Caitong: The demand for monomers of succinylamide is expected to grow vigorously, and enterprises within the supply chain of multinational pharmaceutical companies are likely to benefit.

Caitong released a research report stating that small nucleic acid drugs are considered potential candidates for treating a variety of diseases due to their unique molecular structure and therapeutic mechanism. As most of the proportion in nucleic acid drugs is oligonucleotide, oligonucleotide has become an important raw material for nucleic acid drugs and a major source of cost in the production of small nucleic acid drugs. According to sphericalinsights, the global nucleotide market (including oligonucleotides and monomers) is projected to reach sales of $730 million in 2023. China is the largest producer of nucleotides globally, with a large portion of production being exported. In the future, with the vigorous development of downstream small nucleic acid drugs, the demand for important raw materials such as monomers of phosphoramidites is expected to increase, and multinational pharmaceutical companies in the supply chain are likely to benefit. Caitong's main points are as follows: Phosphoramidite monomers have a significant impact on the development process of small nucleic acid drugs Small nucleic acid drugs are considered potential candidates for treating various diseases due to their unique molecular structure and therapeutic mechanism. Nucleic acid drugs can intervene in disease-related genes or RNA for precise treatment. However, the development process of small nucleic acid drugs is complex and challenging, with phosphoramidite monomers playing a significant role as a key raw material in the synthesis of small nucleic acid drugs. Their role includes being: 1) the basic raw material for synthesizing small nucleic acid drugs; 2) enhancing the stability and biological activity of small nucleic acid drugs; 3) driving innovation in the development of small nucleic acid drugs. Oligonucleotides are the raw materials and main cost source in nucleic acid drug production In terms of the production process of oligonucleotide raw materials, the current mainstream method for synthesizing oligonucleotides in the upstream process is the solid-phase phosphoramidite triester method. Phosphoramidite monomers undergo deprotection, coupling, oxidation, capping, and other steps with the solid-phase carrier in the nucleic acid synthesizer to obtain the target base sequence, the crude product of the oligonucleotide. Subsequently, the crude product is deprotected and cleaved from the solid-phase carrier, after which, through preliminary testing of purity using liquid chromatography, the oligonucleotide raw material intermediate can be obtained through purification, ultrafiltration, freeze-drying, and other steps. Since the majority of nucleic acid drugs are oligonucleotides, oligonucleotides become an important raw material for nucleic acid drugs and a major source of cost in the production process of small nucleic acid drugs. The demand for phosphoramidite monomers is expected to grow, and multinational pharmaceutical companies in the supply chain are likely to benefit According to sphericalinsights, the global nucleotide market (including oligonucleotides and monomers) is projected to reach $730 million in sales in 2023. China is the largest producer of nucleotides globally, with a large portion of production being exported. Overall, 90% of global nucleotides are used for the production of nucleic acid drugs, with only around 10% used for health products, agriculture, and other fields. In the future, with the vigorous development of downstream small nucleic acid drugs, the demand for important raw materials such as phosphoramidite monomers is also expected to grow. Additionally, since the short-term market for small nucleic acid drugs mainly relies on well-known multinational pharmaceutical companies such as Novartis, Roche, Sanofi, and Alnylam, companies within the supply chain of multinational pharmaceutical companies are likely to benefit. Investment recommendations focus on targets Innovative medical devices: such as Inner Mongolia Furui Medical Science (300049.SZ), Zhejiang Anglikang Pharmaceutical (002940.SZ), Staidson (300204.SZ), Shenzhen Chipscreen Biosciences (688321.SH), Front Bio (688221.SH), SINOMAB BIO-B (03681), Hangzhou Bio-Sincerity Pharma-Tech (301096.SZ), Changchun High-Tech Industry (000661.SZ), Mabwell (688062.SH), Jiangsu Jibeier Pharmaceutical Co., Ltd. (688566.SH), AKESO (09926), PHARMDY (301255.SZ), Sichuan Biokin Pharmaceutical (688506.SH), SKB BIO-B (06990), Sichuan Kelun Pharmaceutical (002422.SZ), Suzhou Zelgen Biopharmaceuticals (688266.SH), REMEGEN (09995), INNOVENT BIO (01801), HANSOH PHARMA (03692), LEPU BIO-B (02157), EVEREST MED (01952), Jenkem Technology (688356.SH), Kexing Biopharm (688136.SH), CSTONE PHARMA-B (02616), Shouyao Holdings (688197.SH), Bio-Thera Solutions (688177.SH), and CARSGEN-B (02171), etc. From a CXO, raw material perspective: it is recommended to focus on WuXi AppTec (603259.SH), Zhejiang Jiuzhou Pharmaceutical (603456.SH), Chengda Pharmaceuticals (301201.SZ), Lianhe Chemical Technology (002250.SZ), Zhejiang Huahai Pharmaceutical (600521.SH), Jiangsu Sinopep-Allsino Biopharmaceutical (688076.SH), etc. Risk warnings Risks of industry anti-corruption impact exceeding expectations; uncertainties in the progress of new drug research and development; risks of sales falling short of expectations; risks of procurement price reductions exceeding expectations, etc.