Incident: The company released the 2023 semi-annual performance report. The company achieved operating income of 42 million yuan in the first half of the year, an increase of 107% over the previous year, net profit of -125 million, and -108 million in the same period last year; realized operating income of 225 million in a single quarter, an increase of 156% over the previous year, realized net profit of -69 million, and -57 million for the same period last year. The company's products are in the early stages of expansion and a special period of further increase in R&D investment, so profits are still at the loss stage. Judging from product revenue, the company's performance is in line with expectations.
The core product, contizolid tablets, maintained a rapid dosage trend, driving high revenue growth. In the first half of the year, the company's first commercial product, contizolid tablets, doubled. In addition to excellent clinical data, thanks to the company's multi-party operations, the company established a professional commercialization team, introduced an external CSO cooperation model, and continued to advance the commercialization process through professional academic promotion and medical insurance promotion. According to data from the company's semi-annual report for 2023, as of June 30, 2023, the contizolid commercialization team had 92 people, covered 404 hospitals nationwide, and had officially admitted to more than 110 hospitals and mass procurement. Hospital channel sales accounted for about 66%, pharmacy channel sales accounted for about 34%, and the commercial layout continued to expand.
The research pipeline continues to advance. In the first half of 2023, the company continued to promote the international development process of contizolid. The first global phase III clinical trial of contizolid tablets for injectable MRX-4 sequential oral contizolid tablets to treat diabetic foot infection was launched in China, and additional clinical trial applications were obtained, including the launch of the first drug clinical trial center in the Chinese market, including expanding the application of contizolid tablets to patients with complex skin and soft tissue infections in children, and launching the first drug clinical trial center with contizolid tablets for complex skin and soft tissue infections MRX-4 Phase III clinical trials with soft tissue infections in China. The development of these clinical trials will help expand the number of people who are indicated for contezolamide tablets and the commercialization area. Furthermore, the company's new drug MRX-5 against drug-resistant non-tuberculous mycobacteria has basically completed pre-clinical research, and plans to conduct phase I clinical research in Australia in the second half of 2023.
The commercialization of contezolamide is progressing smoothly, and the research pipeline continues to advance, maintaining a “buy” rating. Based on the company's 2022 annual report and the 2023 semi-annual report, we adjusted the company's profit forecast, raised the profit forecast for 2023 and 2024, and estimated net profit for 2023 and 2024 to be -360 million yuan and -414 million respectively (previously estimated net profit for 2023 and 2024 was -551 million yuan and -443 million yuan respectively). The change in profit forecast was mainly due to changes in the pace of the company's R&D investment. The increase in profit forecast for 2025 was added. Net profit to parent was -312 million.
Deeply cultivate the super antibiotic race track, actively expand global value, and maintain “buy” ratings.
Risk warning: risk of R&D failure or delay in progress, risk of product sales falling short of expectations, risk of continued loss