Event: The company released its 2023 annual report, with revenue of 6.61 billion yuan (+4.5%) and net profit of 710 million yuan (-23.2%) in 2023.
The share of innovative drugs continues to rise, and revenue in the field of oncology and immunity continues to rise. In 2023, the company's innovative drug revenue was 4.76 billion yuan (+15.2%), accounting for 72% of total revenue. Among them, revenue from the neurological sector was 1.97 billion yuan (-13.1%), accounting for 29.8% of total revenue; revenue from the oncology sector was 1.48 billion yuan (+10.2%), accounting for 23.9% of total revenue; revenue from the self-insurance sector was 1.42 billion yuan (+10.5%), accounting for 21.4% of total revenue; and revenue from other fields was about 1.65 billion yuan (+22.3%), accounting for 24.9% of total revenue.
The clinical progress of innovative pharmaceutical products is progressing smoothly, and the long-term growth momentum is strong. The company has already commercialized six innovative pharmaceutical products. Xianbixin sublingual tablets were accepted by the NMPA by the NDA in June 2023. In the future, they are expected to meet clinical needs in the field of first-time administration and out-of-hospital administration after the onset of stroke. Enritol (CMAB009) colorectal cancer is expected to be approved for marketing in 2024H2. A marketing application was submitted to the NMPA in March 2024 for the use of survicitamab in combination with chemotherapy for recurrent ovarian cancer, fallopian tube cancer, or primary peritoneal cancer that failed to be treated with platinum-containing chemotherapy and was accepted. ADC189 is expected to submit an NDA in 2024.
The innovative R&D pipeline was promoted efficiently, and Ledeqibizumab was introduced. Xianbixin's cerebral hemorrhage indications were conducted by the NMPA for phase II clinical trials, and more than 80 subjects were enrolled; all patients were enrolled in the Dali-Leixen phase III clinical study in March 2024, and it is expected that the NDA will be submitted by 2024H2; in 2023, the company and Conrad signed an exclusive license and cooperation agreement for lecibizumab, and obtained the exclusive right to develop, produce and commercialize all indications of lecibizumab in Greater China.
Profit forecast and investment advice: Xiansheng Pharmaceutical has strong R&D and commercialization capabilities, and is about to enter a period of intensive product implementation. We expect the company's revenue for 2024-2026 to be 75.6, 86, and 9.78 billion yuan, respectively, maintaining a “buy” rating.
Risk warning: R&D progress falls short of expectations, commercialization of core varieties falls short of expectations, policy risks.