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Fosun Pharma (600196): Fohong Hanlin’s Hong Kong listing progress pushes innovation business into the harvest stage

Fosun Pharma (600196): Fohong Hanlin’s Hong Kong listing progress pushes innovation business into the harvest stage

Event On the evening of July 5, Fosun Pharma issued an announcement to update the progress of the listing application of its holding subsidiary, Fuhong Hanlin Hong Kong Stock Exchange. Fuhong Hanlin has submitted an updated listing to the Hong Kong Stock Exchange on July 5.Application.

Brief Comment Fuhong Hanlin is the main body of research and development of biosimilars and bioinnovative drugs under Fosun Pharma, and has a rich pipeline of similar drugs and new drugs.

At the beginning of 2019, the company’s self-developed rituximab analog (Hanli Kang) was approved by CDE for marketing, becoming the first domestic biosimilar approved, and the company’s research and development capabilities in the field of biomedicine were recognized.

Recently, the company has made new progress in the development of multiple biosimilars. We have updated the research and development progress of Fuhong Hanlin this year.

In terms of biosimilars, the company currently has several fast-moving products: ① Rituximab analogs (HLX01, CD20 mAb) for non-Hodgkin’s lymphoma and other indications have been approved by CDE for marketing.The rheumatoid arthritis indication is still under development, and Phase I / II clinical trials have been completed in January this year. As the original product has not been developed in China, the company is still conducting phase III trials.

Hankang has been officially sold in April this year, and the provincial medical insurance has been promoted smoothly.

② Trastuzumab analogues (HLX02, HER2 mAb) were submitted for domestic listing in April this year, and there has been a priority review process.

The drug is licensed to Accord Healthcare in Europe, East Africa and other overseas regions, and the company enjoys gradual and sales breakdown.

③ Adalimumab-like drugs (HLX03, TNF-α monoclonal antibody) were submitted for domestic marketing in January this year, and the priority review process has been repeated. In July this year, the company announced its Phase III clinical trial and clinical trial report of psoriasis.Has been completed.

④ Bevacizumab-like drugs (HLX04, VEGF mAb) were approved in January this year for the clinical development of indications for wet age-related macular degeneration and diabetic retinopathy. The drug is used for the indications for metastatic colorectal cancer.Phase III clinical trials are still ongoing.

⑤Others: Lemurizumab biosimilars (HLX12, VEGFR2 mAb) have started phase I clinical trials.

In terms of new drugs, the company’s PD1 monoclonal antibody (HLX10) has made rapid progress. This year, non-pulmonary non-small cell lung cancer (combined with HLX04), lenticular non-small cell lung cancer (combined chemotherapy), esophageal squamous cell carcinoma (combined chemotherapy),Multiple phase III clinical trials for small cell lung cancer (combined chemotherapy) indications have also commenced phase II clinical trials for hepatocellular carcinoma (南京夜网论坛combined with HLX04), solid tumors (single drug) of MSI-H or dMMR.

We believe that although the company’s PD1 monoclonal antibody is slightly behind the first domestic echelon (Junshi, Cinda, Hengrui, Baekje) in terms of research and development progress, the current layout of key indications is perfect, and Fuhong Hanlin’sThe advantage is that having multiple monoclonal antibodies can be developed in combination with PD-1 monoclonal antibodies, and there is a lot of room for combining and combining drugs in the future.

In addition, the company’s new HLX07 (EGFR monoclonal antibody), HLX06 (VEGFR2 monoclonal antibody), HLX20 (PD-L1 monoclonal antibody) are also in clinical trials. The company’s research and development capabilities in biosimilars and new biological drugsAll are out of the domestic leading level.

As the holding parent company of Fuhong Hanlin, Fosun Pharma focuses on pharmaceutical research and development.

In 2018, the company’s R & D expenses reached 14.

8 billion, an increase of 44 per year.

14%.

In addition to Fuhong Hanlin, the company is steadily advancing in the research and development of small molecule innovative drugs, innovative drugs license-in, CAR-T, and consistency evaluation.

Earlier this year, FCN-437c and Hongchuang’s ORIN1001 received clinical trials approved by the FDA, respectively. ORIN1001 also received FDA fast-track certification.

In terms of main business, the company was affected by auxiliary drug control last year, and sales of Audekin and alprostadil were affected. At the same time, R & D and integration costs increased.

At present, the sales of Audekin have basically remained stable. The sales of the company’s febutastat, pitavastatin and other varieties have increased rapidly. In addition, Fuhong Hanlin Hanlikang has begun to sell. In addition, the company has also steadily increased its medical equipment and services.

We think the company’s performance is expected to usher in an inflection point from the second quarter of this year.

Fosun Pharma’s main business covers three major sectors: pharmaceuticals, equipment, and services. It also has a stake in Sinopharm Holdings, and its internal business has strong mutual coordination capabilities.

As the main body of Fosun Group’s healthy ecology, the company’s participation and development strategy are incorporated into the international heritage.

The company’s current generic drug segment is under pressure, but it is actively promoting research and development to transform it into innovative drugs.

Fosun Pharma has established Fuhong Hanlin (biological medicine), Fosun Kate (cell therapy), Intuitive Fosun (surgical robot), Fosun Hongchuang (first-class innovative medicine), and Fosun Pharmaceutical (small molecule innovative medicine).), Xingtai (R & D of new preparations), etc. as the main body, with a clear division of labor.

With strong platform advantages and innovation advantages, we expect the company’s future target business to continue to improve with the coordinated development and has the potential to become an international pharmaceutical company.

Earnings forecast and investment rating We expect Fosun Pharma to realize net profit attributable to mothers in 2019-202131.

3, 37.

2.43.

7 trillion, with growth rates of 15 respectively.

7%, 18.

8%, 17.

5%, corresponding to 22, 19, 16 times the current sustainable PE, maintain “Buy” rating.

Risk warnings ① The progress of new drug research and development is less than expected; ② The company’s merger and acquisition expansion is less than expected; ③ intense competition in the variety industry for sale, which brings improved performance.

④ The performance of related investment companies or participating companies was lower than expected.