Zhaoyan New Medicine (603127): Investing in Chongqing Base to Strengthen Competitive Advantage in Security Evaluation

Zhaoyan New Medicine (603127): Investing in Chongqing Base to Strengthen Competitive Advantage in Security Evaluation

Event: On March 30, the company announced that it will invest in the construction of Zhaoyan (Chongqing) New Drug Evaluation Center in Chongqing in accordance with the needs of future business development.

Core View The third base is about to land and strengthen the safety assessment of competitive advantage.

Following Beijing and Taicang New Drug Evaluation Center, the company decided to set up a third base in Chongqing.

According to reports, the investment scale is about 7.

8.7 billion, with a planned construction area of 60,000 square meters, and construction is expected to begin in October this year.

The Chongqing base is still dominated by pharmacological and toxicological assessment services, taking into account preclinical and clinical sample testing services.

It is easy to understand that the construction and operation of the Chongqing base will greatly enhance the company’s competitive advantage in the GLP field: 1) breakthrough in the capacity transfer of existing bases; 2) perfecting the national layout and strengthening coverage in the south

The GLP business has grown rapidly, and early clinical and surveillance services have progressed smoothly.

At present, the newly renovated production capacity of the Taicang base for 18 years has begun to gradually expand and use. The overall increase 武汉夜生活网 in area interval is about 70%. With sufficient orders, the GLP business will maintain rapid growth in 19-20 years; early clinical business:The trial base is under construction and will be launched during the year; 2) Clinical CRO team.

Expansion of the team is expected to be completed in the first half of the year; 3) Clinical biological sample analysis center.

The Taicang base laboratory is under construction and is expected to undertake projects within the year; the vigilance business: it is in the process of active promotion and has developed rapidly.

Based on the GLP business, build a comprehensive pre-clinical CRO.

The company’s strategic plan is based on biopharmaceuticals. Based on the integration of GLP business, it will build a comprehensive CRO around early clinical and biopharmaceutical CRO / CMO.

Specifically, 西安耍耍网 based on the existing preclinical safety assessment business (consolidating the domestic market and expanding overseas markets), it will strengthen its service capabilities such as medicinal pharmacopoeia and expand into the early clinical field; in terms of animals, the company willThe internal transplantation method strengthens improvement and quality management.

We believe that the company is expected to eventually grow into a preclinical comprehensive CRO with biomedicine as its core.

Financial Forecast and Investment Recommendations We predict that the company will realize net profit attributable to mothers in 2019-2021.

55/2.

06/2.

7.2 billion (originally forecasted a net profit of 19-21 for 1 year.

54/2.

05/2.

700,000), the corresponding EPS is 1.

36/1.

81/2.

38 yuan.

With reference to the assessment level of comparable companies, the company is given a 56 times price-earnings ratio in 2019 with a corresponding target price of 76.

16 yuan, maintaining the “overweight” level.

Risk Warning If the new business development is less than expected, it will adversely affect the company’s growth prospects.

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