Xinda Biology responds to the collection of biological drugs: the 20 billion performance target for 2027 already includes the impact of centralized procurement.

On January 17, Jinshi Data reported that Xinda Biology (01801.HK) has responded to the centralized procurement of biological drugs. Xinda Biology stated that there are currently no more details about the specific list, rules, methods, and timing of the centralized procurement. We will follow up to understand. The company currently has 14 products on the market, including 3 biosimilars. This year, there will be the market launch of Rituximab, Marzitor, and Pembrolizumab, so even if the centralized procurement is confirmed, the overall impact on Xinda will be limited. At the same time, the centralized procurement will lead to a drop in sales and management expenses, so the impact on profits will also be limited. In the long term, our target of 20 billion yuan in 2027 is based on the assumption that centralized procurement occurs and will not be affected.