Cooperation between two famous pharmaceutical enterprises terminated

September 9 -- September 7, HISCO Pharmaceutical Group Co., Ltd. announced that Sichuan haisike Pharmaceutical Co., Ltd., a wholly-owned subsidiary, signed a "patent licensing agreement and related agreements termination agreement" (hereinafter referred to as "transaction agreement") with Chengdu Haichuang Pharmaceutical Co., Ltd. (hereinafter referred to as "Haichuang pharmaceutical") on September 4, 2020.

Through friendly negotiation between the two parties, Sichuan HISCO has granted hc-1119 and various pharmaceutical preparations with it as active ingredient and patented methods (hereinafter referred to as "hc-1119") The patent products), the joint ownership of new technical achievements and supporting property rights generated by the patented products in China, as well as the application for drug registration certificate and new drug certificate for clinical trials, involved drugs, and so on All rights such as R & D right, production right, sales right, commercialization right, trademark (common name) and other intellectual property rights are transferred to Haichuang Pharmaceutical Co., Ltd. the total consideration for the transfer is RMB 260 million, which will be paid in three phases. According to the signed transaction agreement, the company is expected to receive 110 million RMB yuan in the first and second phases in 2020.

According to the preliminary calculation, the company is expected to obtain a total income of about 17.46 million yuan and a contingent income of 150 million yuan, which can only be confirmed when the payment conditions are reached in the third phase of the agreement. What kind of medicine and what is the future? This cooperation can be traced back to four years ago. On October 24, 2016, Sichuan HISCO signed the capital increase agreement of Chengdu Haichuang Pharmaceutical Co., Ltd. and patent implementation license agreement in Chengdu Haichuang Pharmaceutical Co., Ltd. According to the relevant agreements, Sichuan HISCO plans to use the company's own funds of RMB 33.454 million for equity investment in the enterprise. According to the patent implementation license agreement, Sichuan HISCO will obtain the exclusive patent license in China of hc-1119, a prostate cancer drug developed by Haichuang pharmaceutical, and its active ingredients. It is understood that hc-1119 is a prostate cancer drug independently developed by Haichuang Pharmaceutical Co., Ltd. It is an androgen receptor antagonist.

It can bind to androgen receptor in target tissue, block the binding of dihydrotestosterone and androgen receptor, inhibit the uptake of testosterone in target tissue, thus playing the role of anti androgen and inhibiting the growth of prostate cancer cells. According to the 2019 annual report of HISCO, up to now, the company has 7 innovative drug products. Among them, China phase III clinical trial of prostate cancer drug (hc-1119) continues to be promoted, and it is expected to apply for production in 2020. After the termination of the cooperation, HISCO transferred all subsequent rights such as the exclusive implementation license of the drug to Haichuang pharmaceutical with a price of 260 million yuan. How much impact will it have? According to public data, prostate cancer is the second most common cancer type among men in the world. About 1 / 9 men will be diagnosed with prostate cancer in their lifetime. In 2018, there are about 1.3 million newly diagnosed patients worldwide. It is estimated that 17465 patients will be diagnosed with prostate cancer in the United States in 2019. In China, prostate cancer is the most common urogenital cancer in men, with an incidence rate of 9.8/10 million. According to drug delivery data, enzalutamide, a similar drug of hc-1119, is a representative first-line treatment drug for metastatic CRPC. It has been listed in China in 2019. In 2018, the global sales volume of the drug was 3.624 billion US dollars. Prior to this, in addition to enzalutamide, J & J's abiolone acetate was also a best-selling drug in the field of prostate treatment. Since its launch in 2011, it has been dominating the market. In 2017, the global sales volume was $2.51 billion.

Thanks to the outbreak of the European market in 2018, the global sales reached a peak of US $3.5 billion. However, it is worth noting that abiolone has been included in the second batch of national collection in January 2020, and the price of Zhengda Tianqing abiolone acetate tablets (trade name: qingkeshu) has dropped by 77%. Under the strong attack of abitelon and enzalutamide, it is still unknown how much market hc-1119 will gain after it is listed in the future. With rich R & D pipelines, HISCO Pharmaceutical Group Co., Ltd. is a diversified and specialized pharmaceutical group listed company integrating new drug R & D, manufacturing, sales and other businesses. According to its 2019 annual report, during the reporting period, the company achieved operating revenue of 3.93 billion yuan, a year-on-year increase of 14.90%, and a net profit of 490 million yuan, with a year-on-year increase of 48.21%. The main reason is that the rapid growth of therapeutic products and the initial effect of business model transformation have made the company's operating revenue and net profit increase. Most of the company's existing main products are the first or exclusive imitation in China, and there are 36 sales varieties.

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The products are sold in the domestic market, mainly including polyene phosphatidylcholine injection, fat soluble vitamin series for injection, dorasetron mesylate injection, nalmefene hydrochloride injection, Flupentixol melitracen tablets, Cefoperazone sodium and Tazobactam sodium for injection, etc., involving liver disease, parenteral nutrition, depression, Antibiotics and other fields. According to the research and development progress of innovative drugs of HISCO, by the end of 2019, the company has 7 innovative drug products, mainly: hsk-3486 for anesthesia and sedation has been submitted for marketing, and it is expected to be approved in 2020; hc-1119 in prostate cancer has entered stage III clinical; hsk-7653 in long-term diabetes has started clinical stage II; hsk-16149 in diabetic peripheral neuralgia; and Hsk-21542 and ftp-198 of Zhou Zhentong have begun clinical stage I. The company has 68 research and development project items, including 55 generic drugs, 7 innovative drugs, 5 formula foods for special medical purposes, and 1 medical device; it mainly involves 4 treatment fields, including 29 digestive tract and metabolism, 7 nervous system, 6 respiratory system, 9 cardiovascular and cerebrovascular system and 17 other fields; 4 approval documents have been obtained, including 1 clinical approval document and 2 production approval document, which are consistent Sexual evaluation 1. During the reporting period, there were 2 new clinical application projects, 7 new marketing application projects (including 1 API and 6 preparations) and 7 new conformance evaluation application projects.

HISCO said that the company continued to maintain a high R & D investment of 526 million yuan, accounting for 13.35% of the operating revenue, of which the capitalized amount was 314 million yuan, accounting for 59.72% of the R & D investment. In the future, the company will continue to increase the investment in R & D projects, especially in the research and development of innovative drugs. To some extent, HISCO's R & D pipeline is very perfect, and it still maintains high R & D investment. Therefore, the impact of termination of cooperation of a drug will continue to be weakened. In the future, cypress blue will continue to pay attention to how HISCO adjusts its own pipeline and how to adjust its future R & D strategy.