Financial News Agency, December 8 (Reporter He Fan) Recently, there has been a high incidence of respiratory diseases in China. Sales of azithromycin, cough and expectorant drugs, detoxification and analgesics, and anti-influenza drugs have been prominent since November this year, with significant year-on-year increases.

At the performance conference held today, Lu Kang Pharmaceutical (600789.SH) drugs to treat mycoplasma infections, influenza, and respiratory products became the most important concerns of investors. According to Peng Xin, chairman of the company, the company's drug production and sales in these fields are currently booming. However, in response to the Finance Association reporter's question about improving the company's sales performance, there was no response until the end of the performance conference was announced. Furthermore, although the company has more than 20 cardiovascular and hypoglycemic products currently being developed, there are no plans to produce diet drugs, nor are there any specific drugs for avian influenza or swine influenza.

Recently, various respiratory infectious diseases such as influenza, mycoplasma pneumonia, and respiratory syncytial virus have been raging, and there is no shortage of topics such as outpatient clinics becoming popular.

Meanwhile, Lu Kang Pharmaceutical, whose product layout involves systemic anti-infectives, antiviral drugs, respiratory drugs, and semisynthetic antibiotic APIs, etc., is also very popular in the capital market. On November 24, the company's stock price hit a standstill.

During the performance conference, Peng Xin explained that azithromycin tablets produced by the company's subsidiary Lukangsaite can be used to treat mycoplasma infections, while the amicafangmin capsules and analgin produced by Lukang Qinghai Dadi Pharmaceutical Co., Ltd., a subsidiary of the company, can be used to treat influenza. Respiratory products mainly include lung moisturizing and cough relief capsules, ginseng and asthma relief capsules, cetriaxone tablets, oxtail oil capsules, and rhododendron oil capsules. Currently, production and sales of the products mentioned above are booming.

However, the company did not respond to the Financial Services Association reporter's question about whether the above products can significantly improve the company's performance.

In terms of antibiotic production capacity, Peng Xin told the Finance Association reporter that the company's antibiotic products mainly include human antibiotics, semi-synthetic antibiotics, animal health antibiotics, biopharmaceuticals, and related preparations. The products cover more than 500 product regulations, which can better meet market sales needs.

In addition, investors are also very concerned about whether Lukang Pharmaceutical, which has already been deeply involved in hypoglycemic drugs, will deploy diet pills.

According to reports, GLP-1 drugs, which have been popular recently, were originally used to treat type 2 diabetes, but studies have found that by stimulating insulin production and inhibiting glucagon secretion, these drugs can reduce gastric emptying and intestinal peristalsis, reduce appetite and food intake, and are quite effective in losing weight. The exploration logic of simetaglutide drugs is to use hypoglycemic as the core pharmacology to expand the exploration of indications in other fields.

Due to the vast space in the weight loss market, A-share diet drug concept stocks are booming. In July of this year, East China Pharmaceutical (000963.SZ)'s liraglutide biosimilar and Renhui Biotech's innovative drug benalutide, two domestic GLP-1 drugs, were approved for marketing for weight loss indications. In addition, many companies such as Hengrui Pharmaceutical (600276.SH) and Borui Pharmaceutical (688166.SH) have also arranged research on GLP-1 drugs.

Lu Kang Pharmaceutical mentioned in the 2022 report that the company is producing and developing 15 cardiovascular and hypoglycemic products. Meanwhile, during the performance meeting, Peng Xin updated this data to more than 20, an increase compared to the beginning of the year. But he told the Finance Association: “Currently, the company has no plans to produce diet medicine products.”

Second, veterinary drugs and pesticides have also received attention from investors as important business segments of the company. In the 2022 report, the company's veterinary drug antibiotic revenue reached 2.3 billion yuan, with a gross margin of 15.66%.

At the performance meeting, investors mentioned that the recent rapid spread of swine influenza at home and abroad has caused huge losses to farmers. Peng Xin later stated that the company currently has no specific drugs to treat swine influenza or bird flu drugs.