Medical network, June 5, recently, wide raw hall, according to the announcement issued by the company received the CFDA fumaric acid tenofovir two pyrazole cefuroxime ester material and fumaric acid tenofovir two pyrazole of cefuroxime ester capsule drug manufacturing certificate for registration. That is good news for the company, which has seen its share price rise. 

 

As a first-line drug for the new hepatitis b virus, tenofovir potential is large 

 

Tenofovir is developed by gilead oral nucleoside antiviral drugs, listed as a treatment for HIV/AIDS in the United States in 2001, in 2008 the FDA approved to treat hepatitis b indications. On August 1, 2013, China approved for the first time in the domestic market for the use of fumarate for the first time. On top of that, there is no national approval for the approval of hepatitis b in the Chinese mainland. The approval of the new drug means that the first imitative drug for the treatment of hepatitis b has been approved. 

 

FIG. 1:20 in the pattern of chemical medicine of Chinese public health institutions, general name TOP20 is used in the whole body 

 

Data source: a high-level database (intelligent version) 

 

According to m Intranet data show that in 2015 China's urban public hospitals, public hospitals at the county level, community center of cities and towns and townships public medical institutions (hereinafter referred to as China) chemical medicine pattern, tenofovir two pyrazole cefuroxime ester TOP20 crammed into the whole body with antiviral drugs market. Global sales of tenofovir in 2016 reached $11.6 billion. 

 

Tenofovir in the chronic hepatitis B prevention and treatment guidelines recommend first-line drugs for the treatment of chronic hepatitis B, compared with entecavir or lamivudine and adefovir ester, tenofovir has antiviral effect is stronger, zero resistance and the advantages of the pregnancy class B. Domestic tenofovir post-marketing is expected to be with the clinical advantage for the old products such as lamivudine and adefovir ester or entecavir market share, huge potential space in the future. 

 

Existing breed bottlenecks are putting downward pressure on the company's net profit 

 

Wide raw hall is one specialized is engaged in the nucleoside against hepatitis b virus drugs research and development, production and sales as a key national high-tech enterprise, its main products include o GanDing (adefovir ester), He Gan (lamivudine) and grace GanDing (such as entecavir) nucleoside drugs against hepatitis b virus. 

 

Figure 2: the revenue of the guangsheng hall from 14 to 2015 

 

 

The figure 2 shows that nearly three years the company's operating income is slow growth, but growth rate are declining trend, in 2016 operating income of 313 million yuan, up 1.28%; In addition, the company's net profit was under downward pressure, with net profit of just 0.66 billion yuan in 2016, down 35.83 percent from a year earlier. In the latest quarter of this year, first-quarter net income was 0.2bn, down 27.66% from a year earlier. 

 

Wide raw hall, said in 2016 due to health care of the inspection fee and hospital medicine, nucleotide class against hepatitis b virus product market growth, and increase in the number of competing products, the company's products in more than one bid price declines, put pressure on the company's performance growth. 

 

Figure 3:20 - the sales of main products of guangsheng hall from 15 to 2016 

 

 

In 2016, the main products of guangsheng's main products, forrest gump, he gandingand ngan sales, were 3125.51 million yuan, accounting for 99.90% of the company's operating income. The sales revenue of the company was 223 million yuan, while the company's sales revenue was 0.62 billion yuan, and his sales revenue was 0.27 billion yuan. In addition to the 20.17 per cent year-on-year increase in sales revenue, argan's sales fell 24.18 per cent year on year, while his sales fell 32.90 per cent year on year. 

 

The future releases of tenofovir are expected to accelerate the company's performance 

 

FIG. 4:203-2015 the sales of the Chinese public health care provider tenofofurofurate (unit: 10,000 yuan) 

 

Data source: a high-level database (intelligent version) 

 

Tenofovir is a patented drug for gilead, known as "viridian". In 2008, the drug entered China as an AIDS drug, and in 2013 it was approved for hepatitis b but did not release it fast enough. The m Intranet data shows that from 2013 to 2015, tenofovir two pyrazole cefuroxime ester the structure of public medical institutions in China chemical medicine sales increased year by year, but sales in 2015, only 100 million yuan, the main reason is that month treatment costs as high as 1500 yuan/month are more expensive and is beyond the scope of coverage, unbearable for patients requiring long-term medication. 

 

In May 2016, however, the first batch of national drug price negotiation results publish to the society, tenofovir monthly drugs cost about 1500 yuan before negotiations, the negotiations after monthly pharmaceutical costs have fallen to about $490, a drop as much as 67%. On the basis of slashing prices in February this year and be incorporated into the new health insurance directory, greatly enhance the accessibility and affordability of medicines, for the products of the company listed after rapid volume provides a good support. 

 

conclusion 

 

Wide raw hall fumaric acid tenofovir two pyrazole of cefuroxime ester material and capsule, make wide raw hall China only with entecavir and tenofovir, two big against hepatitis b virus first-line drug companies, and China the most complete product line in the field of HBV drug resistance of the enterprise, further to lay the firm lead in hepatitis b drug market, improve the market competitiveness of the company, the company performance in the next three to five years will have a major positive. 

 

Source: the annual report of the listed company