Group 1: Drug Development Announcement - Hunan Fangsheng Pharmaceutical Co., Ltd. announced that its wholly-owned subsidiary, Guangdong Fangsheng Jianmeng Pharmaceutical Co., Ltd., received the Clinical Trial Approval Notice for the drug RuLuGoli Tablets from the National Medical Products Administration [1][2] - RuLuGoli Tablets are a GnRH receptor antagonist intended for the treatment of advanced prostate cancer [2] - The cumulative R&D investment for this drug project is approximately 3.89 million yuan (unaudited) [3] Group 2: Market Situation - The original drug for RuLuGoli Tablets was developed by Takeda Pharmaceutical Company and was first approved for sale in Japan on January 8, 2019 [4] - As of the announcement date, RuLuGoli Tablets have not yet been launched in China, and no original or generic products have been approved for sale [4] - In 2023, the global sales amount for RuLuGoli Tablets reached approximately $29.96 million, with a year-on-year growth rate of 58.6% [4] Group 3: Approval Process - After receiving the Clinical Trial Approval Notice, the company must conduct and complete clinical trials and submit the application for product listing according to the relevant regulations [5] Group 4: Share Pledge Announcement - The controlling shareholder, Zhang Qinghua, completed the pledge of 35 million shares (7.97% of the total share capital) on October 15, 2025 [8][9] - As of the announcement date, Zhang Qinghua directly holds 156,019,500 shares, accounting for 35.53% of the total shares [8] - The pledged shares do not exceed 80% of the total shares held, indicating that the overall pledge risk is controllable [8][12]

Core Viewpoint - Shanghai Heng Rui Medicine Co., Ltd. has received acceptance for the clinical trial application of Leuprolide Acetate Microspheres, a Class 3 chemical drug, which has already surpassed annual sales of 5 billion yuan in the domestic market [1][4]. Group 1: Market Overview - Leuprolide Acetate is a synthetic peptide analog of gonadotropin-releasing hormone (GnRH), primarily used for treating diseases related to elevated sex hormone levels, such as endometriosis, uterine fibroids, precocious puberty, prostate cancer, and breast cancer [3]. - The domestic market for Leuprolide Acetate has shown stable sales exceeding 5 billion yuan over the past three years, with sales figures of 5.206 billion yuan in 2022, 5.391 billion yuan in 2023, and projected 5.623 billion yuan in 2024, indicating a steady growth trend [4][6]. Group 2: Competitive Landscape - The original manufacturer, Takeda, and AbbVie developed the injectable Leuprolide Acetate microspheres, which were approved by the FDA in 1989 and have achieved significant success. In China, it was approved in 2000 and is included in the national medical insurance category B [6]. - Currently, there are two domestic companies, Lijun Group and Beijing Bont Pharmaceutical, that hold production licenses for Leuprolide Acetate long-acting microspheres, with Lijun Group being the first to obtain approval for the generic version [8][10]. - The sales share of Lijun Pharmaceutical's Leuprolide Acetate microspheres is the highest at 39.85%, followed by the original manufacturer Takeda [10]. Group 3: Future Market Potential - The market for injectable Leuprolide Acetate microspheres is expected to reach 6.8 billion yuan by 2025 and exceed 8.7 billion yuan by 2030, indicating a promising outlook for the product [6]. - The domestic market for microsphere formulations has grown significantly, with sales increasing from 2.5 billion yuan in 2015 to 7.9 billion yuan in 2023, and the market share rising from 34.6% to 49.7% [13][15]. - As the technology for microsphere formulations matures and pharmaceutical companies continue to innovate, Leuprolide Acetate microspheres are expected to play a crucial role in building competitive advantages and capturing market share [17].

Investment Rating - The report does not provide a specific investment rating for the company Core Insights - The company has received approval for its first generic injectable risperidone microsphere, marking a significant breakthrough in high-end formulations. This product is the first of its kind in China and is expected to enhance the company's market position [1][11][16] - The company is advancing multiple high-end formulations, including paclitaxel (albumin-bound) and leuprolide microspheres, with significant market potential. The injectable leuprolide microsphere market in China was valued at RMB 5.1 billion in 2023, while the paclitaxel (albumin-bound) market reached nearly RMB 3 billion [1][19][27] - The company has a strong pipeline of products, with several formulations in various stages of development, indicating a robust growth trajectory in the high-end drug formulation sector [3][29][34] Summary by Sections Product Approvals and Developments - The company announced the approval of injectable risperidone microspheres on February 26, 2025, which is a significant addition to its high-end complex formulations [1][11] - The injectable paclitaxel (albumin-bound) has received acceptance for its market application, and the leuprolide microsphere has passed bioequivalence trials, indicating progress in the company's product pipeline [1][19][26] Financial Performance - The company's main revenue has shown significant growth, with a 113.37% increase in 2023, reaching RMB 460.8 million, although operating losses have continued to widen [4][10] - The company is expected to generate revenue from its newly approved products starting in late 2024, which could positively impact its financial performance [2][29] Market Position and Competitive Advantage - The company has established a competitive edge in the high-end formulation market due to its ability to produce large batches, which translates to cost advantages and increased market share potential [2][29] - The injectable risperidone microsphere is the only product in its category that has passed consistency evaluation and achieved first-generic status, highlighting the company's strong R&D capabilities [16][18] Future Outlook - The company is well-positioned for future growth with a diverse product pipeline and a focus on high-end formulations, which are expected to fill market gaps and drive revenue growth [34][36] - The anticipated market expansion for injectable risperidone microspheres and other formulations suggests a promising outlook for the company's profitability and market presence [18][27]