[ET Net News Agency, 30 December 2019] Hansoh Pharmaceutical Group (03692) said its
first-to-market canagliflozin generic (oral SGLT-2 inhibitor for the treatment of Type 2
diabetes) has been approved by the National Medical Products Administration (NMPA). The
original product, Janssen's Invokana, is the first SGLT-2 inhibitor produced in China
Morgan Stanley said it is an important addition to Hansoh's diabetes portfolio. It cited
Frost & Sullivan expecting canagliflozin sales in China to reach Rmb1,206mn by 2023. There
are 20+ companies developing canagliflozin generics in China, including Sino Biopharma
(01177).
In November 2019, Invokana was included in the NRDL (National Reimbursement Drug List)
through price negotiations. While the negotiated price was not disclosed, Janssen had cut
its price by 40% to Rmb9.6 per 100mg tablet before the negotiation.
Morgan thinks canagliflozin will significantly strengthen Hansoh's diabetes franchise,
which now consists of long-acting GLP-1 PEG-loxenatide (approved in May 2019) and
repaglinide generic, etc.
It maintained its "overweight" rating on Hansoh, with a target price of HK$29. (KL)