Zhongsheng Pharmaceutical (002317) company review report (revised edition): waiting for the clinical effect of chloroquine phosphate tablets

Zhongsheng Pharmaceutical (002317) company review report (revised edition): waiting for the clinical effect of chloroquine phosphate tablets

Note: The red text is changed from “According to” to “Understanding from the listed company”. The statement of the switch is not accurate. Only the source of the data is specified in the working manuscript. Please refer to this manuscript.

Event: The company announced on the evening of February 10 that it had recently applied for the company’s pharmaceutical chlorobenzyl phosphate tablets to resume production, and obtained the “Pharmaceutical Supplement Application Approval” issued by the Guangdong Drug Administration.

Opinion: Chlorofluoro diphosphate is a derivative of quinine. It has a bitter taste, easily decomposes water, and is colorless crystals.

87.

As a first-line antimalarial drug widely used in malaria treatment, chloroform has the advantages of low cost, safety and effectiveness.

Preliminary comprehensive research confirms that in addition to better anti-tuberculosis effects, chlorofluoroethylene can inhibit the proliferation of laryngeal cancer HEP-2 cells and human chronic myeloid leukemia K562 cells, and induce the cells to overcome, thereby reducing breast cancer, Nasopharyngeal cancer, glioma, multiple bone marrow cancer and other tumors produce radiosensitization.

Chloroquine phosphate tablets are in principle HDT therapy.

By definition, the goal of HDT (host-directed therapy) is to “intervene the mechanism of pathogen infection and colonization, activate the body’s protective immune response, suppress excessively strong inflammatory responses, and balance the immune response at the site”.

To sum up, it is all kinds of treatments that are not effective through direct anti-infection when fighting infectious diseases.

Recently, frontline anti-epidemic personnel published an article and newsletter in “The Lancet”, pointing out that the use of “host-oriented therapy” (HDT) for adjuvant treatment may reduce the patient’s mortality rate.

Chloroquine phosphate, which can effectively inhibit the new coronavirus in vitro, is actually a kind of HDT therapy in principle, and because of the slow development of specific drugs, the prospect of HDT therapy in combating coronavirus infections is also highly expected.

Guangdong Zhongsheng Pharmaceutical was founded in 1979. It was formerly known as Shilong Pharmaceutical Factory and South China Pharmaceutical Factory of certain town-run enterprises in Dongguan. Among them, after the merger and reform, the company officially entered the capital market in 2009. The listing code is 002317.”Zhongsheng Pharmaceutical”.

The company’s traditional business is the production and sales of proprietary Chinese medicines. The key products are “Fuxue Xueshuantong Capsules” and “Zhongsheng Pills”, which are known as famous brand products in Guangdong Province and independent innovation products in Guangdong Province.

After listing in 2009, it gradually cooperated with domestic scientific research institutes, WuXi PharmaTech and other enterprises to expand the field of chemical medicine.

At present, the company has 27 dosage forms including tablets, capsules, eye drops, oral solutions, lyophilized powders, etc., and 437 pharmaceutical production approvals.

The products cover major diseases such as ophthalmology, cardiovascular and cerebrovascular, respiratory, digestion and senile degenerative diseases.

The company announced on the evening of February 10 that it had recently applied for the resumption of production of the company’s pharmaceutical chloroquine phosphate tablets, and had obtained the “Pharmaceutical Supplement Application Approval Document” approved by the Guangdong Drug Administration, and the company had completed the related work of resumed production of chloroquine phosphate tablets.

I learned from the listed company that the company is now waiting for the test results of chloroquine phosphate tablets. The results are expected this week. A small amount of production has been supplied to some hospitals for research. The Guangdong Provincial New Coronavirus Infectious Pneumonia Epidemic Prevention and Control Command willThe drug is collected and stored. In the future, it will become one of the important sales models of the drug.

Although the drug has not yet made a substantial impact on the company’s profits, if it is clinically proven effective, it will greatly increase social value and the company’s economic benefits will also increase rapidly.

The epidemic situation has a short-term impact on the company’s operations, but does not affect the company’s long-term investment logic.

I learned from the listed company that the company has now resumed work. Due to the impact of the epidemic, the progress of new drug development and eye hospitals may be affected in the short term, but the long-term investment logic will not be affected.

In 2020, cefradine capsules and dextromethorphan hydrobromide tablets, which were wholly-owned subsidiaries of the company’s South China Pharmaceuticals, were subsequently evaluated for consistency and quality of generic drugs.

Fufang Xueshuantong’s new version of the medical insurance catalog has removed the restrictions on the payment scope of “limited clear evidence of resuscitation veins”; ophthalmic products Mingmu Dihuang Capsule (exclusive); Fufang Xueshuantong drip pills new medicine “Healthcare Catalog 2019”; a carbonateStan tablets, vitamin B6 tablets, and Glezide tablets have been adjusted from the medical insurance category B to the medical insurance category A.

The company’s ophthalmic product Mingmu Dihuang Capsule has been newly added to this new medical insurance catalogue; Kakstan tablet is a basic medicine 杭州桑拿 in the field of breathing, which has room for interaction and growth. Yishu Pharmaceutical also has the raw material production qualifications and capabilities of Mestam.The category B of the medical insurance directory was adjusted to category A of the new medical insurance directory, which formed a series of product advantages with the tolacetam oral solution that continued to be included in the medical insurance directory, which could better exert the internal synergy effect of the company.

ZSP1273, an innovative class of respiratory influenza A virus, was named PI by Zhong Nanshan, and it is the first RNA polymerase anti-flu drug to enter the clinic in China.

It has strong in vitro broad-spectrum anti-influenza virus activity. From the current test, the anti-viral activity in vivo and in vivo is significantly more important than the same target compound and oseltamivir.

Currently, the clinical phase II is in progress, and short-term patients are affected by the epidemic, and the secondary and long-term clinical results are expected.

The company’s layout of innovative drugs started early. At present, the pipeline has been basically formed, and it is affected by the epidemic in the short term.

After the company went public, it began to explore the field of innovative drugs. In 2015, it started cooperation with WuXi AppTec, which started earlier than most domestic similar companies.

At present, the company’s innovative pipeline has been basically formed, mainly in the four major areas of breathing, non-alcoholic mild hepatitis and fibrosis (referred to as “NASH”), tumors, and ophthalmology. In the long run, there are reasonable pipelines for tumor and cardiovascular drugs.Layout.

Among them, innovative drugs for liver diseases and respiratory diseases are developed by the company’s subsidiary “Zhongsheng Ruichuang”, which are the company’s key innovative drug varieties.

Drugs in the NASH field are blank and have huge space.

The company has deployed three products (ZSP0678, ZSYM008, RCYM001) and an innovative drug ZSP1601 in the NASH field.

Currently affected by the epidemic in the short term.

profit prediction.

Taking into account the potential impact of the epidemic in the first quarter on the company, the company’s profit forecast is lowered to zero for the full year of 2019.

54 yuan, 0 in 2020.

59 yuan, 0 in 2021.63 yuan, corresponding to the closing price of 14 on February 11.

20 yuan, the market surplus of 26.

2 times, 24.

0 times and 22.

54 times. Considering the possible clinical effects of the company’s chlorophenyl phosphate tablets and the transient impact of the epidemic, we maintain the company’s “Buy” investment rating.

Risk Warning: Uncertainty in Epidemic Development