Hualing pharmaceutical-b (02552) and Bayer reached strategic cooperation, Goldman Sachs and Lyon agreed to see more

Zhitong finance app learned that after the closing of August 17, Hualing pharmaceutical-b announced the establishment of strategic cooperation with Bayer, and reached a business cooperation agreement on the new diabetes treatment drug dorzagliatin in China, which will give full play to Bayer’s leading advantages in the field of diabetes management in China and the innovation ability of Hualing medicine, so as to provide new treatment options for Chinese diabetic patients. < / P > < p > influenced by the good news, Goldman Sachs and Lyon respectively published research reports to maintain the “buy” rating. According to the terms of the agreement announced by both sides, as the drug marketing license holder, Hualing pharmaceutical will be responsible for clinical development, registration, drug supply and primary distributor distribution; Bayer, as the promotion service provider, will be responsible for the marketing, promotion and medical education activities of the product in China. Hualing will receive a down payment of RMB 300 million and an additional milestone payment of up to RMB 4.18 billion. Bayer company has the right to exclusive commercial promotion of the product in China, and receives service fee according to a certain proportion of the net sales of Hualing. The two sides will share the net sales revenue of the product in China at the initial stage, and adjust the distribution proportion of sales revenue when the sales volume reaches a certain level in the future, so as to form long-term strategic cooperation and establish a win-win drug commercialization mode. In this regard, Goldman Sachs believes that Hualing Pharmaceutical Co., Ltd. and Bayer, a German pharmaceutical giant, are in strategic agreement, and their cooperation will be a “win-win” situation for the two companies. First of all, Bayer is one of the most experienced sales and marketing teams in China in the past 25 years. Its core hypoglycemic drug, Baitangping, is the largest oral hypoglycemic drug in China, and is also the first-line hypoglycemic drug in China. Cooperating with Bayer to sell dorzagliatin will reduce the risk of Hualing’s commercialization. Second, in 2019, the global sales of Baitangping are about RMB 5.1 billion, most of which are from China. However, due to the influence of government procurement with quantity, the price of Baitang Apple has dropped by 91% in early 2020, which also gives Bayer sufficient motivation to invest more resources in the sales of dorzagliatin. < p > < p > CITIC Lyon said that in 2019, Baitangping accounted for 70% of the sales of acarbose drugs in China. In addition to Elia, a drug used to treat diabetic retinopathy, Bayer has established a broad sales coverage network in China. The conclusion of a commercial partnership with Bayer will eliminate the cost of building sales infrastructure for Hualing pharmaceutical, which is undoubtedly good news for the company. In addition, Bayer will pay Hualing a down payment of 300 million yuan. In addition to the sales revenue from net sales, if a milestone breakthrough is achieved, Hualing pharmaceutical will also receive a milestone payment of up to 4.18 billion yuan from Bayer. < p > < p > on August 17, Hualing pharmaceutical released its semi annual performance report. CITIC Lyon believes that the company’s performance in the first half of the year is in line with its expectations, and major phase III pipelines have made progress on schedule, and a number of phase I clinical trials have also been successful. < / P > < p > according to the semi annual performance report of Hualing pharmaceutical, in the first half of the year, the company announced the completion of seed, a phase III registered clinical trial of dorzagliatin monotherapy in patients with type 2 diabetes, which became the first company in the world to successfully realize the clinical development of GKA; The company also announced a phase III clinical trial of combination therapy with metformin in patients who failed to respond to adequate metformin treatment. Dawn reached the main efficacy and safety endpoint of 24 weeks. The company plans to release the 52 week core data of hmm0302 by the end of 2020, and submit NDA application to nmpa after completing two 52 week phase III registered clinical trials. < p > < p > in addition, China collar medicine has also released gratifying results of three phase I clinical trials. The hmm0110 test of dozagliatin combined with sitagliptin and hmm0112 test of combination of dorzagliatin and enggliptin verified the potential synergistic effect and clinical application opportunity of dorzagliatin with DPP-4 inhibitor and sglt-2 inhibitor, respectively. In addition, the company is planning clinical trials of combined treatment with insulin, GLP-1 receptor agonists and other type 2 diabetes drugs. The extensive product portfolio will provide more flexible Medication Schemes for personalized treatment of patients with diabetes at different disease stages, and support the construction of Hualing’s innovative, shared and win-win scientific platform for blood glucose homeostasis. < / P > < p > another phase I clinical trial hmm0110 published by the company at the beginning of the year showed good pharmacokinetic results in patients with end-stage chronic kidney disease, which supports the unique application potential of dorzagliatin in blood glucose regulation of type 2 diabetic patients with different degrees of chronic kidney disease and not receiving dialysis. At present, according to a survey on the prevalence trend of diabetic complications in China published at the annual meeting of ADA in 2019, more than 36% of the patients with type 2 diabetes who participated in the survey had different degrees of diabetic nephropathy. At present, most of the oral antidiabetin drugs are not suitable for patients with renal insufficiency, especially for moderate, severe and end-stage patients. Dorzagliatin is also expected to provide a new treatment option for these patients. < / P > < p > to sum up, no matter in terms of future commercialization process or continuous R & D results, major international banks such as Goldman Sachs and Lyon have all affirmed the investment value of China leading pharmaceutical. It is believed that the achievement of the strategic cooperation with Bayer will once again give positive feedback to the capital market, and push up the stock price continuously. Focus