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Dec. 11 (NBD) -- It was reported earlier this month that a guideline concerning monitoring of drugs had been mulled by the Health and Family Planning Commission of Guangzhou Municipality.

According to the media report, the guideline enlists 67 drugs, a lot of which are categorized as adjuvant drugs.

NBD later confirmed the matter with an exclusive source. The source told NBD that such guiding document is likely to give hospitals room to adjust and to establish their own monitoring procedures and systems in line with the guideline.

The Health and Family Planning Commission of Guangzhou Municipality requires medical institutions there to compile their own monitoring list of priority drugs, enlisting top 30 or top 100 drugs in terms of sales during a six-month period, drugs whose application amount increase by 20 percent compared with previous six-month period, and other drugs that individual medical institution thinks need monitoring.

NBD noticed that 20 A-share listed companies are involved in the manufacturing and sales of the 67 drugs encompassed in the guideline, for instance, Staidson (Beijing) Biopharmaceuticals Co.,Ltd, Jilin Aodong Medicine Industry Group Co., Ltd and Fosun Pharma.

NBD also found some neuro neurotrophic drugs. Mouse Nerve Growth Factor for Injection, a major product of Staidson, dominates the nerve growth factor market. NBD learned that in the first half of 2017, the drug generated 606 million yuan (92 million U.S. dollars) for Staidson, with a gross profit rate of 97.45 percent.

Deproteinised Calf Serum Injection (Adegold), a core product of Fosun Pharma, is another drug worth noting. In the end of 2015, it was suspended manufacturing for several months due to inspections and raw material supply chain upgrading. Though it is still a major revenue contributor of Fosun in 2016, the sales volume of Adegold to medical institutions decreased significantly.

Besides Mouse Never Growth Factor for Injection, the gross profit rate of many other drugs enlisted in the guideline exceeds 70 percent. For example, Tanreqing injection, an anti-inflammatory agent of Shang Hai Kai Bao Pharmacetical Co., LTD, reaped 884 million yuan (134 million U.S. dollars) in the first half of 2017, with a gross profit of 83.15 percent.

NBD noted that anti-tumor and anti-cancer drugs such as Thymopoietin, Lentinan for Injection and Aidi injection are also a focus in the guideline.

Some drug makers have met with swinging financial results during adjusting to related policy changes in China and some didn't adapt well enough. For instance, Xuebijing injection of Tianjin Chase Sun Pharmaceutical Co. LTD, reported a revenue of 177 million yuan (27 million U.S. dollars) in the first half 2017, a year-on-year decrease of 64.65 percent.

Email: tanyuhan@nbd.com.cn