Incident: The company released its 2023 annual report. The company achieved revenue of 90.78 million yuan (+88.3%) and net profit to mother of -420 million yuan.
Contezolamide revenue is growing rapidly. The rapid annual revenue growth rate is mainly due to continued release of contizolamide. The company continues to promote the admission and sale of contizolamide, and sales for the whole year are in line with previous expectations. The gross profit margin for the whole year was 81.6%, -0.1 pp year on year, and gross margin remained stable. On the cost side, in 2023, the company's R&D expenses were 96.1 million yuan, sales expenses were 340 million yuan, and management expenses were 61.17 million yuan. By the end of 2023, the company's monetary capital and transactional financial assets totaled 950 million yuan.
Continue to promote clinical development in the research pipeline. (1) Drug clinical trials extending contizolamide tablets to children with complex skin and soft tissue infections began in April 2023; (2) the first domestic phase III clinical trial center for the sequential treatment of diabetic foot infections with MRX-4 injectable tablets was launched in July 2023; (3) the Chinese phase III clinical trial of injectable MRX-4 targeting complex skin and soft tissue infections was initiated in September 2023; (4) The US FDA awarded contizolamide tablets and MRX-MR4 in September 2023 Qualified infectious disease products (QIDP) and Fast Track (Fast Track) qualification for treating moderate to severe diabetic foot infections without osteomyelitis indications; (5) Australian phase I clinical trial of MRX-5 commenced in November 2023; (6) China's National Drug Administration (NMPA) approved the issuance of a “Drug Clinical Trial Approval Notice” on contizolamide tablets and MRX-4 sequential treatment of drug-resistant Gram positive bacterial infections in November 2023; (7) The MRX-8 project in 2023 In November, enrollment in phase I clinical trials in China was completed.
Profit forecasting and investment advice. EPS is expected to be -0.90 yuan, -0.60 yuan, and -0.76 yuan respectively in 2024-2026. Considering the outstanding clinical value of contezolamide and its potential to go overseas, it maintains a “buy” rating.
Risk warning: risk of falling product prices, risk of new product marketization progress and sales falling short of expectations, risk of market competition.