[Daily Research Report Analysis · Wanbangde]

(Source: Wealth Online Technology)

The company is a high-tech enterprise specializing in the research, development, production, and sales of modern traditional Chinese medicine, active pharmaceutical ingredients, and formulations. It has the production capacity for 14 dosage forms, including drop pills, tablets, capsules, granules, oral solutions, small volume injections, and large volume injections, as well as for chemical active pharmaceutical ingredients and traditional Chinese medicine extracts.

The company is one of the pharmaceutical enterprises in China with a wide variety of drug dosage forms, currently holding 186 drug approval numbers. It has formed a product structure characterized by natural plant medicine, primarily focusing on cardiovascular and neurological drugs, while also developing medications in the respiratory, psychiatric, and digestive systems.

The company has 66 varieties listed in the 2018 edition of the “National Essential Medicines List,” 113 varieties in the 2023 edition of the “National Basic Medical Insurance Catalog,” and 13 varieties included in the “Commonly Used Drugs Procurement Catalog Outside the Basic Drug Directory for Basic Medical and Health Institutions in Zhejiang Province” (supplementary drugs). It also possesses the globally pioneering active ingredient and injection of Huperzine A, as well as two core products with national intellectual property rights: Ginkgo biloba drop pills.

The company consistently adheres to a technology-driven approach, boasting a comprehensive R&D system and a highly skilled research team with independent innovation capabilities. It has established several R&D platforms, including the “Joint Research Center for Modernization of Traditional Chinese Medicine between China Pharmaceutical University and Wanbangde,” “Joint Research Center for Modernization of Traditional Chinese Medicine between Zhejiang University and Wanbangde,” “Provincial High-Tech Enterprise Research and Development Center for Cardiovascular Drugs,” and “Model Academy Expert Workstation,” making it a key high-tech enterprise under the “National Torch Program.”

The company has won numerous honors over the years, including “Top 100 Pharmaceutical Manufacturers in China,” “Top 50 Growth Companies in the Chinese Pharmaceutical Industry,” “Top 100 Traditional Chinese Medicine Enterprises,” “Outstanding Brand Enterprises in Chinese Medicine” (with representative product: Ginkgo biloba drop pills), and “Top 50 Growth Enterprises in the Chinese Pharmaceutical Industry.”

Company Highlights:

1. Huperzine A Controlled-Release Tablets for AD selected for national major projects, expected to accelerate its status as a first-line medication.

(1) Existing therapies for AD have various shortcomings, while the mechanism of Huperzine A in treating AD is clear, with significant advantages (broad spectrum): China has the highest number of AD patients globally, with nearly 17 million AD and related dementia patients in 2021. After the late stages, AD patients lose their ability to live independently and require 24-hour continuous care, placing a tremendous burden on society.

Current therapies for AD have limited efficacy (Donepezil, Memantine) or are expensive with bleeding risks (Rivastigmine).

As a broad-spectrum small molecule drug, Huperzine A has multiple neuroprotective mechanisms, including cholinergic modulation, anti-apoptosis, and reduction of Aβ plaque deposition, with a clear mechanism for treating AD. However, the short half-life of Huperzine A (10 minutes) and the pronounced peak-trough effect limit its use.

(2) Huperzine A controlled-release tablets are progressing rapidly in clinical trials, with huge market potential: The company’s Huperzine A controlled-release tablets utilize a biphasic controlled-release technology that significantly reduces the “peak-trough effect” of blood drug concentration while aligning with the physiological rhythm of acetylcholine, potentially achieving once-daily administration, increasing dosages, and maintaining safety.

Currently, Huperzine A is at a critical confirmatory Phase III clinical trial, selected for national key scientific and technological projects, following the latest CDE guidelines and ICH-GCP standards, employing dual primary endpoints (behavior + cognition).

As of February 26, 2026, 100 patients have been enrolled, and clinical progress is rapid. We believe Huperzine A controlled-release tablets are likely to become a first-line drug for AD treatment, with potential peak sales in the domestic market expected to reach 13 billion yuan, calculating an annual cost of 10,000 yuan, and the overseas market potential is even greater.

2. WP205 targets the ALS market, with significant commercial value potential.

Current treatment methods for ALS only delay disease progression, leading to a substantial clinical need gap. The company’s WP205 targets the ALS market, with preliminary data showing a significant slowdown in ALSFRS-R decline (P=0.003) and a notable extension of survival (placebo 570 days vs. 50mg group 1197 days) in patients with a disease duration of less than 12 months.

In February 2025, the company received an FDA recognition letter, granting orphan drug designation for the treatment of ALS and plans to advance to Phase III clinical trials in the U.S., indicating significant commercial potential.

3. WP103 and other FDA orphan drug pipelines are expected to gradually realize value.

The company has established a clear and well-defined R&D pipeline in the rare disease field. As of October 2025, it has obtained five FDA orphan drug designations (including one for rare pediatric disease), covering various neurological and autoimmune rare diseases such as myasthenia gravis, neonatal hypoxic-ischemic encephalopathy, and pemphigus.

Under FDA guidance, WP103 (for HIE indications) has shown significant effects in multiple indicators in large animal models. If approved in the future, it will also receive additional rewards for FDA priority review, indicating substantial commercial value.

4. Core Competitiveness

(1) Pharmaceutical Manufacturing Sector

The pharmaceutical manufacturing sector has formed an industrial chain characterized by “collaborative layout of modern traditional Chinese medicine and chemical drugs, and synergistic development of specialty APIs and formulations,” with a product structure “featuring natural plant medicines, primarily focused on cardiovascular and neurological drugs, and selectively breaking through in respiratory and other fields,” which continuously adapts to market changes and provides a business foundation for sustained and stable profitability in the pharmaceutical manufacturing sector.

1. Product Advantages

The pharmaceutical manufacturing sector covers multiple therapeutic areas, including cardiovascular, neurological, respiratory, digestive, and psychiatric disorders, with dosage forms including drop pills, tablets, granules, large volume injections, and small volume injections. It is one of the pharmaceutical companies in China with a wide variety of drug dosage forms, possessing 177 products and 201 drug approval numbers. The product structure is characterized by natural plant medicines, primarily focusing on cardiovascular and neurological drugs, while developing products in the respiratory, psychiatric, and digestive systems.

A total of 74 varieties have been included in the 2018 edition of the “National Essential Medicines List,” 117 varieties in the 2024 edition of the national basic medical insurance catalog, and 13 varieties have entered the “Commonly Used Drugs Procurement Catalog Outside the Basic Drug Directory for Basic Medical and Health Institutions in Zhejiang Province.”

Wanbangde Pharmaceutical’s Ginkgo biloba drop pills have been included in the national “Medical Insurance Directory” and “Essential Medicines List,” indicating good market prospects.

In the neurological field, Huperzine A has received the second prize of the National Technology Invention Award and is recognized both domestically and internationally as one of the most effective drugs for improving cognitive function and treating Alzheimer’s disease. The company’s Huperzine A injection is a unique product nationwide.

In the digestive system, the injection of phenol is the first in the nation to pass the drug consistency evaluation; in the respiratory system, bromhexine hydrochloride and its formulations are first-line drugs for phlegm clearance in clinical applications, leveraging the integrated advantage of API and formulation to occupy a significant share of the domestic market.

Wanbangde Pharmaceutical has participated in drafting national drug standards for Ginkgo biloba drop pills, Huperzine A injection, bromhexine hydrochloride tablets, and clozapine tablets.

2. R&D and Technological Innovation Advantages

Wanbangde Pharmaceutical places great importance on product R&D and innovation, adhering to the R&D philosophy of “facing patients, facing the world, and facing the future.” After years of accumulation, it has built a complete R&D system and possesses a highly skilled research team with strong independent innovation capabilities, achieving a strategic transformation from generic drugs to innovative medicines, thereby solidifying its capabilities in medicine and clinical operations, forming the capacity for all stages of drug R&D.

The company focuses on the R&D of traditional Chinese medicine, chemical drugs, and active pharmaceutical ingredients. Ongoing products such as Huperzine A, peptide drugs, and mecobalamin have achieved breakthroughs in major neurological diseases, metabolic diseases like obesity, autoimmune diseases, and rare diseases.

The company leverages its core products with fully independent intellectual property rights to focus on enhancing clinical value and pursuing differentiated layouts. By employing strategies of “new use of old drugs + formulation innovation + evidence strengthening,” it continuously explores new evidence for products in different fields through real-world studies, multi-center clinical studies, and simultaneously develops new indications, new formulations, and new markets, particularly through obtaining FDA orphan drug and rare pediatric disease designations, as well as three clinical licenses, rapidly advancing the international layout of its drugs.

Wanbangde Pharmaceutical has established a competitive technical development platform with rich R&D experience in the separation and purification technology of natural plant medicines, drug release technology, chemical active pharmaceutical ingredient synthesis technology, and the optimization and technological innovation of processes for cardiovascular and neurological drugs.

Wanbangde Pharmaceutical enhances external cooperation, with its academician workstation and postdoctoral workstation recognized as provincial key academician workstations, national model academician workstations, and provincial postdoctoral workstations. Its R&D center has been recognized by Zhejiang Province as the “Provincial High-Tech Enterprise Research and Development Center for Cardiovascular Drugs,” among other honors.

3. Integrated Industrial Chain Advantage

Wanbangde Pharmaceutical has formed an industrial chain characterized by “collaborative layout of modern traditional Chinese medicine and chemical drugs, and synergistic development of specialty APIs and formulations.” The company currently has 18 types of active pharmaceutical ingredients and multiple traditional Chinese medicine extracts, covering core product raw material supply in key therapeutic areas, including cardiovascular, neurological, and respiratory systems.

The company leverages its “API + formulation” integrated industrial chain advantage to achieve full-process quality control from raw material production to end products, ensuring the stability and controllability of its supply chain.

By independently controlling raw material quality and production capacity, it effectively reduces formulation production costs. At the same time, based on its technical accumulation in active pharmaceutical ingredients, it continuously promotes the optimization and upgrading of formulation processes. With the synergy of APIs and formulations, it lays a solid foundation for the market expansion and long-term value growth of core products, significantly improving resource allocation efficiency and the synergy effect of production capacity.

4. Geographical Advantage

Wanbangde Pharmaceutical is located adjacent to the chemical active pharmaceutical ingredient production base in Zhejiang Province, which gives it significant industrial cluster advantages compared to active pharmaceutical ingredient companies located in other regions of China. The local public infrastructure is well-developed, and transportation is convenient, with a complete range of supporting industries for fine chemicals and pharmaceutical equipment.

Additionally, its subsidiary, Bescon Pharmaceutical, is located in “the hometown of Ginkgo biloba,” Pizhou, Jiangsu, where Ginkgo biloba resources are abundant, ensuring a stable supply of the main raw material, Ginkgo biloba extract, further consolidating its market position in Ginkgo biloba formulations.

(2) Medical Device Sector

1. Strategic Advantage of China-Africa Synergy

Leveraging national China-Africa cooperation and the Belt and Road Initiative, Wanbangde is continuously promoting the “bring in and go out” collaborative development between China and Africa. It has become a star enterprise for Chinese pharmaceutical firms and private enterprises in Zhejiang Province to enter Africa, receiving significant attention and support from the Ministry of Commerce, the China-Africa Chamber of Commerce, and the Zhejiang Provincial Party Committee and Government. The synergistic effects of Chinese pharmaceutical companies cooperating with Wanbangde to enter Africa are beginning to show results.

The company’s “Case of Collaborative Development of Health Industry between China and Africa” was selected for the second edition of the “China-Africa Economic and Trade Cooperation Case Collection” and was presented at the second China-Africa Economic and Trade Expo.

2. Leading Technology Advantage

Wanbangde Medical Technology has a team of technical R&D experts in polymer materials, medicine, mold making, and mechanical automation. The technology R&D team has a high level of professional expertise and rich industry experience. Wanbangde Medical Technology has mastered several core technologies in the medical device industry, which helps further enhance product competitiveness and increase product added value. Multiple products have received FDA approval or CE certification from the European Union.

3. Marketing Advantage

Wanbangde Medical Technology is committed to developing the medical device services and market in China, South Africa, and other countries and regions, establishing a stable customer base and a good market reputation by efficiently responding to customer needs.

Its subsidiary, Temake, represents over 40 international medical equipment brands from Germany, Japan, the United States, and others for sales and maintenance services.

Temake’s hospital turnkey department has completed equipment design and configuration for several hospitals. Leveraging its unique advantages in the South African sales network and maintenance team, Wanbangde Medical Technology has successfully entered the international market and is continuously expanding its market share.

4. Resource Integration Advantage

Wanbangde Medical Technology is advancing its globalization strategy, aiming to enhance product market competitiveness and thereby improve the competitiveness and profitability of the listed company.

The company actively integrates the synergistic effects of Wanbangde Medical Technology and its South African subsidiary in product R&D, production, raw material procurement, and market promotion, continuously optimizing resource allocation and enhancing the company’s market competitiveness.

5. Future Outlook

Considering the overseas potential of Huperzine A controlled-release tablets and the BD value of the rare disease pipeline, and given the clear mechanism of Huperzine A controlled-release tablets for treating AD, which is currently in critical registration clinical trials, as well as the steady progress of other FDA orphan drug designated pipelines in clinical trials, there is a promising outlook for gradually realizing value in the future.

Risk Warning: Risks of research progress falling short of expectations or R&D failure, cash shortage risks, and risks of further price reductions due to centralized purchasing in traditional main businesses.

Source: WIND, 2026-03-27_ Dongwu Securities_ Wanbangde_ Wanbangde (002082): A New Star in the Transformation of Neurology and Rare Diseases, Decoding Huperzine A’s Trillion Blue Ocean for AD; Company Announcement; Wealth Online Compilation, Date 2026/03/27.

The views, strategies, and analyses provided above are for reference only and should not be used as investment basis. Any operations based on this are at the user’s own risk. The stock market carries risks; investment requires caution.

The above views are provided by the Investment Advisory Department, Investment Advisors: Chang Jianwu, Registration Number: A1050619080001; Zhu Xiaofei, Registration Number: A1050621070003; Cai Manqiang, Registration Number: A1050621040002.