Core Viewpoint - Kangyuan Pharmaceutical has successfully included its unique products, including Wenyang Jiedu Granules and Yunu Decoction Granules, as well as the first generic drug Sumatriptan Naproxen Sodium Tablets, in the National Medical Insurance Directory (2025 edition) [1] Group 1 - Wenyang Jiedu Granules, as a unique product, is recognized for its clinical efficacy in improving symptoms such as cough, fever, fatigue, and loss of appetite, along with good safety [1] - Yunu Decoction Granules, also a unique product, is classified as a Category 3.1 new traditional Chinese medicine, aimed at treating dental pain, periodontal disease, oral ulcers, diabetes, and early-stage diabetes [1] - Sumatriptan Naproxen Sodium Tablets are expected to provide a new treatment option for acute migraine [1] Group 2 - The inclusion of these new drug varieties in the National Medical Insurance Directory is anticipated to drive the company's market promotion and sales growth, enhance its R&D innovation and brand influence, and benefit a wide range of patients [1] - The company has established a rich product portfolio in the respiratory and infectious disease sector, including products like Heat Toxicity Ning Injection and Jinzhen Oral Liquid, which have shown significant clinical efficacy [2] - Despite a decline in sales due to weakened terminal demand in the first three quarters of 2025, the company is ramping up production to meet the recovering market demand in the fourth quarter [2] Group 3 - The company is advancing its pipeline of innovative biological drugs for treating obesity or overweight and type 2 diabetes, with the first subject enrollment for the innovative drug ZX2021 Injection completed in June 2025, showing weight loss effects [3] - The innovative drug ZX2010 Injection for type 2 diabetes and obesity has also commenced its second-phase clinical trials, with plans to enter the third phase in Q3 2026 [3] - The company is committed to progressing all its research pipelines according to clinical plans and aims for early market launch [3]

Group 1 - The company announced that its unique products, Wenyang Jiedu Granules and Yunu Jian Granules, have been included in the National Basic Medical Insurance, Maternity Insurance, and Work Injury Insurance Drug Catalog (2025) through negotiations [2] - The company is the first in the domestic market to have its generic drug, Sumatriptan and Naproxen Sodium Tablets, included in the same catalog [2]

Group 1 - The core announcement is that Kangyuan Pharmaceutical (600557.SH) has had its products included in the National Medical Insurance, Maternity Insurance, and Work Injury Insurance Drug Catalog for 2025 [1] - The company’s exclusive products, Wenyang Jiedu Granules and Yunu Decoction Granules, have been included in the catalog [1] - The first generic drug, Sumatriptan Nasal Spray, has also been successfully negotiated for inclusion in the National Basic Medical Insurance Drug Catalog for 2025 [1]

Core Viewpoint - Kangyuan Pharmaceutical (600557.SH) announced that its exclusive products, Wenyang Jiedu Granules and Yunu Decoction, along with the first domestic generic drug, Sumatriptan Naproxen Sodium Tablets, have been included in the National Basic Medical Insurance, Maternity Insurance, and Work Injury Insurance Drug Catalog for 2025 [1] Group 1 - The National Healthcare Security Administration and the Ministry of Human Resources and Social Security issued a notification regarding the inclusion of specific drugs in the 2025 insurance catalog [1] - Kangyuan Pharmaceutical's products are now part of the National Basic Medical Insurance, which may enhance their market accessibility and sales potential [1] - The inclusion of the first domestic generic drug indicates a significant milestone for the company in the competitive pharmaceutical market [1]

Core Insights - Jiangsu Kangyuan Pharmaceutical Co., Ltd. has announced the inclusion of its unique products, including Wenyang Jiedu Granules and Yunu Decoction, in the National Medical Insurance Directory for 2025, along with the first generic version of Sumatriptan and Naproxen Sodium Tablets [1][2] Group 1 - The company has a total of 123 products included in the National Medical Insurance Directory for 2025, with 48 classified as Category A and 75 as Category B [2] - The payment scope for the company's unique product, Ginkgo Biloba Diterpene Glycoside Ammonium Injection, has been slightly adjusted, now allowing payment only for hospital stays [1] - The company has also had its non-exclusive product, Posaconazole Enteric-Coated Tablets, have payment restrictions lifted, and several new products have been approved for inclusion in the 2025 directory [1][2] Group 2 - The addition of new drug varieties to the National Medical Insurance Directory is expected to drive growth in market promotion and sales for the company, enhancing its research and development innovation and brand influence [2] - The impact of these changes on the company's short-term performance is currently difficult to estimate [2]

Core Viewpoint - The National Healthcare Security Administration (NHSA) has released the new basic medical insurance drug list for 2025, which will take effect on January 1, 2026, leading to a significant increase in the success rate of new drug negotiations, particularly for innovative drugs with high clinical value [1][2]. Group 1: New Drug Negotiation Success - The success rate for new drug negotiations in 2025 has significantly improved to 88%, up from 76% in 2024, with 114 new drugs added to the national medical insurance drug list, including 50 Class 1 innovative drugs [2][3]. - The total number of drugs in the national medical insurance drug list has increased to 3,253, enhancing coverage for critical areas such as cancer, chronic diseases, mental health, rare diseases, and pediatric medications [2]. Group 2: Unique Drug Inclusion - Among the 114 newly added drugs, 105 are unique varieties, representing 92.11% of the total, including 98 Western medicines and 7 traditional Chinese medicines [3]. - The inclusion of unique traditional Chinese medicines from companies like China Resources Sanjiu, Yiling Pharmaceutical, and others indicates a balanced representation in the new drug list [3]. Group 3: Market Potential and Growth - The inclusion of 116 drugs in the latest negotiation, particularly 11 new drugs from Heng Rui Medicine and others, is expected to lead to rapid market share growth and product volume increase due to their entry into the medical insurance directory [4][5]. - The negotiation also included new mechanism drugs, such as antibody-drug conjugates and small nucleic acid siRNA drugs, which are anticipated to drive market penetration and accessibility [5]. Group 4: Commercial Health Insurance Directory - The first commercial health insurance innovative drug directory saw intense competition, with 121 candidates but only 24 entering negotiations, resulting in 19 drugs being successfully included [6]. - The directory covers critical diseases such as Alzheimer's and multiple myeloma, with a balanced mix of imported and domestic drugs [6]. Group 5: Investment Recommendations - Companies with a significant number of innovative drugs included in the new medical insurance directory, such as Heng Rui Medicine, BeiGene, and others, are recommended for investment [9]. - Potential growth in traditional Chinese medicine products included in the new directory, such as those from China Resources Sanjiu and Yiling Pharmaceutical, is also highlighted [9].

Core Insights - The demand for traditional Chinese medicine (TCM) has significantly increased due to the rise in respiratory diseases during the autumn and winter flu season, with multiple pathogens like influenza and respiratory syncytial virus circulating [1] - Companies with reliable evidence-based data and clinically recognized TCM products are expected to benefit in the long term during the flu season [2] Group 1: Market Dynamics - The current flu activity in China is in a rapid upward phase, with sentinel hospitals reporting a continuous increase in flu-like cases [1] - The complexity of respiratory diseases this year, particularly in southern humid regions, has made multi-target, compound TCM more advantageous for managing various symptoms [1] Group 2: Company Performance - Kangyuan Pharmaceutical has seen a surge in demand for its respiratory products, leading to increased production to meet market supply pressures [2] - The company's oral liquid product, Jinzhen Oral Liquid, generated revenue of 1.359 billion yuan in the first three quarters of this year, accounting for 58% of its total revenue [2] Group 3: Product Development - Kangyuan's product line for respiratory and infectious diseases has formed a complete matrix covering prevention and treatment for various symptoms, including products like Hot Toxin Ning Injection and Jinzhen Oral Liquid [2][3] - The Hot Toxin Ning Injection has completed multiple RCT clinical studies, demonstrating its effectiveness in alleviating symptoms caused by viral infections [3] Group 4: Financial Performance - In the first half of 2025, Kangyuan reported revenue of 1.642 billion yuan and a net profit of 142 million yuan, with significant growth in various product categories [4] - The injection revenue reached 506 million yuan, while oral liquid revenue was 279 million yuan, indicating a robust performance across different dosage forms [4][5] Group 5: Strategic Outlook - The simultaneous growth of multiple dosage forms indicates a recovery in the usage of respiratory products during the winter disease season, enhancing the company's market adaptability [5] - Experts believe that TCM's multi-target advantages will continue to provide significant value in managing respiratory diseases in the future [5]

Core Viewpoint - Kangyuan Pharmaceutical (600557.SH) is actively responding to the increased demand for its respiratory and infectious disease products, particularly during the flu season, by ramping up production to meet market needs [1] Product Overview - The company's representative products in the respiratory and infectious disease line include: - **Re Du Ning Injection**: Used for treating symptoms of wind-heat colds and upper respiratory infections, showing significant efficacy in alleviating fever and respiratory symptoms [1] - **Jin Zhen Oral Solution**: A pediatric traditional Chinese medicine that effectively treats acute bronchitis in children and shows antiviral properties against influenza viruses, enhancing clinical cure rates when combined with Oseltamivir [1] - **Xing Bei Cough Granules**: Effective for cough relief and lung function improvement in cases of external cold and internal heat [1] - **San Han Hua Shi Granules**: Used for treating diseases caused by cold and dampness affecting the lungs [1] - **Yin Qiao Qing Re Tablets**: Treats common colds with wind-heat symptoms, providing multiple therapeutic effects [1] - **Wen Yang Jie Du Granules**: Aids in improving symptoms related to weakened Yang energy in patients, showing good clinical efficacy [1] Market Demand - The national influenza activity has significantly increased, entering a rapid rise phase, leading to a notable growth in demand for the company's core products in the anti-infection and respiratory sectors during the flu season [1]

Core Viewpoint - Kangyuan Pharmaceutical (600557.SH) is actively responding to the increased demand for its respiratory and infectious disease product line, particularly during the flu season, by ramping up production to meet market needs [1] Product Overview - The company's representative products in the respiratory and infectious disease category include Re Du Ning Injection, Jin Zhen Oral Solution, Xing Bei Cough Granules, San Han Hua Shi Granules, Yin Qiao Qing Re Tablets, and Wen Yang Jie Du Granules [1] - Re Du Ning Injection is indicated for clearing heat, dispelling wind, and detoxifying, showing significant efficacy in alleviating symptoms of viral infections, especially high fever, and improving respiratory symptoms [1] - Jin Zhen Oral Solution is a pediatric-specific traditional Chinese medicine that effectively treats acute bronchitis in children and has shown to inhibit various strains of the flu virus, improving clinical outcomes when combined with Oseltamivir [1] - Xing Bei Cough Granules are used for cough relief, while San Han Hua Shi Granules address cold and dampness-related respiratory issues [1] - Yin Qiao Qing Re Tablets are effective for treating common colds with wind-heat symptoms, and Wen Yang Jie Du Granules are beneficial for patients with weakened Yang energy, improving symptoms like cough and fever [1] Market Demand - The national flu activity has significantly increased and is currently in a rapid rising phase, leading to a notable surge in demand for the company's core products in the anti-infection and respiratory sectors [1] - The company is proactively adjusting its production to meet the growing market demand during the flu season [1]