Published in Am. Soc. for Microbiol. on 5 Sept 17, medical researchers from theUniversity of Hong Kong described their discovery of a chemical drug being both aninhibitor and a non-antibiotics to treat multi-drug resistant bacteria such as MRSA(Methicillin-resistant Staphylocossus aureus). This inhibitor called NP16 targets tothe bacteria’s (Staphylocossus aureus) enzyme, whereby the drug disarms it sothat they cannot cause diseases to human. NP16 acts on the bacterial enzymeknown as dehydrosqualene desaturase (CrtN), which reduces its pigmentproduction that is responsible to bacteria’s ability against our immune systemdefense (like neutrophil or phagocytic cell action).    According to the Standard, the HK researchers had screened over 50,000structurally diverse small chemical molecules. It was likely that only NP16 shows itsstrong inhibitory effect to the bacteria’s pigment production that resists our bodydefensive action.    Note that, MRSA is resistant to many commonly-used antibiotics, includingpenicillin, cephalosporin and methicillin.    We reckon that, this development will help (1) increase the importance of R&Dexpenses to sales for many HK and China drug-makers; (2) recognize the strong tiebetween academia and commercial drug-makers; (3) seek the alternatives forover-use antibiotics on MRSA, a superbug in many countries.    With reference to S.M. Opal cited in Crit Care, there are at least six types of nonantibioticstreatment for bacterial infection. This includes (1) Hemoperfusiondevices (reducing bacteria’s concentration in blood using filters); (2) Quorumsensing inhibitors (disrupting bacterial cell signaling for gene synthesis); (3) Lyticbacteriophage (using parasitic predators as bactericidal agents); (4) Polyclonal ormonoclonal antibodies as immunity assistance (eg marking pathogen for ourimmune system to ingest and eliminate); (5) Liposome-based cytotoxin inhibitors(engineered liposome as membrane decoys to absorb bacterial toxin); and (6) Nonimmunetoleralizing approaches (permitting our body to tolerate the pathogenuntil our immune or related system to clear the bacteria).    Stock impact: As NP16 is a simple heterocyclic organic compound as well asbeing a small chemical molecule, many local drug-makers are able to produce it invast quantity for supply, once all the clinical trials and patent issues have beensorted. We see at least two HK-listed drug-makers would likely have the potentialto go into this field, namely (1) Jacobson Pharm (2633.HK, BUY, TP:HK2.30) for itsHK top-brand generic drug-maker to HK hospitals; and (2) The United Lab(3933.HK, BUY, TP:HKD9.60) for its years of China expertise in vertically integratedantibiotics production with HK presence. Other HK listed China drug-makers, wereckon, that would show some interests in this area are (1) Livzon Pharm (1513.HK,BUY, TP:HKD51.90) on its long-time reputation in bulk medicine and finished drugsfor antibiotics such as cephalosporin; (2) CSPC Pharm (1093.HK, NR) on its beingChina leading bulk drugs supplier of antibiotics with this sales over HKD1.3bn in2016; (3) HEC Pharm (1558.HK, NR) on its leading drug-maker for generic versionof Tamiflu, Kewei (a potent anti-viral drugs for influenza).

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