Interesting, especially Consun Pharma. Do the Uremic Clearance Granules carry any patents? There is no mention in their AR, other than UCG is the only "strongly recommended" medicine. My first instinct is there would be lot of competition if they were to expire soon, with gross margins at 75%. What is your take on management, 1-10? Thanks for the write-up!
Hi Michal, i am not fully sure but I believe that traditional chinese medicine (without active ingredient extraction) do not carry any patent. The ingredients are all known. If you look at the back of package, everything is written down.
For example, uremic clearance granule contains Da Huang Rhubarb Radix et Rhizoma Rhei, Huang Qi Milkvetch Root Radix Astragali, Gan Cao Liquorice Root,Radix Glycyrrhizae, Fu Ling Indian Bread Poria, Bai Zhu Rhizoma Atractylodis Macrocephalae, He Shou Wu (Zhi) (Fleeceflower Root Radix Polygoni Multiflori), Chuan Xiong Szechwan Lovage Rhizome Rhizoma Chuanxiong,Ju Hua Chrysanthemun Flower Flos Chrysanthemi, Dan Shen Danshen Root Radix Salviae Miltiorrhiae, Ban Xia(ginger zhi) (Pinellia Tuber Rhizoma Pinelliae) .
What is not known is the percentage of the ingredients and the processing method. Instead of a patent, it is more like a trade secret and a process knowhow. Coupled with a brandname, it could be even be more sustainable than a patent.
Do expect price pressure due to centralised procurement. There is minimal competition but they need to lower price to support government policies.
In term of management, looking at their execution so far I will have to give it at least a 7-8.
Thank you for a swift reply Ong! Will have to do a deep dive on the Company. It sure does look interesting and your take on management is reassuring. What do you consider to be main drivers for this stock?
Interesting, especially Consun Pharma. Do the Uremic Clearance Granules carry any patents? There is no mention in their AR, other than UCG is the only "strongly recommended" medicine. My first instinct is there would be lot of competition if they were to expire soon, with gross margins at 75%. What is your take on management, 1-10? Thanks for the write-up!
Hi Michal, i am not fully sure but I believe that traditional chinese medicine (without active ingredient extraction) do not carry any patent. The ingredients are all known. If you look at the back of package, everything is written down.
For example, uremic clearance granule contains Da Huang Rhubarb Radix et Rhizoma Rhei, Huang Qi Milkvetch Root Radix Astragali, Gan Cao Liquorice Root,Radix Glycyrrhizae, Fu Ling Indian Bread Poria, Bai Zhu Rhizoma Atractylodis Macrocephalae, He Shou Wu (Zhi) (Fleeceflower Root Radix Polygoni Multiflori), Chuan Xiong Szechwan Lovage Rhizome Rhizoma Chuanxiong,Ju Hua Chrysanthemun Flower Flos Chrysanthemi, Dan Shen Danshen Root Radix Salviae Miltiorrhiae, Ban Xia(ginger zhi) (Pinellia Tuber Rhizoma Pinelliae) .
What is not known is the percentage of the ingredients and the processing method. Instead of a patent, it is more like a trade secret and a process knowhow. Coupled with a brandname, it could be even be more sustainable than a patent.
Do expect price pressure due to centralised procurement. There is minimal competition but they need to lower price to support government policies.
In term of management, looking at their execution so far I will have to give it at least a 7-8.
Thank you for a swift reply Ong! Will have to do a deep dive on the Company. It sure does look interesting and your take on management is reassuring. What do you consider to be main drivers for this stock?