Jumpcan Pharma (600566.SH): Three products entered into Hunan drug integration list July 24, 2018 226

Investment Summary

We highlight that three products entered into the drug integration list of Hunan Province, which means that patients can apply for reimbursement of these drugs. The inclusion is expected to boost sales of these products. Given its solid 1Q18 results, we predict 18E/19E EPS to be RMB1.72/2.14. we maintain 2018 target PE 30x and target price of RMB51.6. (Closing price at 20 July 2018)

Business Overview

Three products entered into Hunan drug integration list. Recently, the Ministry of Human Resources and Social Security of Hunan Province issued a notice to clear the 164 drugs as drugs for the transition period of the integration of urban and rural residents` medical insurance system. The related drugs are implemented in accordance with the category B drug management in accordance with PDRL. Jumpcan`s three drugs (Iron Proteinsuccinylate Oral Solution, Chuanqiong Qingnao Granules, Huanglong Kechuan Capsule) are included in the drug list of transition period and can apply for reimbursement according to 2018 PDRL, which will facilitate products sales.

About the author

Profile photo of Eurus Zhou

Eurus Zhou
Phillip Securities (HK)

Graduated from Hong Kong Polytechnic University, Master of Finance (Investment Management). Possess bachelor degree majoring in Financial Management from Southwestern University of Finance and Economics. Focus on industry prospect and corporate fundamentals to explore investment value and cover pharmaceutical and consumer industry.

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