Summary of Jingxin Pharmaceutical Conference Call Company Overview - **Company**: Jingxin Pharmaceutical - **Industry**: Pharmaceutical Key Points and Arguments Sales and Revenue Projections - Jingxin Pharmaceutical expects sales of the innovative drug Didasin to exceed 100 million yuan in 2025, with ongoing research and development to extend its lifecycle through later-stage studies and new indications [2][5] - The sales of the product "Arrive in Sydney" were approximately 30 million yuan last year, with expectations to grow 3.5 to 4 times this year, reaching between 120 million to 130 million yuan [2][11] - The overall revenue target for the rehabilitation new series is set between 500 million to 750 million yuan [2][17] Clinical Trials and Drug Development - The phase I clinical trial for the LPA-targeting project (No. 2249) is nearing completion, with plans to initiate phase II trials within the year [2][5] - The phase II clinical data for the candidate drug No. 251 for schizophrenia shows efficacy and safety consistent with previous data, leading to considerations for further development strategies [2][5][20] - The project for the enteric-coated capsule of Kangxin is currently interpreting phase II clinical data, with plans to advance to phase III if results are favorable [2][8] Market and Competitive Landscape - The market potential for the generic drug Karilatin is estimated to reach between 500 million to 1 billion yuan, depending on pricing strategies [2][9] - The rehabilitation new liquid is expected to complete phase III clinical trials in about two years, with a market potential of 200 million to 500 million yuan [2][10] Business Development and Partnerships - The company maintains an open attitude towards business development (BD), seeking partnerships with comparable industry pricing to avoid underutilization of assets [3][16] - Jingxin Pharmaceutical is prioritizing collaborations with established pharmaceutical companies for overseas development and is willing to co-invest [3][16] Financial Performance and Growth Strategy - The finished drug segment is projected to grow by 15% to 20% in 2025, despite challenges from price fluctuations due to alliance procurement [4][28] - The raw material segment is expected to stabilize, driven by recovering demand, particularly in the aquaculture sector [4][28][29] - The medical device segment aims for double-digit growth in 2025, supported by increased hospital procurement and a return to normalcy post-pandemic [4] R&D and Innovation Focus - The company is actively pursuing innovative drugs, with several projects in the pipeline, including a new molecule targeting epilepsy and a rapid-acting antidepressant expected to enter IND submission next year [6][7][25] - The company is exploring ways to disclose R&D pipeline information to enhance communication with the market and investors [22][23] Future Outlook - The company expresses confidence in its future growth, anticipating that existing products will maintain stability and that new drugs will contribute significantly to revenue [32] - The goal is to achieve a profit level of 1 billion yuan within two to three years, supported by operational efficiency and talent retention strategies [32] Additional Important Information - The company is currently discussing its stock incentive plan, focusing on setting appropriate performance standards and ensuring employee participation [21] - The company has a cautious but optimistic view on the performance of its various business segments, with expectations of gradual recovery and growth [28][32]

Market Data - As of July 1, the Shanghai Composite Index rose by 0.39% to 3457.75 points, while the ChiNext Index fell by 0.24% to 2147.92 points [1] - In the US market, the Dow Jones increased by 0.91%, while the S&P 500 and Nasdaq fell by 0.11% and 0.82% respectively [2] - International oil prices rose, with light crude oil futures for August closing at $65.45 per barrel, up 0.52%, and Brent crude for September at $67.11, up 0.55% [2] Financial News - The National Healthcare Security Administration and the National Health Commission issued measures to support the high-quality development of innovative drugs, focusing on five areas with 16 specific measures to enhance drug R&D, access, and payment systems [3] - The Ministry of Industry and Information Technology reported that from January to May, internet and related service enterprises achieved a revenue of 773.5 billion yuan, a year-on-year increase of 0.9%, while total profits decreased by 2.2% to 69.2 billion yuan [4] - The National Development and Reform Commission announced an increase in domestic gasoline and diesel prices by 235 yuan and 225 yuan per ton respectively, effective July 1, 2025 [5] - A report indicated that in June, the average price of new residential properties in 100 cities was 16,847 yuan per square meter, with a month-on-month increase of 0.19% [6] - Wuhan Heyuan Biotechnology Co., Ltd. successfully passed the IPO review by the Shanghai Stock Exchange, marking the first company to do so under the new listing standards [6] - The film industry saw a box office of 29.231 billion yuan in the first half of 2025, with a year-on-year growth of 22.91% [6] - Xinwangda Electronics Co., Ltd. announced plans to issue H-shares and apply for listing on the Hong Kong Stock Exchange [7]

Core Viewpoint - The article discusses the recent measures introduced by the National Healthcare Security Administration and the National Health Commission to support the high-quality development of innovative drugs in China, emphasizing the acceleration of innovative drugs from laboratories to hospitals and ensuring affordability for the public [1][2]. Group 1: Policy Measures - The new policy includes 16 measures aimed at invigorating the development of innovative drugs, marking a significant governmental push for the biopharmaceutical industry [1][2]. - The measures focus on encouraging "true innovation" in drug development and avoiding homogenization and insufficient clinical value in certain areas [2]. Group 2: Drug Approval and Market Dynamics - In 2024, the number of approved Class 1 innovative drugs reached 48, more than five times the number in 2018, indicating a significant increase in drug approvals [2]. - As of mid-2023, nearly 40 Class 1 innovative drugs were approved in the first half of the year alone, showcasing a clear "explosion effect" in the market [2]. Group 3: Affordability and Accessibility - The measures aim to enhance the multi-channel payment capabilities for innovative drugs, encouraging commercial health insurance and mutual medical assistance to include these drugs in their coverage [3][4]. - Since 2018, 149 innovative drugs have been included in the medical insurance directory, accounting for 17% of new drug approvals, with medical insurance fund expenditures reaching 4.1 trillion yuan, driving sales over 6 trillion yuan [3]. Group 4: Integration of Insurance Systems - The establishment of a commercial health insurance directory for innovative drugs is proposed to better align with basic medical insurance, enhancing overall coverage [4]. - The measures also suggest synchronizing settlements between basic medical insurance and commercial health insurance to streamline processes for patients [5]. Group 5: Drug Availability in Medical Institutions - The policy emphasizes the need to expedite the entry of innovative drugs into designated medical institutions and encourages timely meetings to address drug supply based on clinical needs [6]. - The ongoing reforms in medical insurance payment systems aim to support the reasonable use of innovative drugs, allowing medical institutions to apply for special cases when standard payment methods are not suitable [6]. Group 6: Global Market Expansion - The article highlights that Chinese pharmaceutical companies are increasingly engaging in overseas transactions, with over 90 deals completed in 2024, totaling more than 50 billion dollars [6]. - The measures propose to facilitate the global market development of innovative drugs by providing platforms and price support for companies looking to expand internationally [6].

Core Insights - The National Healthcare Security Administration (NHSA) and the National Health Commission have introduced measures to support the high-quality development of innovative drugs in China, focusing on five key areas with 16 specific initiatives aimed at enhancing the R&D and accessibility of innovative drugs [1][2] Group 1: Policy Measures - The measures emphasize strengthening support for innovative drug R&D, facilitating their entry into the medical insurance catalog, and encouraging clinical application [1] - A multi-channel payment system for innovative drugs is being established, which includes regular adjustments to the medical insurance catalog and the introduction of a commercial health insurance catalog for innovative drugs [1][2] - The initiatives aim to enhance the accessibility of innovative drugs by proposing actionable policies across various stages, including listing, hospitalization, payment, and distribution [2] Group 2: Financial Impact - As of the end of May, the expenditure on negotiated drugs under the medical insurance fund reached 4.1 trillion yuan, driving drug sales to exceed 6 trillion yuan [2] - In 2024, the original insurance premium income for commercial health insurance is projected to reach 977.3 billion yuan, reflecting an 8.2% year-on-year growth, indicating a significant funding scale approaching that of resident medical insurance [2] - Despite the growth in commercial health insurance, there remains substantial room for improvement in its coverage and effectiveness compared to the over 95% utilization rate of basic medical insurance [2]

Core Viewpoint - Junshi Bioscience has reported significant growth in its core product, Toripalimab, with a domestic sales revenue of 1.501 billion yuan in 2024, representing a year-on-year increase of approximately 66% [1][2]. Group 1: Sales Performance - The domestic revenue for Toripalimab in the first quarter of 2025 was approximately 447 million yuan, showing a year-on-year growth of about 45.72% [1][2]. - Toripalimab has received approval for 12 indications in mainland China, with 10 of these included in the national medical insurance catalog, enhancing its market accessibility [2][3]. Group 2: R&D Pipeline - The company has expanded its innovative research and development to cover five major therapeutic areas, including oncology, autoimmune diseases, chronic metabolic diseases, neurological diseases, and infectious diseases [3][4]. - Currently, the company has four commercialized drugs and nearly 30 drugs in clinical trials, with over 20 drugs in preclinical development [3][4]. Group 3: Clinical Trials and Internationalization - The PD-1/VEGF bispecific antibody is in Phase II clinical trials, while the anti-BTLA monoclonal antibody combined with Toripalimab is undergoing Phase III clinical research with over 300 patients enrolled [2][5]. - The company aims to achieve globalization through organic growth and strategic partnerships, enhancing its overseas clinical team and pursuing international multi-center clinical trials [5][6].

Financial Performance Highlights - Revenue reached RMB 41,067 million, a year-on-year decrease of 080%[5] - R&D expense was RMB 3,644 million, a year-on-year decrease of 1615%[6] - Net profit attributable to shareholders was RMB 2,770 million, a year-on-year increase of 1608%[7] - Net operating cash flow reached RMB 4,470 million, a year-on-year increase of 3113%[6] Key Products and R&D - Serplulimab Injection (PD-1) achieved revenue of RMB 1,313 million in 2024[68, 130] - Pharma R&D expenditure was RMB 4,910 million, accounting for 1698% of Pharma revenue[63, 67] - Axicabtagene Ciloleucel Injection has benefited over 800 patients since approval in 2021[43, 75, 132] Global Operations and Internationalization - Revenue from countries and regions outside Chinese mainland reached RMB 11,297 million, a year-on-year increase of 893%[30] - Sisram's direct sales revenue increased to 87%[36, 100] Medical Devices - Sisram Medical's revenue was USD 3590 million in 2024[99] - 58 Da Vinci Surgical Systems were installed in China in 2024[108] Sinopharm Performance - Pharmaceutical distribution segment revenue recorded RMB 444,365 million, a year-on-year increase of 075%[121] - Medical device distribution segment revenue recorded RMB 117,915 million, a year-on-year decrease of 944%[121] - Retail pharmacy segment revenue recorded RMB 35,981 million, a year-on-year increase of 082%[121]

Financial Performance - Revenue reached RMB 9,420 million, a decrease of 726% year-over-year[6] - R&D expense was RMB 737 million, down 1110% year-over-year[7] - Net profit attributable to shareholders was RMB 765 million, an increase of 2542% year-over-year[8] - Net operating cash flow increased to RMB 1,056 million, up 1508% year-over-year[7] - 2024 Pharma R&D expenditure was RMB 4,910 million, accounting for 1698% of Pharma revenue[61] Key Products & Pipelines Progress - Serplulimab Injection (PD-1) received EMA approval for ES-SCLC treatment[12] - Tenapanor Hydrochloride Tablets approved by NMPA for serum phosphorus control in adult dialysis patients with chronic kidney disease[13] - Fosun Pharma achieved a revenue of RMB 11,297 million (+893% YoY) from countries and regions outside Chinese mainland in 2024[26] Med Tech Segment - Med Tech segment revenue reached RMB 4,390 million[87] - Sisram Medical's revenue was USD 3590 million in 2024[96] Healthcare Services - Healthcare Services segment revenue was RMB 6,672 million[108] Sinopharm Performance - Pharmaceutical distribution segment revenue recorded RMB 444,365 million (+075% YoY)[116] - Medical device distribution segment revenue recorded RMB 117,915 million (-944% YoY)[116] - Revenue of the retail pharmacy segment recorded RMB 35,981 million (+082% YoY)[116]

Major Events - Newland has established a subsidiary in the US and obtained an MSB license to enhance its global payment business and facilitate cross-border payment operations [3] - Zhejiang Liming's actual controllers have committed not to reduce their shareholdings within one year [4] - Tengya Precision has announced a three-month commitment from its major shareholders not to reduce their holdings [6] - *ST Yuancheng is under investigation by the CSRC for suspected false financial disclosures [7] - Anglikang has only one innovative drug project currently under development, which is in the I phase of clinical trials [8] - Yongmaotai plans to invest approximately 450 million yuan to build an intelligent manufacturing base for auto parts in Mexico [9] - Fengfan Co. intends to acquire 100% equity of eight photovoltaic power station project companies for 48 million yuan [10] - Hangzhou High-tech is changing its controlling shareholder to Jirong Weiye and will resume trading on July 2 [11][12] - Zhongke Environmental Protection is acquiring 100% equity of two environmental companies for a total of 354 million yuan [13] - Yian Technology plans to increase its investment in its subsidiary Yihang Metal by 120 million yuan [14] - *ST Aowei has reported asset losses due to mismanagement by a processing partner [15] - XWANDA intends to issue H-shares and list on the Hong Kong Stock Exchange [16] - Baichuan Co.'s actual controller and chairman is under investigation [17] - Suzhou Planning is planning to acquire control of Dongjin Aviation Technology and will suspend trading [19] - Aerospace Changfeng plans to transfer 55.45% equity of a subsidiary through public listing [20] Performance Overview - Xinhecheng expects a net profit increase of 50%-70% for the first half of 2025, estimating between 3.3 billion to 3.75 billion yuan [21] - Shida Shenghua anticipates a net loss of 52 million to 60 million yuan for the first half of 2025 [22] - Kids' King expects a net profit increase of 50%-100% for the first half of 2025, estimating between 120 million to 160 million yuan [23] - SAIC Group reported a total vehicle sales of 2.0526 million units in the first half of 2025, a year-on-year increase of 12.35% [24] - BAIC Blue Valley's subsidiary reported a 139.73% increase in sales for the first half of 2025 [25] - Seris reported a 4.44% year-on-year increase in electric vehicle sales for June [26] - Great Wall Motors reported a 1.81% increase in total vehicle sales for the first half of 2025 [27] Major Contracts - Guoxin Technology has won a 46 million yuan project for automotive electronic chips [28] - Ankao Zhidian has signed two contracts for wind power transmission projects totaling 79.69 million yuan [29] Shareholding Changes - Wuxi Zhenhua's shareholder plans to reduce its stake by up to 1% [30] - Longxun Co. shareholders plan to reduce their holdings by up to 2% [31] - FJ Environmental's major shareholder plans to reduce its stake by up to 3% [32] - Yuexiu Capital's subsidiary plans to increase its stake in Yuexiu Real Estate [33] Financing Activities - Haoyuan Pharmaceutical plans to increase its subsidiary's capital by 400 million yuan through debt-to-equity conversion [34] - Hainan Huatie plans to issue bonds not exceeding 2 billion yuan to optimize its financing structure [35]

Core Viewpoint - The National Healthcare Security Administration and the National Health Commission have issued measures to support the high-quality development of innovative drugs, focusing on enhancing R&D support, integrating innovative drugs into insurance directories, and encouraging clinical applications [1][2][3]. Group 1: Support for Innovative Drug R&D - The measures emphasize the organization and implementation of national major science and technology projects for innovative drug R&D, targeting major infectious diseases, chronic diseases, pediatric medications, and rare diseases [1][3]. - The proportion of innovative drugs among new drugs in the medical insurance directory is expected to rise significantly, from 32% in 2019 to 98% by 2024 [2]. Group 2: Integration into Insurance Systems - The policy allows for the inclusion of eligible innovative drugs into the medical insurance directory while maintaining a focus on basic coverage [3][4]. - Commercial health insurance and mutual medical assistance are encouraged to include innovative drugs in their coverage, with a notable growth in the commercial health insurance market, projected to reach 977.3 billion yuan in 2024, an 8.2% increase year-on-year [5][6]. Group 3: Clinical Application and Accessibility - The measures promote the rapid entry of innovative drugs into designated medical institutions, ensuring timely adjustments to drug availability based on clinical needs [4][11]. - Medical institutions are supported in autonomously applying for special cases for innovative drugs that do not fit standard payment models, enhancing the flexibility of drug usage [5][12]. Group 4: Global Market Development - The measures aim to facilitate the global development of innovative drugs, with over 90 overseas licensing transactions completed by Chinese pharmaceutical companies in 2024, totaling over 50 billion USD [9][10]. - The establishment of platforms to assist in expanding overseas markets and providing price support for innovative drugs is a key focus [10].

Group 1: Innovative Drug Development - The company has established a multi-mode, positive cycle research and development ecosystem, focusing on metabolic diseases and respiratory diseases, with two innovative drug projects approved for market and several in clinical trials [2][4]. - ZSP1601 tablets, targeting metabolic dysfunction-related fatty liver disease (MASH), have shown significant reduction in liver inflammation markers after four weeks of treatment, indicating potential for improving liver inflammation and fibrosis [2][4]. - RAY1225 injection, a long-acting GLP-1 class drug, has completed Phase II clinical trials for obesity and type 2 diabetes, achieving primary endpoints and demonstrating significant weight loss and metabolic improvements [4][14][18]. Group 2: Clinical Trial Results - RAY1225 injection demonstrated a weight loss of -10.05%, -12.98%, and -15.05% for 3mg, 6mg, and 9mg doses respectively, significantly outperforming the placebo group [14][16]. - The RAY1225 injection also showed a reduction in HbA1c levels of -1.68%, -2.06%, and -2.16% for the same doses, with a notable percentage of participants achieving target HbA1c levels [16][18]. - The clinical trial for the oral antiviral drug, Liratewe tablets, has been approved and included in the national medical insurance directory, providing accessible treatment options for patients [5][6]. Group 3: Safety and Efficacy - The clinical trials for RAY1225 injection reported good safety and tolerability, with low incidence of gastrointestinal adverse effects, similar to previous GLP-1 drug profiles [18]. - The clinical trial for Anglave tablets showed a median flu symptom relief time of 31.72 hours, with no serious adverse events reported, indicating good safety and efficacy in children and adolescents [10][11]. - Anglave tablets demonstrated a significant reduction in flu symptoms compared to placebo, achieving statistical significance in symptom relief and viral load reduction [10][11]. Group 4: Research and Development Investment - The company has consistently invested over 8% of its annual revenue in R&D, with the last three years exceeding 10%, reflecting a commitment to innovation and development [19]. - The R&D strategy includes a diversified matrix of traditional Chinese medicine, innovative drugs, modified new drugs, chemical generics, and raw materials, transitioning from a traditional to an innovative pharmaceutical enterprise [19].