2019q1 financial report: looking at the trend of domestic pharmaceutical market from the perspective of foreign pharmaceutical enterprises

Foreign pharmaceutical companies have always been an important player in China's pharmaceutical market, ranking first in sales, especially sales of therapeutic drugs At present, the first quarter report of 2019 of most foreign pharmaceutical enterprises has been disclosed This paper summarizes the sales volume and description of China disclosed by them AstraZeneca AstraZeneca is likely to be the sales champion of the domestic large hospital market in 2018, and also performed extremely well in the first quarter of 2019 Ignoring the exchange rate, sales in China rose 28% to $1.242 billion (about 8.4 billion yuan) Among them, anti-tumor drugs increased by 51% to US $284 million (about 1.9 billion yuan), and respiratory drugs increased by 31% to US $400 million (about 2.7 billion yuan) Although Pfizer did not disclose the sales volume in China, it also mentioned that the 25% growth of its mature pharmaceutical sector, Upjohn, was mainly driven by China, and most of its sales volume of US $1.152 billion (about RMB 7.8 billion) probably came from China The last column in the table is emerging markets: Pfizer does not have a specific description of the performance of its innovative drugs in China, but mentions that the growth of eliquis, ibrance, prevnar 13 / Prevenar 13 and xeljanz are very good Looking at the income and growth of these varieties of emerging markets, we can see that they are indeed performing well, and most likely driven by China: Pfizer's "emerging markets" refer to Asia (excluding Japan and South Korea), Latin America, Eastern Europe, the Middle East, Africa, Central Europe and Turkey Sanofi Sanofi's sales in China in the first quarter reached 798 million euros (about 6 billion yuan), up 22.3% year on year The growth of antitumor drugs thymoglobulin (Rabbit anti human thymocyte immunoglobulin), Eloxatin (oxaliplatin), taxitere (docetaxel); prescription drugs Plavix (clopidogrel), Avapro (irbesartan); pentaxim (combined vaccine of poliomyelitis and Haemophilus influenzae type b) in China is strong: Bayer According to the conference call minutes of Bayer's first quarter report of 2019, the company's revenue in China's pharmaceutical sector reached 776 million euros (about 5.9 billion yuan), an increase of 24% on a year-on-year basis, and expected to exceed 3 billion euros in 2022 Xarlto's revenue was 75 million euros, up 100% The old drugs acarbose, Adalat (nifedipine), avelox (moxifloxacin) continue to grow Roche's performance in China was impressive, up 63% year-on-year, but the specific revenue figures for the first quarter were not disclosed It mainly comes from the growth of its antineoplastic and biological drugs, such as alecensa, Avastin, Herceptin, perjeta, etc In the whole year of 2018, its sales volume in China was CHF 2.307 billion (about RMB 15.5 billion), an increase of 27% Novartis Novartis reported in the first quarter that emerging market revenue reached US $2.2 billion (about RMB 15 billion), ignoring the exchange rate factor, with a year-on-year growth of 12%, driven by China's double-digit growth rate, but Novartis did not list in detail the high growth varieties in China Novartis refers to emerging markets other than the United States, Canada, Western Europe, Japan, Australia and New Zealand MSD MSD is also one of the most amazing foreign companies in China Ignoring the exchange rate, its drugs grew 67% in the first quarter of China, with revenue of $725 million (about 4.8 billion yuan) The main driving factors are vaccines and antitumor drugs The first quarter revenue of Novo Nordisk and Nord China was DKK 3.375 billion (about RMB 3.4 billion), ignoring the exchange rate factor, which increased by 9% year on year, mainly due to the growth of the third generation insulin and GLP-1 GlaxoSmithKline GlaxoSmithKline disclosed only international market revenue except for the United States and Europe, with revenue of £ 1466 million (about RMB 13 billion) in the first quarter, ignoring the exchange rate factor growth of only 2% In the analysts' conference call, the management did not provide specific figures in response to the analysts' questions, only remained optimistic about the Chinese market, hoping to promote its Seretide (salmeteroticasone powder inhaler) and Cervarix (bivalent human papillomavirus adsorption vaccine) In fact, the market space of bivalent HPV vaccine is small because of the listing of the nine valent HPV vaccine in China In 2013, GlaxoSmithKline's promotion was not smooth after some events in China In general, the growth of foreign pharmaceutical enterprises in China is fast, and the sales volume has achieved a high growth under a high base Merck, Roche and other companies with star drugs have achieved an amazing growth rate of more than 60%, while AstraZeneca, which is deeply involved in the Chinese market, has achieved sales of more than 8 billion yuan in a quarter As a comparison, Hengrui pharmaceutical, which is often mentioned when talking about domestic innovative drugs, had an operating revenue of 4.967 billion yuan in the first quarter of 2019, an increase of 28.77% year on year In the field of treatment, antineoplastics are the biggest bright spot, and the sales volume of antineoplastics in most foreign enterprises has achieved excellent growth In addition, vaccine and respiratory medicine are also important growth points The growth rate of China's pharmaceutical market will fall to 3-6% Before that, iqvia predicted in the report the global use of medicine in 2019 and outlook to 2023 that the growth rate of China's pharmaceutical market will fall to 3-6%, while the overall growth rate of foreign enterprises in the first quarter of 2019 is much higher than this, which may be due to the following reasons: The new generation of consumers have higher awareness and acceptance of innovative drugs, and also have enough consumption capacity, which is reflected in the self paid vaccine; The new generation of anti-tumor drugs has outstanding effect, and the economic capacity of patients and their families has been significantly improved, which makes the self funded cancer drugs can rapidly expand the sales scale Under the background of medical insurance cost control, it will become the focus of medical insurance bureau to squeeze out the expenditure of invalid drugs to meet the patients' demand for therapeutic drugs Suppliers of therapeutic drugs will benefit from this process In addition to the overall sales growth rate of foreign enterprises is significantly higher than that of the industry, the overall performance of large domestic pharmaceutical enterprises is also good, which clearly reflects the "Matthew effect" of the pharmaceutical industry is emerging After 60, China will be 60 years old, and after 60 and 70, both benefit from the economic prosperity after the reform and opening up, with strong ability to pay; at the same time, most of this generation can skillfully use the Internet, with a high degree of awareness and acceptance of innovative drugs All of these provide convenience for the promotion of innovative drugs In general, therapeutic drugs and innovative drugs have become the development focus of the domestic pharmaceutical market, while foreign funded pharmaceutical enterprises have benefited from this trend because of their advantages in product structure We hope that the domestic pharmaceutical enterprises can adjust the product structure as soon as possible, make innovative drugs with clinical advantages, grasp the industrial trend, and achieve healthy development.