Matters: the company announced that its holding subsidiary, SunGen PharmaLLC DBA Peterson Pharmaceuticals, a joint venture company of American Shangjin, jointly owns the market license ownership of Baixiaoan injection through a commercial joint venture with Athenex Pharmaceuticals.
Peace viewpoint:
Acquisition and independent research and development work at the same time to promote the company's business growth: Baixiaoan injection is a product purchased by Shangjin, is a good supplement to independent research and development, and opens another way for the company to enrich its product line. Baixiaoan injection, a drug for chronic myeloid leukemia, had sales of $33.6 million in the United States in 2018. Shangjin's joint venture company has so far signed seven products, and Shangjin has the listing license for two products, including Baixiaoan injection.
2019 Shangjin is about to usher in the harvest: in 2018, Shangjin completed the declaration of 12 ANDA, approved 4, these four drugs are expected to start terminal sale in the first half of 2019. As the remaining eight products are approved and the company will continue to declare new products, more products are expected to be approved in 2019 and 2020. 2019 will be the first year that the United States has begun to harvest.
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 from 2018 to 2020, the EPS is 0.22, 0.26, 0.32 yuan, respectively, and the corresponding PE is 26x/21x/18x, respectively, and the "recommended" rating is maintained.
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.