Entering The 100 Billion Market, Sinopharm Holding Officially Announced The Heavy Cooperation Object

Two well-known pharmaceutical companies have reached a cooperation in the covid-19 drug

Today (March 30), Sinopharm Holding announced that it has reached a strategic cooperation with Tengsheng Boyao to jointly promote the commercialization of the long-acting COVID-19 neutralizing antibody Ambavirumab/Romisevirumab combination therapy in China, including drugs Reserve, channel distribution, regional access, and other innovative business cooperation.

Tengsheng Boyao stated that it has reached a strategic cooperation with Sinopharm Holding, which can rapidly expand the availability of the combination therapy of Ambavirumab/Romisevirumab by virtue of Sinopharm Holding's perfect network layout and strong channel management capabilities.

Sinopharm Holding is in a leading position in my country's pharmaceutical wholesale and retail markets, with more than 1,000 branches and subsidiaries, a distribution network covering 388 prefecture-level cities in 31 provinces across the country, and a professional marketing team and services, realizing urban and rural areas across the country. Full coverage of pharmaceutical logistics.

On March 21, Sinopharm Holding released its 2021 results, achieving business income of 521.051 billion yuan, a year-on-year increase of 14.16%, and a continuous increase in growth compared with 2020; net profit attributable to the parent reached 7.759 billion yuan, a year-on-year increase of 7.95%.

As of the end of 2021, Sinopharm Holding has achieved a revenue of 389.955 billion yuan in drug distribution business, a year-on-year increase of 11.96%, and the terminal network in various provinces (autonomous regions and municipalities) covers more than 500,000.

Ambavirumab/romisevirumab combination therapy for adults and adolescents (12-17 years, weight ≥40 kg) with mild and uncommon forms with high risk factors for progression to severe disease (including hospitalization or death) ) patients with novel coronavirus infection (COVID-19). Among them, adolescents (12-17 years old, weight ≥40 kg) are eligible for conditional approval.

The drug is the first self-developed anti-coronavirus antibody drug in my country. It was jointly developed by Tengsheng Biopharmaceuticals, Shenzhen Third People's Hospital and Tsinghua University. On December 8, 2021, the combination therapy of ambavirumab/romisevirumab was approved by the State Food and Drug Administration.

It is worth noting that the ninth edition of the diagnosis and treatment plan includes two specific anti-new coronavirus drugs, among which ambavirumab/romisevirumab injection is included.

Through this cooperation, Sinopharm Holding is expected to further drive the further growth of the distribution business, and Tengsheng Boyao can quickly realize the market availability of the combination therapy of Ambavirumab/Romisevirumab by virtue of the powerful distribution channels of Sinopharm Holding.

covid-19 drug market competition strikes

Tengsheng Bo Yao said that since March 22, many provincial and municipal medical insurance bureaus have successively included the combination therapy of ambavirumab/romisevirumab into the payment scope of local medical insurance funds, including Hunan, Beijing, Shanghai, Zhejiang, Jiangsu, Sichuan, Shanxi, Guizhou, Liaoning and Anhui, and other provinces are expected to include the drug in the payment scope of local medical insurance funds.

As of March 29, Tengsheng Huachuang has received purchase intentions and reserve needs from nearly 20 provincial and municipal health and health commissions and other anti-epidemic institutions or departments, and more than 100 hospitals and commercial companies.

It can be seen that if the combination therapy of ambavirumab/romisevirumab successfully enters the payment scope of provincial medical insurance funds in the future, it is expected to achieve further increase in volume.

In Tengsheng Bo Yao's 2021 annual report, it did not present the income data of new crown special drugs and other drugs, but only disclosed other income of 99 million yuan, of which government subsidies were 92.54 million yuan.

At present, Tengsheng Biopharmaceuticals has established more than 10 innovative candidate product pipelines, with the fastest R&D progress in the field of new coronary pneumonia and hepatitis B treatment.

In the ninth batch of diagnosis and treatment plans, in addition to the inclusion of Ambavirumab/Romisevirumab injection, there is also a specific anti-new coronavirus drug which is Pfizer's new crown oral drug Paxlovid (Nematevir Tablets/Liquid) tonavir tablets).

According to Jingshi News, the combination packaging of Pfizer's new crown oral drug naimatevir tablet/ritonavir tablet is currently put into use in Zhejiang, the price is 2300 yuan/box, and it is included in the medical insurance.

On March 9, Sinopharm and Pfizer jointly announced that they had signed an agreement on the combination packaging of nematicavir tablets/ritonavir tablets. Sinopharm will be responsible for the commercial operation of Pfizer's new coronavirus treatment drug nematicavir tablets/ritonavir tablets in the Chinese mainland market during the agreement period.

On March 17th, the first batch of 21,200 boxes of nematicavir tablets/ritonavir tablets officially entered China. At present, Jilin, Shanghai, etc. have announced that it will be used in the first-line clinical practice.

On March 21, the National Medical Insurance Administration issued the "Notice on Effectively Doing a Good Job in the Current Epidemic Prevention and Control Medical Insurance", proposing that the new crown treatment drugs included in the medical insurance payment should be adjusted in a timely manner. The medical institution shall purchase according to the price agreed by the enterprise and the relevant departments, and the medical insurance department shall make the payment according to the regulations.

According to Pfizer’s 2021 annual report, nematicavir tablets/ritonavir tablets received US$76 million in revenue within 1 week after obtaining emergency use authorization from the U.S. Food and Drug Administration on December 23, 2021.

Southwest Securities estimates that the global market for oral new crown drugs is billions to tens of billions of US dollars, equivalent to nearly 100 billion yuan. At the same time, Huachuang Securities believes that the market in developed countries in Europe and the United States is expected to be at the level of 30 billion US dollars, and domestic new crown oral drugs will be produced every year in the future The (reserve) demand is expected to reach the level of 100 million servings.

The new crown oral drug has become another super outlet, and domestic manufacturers of raw materials and intermediates related to the new crown oral drug may become the object of market attention.

As the combination therapy of ambavirumab/romisevirumab enters the market one after another, the new crown oral drug market of 100 billion may usher in new changes.