Recently, we participated in the 2023 R & D Open Day of Peijia. The highlights of this event include: 1) the first disclosure of the interventional device incubator platform "Suzhou Sisi"; 2) a clear understanding of Peijia's future globalization strategy; 3) updating the highlights and R & D progress of potential valve products such as Trilogy and TaurusNXT; and 4) introducing important nerve intervention products such as Fastunnel. This R & D day shows Peijia's relatively complete layout of valve and nerve intervention products, and many potential new products in the pipeline are clinically promoted in an orderly manner. in the future, the incubation platform led by Peijia can be laid out in advance in the early stage of innovative projects. deepen the depth of the company's pipeline and broaden the boundaries of the company's capabilities. We continue to give the company a "buy" rating, maintaining our target price of HK $14.0.
The interventional device incubation platform led by Peijia was disclosed for the first time: the Suzhou Institute of Interventional Medical Technology was established under the leadership of Peijia, etc., as an incubation platform to provide project management, operation, talent and R & D support for early intervention projects. at present, it mainly focuses on four types of projects: neural intervention, structural heart disease, non-vascular intervention and electrophysiology. With reference to the development experience of international leaders such as Medtronic PLC, the advantages are established through self-development of core products in the early stage, followed by mergers and acquisitions and investment to expand pipelines, and Peijia can participate in product development at the early stage of the project through the incubation platform. maximize capital investment efficiency and broaden capacity boundaries.
Clear Peijia future globalization strategy: including four steps: 1) the introduction of innovative products; 2) self-developed products overseas clinical; 3) overseas authorization; 4) independent overseas sales. Emphasize innovation to avoid patent monopoly in European and American markets, and make up for the lack of overseas commercialization ability through cooperation with MNCs.
At present, the recognition of Chinese valve products in European and American markets is not high, and it is necessary to improve the recognition of Chinese valve products through excellent clinical data. For the third world market, at present, the market is not as attractive as the Chinese market, the local professionals are scarce and the profit space is limited, and the Chinese market has higher priority.
Intervention of the heart valve: the company introduced a number of bright spots of products under research, according to our on-site observation, in addition to TaurusNXT, Trilogy, GeminiOne, HighLife and other traditional products that people pay more attention to, many investors also have a high interest in TaurusWave, which uses shock wave to release heart valve calcification, the thermal damage of shock wave is lower than ultrasound, and mainly has an impact on hard tissue, less impact on soft tissue. Compared with Shockwave, TaurusWave design principle is based on extracorporeal shock wave lithotripsy (ESWL), specially designed for the treatment of valve calcification, with higher energy output (3KV-10KV). According to FIH clinical data, the pressure gradient (pressure gradient) of patients treated with TaurusWave and Shockwave decreased by 39% and 28%, respectively. At present, TaurusWave is in the FIH stage, and the clinical II phase of FIH is expected to begin in 1H24.
Nerve intervention: the company focuses on Fastunnel, the world's first product with a "microcatheter + dilated balloon" integrated design, which can reduce the four instrument exchanges (a total of 8 steps) for traditional surgery to 3 steps, reduce the operation time from more than 1 hour to 25 minutes, and reduce the risk of complications, contrast agent use and radiation exposure. In addition, the company's first thrombectomy stent Syphonet has a head-end capture net basket to enhance thrombus capture and prevent thrombus escape, and the full range of 0.017in microcatheters is compatible with the new intracranial atherosclerotic stenosis-related macrovascular occlusion (ICAS-LVO) treatment technology BASIS (balloon angioplasty under the protection of distal thrombectomy stents).
Investment risk: Taurus Elite sales are not as expected; R & D progress is delayed; competition intensifies.