The third quarter results are in line with our expectations.
The company announced the third quarter results: the income of 3Q is 26.16 million yuan, the income of 1-3Q is 68.27 million yuan, and the net profit of 1-3Q is-244 million yuan. The third quarter results are in line with our expectations.
Trend of development
Sales of Contezolamide grew steadily in the third quarter, and the company's full-year performance is expected to remain unchanged. The sales revenue of 1-3Q23 contezolamide was 1728 yuan, 2483 million yuan, 26.16 million yuan, respectively, and 3Q sales revenue yoy + 80.7% MagneQoQ + 5.4% yoy 1-3Q23 Contezolamide terminal sales of 30535 boxes, sales of 14067 boxes in the same period of 22 years, an increase of 117% year-on-year. 1-3Q23 Contezolamide gross profit margin 81.7%, R & D expenses yoy+ 77%, sales expenses yoy+ 32%, management expenses continued to optimize slightly lower than the same period last year. The company maintains the forecast of annual sales revenue of Contezolamide of 0.8-100 million RMB.
MRX-4 sequential contezolid is actively and orderly promoted in III phase at home and abroad. At present, the III phase study of MRX-4 sequential contezolamide in the treatment of skin and skin structure soft tissue infection is being carried out in China. After the end of phase III clinical, the company will submit the listing application of MRX-4 sequential contezolamide in China. In addition, two phase III clinical studies of MRX-4 Sequential Contezolamide in the treatment of skin and skin soft tissue infections and Diabetic foot infection are actively under way overseas. In June, 23, the company announced that Phase III clinical trials of Sequential Therapy headlinazolid for Diabetic foot infection have been approved in six countries in Europe, Asia and Latin America. In September, 23, the indication of sequential therapy in the treatment of diabetic foot infection was qualified by FDA fast track in the United States. We expect MRX-4 to be the company's second approved product.
In the early stage, the pipeline actively carried out product layout around the anti-infection field. MRX-5 is a new benzoborazole antibiotic used to treat infections caused by non-tuberculosis mycobacteria (NTM). In October 23, the company announced that it would launch a Phase I clinical trial in Australia, which the company expects to complete in 24 years. In addition, the company is actively exploring the potential of combined use of multiple products in the pipeline. The company's product pipeline takes the drug pipeline in the field of anti-infection as the core, and actively expands to the fields of inflammation treatment, cancer and so on. We believe that we can focus on the further clinical layout of early products.
Profit forecast and valuation
We keep the 24-year revenue forecast 103 million RMB unchanged and the 24-year return net profit forecast-388 pm 418 million RMB. We use the DCF valuation method to maintain the outperform industry rating and keep the target price unchanged at RMB11.0, which has 60.6% upside compared with the current stock price.
Risk
The launch of new products, clinical trial data and sales were lower than expected; competition intensified.