CCHT(SZ:000661) Sou Hu Cai Jing·2025-07-11 23:53Core Viewpoint - Changchun High-tech, once known as "Northeast Medicine King," has faced a significant decline, with its market value evaporating by 160 billion yuan and stock prices plummeting by 84%. However, the approval of a new gout drug, "Jinbeixin," and plans for a Hong Kong IPO have sparked hopes for a turnaround [1][3]. Group 1: R&D and IPO Strategy - Over the past three years, Changchun High-tech has invested more than 6 billion yuan in R&D, with the R&D expense ratio soaring to nearly 20% in 2024. The company has increased its workforce by 2,518 employees, primarily in R&D and self-immune drug promotion [3]. - The company announced the preparation for an H-share listing on July 1, aiming to open up overseas financing channels to alleviate the financial pressure from its 6 billion yuan R&D "black hole" [3]. - Despite the low liquidity in the Hong Kong market, the policy allowing unprofitable innovative drug companies to list provides a lifeline for Changchun High-tech [3]. Group 2: New Drug Approval and Market Challenges - The National Medical Products Administration approved the new drug "Jinbeixin" for acute gouty arthritis, offering new hope for Changchun High-tech. Clinical data shows that it can significantly reduce pain and recurrence risk for patients [6]. - However, the market path for Jinbeixin is fraught with challenges, including competition from domestic rivals and pricing pressures. The expected price of Jinbeixin is 2,000 yuan per injection, which may deter patients if it is not included in medical insurance [7]. Group 3: Diversification Attempts and Lessons Learned - Jinbeixin is not the first attempt at diversification for Changchun High-tech. The company's shingles vaccine, launched in 2022, initially showed promise but saw a revenue drop from 1.82 billion yuan in 2023 to 1.23 billion yuan in 2024, with a 53% decline in net profit [8]. - The decline in the shingles vaccine's market share was attributed to its lower efficacy compared to competitors' products, highlighting the challenges of diversification [8]. Group 4: Decline of Growth Hormone and Future Outlook - The company's growth hormone product, which once held a 75% market share, has seen its revenue significantly impacted by price reductions due to national medical procurement policies, leading to a 43% drop in net profit in 2024 [9]. - Looking ahead, Changchun High-tech has 24 products in clinical stages across various fields, including oncology and reproductive health, indicating potential for future growth if successful in diversifying its product offerings [10].