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    Tonghua Dongbao plans to set up novel drug R&D center in Hangzhou

    Date:2021-01-21
    Author:東寶
    Views:2

    On the evening of January 21, Tonghua Dongbao Pharmaceutical Co., Ltd. (stock code: 600867, hereinafter referred to as "Tonghua Dongbao" or the "Company") announced that the Company plans to invest RMB 100 million to establish a wholly owned subsidiary in Hangzhou - Hangzhou Dongbao Pharmaceutical Technology Co. Ltd. - as its novel drug R&D center. Leveraging the geographic advantages, university resources, and preferential policies in Hangzhou and surrounding areas, the center aims to attract high-caliber scientific research talent and further improve the Company’s novel drug development capabilities and market competitiveness, paving the way for the Company's medium- and long-term success.

    The R&D team based in Tonghua, Jilin Province, will continue to focus on the R&D of insulin analogs, GLP-1, oral hypoglycemic drugs, and other products. The new subsidiary will create novel drug pipelines that integrate in-house and external research resources, with an estimated R&D spending of RMB 500 million to RMB 1 billion over the next five years. The subsidiary aims to build up R&D strength in novel drugs and/or new dosage forms for diabetes and other endocrine disorders. Together with the clinical medicine team and registration team based in Beijing, the subsidiary works to develop more competitive products for the Company, optimize its business and regional layout, and build up its R&D strength in novel drugs.

    It is worth noting that Tonghua Dongbao has introduced radical reforms and poured enormous resources into corporate governance and product R&D in recent years, which have produced impressive results. The Company’s core products - the human insulin - maintained robust growth in 2020. Since its launch in February 2020, insulin glargine has been quickly approved for use in hospitals across China, generating significant revenue above expectations. In November 2020, the ultra-rapid-acting insulin lispro injection was approved for clinical trials, marking a significant achievement of Tonghua Dongbao in the field of novel and modified new drugs.

    Tonghua Dongbao made a number of advances in R&D in 2020. Ongoing R&D efforts will create more diverse product offerings, helping the Company evolve from an insulin manufacturer to an innovative platform for diabetes treatment.

    Next, the Company will continue to improve its governance structure, incentive mechanism, and product portfolio. While consolidating its competitive position in the insulin market, the Company will further build up its presence in novel drug development. It will fully mobilize the resources from strategic investors to accelerate new product development and time-to-market and improve its industrial position and overall competitiveness.


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