Deep ploughing the pharmaceutical industry for 20 years, carry out medical and beauty business transition as a toxic drug, Botox as a drug, the threshold for approval is high, from the initial establishment of the project to the final approval requires at least phase III clinical trials, which generally takes 4 to 6 years. The company has been engaged in the R & D and sales of innovative drugs and generic drugs in the fields of cardio-cerebrovascular, anti-infection, metabolism and other fields for more than 20 years, and has accumulated rich experience in drug research and development and approval. Therefore, the company is more familiar with the research and development and application of medical and beauty products such as Botox. The company's botulinum toxin product Letibao was successfully put on the market in 2021, laying a solid foundation for the subsequent construction of a first-class medical and beauty platform in China.
The domestic medical and beauty market is booming, and the competition pattern of botulism is good.
China's medical and beauty market is growing rapidly, with a compound growth rate of 30% in sales revenue from 2012 to 2018. It is expected that with the growth of domestic medical demand and the continuous adjustment and standardization of medical institutions, the medical and beauty market will continue to prosper. IResearch Consulting estimates that the size of China's medical and beauty market will reach 300 billion yuan in 2023. In 2019, China's injection medical and beauty market was 30.9 billion yuan, a growth rate of 20%. Botulinum toxin accounted for 33%, making it the second largest product in the injection category. At present, only four botulism products of Botox, Hengli, Jishi and Letibao have been approved in the domestic market, and the market pattern is better.
The product power of Letibao has been recognized in South Korea. In terms of brand power, Letibao has been sold in Korea for many years and has won the first place in market sales in Korea for four consecutive years. Other commonly used botulinum toxin brands include Neuronox of Medytox, Nabota of Big Bear Pharmaceutical, and Hutox of HUONS. At present, the domestic parallel import market is dominated by South Korea's white poison (Letibao), powder poison (Neuronox) and green poison (Nabota). With the gradual success of the rectification of the domestic medical and beauty market, the certified Letibao is expected to replace part of the parallel import market. In terms of product strength, the phase III clinical trial of Letibao shows that the safety and efficacy are equal to those of Botox. However, the price of Letibao is located in the middle and high end, and has a high performance-to-price ratio compared with Botox. In terms of marketing power, the company has Internet genes, and the medical and beauty management team has many years of strong medical Becton Dickinson & Co and marketing experience of Erjian and other multinational enterprises. in the four months since its listing in February 2021, it has covered 200 + cities and covered 1800 + medical institutions at a high speed in the 4 months since it was listed in February 2021.
Brand power + product power + marketing power multi-dimensional drive, Letibao quickly put its volume on the market. From February to June 30, 2021, the income of Letibao reached 258 million yuan, accounting for 135% of the total income of domestic companies in the same period, and sales exceeded 200000 bottles.
Many important products of medical beauty are being studied, and the prototype of medical beauty platform is gradually taking shape.
Through self-research and agency, the company continues to increase the product portfolio, enrich the product matrix, and cover the whole life cycle needs of people who love beauty. At present, the company has more than ten kinds of medical and beauty products under research, including collagen products, child facial needles, young girl needles and other important products, among which Tong Yan Shui Ning is expected to be approved and listed by the end of 2021. The product matrix of injection + optoelectronics + instruments + drugs + injections has been gradually built, and Sihuan Medical Beauty is becoming the first echelon medical platform in China.
Investment suggestion
The medical and beauty industry is booming, and the market pattern of Botox is good. As existing medical users grow older, Botox penetration is expected to continue to increase. Domestic botulinum toxin has been approved for a long time, Letibao has the advantage of first-mover, and the high performance-to-price ratio is expected to open the medical and beauty market for "Generation Z" young people. The company has a reserve of important medical and beauty products such as young girl needle and child beauty needle, and many products are being studied in the pharmaceutical plate, which has a good potential for long-term growth. It is estimated that the EPS of the company in 2021 and 2023 will be 0.08, 0.12, 0.17 yuan per share respectively, and the corresponding share price PE will be 16.31,11.80,8.30 times respectively. Cover for the first time, give "buy"
Rating.
Risk hint
The market promotion progress of Letibao is not as expected, the drug research and development is not as expected, and the drug collection policy is uncertain.