Bei Jing Shang Bao·2026-03-12 11:43Core Viewpoint - The stock prices of Kanglong Chemical (300759) surged following the announcement of a strategic partnership with Eli Lilly, which plans to invest $3 billion over the next decade to expand its supply chain capacity in China, particularly focusing on the production of the oral GLP-1 receptor agonist orforglipron [1][3]. Group 1: Investment and Strategic Partnership - Eli Lilly announced a $3 billion investment to enhance its supply chain capacity in China, focusing on local production of oral solid formulations [1][3]. - The investment will involve both internal expansion and partnerships with local manufacturers, leveraging Eli Lilly's Suzhou factory for capacity collaboration [3]. - The initial phase of the partnership with Kanglong Chemical includes a $200 million investment to support its technical capabilities, with potential for future scale expansion [3]. Group 2: Market Impact and Financial Projections - Following the announcement, Kanglong Chemical's A-shares opened up 7.1% and peaked at over 8%, while H-shares rose over 13% [1][3]. - Kanglong Chemical is expected to benefit from this partnership, which is seen as a significant milestone for its CDMO (Contract Development and Manufacturing Organization) business [5]. - Financial forecasts indicate that Kanglong Chemical's net profit for 2025 is expected to decline by 6% to 10%, with projected net profit between 1.614 billion to 1.686 billion yuan, primarily due to a decrease in non-recurring gains [5]. Group 3: Product Focus and Market Position - The oral GLP-1 receptor agonist orforglipron is the first of its kind to be registered globally, with Eli Lilly submitting its application for the treatment of type 2 diabetes and obesity to the National Medical Products Administration in China by the end of 2025 [4]. - The investment aims to capture the growing market for oral GLP-1 medications in China, enhancing Eli Lilly's competitive advantage globally [5].