Since the initial IPO application of 20 13, Li Gan Pharmaceutical was finally approved for listing last month.
Li Gan Pharmaceutical Co., Ltd., founded in 1998, is a high-tech biopharmaceutical company engaged in the production of insulin and related products. The "Gan" of Li Gan Pharmaceutical is Gan Zhongru, the actual controller of the company; Li of Pharmaceutical Co., Ltd. is Li Yikui, chairman of tonghua dongbao. Both of them studied in the Biology Department of Peking University.
From 65438 to 0998, tonghua dongbao, Tonghua Antaike, Gan Zhongru and others established Li Gan Pharmaceutical. At that time, tonghua dongbao was the actual controlling shareholder of Li Gan Pharmaceutical, with a shareholding ratio as high as 465,438+0.50%. 20 1 1, tonghua dongbao transferred all his shares in Li Gan Pharmaceutical to external shareholders such as Minghua Innovation, and parted ways from then on. Today, Chairman Gan Zhongru directly holds 44,46% of the shares of the company through direct and indirect means, and is the actual controller of the company.
First, leading enterprises of insulin
According to the development course and technical level, insulin drugs can be divided into three categories: animal-derived insulin, recombinant human insulin and recombinant insulin analogues.
The main business of Li Gan Pharmaceutical is the research, development, production and sales of recombinant insulin analogues and injections.
According to the prospectus, the company has three main products, including recombinant insulin glargine injection (trade name Chang), recombinant insulin lispro injection (trade name Su) and refined protein zinc recombinant insulin lispro mixed injection (25R).
Among them, "Chang Lin Xiu" belongs to long-acting recombinant insulin analogues; "Su Xiulin" belongs to ultra-fast acting insulin analogue; "25R" belongs to Zhongxiao Yu insulin. It was listed in 2005, 2007 and 20 14 respectively.
At present, in China's diabetes drug market, moderate insulin is the most widely used, accounting for about 65% of the insulin market sales, and long-acting insulin and quick-acting insulin account for 15% and 20% respectively.
Due to its late entry into the market, long-acting insulin only accounts for 15%, but its development momentum is rapid and its market share is constantly expanding, which will definitely replace the position of intermediate insulin in the future.
Compared with medium-acting insulin and quick-acting insulin twice or three times a day, long-acting insulin/kloc-0 times a day can not only keep patients' blood sugar stable all day, but also reduce the trouble of frequent injections, which is naturally more popular with patients.
First, the market share is the second in the world.
According to the data of the International Diabetes Federation (IDF), in 20 19 years, there were 462 million people with diabetes worldwide, with an average of1/adult. In the same year, the number of diabetic patients in China was about1.1.600 million, accounting for more than 20% of the total number of patients in the world.
However, as the country with the largest number of diabetic patients in the world, only about 2% of diabetic patients in China receive insulin medication, which is far lower than 30% in the United States. And the per capita treatment cost is less than one tenth of that in the United States.
In fact, in the domestic insulin market, recombinant human insulin is still the most widely used, and animal-derived insulin also occupies a certain market share because of its low price, while recombinant insulin analogues are still in the rising space because of their relatively high price. Compared with developed countries, the sales of recombinant insulin analogues account for more than 80% of the global insulin market.
Due to the high industry barriers in the insulin market, the market concentration is relatively high. The global market is basically monopolized by three multinational companies: Novo Nordisk, Lilly and Sanofi. In China, taking insulin glargine, the star product of Li Gan Pharmaceutical, as an example, Sanofi has the highest market share, followed by Li Gan Pharmaceutical, and its market share has increased year by year, from 18.43% in 20 17 to 24. 16% in 20 17.
At present, the ceiling of the insulin market is far from being reached, and there is still considerable room for growth in the market. I believe that in the future, with the improvement of people's consumption level, the promotion of health awareness and the affirmation of domestic drugs, Li Gan pharmaceutical industry is expected to make great achievements in China.
First, high gross profit and high growth.
The annual report of 20 19 shows that the company achieved an operating income of 2.895 billion yuan, and the net profit attributable to the owners of the parent company was165438+67 million yuan, up by 2 1.26% and 24.98% respectively.
In the first quarter of 2020, the company achieved an operating income of 470 million yuan, a year-on-year increase of 9.73%; The net profit attributable to the owners of the parent company was 65.438+0.23 billion yuan, a year-on-year increase of 26.05%; After deducting non-recurring gains and losses, the net profit attributable to owners of the parent company was 1.0 1 100 million yuan, up by 4 1.04% year-on-year.
In terms of products, the annual sales of long-acting recombinant insulin glargine injection (Chang) in 20 19 is 2.545 billion yuan, accounting for 87.91%of the main business income; In the same period of last year, the proportion was as high as 94.74%. The decline was due to the increase in sales of the company's new product, Beijing-protein zinc recombinant insulin lispro mixed injection (25R), and the decrease in the price of recombinant insulin glargine injection (often).
It can be seen that recombinant insulin glargine injection (often) is the company's main source of income in recent years, which is much higher than the sales income of other products. It can be said that this injection has supported the whole company.
It is worth mentioning that the gross profit margin of "Chang" in 20 19 was as high as 93%, almost the same as that of Kweichow Moutai. It is precisely because this product is called "Maotai in Medicine" that the ultra-high gross profit margin reflects the market position of this product.
As shown in the prospectus, the company faces the risk of a single product structure. In order to improve the product structure and reduce the risks caused by a single product, the company needs to continuously develop and produce new recombinant insulin analogues.
In addition, the author noticed that from 20 17 to 20 19, the company's accounts receivable turnover rate was 6.25, 3.94 and 3.53 respectively, showing a downward trend year by year. The decrease in the turnover rate of accounts receivable means that enterprises are not in a strong position in the industrial chain. In this regard, according to the prospectus, due to the influence of the two-vote system policy in the pharmaceutical industry and the cancellation of the drug addition policy, the hospital's payment cycle has been extended, and the financial pressure on dealers has increased, making the turnover rate of accounts receivable lower than the average level of other listed companies in the same industry.
I. R&D risk
In addition to the single product risk mentioned above, the company also mentioned other risks in the prospectus, mainly including: the risk of industrial policy change, the risk of drug price reduction, the risk of unsustainable tax preferential policies and the risk of patent invalidation.
According to the notice of the State Administration of Pharmaceutical Products, in addition to Li Gan Pharmaceutical, Zhuhai Federated Pharmaceutical and tonghua dongbao also obtained the registration approval of insulin glargine injection. In addition to the coveted international pharmaceutical companies, more and more domestic competitors will also compete for a share.
In the face of the rise of competitors, can Li Gan Pharmaceutical ensure the sustainability of profits?
As a high-tech biopharmaceutical company, the company's future development and profit depend on innovation, and innovation needs R&D investment as a support.
The company's R&D investment from 20 17 to 20 19 was1800,000 and 350 million was 41000,000 respectively, showing an increasing trend year by year. Under the background of low R&D investment in the whole pharmaceutical industry, this amount is quite good. In contrast, tonghua dongbao's R&D investment of 20 19 is only 78 million.
High R&D investment is helpful to the construction of industry barriers, thus alleviating the risk of intensified competition and drug price reduction.
As a high-tech enterprise, Li Gan Pharmaceutical enjoys the preferential income tax rate of 15%, but the tax preference is valid for three years from 20 17, that is, it will end in 2020.
In addition, the patent of "chimeric protein containing intramolecular chaperone-like sequence and its application in insulin production" (patent number: ZL988 1394 1 3) expired on March 3, 200818. If this patented technology is used by the company's competitors, it will also increase the company's competitive pressure.
5. Personnel changes are just to reduce holdings?
Less than a month after listing, the company's share price has just ushered in 13, and its market value has exceeded 10 billion in one fell swoop.
While everything was thriving, the company made an unexpected announcement: General Manager Gan Zhongru, Deputy General Manager Wang Damei and Chief Financial Officer Ning collectively resigned.
The announcement shows that Du Kai, vice president of the company, succeeded Mr. Gan Zhongru as general manager; Mr. Sun Cheng took over as the chief financial officer of the company.
Sun Cheng joined Li Gan Pharmaceutical in July, 20 19, but public information shows that he worked for Beijing Sunshine Haitian Parking Management Co., Ltd. from 20 18 to 2020, which means that Sun Cheng only signed a labor contract with the company at that time and did not really work for Li Gan Pharmaceutical.
In combination with the resignation of the former CFO in August 20 19, Ning has been the CFO's "substitute" since then.
Generally speaking, the collective resignation of senior executives of listed companies is an unfavorable signal, and it is possible to resign and reduce their holdings, but this is not entirely the case, or it may just be a normal personnel change in the company.
According to the company announcement, the three are still working in the company. Considering that Mr. Gan Zhongru, who holds the most shares, is 72 years old this year, it is understandable to retire at this time; And Ms. Wang Damei * * * holds 0.41%; Rather than holding shares in the company, the resignation of company executives is a normal personnel change.
Summary: At present, the market value of Li Gan's pharmaceutical secondary market exceeds 80 billion yuan, with a valuation of 1.66 times, far exceeding that of Hengrui Pharma, the leader of A-share pharmaceutical research and development. Whether it is good or not, the valuation is not cheap.