Liquorjun tablets: Exclusive whitening drug with obvious advantages in curative efficacy and safety, and the expansion of multi-departmental applications has brought new volume. Liquorjun tablets are drugs used to prevent and treat leukocytopenia. They have the characteristics of stability, high safety, and suitable for long-term use. In recent years, the company's sales revenue of Likejun's films has continued to rise, achieving sales revenue of 330 million yuan in the first half of 2023. At present, Li Kejun has achieved sales in thousands of domestic hospitals, basically covering the top three hospitals in China. At the same time, the company is also actively exploring the out-of-hospital market. It has developed more than 400 large and medium-sized pharmacy chains, including 65 of the top 100 chains in the country. Currently, the company is still the only domestic and foreign company that exclusively produces Liquorjun APIs and is the only company capable of producing Liquorjun tablets at home and abroad. In addition, Liquorjun tablets are widely used in various departments such as oncology, endocrinology, psychiatry, infectious diseases, and hematology. In recent years, the company has particularly increased its promotion efforts in oncology departments, and subsequent release of the product can be expected.
Nicenolol: Blood pressure and heart rate meet both standards, clinically exclusive variety, professional sales team is expected to drive high growth. Nicunolol tablets are the country's first compound antihypertensive drug. They are used to treat patients with mild to moderate primary hypertension and mild to moderate hypertension with fast heart rate. The product can reduce heart rate while lowering blood pressure, and has obvious irreplaceable advantages for patients with high blood pressure and fast heart rate. Nicunolol has now been recommended by several clinical guidelines, including the “Practical Guidelines for Comprehensive Management of Cardiovascular Disease at the Primary Level 2020”, and the curative effects of the product have been recognized and recommended by authoritative experts. In 2022, the company set up the Nicenolol Professional Division. Using an expert promotion model, product sales grew rapidly, and achieved sales of 60 million yuan throughout 2022. Considering the increasing number of hypertensive patients in China and the trend in the use of high blood pressure compound formulations, nitunolol is expected to achieve rapid growth in the future as a product that meets both blood pressure and heart rate standards.
R&D investment continues to increase, and the innovation pipeline can be expected in the future. The company's overall R&D expenses showed an upward trend. In 2022, R&D expenses reached 55 million yuan, and the R&D cost rate reached 8.4%. The company has three major R&D platforms: compound formulation research and development technology, deuterated drug research and development technology, and liposomal drug research and development technology. Currently developing new drugs include the new antidepressant JJH201501, the new anti-gastric acid drug JJH201701, and the new anti-tumor drug JJH201601. Among them, the new drug JJH201501 has obvious antidepressant effects. The side effects are significantly lower than those of the first-line clinical drug venlafaxine, and the pharmacokinetics under deuteration technology have improved markedly compared to clinically related medications. Phase IIb clinical trials are currently being carried out. The new drug JJH201601 on the liposome platform has remarkable tumor suppressing effects, has lower toxic side effects, and is better tolerable and safe.
Profit forecasts and investment recommendations. We forecast that in 2023-2025, Gibbel's net profit will be 2.2/27/330 million yuan, respectively, an increase of 39.8%/24.3%/23.6% year-on-year. Considering the broad space for growth after the expansion of multiple departments of licorjun tablets, nicunolol was able to vigorously promote the rapid growth potential and follow-up potential of innovative drugs such as the new antidepressant JJH201501 and the new anti-tumor drug JJH201601, covering the first time, giving the company a “buy” rating.
Risk warning: risk of sales of core products falling short of expectations; risk of product promotion falling short of expectations; risk of R&D progress falling short of expectations