12 pharmaceutical companies ranked among the "1 billion club"

As of April 6, 12 of the listed pharmaceutical companies that have published their 2016 annual reports have made net profits in the "1 billion club" Among them, Shanghai Pharmaceutical ranked first with 3.196 billion yuan, Fosun Pharmaceutical and Hengrui pharmaceutical followed closely with more than 2 billion yuan, 2.806 billion yuan and 2.589 billion yuan, respectively, while the growth rate of xinhesheng was nearly 200% Table 1: pharmaceutical enterprises with net profit of more than 1 billion yuan in 2016: billion yuan; Shanghai Pharmaceutical: net profit of more than 3 billion yuan as of April 6, 2017; table 2: main business unit of Shanghai Pharmaceutical in 2016: yuan According to the annual report of 2016, Shanghai Pharmaceutical realized double growth of revenue and net profit, both exceeding 10% After 2015's revenue exceeded 100 billion yuan, 2016's revenue peaked again, reaching 120.765 billion yuan, up 14.45% year-on-year; net profit was 3.196 billion yuan, up 11.10% year-on-year The sales revenue of the pharmaceutical industry reached 12.416 billion yuan, up 5.01% year on year Among them, the sales revenue of chemical products was 5.773 billion yuan, up 8.29% year-on-year; the sales revenue of traditional Chinese medicine (proprietary Chinese medicine, herbal pieces) was 4.552 billion yuan, up 3.30% year-on-year; the sales revenue of biomedical products was 382 million yuan, down 6.50% year-on-year; the sales revenue of other industrial products (APIs, health products, medical devices, etc.) was 1.709 billion yuan, up 1.85% year-on-year Shanghai Pharmaceutical continued to implement the strategy of focusing on key products The sales revenue of 60 key varieties reached 6.92 billion yuan, an increase of 3.67% year-on-year The sales accounted for 55.73% of the industry The gross profit margin of key varieties was 68.69%, an increase of 1.15% year-on-year The annual sales revenue of over 100 million products reached 26 The scale of pharmaceutical distribution exceeded 100 billion yuan, and the national distribution strategy was further promoted Breakthroughs have been made in Yunnan and Heilongjiang, covering 18 provinces and cities to 20, and the number of medical institutions has increased significantly The level of gross profit margin of distribution business is basically stable, the product structure continues to be optimized, the innovative business represented by SPD continues to be promoted throughout the country, and the development of new models such as community comprehensive reform and volume procurement continues to be promoted The retail of medicine has developed steadily, and the sales scale has exceeded 5 billion yuan The company started the internal integration and external expansion of retail resources, including the acquisition of Nantong Su Bo pharmacy Co., Ltd., which strengthened the retail network and competitiveness in Jiangsu Province, and vigorously expanded the hospital joint pharmacy, with 11 new ones in 2016 In the aspect of medicine e-commerce, Shangyao cloud has reached a new level, completed a + round of financing, increased its registered capital to 1.333 billion yuan, continuously improved its independently established e-prescription circulation system, actively expanded and connected with medical institutions, and the volume of e-prescription processing has grown rapidly, laying a foundation for further undertaking the separation of medicine In the new business of great health, Shanghai Pharmaceutical Co., Ltd established Shangyao medical investment management company, promoted a number of cooperation projects, the first traditional Chinese Medicine Museum was officially opened and operated in Shanghai, expanding new growth points with "famous doctors + good medicine" The company has completed the privatization project of vitaco, an Australian listed company, and invested about 930 million yuan in cash to acquire 60% of vitaco's equity, continue to improve the layout of large health care products, and achieve a breakthrough in international development 2 Hengrui pharmaceutical: gross margin 87.07% Table 3: main business of Hengrui Pharmaceutical (by industry and product) in 2016 unit: yuan In 2016, Hengrui pharmaceutical's operating revenue was 11.094 billion yuan, an increase of 19.08% year on year; net profit was 2.589 billion yuan, an increase of 19.22% year on year, and its gross margin was 87.07% higher The growth of sales revenue of Hengrui medicine mainly comes from tumor drugs, contrast agents, surgical anesthesia and infusion products Tumor drugs still maintain a leading position in the market, with a year-on-year growth of 25.68%; contrast agent products with a year-on-year growth of 30.05%; surgical anesthesia products with a year-on-year growth of 19.14% According to the data, the sales business of Hengrui pharmaceutical in China is mainly in the charge of the parent company, the holding subsidiary Jiangsu Kexin Pharmaceutical Sales Co., Ltd (hereinafter referred to as Jiangsu Kexin) and the wholly-owned subsidiary Jiangsu Xinchen Pharmaceutical Co., Ltd (hereinafter referred to as Jiangsu Xinchen) Jiangsu Kexin, a holding subsidiary, is mainly engaged in the wholesale sales of anti-tumor drugs, special infusion, contrast agents and cardiovascular drugs produced by the company itself (including Shanghai Hengrui), as well as the agency sales of drug loaded microsphere products (medical intervention equipment) of Suzhou Hengrui jialisheng Biomedical Technology Co., Ltd (the holding subsidiary of Jiangsu Hengrui Pharmaceutical Group Co., Ltd., the controlling shareholder of the company) Jiangsu Xinchen is mainly engaged in the wholesale sales of self-produced surgical anesthetics Hengrui pharmaceutical said that sales are market-oriented and customer-centric First, we should promote the division of sales lines, subdivide the product market, improve the organizational and management structure, and take the special line to focus on the professional road; second, we should establish an academic marketing system, build a professional sales team, realize the transformation of sales mode, gradually form an academic guidance and sales mode, and lay a foundation for innovative drug sales; Third, strengthen personnel supplement, widely recruit talents, improve training system, and build high-quality sales team; fourth, build project platform, integrate multiple resources, improve work efficiency, and give full play to product advantages 3 New Hecheng: net profit increased by nearly 200% Table 4: composition of new Hecheng's operating revenue in 2016 unit: Yuan The new and leading products are vitamin E, vitamin A, astaxanthin, raspberry ketone and linalool Their production and sales and export volume account for the highest in the world They have become one of the four largest vitamin producers in the world, the large flavor and fragrance enterprises in the whole country and vitamin feed additive companies In 2016, new Hecheng's operating revenue was 4.696 billion yuan, up 22.86% year-on-year; its net profit was 1.203 billion yuan, up 199.11% year-on-year Nutrition products: the main products include vitamin E, vitamin A, vitamin D3, biotin, astaxanthin, coenzyme Q10, etc In 2016, the new phase I trial production of methionine was successful, achieving the phased strategic goal With methionine entering the mass production stage, the overall profitability and market competitiveness will be improved Flavors and fragrances: main products include linalool series, leaf alcohol series, two hydrogen jasmonate methyl ester, raspberry ketone, citral etc In 2016, the sales volume of new flavors and fragrances increased, and the cost of some products decreased Polymer new materials: the main products are PPS, PPA, etc in 2016, the new and completed PPS new process expansion project was successfully implemented The company will continue to strengthen research and development, optimize process flow, expand overseas market, and build new material business into an important industry of new harmony API: new Hecheng is in the stage of product structure adjustment, transformation and upgrading The company increased the research on the market access information of APIs, improved the standardized quality management system, and actively promoted the development, optimization and market expansion of existing products Conclusion: with the policy of pharmaceutical industry coming out intensively, enterprises are actively facing the industry reform of consistency evaluation, medical insurance regulation, drug price reduction, hierarchical diagnosis and treatment Pharmaceutical enterprises can develop healthily by enhancing their core competitiveness and constantly innovating.