Investment Points

Junshi Bio is an innovation-driven biopharmaceutical company with complete industry chain capabilities from discovery and development of innovative drugs, clinical research on a global scale, mass production and commercialization. The company aims to develop first-in-class (first-in-class) or best-in-class (best-in-class) drugs through source innovation.

in the first half of 2023, the company realized operating income of 0.67 billion yuan, up -29.21 year on year, mainly from commercial sales in tuoyi's domestic market. In the first half of the year, the net profit attributable to the mother was -0.997 billion yuan, compared with -0.912 billion yuan for the same period in 2022; in the second quarter, the operating income was 0.415 billion yuan, up 30.97 percent year-on-year and 62.47 percent month-on-month. During the reporting period, drug sales revenue increased, but licensing revenue and concession revenue related to the cooperation agreements with Lilly and Coherus decreased, so operating income decreased year-on-year.

Tuoyi (Treplimab) sales increased steadily, the orderly progress of internationalization. The company's core product, Trepley, earned 0.447 billion yuan (+50.00% YoY), of which Trepley earned 0.251 billion yuan (+33.68% YoY, +28.43% YoY) in the second quarter, with sales growing steadily. In the progress of internationalization, in February 2023, the application for marketing authorization (MAA) of treprozumab combined with cisplatin and gemcitabine for first-line treatment of patients with locally recurrent or metastatic nasopharyngeal carcinoma, treprozumab combined with paclitaxel and cisplatin for first-line treatment of patients with unresectable locally advanced recurrent or metastatic esophageal squamous cell carcinoma was accepted by MHRA.

May, FDA has successfully completed the pre-license inspection of the company's production base.

Mindewei market progress in an orderly manner, a variety of drug portfolio and product pipeline is a milestone. After readjusting the price on April 1, it continued to be temporarily included in the scope of medical insurance payment, and Mindewei made good progress in admission, with an income of 0.11 billion yuan in the first half of the year. The company's self-developed Tifcemalimab is the world's first anti-tumor anti-BTLA monoclonal antibody in clinical development, and the FDA and NMPA have agreed to conduct a Phase III clinical study in combination with Treplimab as a non-progressive patient after chemoradiotherapy for limited-stage small cell lung cancer.

In April 2023, NMPA accepted the NDA for ongoricizumab (PCSK9).

risk warning: product sales are less than expected, research and development progress is less than expected, market competition intensifies, price drop risk.