Heng Rui Pharmaceutical 2019 Report Card: Revenue Net Profit Grew By More Than 30% Research And Development Superposition Policy Assistance

In March 23rd, the domestic medicine "one brother" Heng Rui Medicine released the 2019 year's bright "transcript": revenue and net profit growth both exceed 30%. As of the end of March 23rd, Heng Rui reported 82.3 yuan / share, the market value of 364 billion yuan, leading second MINDRAY (294 billion 900 million yuan) nearly 70 billion yuan.

Specifically, many innovative drugs, including the PD-1 drug, such as the killing of the new drug, include the approval of the new drug, including the drug of PD-1, and almost all the major pharmaceutical policies. In 2019, the company achieved an operating income of 23 billion 289 million yuan, an increase of 33.70% over the previous year, and a net profit of 5 billion 328 million yuan, representing an increase of 31.05% over the same period.

In the 2019 review report, Evaluate Pharma listed 12 companies including hang Rui pharmaceutical, Japan and China Pharmaceutical Corporation and CSL for the past 12 months. Besides the traditional multinational pharmaceutical companies, the top three pharmaceutical manufacturers with the best growth rate have gradually emerged from the international perspective. Heng Rui's list commentary is "thanks to its strong oncology strength, Heng Rui is becoming one of China's most popular healthcare options."

In addition to continuously increasing R & D investment, China's pharmaceutical market, which occupies an absolutely dominant position in the policy, has not been absent after several major pharmaceutical policies have been released in recent years, and is also one of the most important factors to maintain its advantages.

"Cancer is king"

Heng Rui's main business product line includes antitumor drugs, surgical anesthetic drugs, special infusion, contrast media, cardiovascular drugs and other fields. The annual report said that its economic indicators increased rapidly in 2019. One of the main driving factors was the harvest of innovative achievements, such as the injection of RMA and toluzumab, and the two is product structure optimization.

In 2019, one of the heaviest drugs listed on Heng Rui was PD-1 drug, "the injection of" In May 31, 2019, the PD-1 drug listing was approved by Hon Rui, the indication was "relapse or refractory classic Hodgkin lymphoma after at least two line chemotherapy."

PD-1/L1 is the "net red" of the global biopharmaceutical industry in recent years. In the early stage, the new trend of research and development and the late commercialization competition are becoming more and more intense. From the list of cards, prices, indications, R & D pipeline layout, production capacity, marketing team, channels and medical insurance, there is no market focus.

At present, 3 PD-1 monoclonal antibodies have been approved for sale abroad. They are Pbo Leigh Ju monoclonal antibody (merzadon, trade name Rita), nimbriu monoclonal antibody (Bristol Myers Squibb, trade name cemiplimab) and Libtayo (regenerated medicine, trade name). Pbo Leigh Ju monoclonal antibody and nalliumab, known as "K" and "O", have been approved in China.

By the end of 2019, PD-1 was approved for the treatment of Hodgkin's lymphoma by six of the domestic PD-1 monoclonal antibody products. In addition to Heng Rui, 3 other PD-1 in China were Terry Pury MAb (Shanghai Jun Shi, commodity name Tuo Yi, approved in 2018), Xin Dili MAb (XinDa bio name, Diebu Shu, approved in 2018) and ralezumab (Baiji Shenzhou, commodity name baizine, approved in 2019).

IQVIA data show that the global sales of anti PD-1 antibodies in 2019 amounted to about $18 billion 809 million. In 2018, the global sales of anti PD-1 antibodies amounted to about 14 billion 170 million US dollars, and domestic sales amounted to about US $6 million 437 thousand and 500. XinDa has taken the lead in the national health insurance negotiations, and is the first to enter the medical insurance directory. In the long run, companies are fighting for product competitiveness and subsequent commercialization capabilities, including drug quality, capacity, channels, sales team and medical insurance.

Heng Rui took a new indication in 2020. In March 6th, Heng Rui announced that Carolyn Ju monoclonal antibody was approved for the treatment of patients with advanced hepatocellular carcinoma who had previously received Sola Fini treatment and / or oxaliplatin based chemotherapy. This is also the first PD-1 inhibitor approved for liver cancer in China. Heng Rui said, "as of now, the product has been invested in research and development project cost of about 886 million 580 thousand yuan.

Compared with similar products, Jun Shi released 2020 financial forecasts in the first quarter of March 19th, and expected revenue of 79 million 75 thousand and 400 yuan, from the PD-1 drug trastuzumab. According to XinDa biotech 2019 semi annual report, Xin Di Li mAb sold 331 million yuan in the first half of 2019.

Accordingly, the R & D investment of Heng Rui is also a domestic "one brother": 2019 R & D investment of 3 billion 896 million yuan, an increase of 45.90% over the previous year, and the proportion of R & D investment in sales revenue is 16.73%. Among them, Paclitaxel For Injection invested 9 million 97 thousand and 900 yuan, Iodixanol Injection 5 million 345 thousand and 300 yuan, Docetaxel Injection 1 million 748 thousand and 700 yuan. From the same period of the same industry, Shi Yao group has invested 1 billion 418 million yuan in research and development, 2 billion 506 million yuan in Fuxing medicine and 1 billion 114 million yuan in the pharmaceutical industry.

"Policy Dongfeng"

In the past two years, the policy of accelerating drug evaluation, examination and approval, and the introduction of priority assessment has a great impact on the pharmaceutical industry. Whether imported or domestic, there is a trend of rapid increase in the number of approvals. The new drug administration law has been revised and implemented since December 1, 2019 to encourage R & D innovation. Generic evaluation of generic drugs has also introduced a number of regulatory policies.

The policy of "quantity purchase" and "medical insurance negotiation" which have the greatest impact on the domestic pharmaceutical market are also gradually landing. On these major policies, we also made timely deployment and adjustment. In January 17, 2020, the state organization carried out the second batch purchase of 33 pharmaceutical products, and the winning products of acetic acid, Trimetazidine Dihydrochloride Modified Release Tablets, teggio and Paclitaxel For Injection. In 2019, the new drug of pyrrole, pyrrolidine maleate and sulfur pyrfogitin injection were first included in the national health insurance directory through negotiation.

According to IQVIA data, global drug expenditure in 2019 was close to US $1 trillion and 300 billion. China is the second largest pharmaceutical market in the world. It is estimated that global drug expenditure will exceed US $1 trillion and 500 billion by 2023. In 2019, the total sales volume of China's hospital drug market (the sales volume of hospitals with more than 100 beds) was 847 billion 300 million yuan, up 9.4% from the same period last year, and the growth rate was much higher than that of the previous year's 3.5%.

The growth of China's hospital drug market reached a peak in the second quarter of 2019, and the growth rate slowed down in the second half of the year. The growth rate in the fourth quarter was 6% year-on-year. However, after the downturn in 2017 and 2018, the hospital market was gradually boosted. The promotion of sales volume and the listing of new products were the main driving force for market growth. However, the "tender procurement", "two vote system" and drug negotiation factors led to a decline in drug prices and slowed down the growth of some markets. Among them, multinational pharmaceutical enterprises sales growth rate of more than 15%, local enterprises also increased by 7.3%.

From the point of view of treatment, in 2019, the growth rate of anti-tumor and immunomodulators was the highest year-on-year, 22.1%. From the annual sales, AstraZeneca became the largest medicine in 2019, and the 2-10 one was Pfizer, Yangzi River, Heng Rui, Roche, Bayer, Senofi, Zheng Da Qing, Shi Yao group and Fosun medicine.

Under the influence of quantity purchase, the top 20 products have also undergone major changes. Clonorin defeated the perennial Lipitor, ranking the first place. Pulmicort, Lipitor, sulpson, and pevi were two to five. Due to the frequent occurrence of seasonal influenza, the growth rate of East Sunshine is 98.2%, and the growth rate of Herceptin and An Weiting rose by 67.2% and 64.1% respectively.

The outbreak of the new crown has also affected the pharmaceutical industry in varying degrees. UBS pharmaceutical analysis believes that the impact of the epidemic on injecting drugs is greater than expected. "It was expected that because most of the requirements for prescription drugs were rigid, the coronavirus had little impact on drug sales. However, sales of injectable drugs declined sharply in the first quarter of 2020, because patients were not encouraged to go to hospitals. Patients who need chemotherapy once every 3 weeks need to be injected once every 5 weeks. This is the situation in China as a whole, including the first tier cities. On the other hand, the sale of narcotic drugs has also been severely damaged due to a significant reduction in operation. "

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