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Data from MiNet shows that as of February 10, 2023, there are 67 inhaled formulations that have passed the consistency evaluation in China, with HealthGen (600380.SH) ranking first in the number of approved products. As an innovative and comprehensive pharmaceutical company, HealthGen is undoubtedly a "technology leader."

Keywords: "Multifaceted and Comprehensive" and "Breaking the Monopoly"

As a leader in respiratory formulations, HealthGen's "differentiated" competitive strategy in R&D pipeline layout has shown significant results, focusing on the R&D of improved new drugs to strive for faster and greater new product launches.

In 2022, the company obtained approval for four products: tobramycin inhalation solution, acetylcysteine inhalation solution, terbutaline sulfate nebulization inhalation solution, and levalbuterol hydrochloride nebulization inhalation solution (3ml:1.25mg) were approved for market.

In terms of key R&D projects for inhaled formulations to date, the applications for market approval have been submitted for fluticasone propionate nebulization suspension and indacaterol maleate inhalation powder; the market approval application for salmeterol/fluticasone inhalation powder has been accepted after completion of Phase III clinical studies; and the clinical approval has been obtained for the Class 2 new drug XYP-001.

To date, HealthGen has developed and launched a number of high-quality inhaled formulation products. The company has 7 varieties and 11 specifications of inhaled formulations approved for market, with more than 30 R&D projects underway. This has successfully created a diversified product matrix and a comprehensive R&D drug pipeline, gradually breaking through technical barriers in the sub-sector and establishing market competitiveness. It has become the first company to break the monopoly of multinational corporations in the respiratory drug field, continuously consolidating its leading position in the domestic high-end complex formulations sector.

Keywords: "Platform R&D" and "Multi-dimensional Development"

On September 2, 2022, the recombinant novel coronavirus fusion protein vaccine (CHO cells) jointly developed by HealthGen and the Institute of Biophysics, Chinese Academy of Sciences, was included in the emergency use of sequential booster immunization for novel coronavirus prevention. It is the world's first vaccine with Phase III clinical evidence to effectively prevent Omicron.

The Lizhu Bio recombinant novel coronavirus fusion protein vaccine (CHO cells) is a domestically developed vaccine with independent intellectual property rights and innovative fusion protein molecular design. For HealthGen, in addition to its commercial value, it also has significant strategic importance. HealthGen's vaccine R&D platform is an advanced technology platform established based on relatively mature experience in recombinant protein vaccine R&D. This vaccine, as the company's first vaccine product under the new recombinant protein technology platform, enables the company to quickly enter and deploy the vaccine field. In the future, it is not ruled out that vaccines will be one of the key R&D directions.

On the evening of February 16, HealthGen issued an announcement stating that it had recently received the "High-tech Enterprise Certificate" jointly issued by the Shenzhen Science and Technology Innovation Committee, the Shenzhen Municipal Finance Bureau, and the Shenzhen Municipal Taxation Bureau of the State Administration of Taxation. This is the first time that the company has been recognized as a high-tech enterprise, fully demonstrating that HealthGen has received official recognition and support in multiple dimensions, including intellectual property rights, scientific and technological achievements, R&D organization and management, and the healthy growth of the enterprise.

Keywords: "R&D Investment" and "Innovation-Driven"

China's medical and health system reform continues to deepen, the innovation environment continues to improve, and the pharmaceutical industry continues to move towards high-quality development that encourages transformation, upgrading, and innovation. HealthGen continues to increase R&D investment to drive growth through innovative R&D. According to the Pharmaceutical Intelligence Listed Company Product R&D Details Database, HealthGen and its holding subsidiary Lizhu Group ranked seventh and ninth in the domestic pharmaceutical industry in 2021, respectively, in terms of R&D investment. The change rate ranked among the top four, which is at a relatively high level in the same industry.

In the first half of 2022, the company's total R&D investment amounted to 805 million yuan, a year-on-year increase of 15.39%. The company's R&D investment is mainly used for new product R&D and project technology upgrades and transformations.

HealthGen has developed and launched a number of heavyweight innovative drugs and high-barrier complex formulation products. With innovative drugs and high-barrier complex formulations as its core, the company has strongly built a diversified product matrix and a rich R&D drug pipeline for the group. It has established market competitiveness in multiple sub-sectors of the pharmaceutical industry based on clinical needs and product quality.

At the same time, HealthGen is deeply involved in cross-field, multi-specialty innovative R&D and collaborative development. On the one hand, the company actively responds to changes in the pharmaceutical market and continuously adjusts its product strategy and R&D direction according to policies and clinical needs, achieving continuous iteration and upgrading of its main products; on the other hand, the company makes full use of external scientific research and commercial resources, such as strategic cooperation with scientific research institutions and innovative companies such as the Chinese Academy of Sciences and Tencent Quantum Laboratory, and investment in cutting-edge biotechnology companies to expand the company's product matrix and R&D pipeline, achieving sustainable development for the company.

Keywords: "Long-term Growth" and "Steady Progress"

HealthGen has always adhered to technological innovation as its strategic foundation and the establishment of a high-barrier complex formulation technology platform as its strategic goal. It strives to gradually grow into an innovative pharmaceutical enterprise with industry influence under the dual drive of innovation and high-barrier technology platforms.

Taking respiratory formulations as an example, after years of continuous efforts, HealthGen has become a leader in the domestic inhaled formulation sector. In the first half of 2022, the entire prescription drug sector achieved revenue of 1.06 billion yuan, a year-on-year increase of approximately 67.76%. Among them, the respiratory field achieved sales revenue of 561 million yuan, a year-on-year increase of 259%, showing impressive growth.

In addition, the company submitted its first registration application for a medical device that complements inhaled products, achieving a new breakthrough in the medical device field, forming synergy with inhaled formulations, and consolidating the company's core competitiveness in the respiratory disease field. In the future, respiratory products will contribute to increased performance.

It is not difficult to find that HealthGen has always focused on its main business with a clear and firm strategy. HealthGen has always focused on the development of its pharmaceutical main business, focusing on the establishment of innovative drug and high-end complex formulation technology platforms, the layout and accumulation of drug R&D, and continuously increasing R&D investment to drive high-quality development of the enterprise through innovative R&D.

On November 18, 2022, the company announced that it plans to repurchase shares at a price not exceeding RMB 16 per share (inclusive), with a total repurchase amount of not less than RMB 300 million (inclusive) and not exceeding RMB 600 million (inclusive). As of February 7, 2023, the company has repurchased a total of 19,781,035 shares, accounting for 1.03% of the company's total share capital.

Demonstrating the company's confidence in its development is not only the large-scale share repurchase, but also the unlocking conditions of the company's equity incentive plan, which is a compound annual growth rate of 15% over the next 3 years.

Previously, many biopharmaceutical companies, including HealthGen, have been investigated by institutions. Research institutions pay more attention to the transformation brought about by technological innovation and the strength of enterprises in breaking through technological innovation and transformation. Shanghai Securities believes that with the upgrading and optimization of the industrial structure in the future, industry differentiation will become more obvious, and it is recommended to focus on leading companies in high-quality sectors. In terms of high-quality sectors, based on the current policy priorities, it mainly revolves around two main lines: epidemic prevention and innovation.

The 2022 semi-annual report shows that Health Yuan achieved operating revenue of 8.565 billion yuan, an increase of approximately 9.31% year-on-year; net profit attributable to shareholders of the listed company reached 801 million yuan, a year-on-year increase of approximately 16.57%; and net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses was 804 million yuan, a year-on-year increase of approximately 34.47%. Over the past decade, Health Yuan's performance has been steadily improving, and its non-net profit has maintained double-digit rapid growth over the past five years.