On March 15, Zhejiang Cheng Yi Pharmaceutical Co., Ltd. (securities code: 603811) officially landed on the main board of Shanghai Stock Exchange with a resounding gong. This Shinise pharmaceutical enterprise, located in Dongtou Island, Wenzhou, got off to a good start on its first day of listing, and rose to a market value of about 1.933 billion yuan with an increase of 43.97%. Yan Yiyi, Chairman of Cheng Yi Pharmaceutical, stated at the listing ceremony that, We will adhere to the main development direction of marine medicine, biopharmaceuticals, traditional Chinese medicine, and new formulations, while developing the health industry, implementing marketing reforms, and striving to build the company's core competitiveness. Taking advantage of the opportunity of listing, we will enter the capital market in a planned, step-by-step, and actively and steadily manner through mergers and acquisitions, shareholding, and other forms, so as to extend the industrial chain, achieve leapfrog development of the company, and create a new legend of marine medicine
Never forget your original intention, forge ahead for fifty years
In 1966, Tongshan Pharmaceutical Factory quietly took root in Dongtou, Wenzhou, which was the predecessor of Cheng Yi Pharmaceutical. The lack of technology, funds, talent, and information once posed a dilemma for this island pharmaceutical company. However, it is precisely relying on the relentless pursuit of quality improvement and technological innovation that today's Cheng Yi Pharmaceutical not only withstands numerous obstacles and is reborn, but will also gallop in the capital market with a new attitude.
After more than half a century, Cheng Yi Pharmaceutical has grown into a comprehensive enterprise engaged in the R&D, production and sales of capsules, injections, tablets, granules, APIs, pharmaceutical intermediates and topical drugs. Its therapeutic effects cover nearly 100 specifications and varieties such as arthritis, diuretics, sedation and brain tonic, antiviral and anti-tumor drugs. Its main products include Glucosamine hydrochloride APIs and preparations Tolasemide injection and capsule, Gastrodin API, Ribavirin and Azathioprine API, etc.
According to the announcement, Cheng Yi Pharmaceutical and its subsidiaries have 65 drug production approval numbers. Among them, 43 drug regulations were listed in the national medical insurance catalogue (including 31 Class A and 12 Class B drug regulations), 15 drugs were listed in the National Essential medicines Catalogue (2012), and 31 product regulations were produced throughout the year. As of the signing date of the prospectus, the company has 4 national new drug varieties, including 3 Class II new drugs and 1 Class IV new drug; Has 9 invention patents and 3 utility model patents.
From the small island pharmaceutical factory that initially solved the demand for medical shortage to the modern comprehensive pharmaceutical enterprise with business covering all over the world, "Sincerity to the world, benefiting people's livelihood" has always been the original intention of Cheng Yi Pharmaceutical. Yan Yiyi frankly stated that the road ahead is not a smooth one, and the development of enterprises cannot do without perseverance and down-to-earth work. The fifty year journey of wind and rain records the struggle and innovation of sincere people, carrying their dreams and pride.
In these fifty years, multiple products under Cheng Yi Pharmaceutical have been awarded titles such as "Famous Brand Product", "High Quality Pharmaceutical Product", and "High Quality Product". The "Lishan" trademark and "Sankang" trademark have also been recognized as famous trademarks in Zhejiang Province. At the same time, the company has also blossomed in the international market, fully passing the Chinese GMP certification, the US FDA, the UK MHRA, the Australian TGA, the EU EMEA, the GMP audit of the Singapore National Drug Administration, and the international standards ISO9001 and ISO14001 systems. Its sales regions cover more than 20 countries and regions such as the United States, Canada, Europe, South Africa, Southeast Asia, and more, with exports accounting for over 50% of the total sales.
Capital Helps Sail on a New Journey
Medical innovation and transformation and upgrading are becoming keywords for the development of domestic pharmaceutical enterprises. With the issuance of the "Guidelines for the Development of the Pharmaceutical Industry", some industry insiders believe that in the future, Chinese enterprises will transform globally, from bulk raw materials to specialty raw materials, from specialty raw materials to ordinary preparations, and from ordinary generic pharmaceutical preparations to original research drugs.
During the 13th Five Year Plan period, we will increase investment in new drug development and production process technology transformation, transforming the company's business from being mainly focused on raw materials to mainly focused on formulations. Yan Yiyi said that whether in the past or in the future, Cheng Yi Pharmaceutical has always maintained a pace of continuously increasing research and development investment. This is not only the foundation of enterprise development, but also the way to stand out in the increasingly competitive market.
Yan Yiyi revealed that one of the important uses of the raised funds from this offering is to build a research and development center, equip it with advanced instruments and equipment, attract outstanding talents and projects, and further improve the company's Drug development level and detection capability.
In addition, in order to further expand the market share of preparation products, the company will also extend the development of tablets, granules, freeze-dried agents and other dosage forms of existing products such as Ribavirin, Clindamycin phosphate, Glucosamine hydrochloride, etc. In the future, product development will implement synchronous development of raw materials and supporting formulations, gradually forming a multi-level and rich product structure.
It is worth noting that, adhering to the concept of "relying on the sea to feed the sea", Cheng Yi Pharmaceutical has created a number of outstanding marine drugs by virtue of its geographical advantages. The main product, Glucosamine hydrochloride, is prepared by hydrolysis of chitin in crab shells and shrimp shells, which makes it the largest API manufacturer of Glucosamine hydrochloride in China. The market share of the preparation in China jumped from 9.97% in 2011 to 26.11% in 2015.
From islands to the world, from the world back to the ocean. Yan Yiyi pointed out that marine green drugs are also the focus of Cheng Yi Pharmaceutical's product research and development in the next three years. The company will continue to utilize the rich marine resources in the local area to develop drugs such as anti-tumor, antihypertensive, and lipid-lowering. We hope to explore the next "marine gold mine" through research and cooperation with various research institutions.
As another important milestone in the development process, the successful launch of Cheng Yi Pharmaceutical will undoubtedly usher in a new chapter. According to the development strategy, the funds raised by Cheng Yi Pharmaceutical in this issuance will be used for the technical renovation of the company's preparation building, the construction of research and development centers, and the construction of marketing networks. The project is fully put into operation, with an expected annual increase in operating revenue of 650 million yuan and an annual increase in post tax profit of 87.5 million yuan.
Yan Yiyi stated that after the company goes public, it will continuously improve its internal business management mechanism, accelerate the industrialization of innovative technological achievements by increasing investment and strengthening technological innovation capabilities, continuously improve the core competitiveness of the enterprise, and achieve the maximization of investor interests.
Looking forward to the future, with the assistance of capital, Cheng Yi Pharmaceutical will implement synchronous development of production and capital operations, accelerate product upgrading and upgrading, achieve the transformation of raw materials to formulations, lead the transformation of products to marine medicine, biopharmaceuticals, traditional Chinese medicine, and new formulations, promote the expansion and extension of the industrial chain, and make greater contributions to the development of the pharmaceutical industry, the increase of national fiscal revenue, and the employment of social personnel.