With 21 more than 100 million varieties in hand, gynecological traditional Chinese medicine new drugs will be listed, and class 1 new drugs will force the market of 100 billion
Recently, Hefei China Resources Shenlu Pharmaceutical Co., LTD., a subsidiary of China Resources Sanjiu, submitted the application for the listing of taohong Siwu granules, a new Chinese medicine for gynecological menstruation regulation, which has been reported for the first time in the past 5 years.China Resources Sanjiu is mainly engaged in self-diagnosis and treatment and prescription drugs. In 2020, 21 OTC products were sold over 100 million yuan, and many OTC products are in a leading position in the same category.In recent years, the company continues to increase investment in research and development. In the research of traditional Chinese medicine new drugs, the advantages of the first class of chemotherapeutic drugs to achieve 100 billion anti-tumor drugs market;In terms of generic drugs, 8 varieties have been evaluated (3 being the first), 4 have been included in the national procurement and all won the bid, and 6 varieties have won the first evaluation.China Resources Sanjiu is a traditional Chinese medicine and OTC platform under China Resources Group, with self-diagnosis and treatment (CHC) and prescription drugs (RX) as the main business, with 21 varieties of more than 100 million in 2020.In addition, the company is a pilot enterprise of Traditional Chinese medicine formula granules, and has produced more than 600 kinds of single-flavor formula granules, with a revenue of more than 2 billion yuan in 2020.Performance of China Resources Sanjiu (Unit: 100 million Yuan) source:Announcements of listed companies From the perspective of business segmentation, CHC business covers nearly 10 categories such as cold, skin, gastrointestinal, orthopedics, pediatrics, hepatobiliary, etc. In recent years, the revenue has been rising, from 5.429 billion yuan in 2017 to 7.834 billion yuan in 2020, and has become the main revenue source of China Resources Sanjiou.RX’s business covers oncology, cardio-cerebrovascular, digestion, orthopedics, pediatrics and other treatment fields, and its specialty line and TCM formula granule business grow rapidly.With the policy liberalization of TCM granule formulation, China Resources Sanjiu can further expand more terminals while improving the efficiency of existing terminals. In addition, there is room to improve the replacement rate of traditional decoction pieces. The company expects that this business will achieve good growth in the next 2-3 years.Affected by the policy, the company’s anti-infection business has declined, but driven by product structure adjustment and new products, it is expected to achieve double-digit growth in 2022.Milanet data shows that in 2021E, China’s urban entity drugstore terminal, China Resources Sanjiu is expected to have a number of OTC varieties in the leading position in the same category, including cold Chinese patent medicine Ganmao Ling granule, stomach Chinese patent medicine Sanjiu Weitai granule, mineral supplement calcium zinc gluconate oral solution, etc.In terms of Chinese patent medicine, Ganmao Ling granule has been ranking the top of the best-selling list of Chinese patent medicine for cold for many years. At present, about 30 enterprises in China have drug approval documents of this product.China Resources Sanjiu’s Maomoling granules broke through 2 billion yuan for the first time in 2019, becoming the first and only Chinese patent medicine brand with annual sales of more than 2 billion yuan. It is expected that the sales volume in 2021 will be close to 2.3 billion yuan.Sanjiu Weitai granule is the exclusive variety of China Resources Sanjiu, second only to Kangfuxin solution in the ranking of Chinese patent medicine products of gastric medicine (gastritis and ulcer), but the brand ranking has been at the top for many years, and it is the first brand of Chinese patent medicine of gastric medicine in China.In terms of chemicals, calcium and zinc gluconate oral solution is a leading calcium supplement product for children. Since 2018, it has become the best-selling mineral supplement in the terminal of urban physical drugstores in China, with double-digit sales growth in recent years.In 2020, The oral solution of Calcium and zinc gluconate of Anor pharmaceutical replaced Wyeth’s calcium carbonate D3 tablets and became the first brand of mineral supplements, and the sales volume is expected to exceed 1 billion yuan in 2021.And in the terminal of Chinese public medical institutions, China Resources Sanjiu exclusive varieties of Gutong plaster, Qi Stagnation stomach pain granules and so on have good performance.In the ranking of orthopedic pain relief Chinese patent medicine products and brands, Gutong plaster ranked the third, rising to the second in the first half of 2021;In the ranking of Chinese patent medicine products of gastric medicine (gastritis and ulcer), Qizhiweitong granule ranks the third.Terminal sales of some Products of China Resources Sanjiu in China’s public medical institutions (Unit: 100 million Yuan)Data from China Resources March 9 annual report show that the company’s research and development expenses in the first three quarters of 2021 are 355 million yuan, an increase of nearly 30% over the same period last year, accounting for more than 3% of the operating revenue.In recent years, China Resources Sanjiu continues to increase investment in research and development and enrich the product pipeline.By the end of 2020, the company has 57 research projects, focusing on oncology, orthopedics, skin, respiratory and other treatment fields.Note: Excluding capitalized R&D investment Source: announcement of listed company On January 7, the official website of SFDA showed that Cefxitin sodium for injection of China Resources Jiuxin passed consistency evaluation.According to Milanet data, 8 varieties of China Resources Sanjiu have passed or are considered to have passed the consistency evaluation, among which 3 are the first/exclusive evaluation, namely Zopiclone tablets, montmorillonite granules and aluminum magnesium carbonate chewable tablets.Among the conformity evaluation varieties reviewed, 10 varieties were submitted for marketing/clinical application under new registration classification, among which no first copy of obeccholic acid tablet was approved for the time being;Three varieties submitted supplementary applications for consistency evaluation, among which no enterprises have passed the consistency evaluation for midazolastine sustained-release tablets and Pidomod tablets or are deemed to have passed the consistency evaluation.In terms of innovative drugs, from 2020 to now, China Resources Sanjiou has two new drugs approved for marketing, namely cefpiroxate sodium for injection of imported 5.1 new drugs and Mitoxantrone hydrochloride injection for tracer of 2.2 new drugs.Cefpiroxide sodium for injection is the first approved fifth-generation cephalosporin antibiotic in China, which is conducive to improving the company’s market competitiveness in the field of anti-infection.In the research of new drugs, taohong Siwu granules, a class 3.1 new Chinese medicine, was recently listed on the market. It is used for women with blood deficiency and blood stasis in menstruation, which is the first gynecological menstruation new Chinese medicine reported in recent 5 years.Jinbuhuangutong capsule entered phase II clinical practice for knee osteoarthritis – cold and dampness blocking collaterals and blood stasis syndrome.In addition, CRC Sanjiu attaches great importance to the inheritance and innovation of TRADITIONAL Chinese medicine, focusing on the study of classic Chinese medicine prescriptions, formula particle standards and medicinal materials resources. Currently, more than 10 classic Chinese medicine prescriptions are under development, and some of the varieties under development have completed the application materials.In the field of chemical drugs, the two first-class new drugs under development are both anti-tumor drugs. According to Data from Milanet, the market size of terminal anti-tumor drugs in China’s public medical institutions will exceed 100 billion yuan in 2020.Qbh-196, a multi-target receptor tyrosine kinase inhibitor, has entered phase I clinical indications for advanced malignant solid tumors.The introduced ONC201 is a DRD2 antagonist /ClpP agonist with the highest research and development progress in phase II clinical worldwide. The clinical application in China has been accepted by CDE.Note: The Terminal competition pattern database of Urban physical Drugstores of China is an enlarged version of urban physical drugstores database that covers 297 cities and above in China (excluding county and rural physical drugstores) and continuously monitors the whole category.The above sales are calculated based on the average retail price of the product at the terminal.Data statistics up to February 14, if any omissions, welcome correction!