ltd(300702) , Zhejiang Ausun Pharmaceutical Co.Ltd(603229) , Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) , Great Chinasoft Technology Co.Ltd(002453) , Desano, viabio, Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) who have obtained the patent authorization of molnupiravir, as well as domestic covid-19 oral drug R & D enterprises Shanghai Junshi Biosciences Co.Ltd(688180) .
This week’s stock recommendations focus on Portfolio:
Growth Portfolio: Pharmablock Sciences (Nanjing) Inc(300725) , Beijing Balance Medical Technology Co.Ltd(688198) , Eyebright Medical Technology(Beijing) Co.Ltd(688050)
Robust portfolio: Zhe Jiang Hua Hai Pharmaceuticalco.Ltd(600521) , Baicheng pharmaceutical, Great Chinasoft Technology Co.Ltd(002453)
Elastic combination: vivia biology, Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) , Lepu Medical Technology (Beijing) Co.Ltd(300003)
Risk warning: drug marketing failure; Drug sales were less than expected; Focus on the company’s performance not meeting expectations
