Items:
The company issued an announcement and signed a strategic agreement with military Zhengyuan (Beijing) Pharmaceutical Research Co., Ltd., and the two sides further realized cooperation and sharing in product research and development, technical services, contract processing, personnel training and other fields.
Peace viewpoint:
Actively promote external R & D cooperation and improve the company's R & D efficiency: Junke Zhengyuan is a CRO company mainly serving biopharmaceutical enterprises, relying on the powerful scientific research platform of the National Engineering Research Center for protein drugs, has completed nearly 300 large and small molecular drug research projects, covering more than 70% of domestic innovative biological products, with strong R & D strength. The agreement stipulates that military Zhengyuan provides drug development services for the company, short-term personnel training of less than 5 people a year, and regular visits not less than four times a year.
This cooperation is of great significance for the company to improve R & D efficiency and improve the scientific research level of R & D personnel.
Cooperation with CRO military Zhengyuan is expected to bring CMO orders: Jingfeng has two 1000L biological drug production lines, and the chemical drug production line is also actively promoting FDA certification, which will reach the international level. CRO is closely related to CMO, and Jingfeng can provide CMO services for those who need CMO among the customers of Zhengyuan. The cooperation between the company and military Zhengyuan can fully tap the existing resources, improve the utilization rate of production capacity, and become a new source of revenue for the company.
Maintain the "recommended" rating: the company is actively looking for external business opportunities to improve its R & D capabilities. The main business growth is good, driven by marketing reform, the future performance is expected to maintain steady growth, flurbiprofen axetil is expected to be listed in 2019, when it will bring new growth points. To maintain the original forecast, it is estimated that the EPS from 2018 to 2020 is 0.22, 0.26, 0.32 yuan, respectively, corresponding to the 23x/19x/16x, "recommended" rating of PE.
Risk hint
1. Policy risk: frequent policies in the pharmaceutical industry, drug price reduction, auxiliary drug list, zero bonus and other policies all have an impact on the company's business in the short term.
2. the risk that the product can not win the bid: the company's products are basically prescription drugs and need to be sold in hospital. if the important varieties are absent in some provinces, it may affect the sales income.
3. The progress of research and development is not as expected: drug research and development may fail in the whole process, and the company has many projects under research, among which some important varieties have entered the clinical stage, which may have a negative impact if they fail.