Figure Worm Creative / Courtesy Zhou Jingyu / Drawing
Securities Times reporter Sun Xianchao
Affected by the news that the company’s growth hormone products were included in Guangdong Province’s centralized drug procurement, on January 19, Changchun High-tech (000661), known as the “Northeast Herbal Medicine”, suddenly experienced a limit-down trend, and its market value evaporated by 10 billion yuan in one day. The market value fell below 100 billion yuan. As of the close, Changchun High-tech reported at 227.6 yuan, down 25.29 yuan, or 10%.
Growth hormone is included in Guangdong centralized collection
On January 19, Changchun High-tech opened slightly lower at 251.89 yuan, and then the stock price oscillated slightly below the closing price of the previous trading day. Around 10:40, Changchun Hi-Tech’s stock price began to dive, and hit the daily limit at 11:05. After that until the close of the day.
Changchun Hi-Tech suddenly fell to the limit, and many investors were looking for the reason, and finally blamed it on the news that the company’s growth hormone products had been included in the Guangdong Provincial Drug Collection.
Changchun Hi-Tech’s main business is the research and development, production and sales of biopharmaceuticals and proprietary Chinese medicines, supplemented by real estate development, property management and services. After years of industrial layout and R&D investment, the company’s pharmaceutical products cover a number of pharmaceutical segments such as innovative genetically engineered pharmaceuticals, new vaccines, and modern Chinese medicine, which are the main source of the company’s performance. Jinsai Pharmaceutical, a subsidiary of Changchun Hi-Tech, has always been regarded as the profit cow of a listed company. The reason why Changchun Hi-Tech has maintained stable and rapid growth in recent years is largely due to the contribution of Jinsai Pharmaceutical. .
According to the company’s investigation, Jinsai Pharmaceutical integrates independent research and development, production, marketing and service. It is the largest genetically engineered pharmaceutical company in China and the largest recombinant human growth hormone manufacturer in Asia. Special project – the only incubator base for new genetically engineered drugs in China, and also the first “Demonstration Center for Quality Management of Genetically Engineered Drugs” in China. Since 2005, the company’s profit level has been in the lead among all genetically engineered pharmaceutical companies in the country for six consecutive years.
On January 19, the website of the Guangdong Provincial Pharmaceutical Exchange Center announced the relevant centralized procurement documents, and the relevant documents covered the growth hormone products of Changchun High-tech. A reporter from Securities Times·e Company checked the Schedule 3 “Detailed Table of Reported Volume of Public Medical Institutions in 276 Drug Alliance Areas” in the “Guangdong Alliance Diclofenac and Other Drugs Concentrated Procurement Documents” and entered Jinsai Pharmaceuticals, and found a total of 36 a result. For example, recombinant human growth hormone for injection (dosage form: sterile powder for injection specification: 10IU), recombinant human growth hormone injection (dosage form: small volume injection specification: 4.5IU/1.5mg/0.9ml), recombinant human growth hormone Injection (dosage form: small volume injection specification: 30IU/10mg/3ml), etc.
Actively researching policy
On January 19, on the Shenzhen Stock Exchange Interactive Exchange, many investors asked Changchun Hi-Tech to evaluate the impact of the inclusion of growth hormone in Guangdong Province’s centralized procurement on the company’s operations. In this regard, Changchun Hi-Tech replied that the company is currently actively researching policy regulations and will formulate a reasonable plan, and currently has no expectations for the impact on operations.
In fact, the outside world has been paying more attention to whether Changchun Hi-Tech’s growth hormone products will be included in centralized procurement. On August 16 last year, Changchun Hi-Tech Board Secretary Zhang Deshen mentioned this topic in a micro-interview with Securities Times·e Company. Judging from the current situation, the company does not expect growth hormone products to enter the national centralized procurement in the short term. Only a few provinces plan to conduct centralized procurement, which has relatively little impact. Assuming the implementation of the centralized procurement policy and the decline in product prices, the company will strive to ensure the company’s performance by increasing the number of users.
In September of the same year, Changchun Hi-Tech also stated on the interactive platform that recombinant human growth hormone has always been a category B medical insurance, limited to children with primary growth hormone deficiency, and currently no centralized procurement policy has been implemented.
On January 19, Shi Lichen, a domestic pharmaceutical strategic marketing expert, told a reporter from Securities Times·e Company that there are multiple recombinant human growth hormones in the “Guangdong Alliance Diclofenac and Other Drugs Concentrated Procurement Documents”, which may lead to restructuring in the medical institution market. Human growth hormone has a certain price competition. However, since the main market for recombinant human growth hormone injection is not medical institutions, especially not public medical institutions, the possible result is that recombinant human growth hormone injection manufacturers that do not take medical institutions as their main market will carefully consider whether to enter the alliance. If it is purchased, the declared price of entry will also be carefully considered. It is predicted that the price of recombinant human growth hormone will decrease to a certain extent, but it may not exceed 40%.