Incident: On January 12, 2024, Junshi Biotech announced that Mr. NING Li (Li Ning) and Ms. Zou Jianjun have taken up their new positions. Following the qualification review by the nomination committee of the third board of directors of the company, the board of directors of the company elected Mr. NING LI (Li Ning) as the vice chairman of the third board of directors of the company and the chairman of Tuopuailai Biotechnology Co., Ltd., a wholly-owned subsidiary of the company, to be responsible for the company's overseas business. The board of directors of the company agreed to appoint Ms. Zou Jianjun as the company's general manager and CEO to preside over the overall work of the company.
Comment:
1) Mr. Li Ning and Ms. Zou Jianjun achieved outstanding results before taking up their new jobs: they achieved a milestone with rich FDA reviews and clinical experience - the first domestically produced PD1 monoclonal antibody, Trepri, was successfully launched in the US and established a global commercialization network. Mr. Li Ning joined Junshi in January 2018. He worked for the US FDA and has 12 years of review experience. Dr. Zou Jianjun joined Junshi in April 2022. I worked as an oncologist at a grade 3 A hospital for 10 years, then worked successively as the head of Bayer's Chinese oncology treatment team and the director of global medical affairs at Xofigo. In 2015, he joined Hengrui as Deputy General Manager and Chief Medical Officer, responsible for the clinical development of innovative drugs around the world.
During their tenure, the two leaders jointly achieved a major milestone: the first domestically produced PD-1 monoclonal antibody, Trepril, was approved in the US. In addition, Tripley's listing applications have been accepted in Australia, Europe, and the UK, and it is expected to be listed in 2024-2025.
2) Since Dr. Zou Jianjun joined the company, he has comprehensively promoted the clinical progress and marketing pace of the product.
Up to now, treipril has been approved for 7 domestic indications, and 6 are included in medical insurance. It is expected that 3 new indications will be approved for marketing and health insurance in 2024; BTLA monoclonal antibodies help Trepri enter advanced clinical trials to treat various tumors; other anti-tumor products such as Claudin18.2-ADC and PI3K-α small molecule inhibitors have also read good data; in the field of chronic diseases, marketing applications for PCSK9 inhibitor angorizumab have been accepted; siRNA targeting ANGPTL3 to treat hyperlipidemia The product is currently in phase 1 clinical phase; treatment of moderate to severe psoriasis with IL-17A inhibitors has also entered phase 3 clinical trials.
3) After upgrading, the world-class team built by the company will further adhere to the belief of “gentleman pragmatism” and promote overall business progress: it will further stabilize Tripley's global commercialization network, promote the release of large domestic indications, promote clinical progress in pipeline products in the field of oncology and chronic diseases, empower joint ventures, develop truly innovative target molecular drugs, and solve unmet clinical needs.
Profit forecast: We expect the company's 2023-2025 revenue to be 15.00, 25.00, and 4.250 billion yuan, respectively, with year-on-year growth rates of 3.20%, 66.67%, and 70.00%, respectively, and net profit to mother of -18.97, -7.59 billion yuan, and -046 billion yuan, respectively. The year-on-year growth rates are 20.56%, 59.97%, and 93.99%, respectively, corresponding to the current stock price PE of -19.72, -49.25, and -820.19 times, respectively, maintaining the “Highly Recommended” rating.
Risk warning: risk of clinical failure, risk of increased competition, risk of product sales falling short of expectations, policy risk.