occurrences
The company recently announced that ZHB202 injection, a new drug jointly applied for by the company and its holding subsidiary Zhonghong Biotech, has obtained a clinical trial notice from the State Drug Administration.
Comments:
The company's first-class new drug, ZHB202, obtained clinical approval. ZHB202 injection is an innovative chemical drug developed jointly by Zhonghong Biotech and Qianhong Pharmaceutical over seven years. The clinical indications are acute lymphocytic leukemia (ALL) and NK/T cell lymphoma. ZHB202 is a new generation of PEG-modified aspartamidase. The related core technology has now applied for PCT patents and Chinese invention patents, and has independent intellectual property rights.
The market space for ZHB202 is vast. Acute lymphocytic leukemia (ALL) is a malignant neoplastic disease in which B-line or T-line cells originating from lymphocytes grow abnormally in the bone marrow. Abnormally proliferating primitive cells can gather in the bone marrow and inhibit normal hematopoietic function. At the same time, they can also invade tissues outside the bone marrow. The incidence rate of ALL in China is about 0.67/100,000. Childhood (0 to 9 years old) is the peak incidence. It can account for more than 70% of childhood leukemia, and accounts for about 20% of adult leukemia among adults. The company's ZHB202 market potential is huge.
Innovative drug development has entered a harvest period. The company currently has new drug innovation platforms such as Zhongxiao (macromolecule drug research and development) and InnoShengkang (small molecule drug development). At the same time, it has also established a joint laboratory for research and development of new drugs between China and Australia with the University of South Australia to carry out kinase inhibitor drug research and development. ZHB202 is the company's second new drug to receive clinical approval after the CDK9 inhibitor QHRD107. In addition, the company also has many innovative drugs in the pre-clinical stage, and a rich product line will drive long-term growth in performance.
Profit prediction: The company is accelerating its transformation into an innovative pharmaceutical company and has a rich product lineup under development. It is estimated that the company's EPS in 2019-2021 will be 0.20 yuan, 0.25 yuan, and 0.28 yuan, respectively, and the corresponding PE will be 23x, 19x, and 16x respectively, maintaining the “buy” rating.
Risk warning: New drug development progress falls short of expectations, etc.