Core Insights - Zhejiang Haizheng Pharmaceutical Co., Ltd. and Zhejiang Shengzhao Pharmaceutical Technology Co., Ltd. announced a joint investment of 2.3 billion yuan to establish a joint venture focused on complex injectables [1][4] - Haizheng Pharmaceutical reported a significant third-quarter revenue of 2.672 billion yuan and a net profit of 169 million yuan, marking a year-on-year increase of 96.13% [1][6] - The partnership aims to enhance Haizheng's competitive edge and create a "second growth curve" by entering the high-end market of complex injectables [1][8] Company Collaboration - Haizheng will subscribe to 11,013,215 shares of Shengzhao at a price of 18.16 yuan per share, totaling 200 million yuan [4] - The joint venture will focus on the research, production, and commercialization of 11 complex injectable products, including 9 generics and 2 improved new drugs [5][9] - The governance structure includes a shareholders' meeting as the highest authority, with 5 directors, 3 from Shengzhao and 2 from Haizheng [5] Product Development and Market Strategy - The joint venture's product pipeline includes treatments for schizophrenia and hormone regulation, with products like risperidone microspheres and leuprolide [5][9] - The company plans to complete registration by the end of the year, start construction in 2026, and aim for product approval by 2030 [5][9] - The strategy involves initially focusing on generics to capture a share of the $10 billion overseas market before advancing to improved drugs [9] Market Potential - The global complex injectables market is projected to reach $100 billion post-2030, with the Chinese market expected to grow to 40.8 billion yuan by 2025, at a CAGR of 13.0% [8][9] - The market is characterized by high technical barriers and significant growth potential, with a limited number of companies capable of large-scale production [8][9] - The collaboration aims to leverage Shengzhao's R&D capabilities and Haizheng's commercialization expertise to address industry challenges and enhance market competitiveness [6][9]