Main points of investment
The revenue grew steadily in the first half of the year, and the number of commercial innovative drugs continued to expand: the company's product revenue in the first half of the year was about 2.04 billion yuan, an increase of 10% over the same period last year. According to the company's partner Eli Lilly (Eli Lilly and Co), the sales revenue of Xindili monoclonal antibody in the first half of the year was about 160 million US dollars (Note: there is some discrepancy between the company and Eli Lilly and Co's financial caliber). The sales expense rate of the product is about 66.7% (56.7% in the first half and 69.4% in the second half of 2021, respectively). As of June 30, 2022, the number of the company's commercial team has reached 2745, and the commercial product portfolio has been increased from 1 to 7, including Xindirizumab, bevacizumab, rituximab, adamumab, pemitinib, Orebatinib and ramosiu.
In the first half of this year, the company adjusted its commercial business structure to work with a more professional and accurate BU model, including six major BU, including IO, VEGF, TKI, and Blood. We believe that work based on the BU model can achieve more refined, more systematic and more scientific management, so as to increase output and improve efficiency.
The non-tumor pipeline has entered the harvest period: in June, the NDA application of the company's PCSK9 monoclonal antibody (IBI-306) was accepted by CDE. IBI-362 is excellent in phase 2 clinical data of obesity and diabetes. The company expects to launch phase 3 trials of IBI-362 in both diabetes and obesity indications from this year to early next year. The company also expects to launch phase 3 clinical trials of IBI-112 (IL23p19) in psoriasis from this year to early next year.
Strategic cooperation continues to demonstrate the value of the platform: in March, the company reached a cooperation with Eli Lilly and Co to obtain the commercial rights and interests of Ramoxiumab and Zeptini in the mainland, as well as the priority negotiation right of Pirtobrutinib commercialization rights. In August, the company reached a partnership with Sanofi to develop two innovative drugs (CEACAM5ADC and non-alpha-biased IL-2). At the same time, the company received an equity investment of 300 million euros in Sanofi and a potential equity investment of 300 million euros.
Risk tips: Cindilizumab sales are not as expected, new product research and development progress and post-market sales are not as expected, market competition is intensified, policy risks.