The actual controller of the Company is Mr. Gan Zhongru, who controls 44.46% of the Company's shares through direct and indirect shareholding before listing, and is the controlling shareholder and actual controller of the Company, of which I directly hold 35.06%. After listing, the Company's shares are diluted by approximately 90%, as of the listing date, Mr. Gan Zhongru's personal shareholding is 31.54%, and the Company's outstanding shares account for a very low percentage, less than 10% of the total market value. At present, except for the parent company and subsidiary Gan Gan Technology, other subsidiaries and grandchildren are not yet in actual operation.
The company's pharmaceutical products include APIs and injections, with the following 6 specifications:
Diabetes is an endocrine and metabolic disease characterized by elevated blood glucose caused by hyposecretion of pancreatic islets or defective insulin action. Diabetes mellitus is a chronic disease that requires long-term medication, and insulin is a mandatory medication for diabetic patients in the middle and late stages.
Diabetes has become one of the greatest threats to human health in the 21st century. 2015 global diabetes medication market size is about $60 billion, the second largest in the world. According to the International Diabetes Federation (IDF), it is estimated that in 2019, there will be 463 million people living with diabetes globally***, with an average of 1 in 11 adults living with diabetes. By 2030, it is projected that 578 million people worldwide will have diabetes***. The global epidemic of diabetes, especially the high prevalence of type 2 diabetes, is driving the market demand for diabetes therapeutics and the explosive growth of the insulin industry.
According to IDF statistics, 50% of diabetes patients, about 200 million people, have not received reasonable diagnosis and treatment or have not been diagnosed due to the medical level and economic situation. In the future, with the improvement of economic level and medical level, the demand of potential diabetic patients will be released gradually. 2019, the global insulin market size is about 40 billion dollars.
According to the data published by IDF, the number of people with diabetes in China is about 116 million in 2019, and China has become the country with the largest number of people with diabetes in the world; at the same time, the number of people with diabetes continues to grow rapidly, and IDF predicts that the number of people with diabetes in China will reach 151 million in 2040.
In China's diabetes treatment drug market, oral hypoglycemic drugs still occupy a large market share, insulin preparation products market share is not high. 2019, China's insulin market size of about 20 billion yuan, China's insulin market has achieved a high rate of growth, but with reference to the developed countries of the market development history, China's insulin market has a lot of potential for development, one is the diabetes patient First, the overall treatment rate of diabetes patients is low, and a large number of diabetes patients have not yet received effective treatment.
Secondly, the popularization rate of insulin treatment is low. According to IDF statistics, only 2% of domestic diabetic patients use insulin drugs to control their blood glucose, while this proportion is about 30% in the United States. Once again, the per capita medical expenses and insulin usage of domestic diabetic patients are far lower than the level of developed countries. IDF research statistics show that the annual per capita medical expenses of Chinese diabetic patients in 2019 will be about $936.2; while in the United States, for example, the annual per capita medical expenses of diabetic patients will be as high as $9,505.6.
The company has increased its investment in R&D and continued to vigorously develop its pipeline of new diabetes-related products, with the R&D of a number of new hypoglycemic products advancing as scheduled. The development of several novel glucose-lowering products is on schedule. Meanwhile, drug development in other areas such as oncology, immunotherapy and cell therapy is also progressing normally.
In the first half of 2020, the company invested 23,778.66 million yuan in R&D projects, an increase of 18.03% over the same period of the previous year. Among them, the expense of R & D investment 18,734.18 million yuan, an increase of 105.68% over the same period last year, accounting for the proportion of sales revenue from the same period last year's 9.50% to 15.52% of the current period; capitalization of R & D investment of 50,444.48 million yuan.
The company has already possessed four varieties of recombinant insulin analogs, namely, long-acting glucagon, rapid-acting lysergic insulin, menthyl insulin, and zinc-arginine recombinant lysergic insulin mix injection (25R), covering the market segments of long-acting, rapid-acting, and intermediate-acting insulin functions. At present, the company has more than 30 research and development projects in progress, including 5 Class I new drugs, 6 chemical generic drugs, 3 Class I biocellular therapeutic drugs and more than 10 biosimilars. The main products are concentrated in the field of diabetes, except for Mentholatum insulin, which has been approved for the first time in China this year, Mentholatum insulin 30 injection and Arginine recombinant human insulin injection (premixed 30R) have been declared for production, and they are expected to be approved one after another. The company has a comprehensive layout of the three-generation insulin products listed on the market, and the fourth-generation insulin Deglutethimide insulin has entered into the stage of preclinical research. The company's insulin pipeline is rich in product reserves, and it is expected to become a full product line of insulin analogs manufacturer in the future.
1, Novo Nordisk
Global insulin industry leader, with "oral hypoglycemic drugs + recombinant human insulin + recombinant insulin analogues" product line portfolio, is the earliest multinational insulin manufacturers to enter the Chinese market. Our main insulin products include recombinant human insulin "Novorin", Mentholatum insulin analog "Novorex", and Mentholatum insulin analog mixed preparation "Novorex 30", "Novorex 50" and the insulin secretion oral hypoglycemic drug "Novoron".
2. Eli Lilly
The first multinational pharmaceutical company to launch insulin of animal origin and recombinant human insulin, entered China's insulin market after Novo Nordisk, and also owns a product line portfolio of "recombinant human insulin + recombinant insulin analogs", with its major insulin products including recombinant human insulin Its main insulin products include recombinant human insulin "Ulorin" and lysergic insulin analog "Uloro", lysergic insulin analog mixed preparation "Uloro 25", "Uloro 50". Uloro 25", "Uloro 50".
3. Sanofi
A diversified pharmaceutical and healthcare company, it owns glucagon insulin analog "Lysol" and sulfonylurea oral hypoglycemic drug "Amorim" (glimepiride) in the field of diabetes treatment.
4, Tonghua Dongbao
Tonghua Dongbao is the first domestic company to produce listed recombinant human insulin, the company has long been y committed to the second-generation insulin market, and at the same time the layout of the third and fourth-generation insulin. 2019 December, Tonghua Dongbao glycemic insulin injection drug registration approvals, as the third Chinese companies to obtain recombinant insulin analogues drug registration approvals.
5. Zhuhai Federal
Zhuhai Federal obtained the drug registration approval for Glycine Insulin Injection in December 2016, the second Chinese company to obtain the drug registration approval for recombinant insulin analogs.
The average historical P/E ratio of domestic biologics industry is 55.10, and the industry P/E ratio at the end of 2019 is 62.86, and the industry P/E ratio as of the closing price on September 16th is 105. Combined with the historical P/E ratio of the industry's closest company, Tonghua Dongbao, since its IPO, the PE for Gan & Lee Pharmaceuticals is given as 30-55 (underestimated - overestimated).
According to the average value of the organization's calculations, the net profit in 2020/2021/2022 will be about 1.334/1.533/1.827 billion yuan. Currently Gan & Lee Pharmaceuticals market value of about 67.5 billion yuan, relative to 2020/2021/2022 net profit PE for 51/44/37 times, this valuation level is lower than the industry average valuation, basically in the reasonable pivot range. At present, the pharmaceutical plate generally retracement is relatively deep, if Gan Li dynamic price-earnings ratio can be adjusted to about 45 times, will be a good time to enter.
Strengthen R&D capabilities, improve research conditions, and continue to introduce talents in R&D, production, marketing, brand operation and general management. At the same time, we build a platform for scientific and technological innovation, and carry out extensive new product development cooperation with external scientific research institutions and researchers, and plan to develop innovative drugs with fully independent intellectual property rights and enter the markets of developed countries in the next 5-10 years. At present, the company has occupied a certain share in the insulin market and maintained a high growth rate.
The company plans to continue to expand the sales of the company's existing products in the next few years, expand production capacity, and promote insulin industrialization projects. Meanwhile, it continues to launch new products to develop domestic and overseas markets. The company's development of oral hypoglycemic drugs and medical devices is also increasing, and it is expected that in the future, the company will form the production capacity of oral hypoglycemic drugs and diabetes-related medical devices, and realize the full launch of products in the three major product lines in the field of diabetes diagnostics and treatment, and further enhance the company's profitability and market competitiveness in the field of diabetes treatment.