Salcaprozate sodium, Chinese name: N-[8-(2-hydroxybenzoyl)sodium aminocaprylate], also known as SNAC. As a small molecule absorption enhancer, SNAC can better deliver oral drugs (peptides, proteins, oligosaccharides, oligonucleotides) to the intestinal mucosa to avoid being eroded and enzymatically hydrolyzed by gastric acid, and at the same time, the interaction between the delivery medium and the mucosal lipid bilayer, the transport drug penetrates the cell, and does not interact with the drug itself, and it is combined with semaglutide to form an oral formula, so that semaglutide can be absorbed in the stomach and achieve the same administration effect as subcutaneous injection of macromolecular protein. SNAC is generally considered safe (GRAS) status and is approved by the U.S. Food and Drug Administration (FDA) for use in pharmaceutical formulations (Eligen-Vitamin B12, EMISPHERE, Roseland, NJ, USA).
SNAC is mainly produced and synthesized by two intermediates, and Jinkai Biotech currently provides one of the intermediate products for it, and has developed all the key intermediate processes of SNAC, and the capacity utilization rate has maintained a high level. Based on the judgment of the future oral market, combined with the company's business characteristics and the "first-mover advantage" of SNAC-related products and services, the company is still focusing on the development direction of oral penetration promoters, continuing to optimize the process of SNAC products, preparing production capacity, ensuring quality and delivery to meet the needs of existing customers, and paying attention to other market opportunities. In the first half of '23, SNAC intermediates service revenue accounted for about 5% of the company's total revenue, about 21 million, and the delivery cycle of related product orders lasted until the first half of '24.
After reading the prospectus, Jinkai Biotech's pesticide API revenue accounted for about 39%, which is relatively stable, but it is greatly affected by the cost and agricultural cycle, and the valuation should be appropriately reduced, which can be compared with Guobang Pharmaceutical on the Shanghai Stock Exchange and Nutrichem Bio on the Beijing Stock Exchange, both of which have declined in revenue and profit in 23 years. In the third quarter of 23, the company's revenue increased slightly year-on-year, and the profit decreased slightly, indicating that the company's non-pesticide business development is good, and the company's future development will focus on the pesticide business.
Regarding the company's first-class drug concept: SNAC orders continued until the first half of this year, and the two projects raised and invested contained the production of SNAC intermediates, so this year's focus depends on the amount of SNAC orders that can be obtained and the progress of the fundraising projects.
The company's annual report and quarterly report may not be eye-catching, at most it is decent, and it will take some time for the company's fundraising project to be completed. SNAC has limited impact on the company in the short term, but combined with the performance and capacity expansion of Novo Nordisk's first-class drugs and the layout of domestic pharmaceutical companies' first-class drugs, the company's future is promising.