Event: on September 17, the company held a signing ceremony with Jianyou shares on the strategic cooperation of three kinds of insulin injection in the US market, namely, Glargine, Mendong and Laipur.
Cooperate with Jianyou's strategy to enter the American insulin market. According to the agreement, Tonghua Dongbao and Jianyou will jointly carry out the development and production of the above three insulin cooperative products in accordance with the US FDA drug registration requirements, and Jianyou will obtain exclusive commercial rights in the US market after the products are listed.
There is a vast market for insulin in the United States, with the annual cost of diabetes-related treatment reaching about $379.5 billion. According to IDF (International Diabetes Federation) 2021 data, the number of adults with diabetes in the United States between the ages of 20 and 79 is about 32.2 million, ranking fourth in the world, with a diabetes prevalence rate of 10.7%. In the same year, the cost of diabetes-related treatment in the United States reached about US $379.5 billion, the highest in the world.
Insulin raw materials have been exported to Poland, Georgia, Bangladesh and other European countries as well as neighboring Asian countries. While laying out and developing the international market of insulin products through multiple channels, the company actively seeks overseas partners with local advantages. At present, it has established varying degrees of business relations with enterprises in Eastern Europe, Southeast Asia, West Asia, Central Asia, the Middle East, Africa, South America and Central America, which has injected strong momentum into the follow-up international production and overseas commercialization.
Continue to accelerate the process of internationalization and steadily promote the overseas registration of various products. The company insulin glargine has carried out the preparation and application of registration materials in a number of developing countries, and has completed the preliminary preparations for the registration application of insulin in developing countries. In addition, the company's application for listing permission for insulin injection has been formally accepted by the European Drug Administration; in terms of Lilaluptide injection, the company will work with Sinopec Pharmaceuticals to explore 17 overseas emerging markets.
Profit forecast and investment advice: the company is a leading enterprise of domestic insulin, the collection disturbance is basically cleared, the new products are listed one after another, and the internationalization strategy is also advancing steadily. We expect the company's revenue to grow at a compound rate of 14.3% over the next three years, maintaining a "buy" rating.
Risk hints: industry policy risk, R & D less than expected risk, product commercialization less than expected risk and so on.