300 billion pharmaceutical giants terminated equity incentives, and a new response is coming!

 On the evening of December 8, Hengrui Medicine issued an announcement stating that the company’s board of directors has decided to terminate the implementation of the 2020 restricted stock incentive plan and repurchase and cancel related restricted stocks that have been granted but not yet lifted
.
The supporting documents such as the Measures for the Evaluation and Management of the Implementation of the Restricted Stock Incentive Plan for 2020 will be terminated
.
Regarding whether the termination of the equity incentive plan will affect the company, Hengrui Medicine stated that the repurchase, cancellation and termination of the incentive plan will not have a substantial and significant impact on the company’s financial status and shareholders’ equity, nor will it affect the company’s daily routine.
It has a major impact on operations and future development
.
In addition, Hengrui Pharmaceuticals emphasized that after the termination of the incentive plan, the company will continue to fully mobilize the enthusiasm of the company's management team and core staff by optimizing the salary system and improving the performance appraisal system to promote the company's sustainable and healthy development
.
It is reported that the announcement disclosed in detail the relevant approval procedures and information disclosure that the incentive plan has performed.
After the previous voting and publicity procedures, on August 18, 2020, the company reviewed and approved relevant proposals and determined that the incentive plan was 46.
91 yuan per share.
The price granted 25,736,600 restricted stocks to 1,302 eligible incentive objects
.
In October of this year, the company announced that the first batch of equity incentive stocks unlocked in the restricted stock incentive plan totaled 11,847,720 shares
.
According to this announcement, the remaining two batches of 17,009,640 restricted stocks that have been granted but have not yet been lifted will not be unlocked and will be repurchased and cancelled by the company
.
Some analysts pointed out that the termination of Hengrui Pharmaceutical's equity incentive plan seems to have early signs
.
For example, according to the 2021 third quarter report of Hengrui Medicine, in the first three quarters of 2021, the company's operating income increased by 4.
05% year-on-year to 20.
199 billion yuan; the net profit attributable to shareholders of listed companies fell 1.
21% year-on-year to 4.
207 billion yuan
.
Among them, the operating income in the third quarter fell 14.
84% year-on-year to 4.
207 billion yuan; the net profit attributable to shareholders of listed companies fell 3.
57% year-on-year to 1.
54 billion yuan
.
In response to the termination of this equity incentive plan, the relevant person in charge of Hengrui Pharmaceuticals also stated that since the company launched the 2020 restricted stock incentive plan, it has been actively promoting the implementation of this incentive plan
.
"However, in view of the current industry market environment and the impact of the company's stock price fluctuations, continuing to implement the 2020 restricted stock incentive plan is difficult to achieve the expected incentive goals and incentive effects
.
Therefore, the company's board of directors made this decision after careful research
.
" Said that the reform and competition in the pharmaceutical industry are constantly intensifying, and pharmaceutical companies generally face greater challenges, and Hengrui Pharmaceuticals is inevitable to face short-term pains in the accelerated transformation
.
However, it is believed that with the continuous support of the company's investment in innovative drug research and development, the company will usher in a new development situation
.
It is reported that Hengrui Pharmaceutical's layout in the research and development of innovative drugs has begun to enter the harvest period
.
Currently, the company has 8 innovative drugs approved for marketing
.
In the first half of 2021, the company's sales revenue from innovative drugs reached 5.
207 billion yuan, accounting for nearly 40% of revenue
.
Recently, the company issued an announcement stating that the phase III clinical trial of SHR8554 injection has reached the main research end point.
It will submit a pre-market communication application in the near future, and the research and development of innovative drugs will usher in a breakthrough
.
In addition, with the conclusion of the national medical insurance negotiations in 2021, Hengrui Medicine has 8 innovative drugs that have been included in the national medical insurance catalogue
.
According to public information, Hengrui Medicine has previously entered the market application stage for four innovative drugs, including the CDK4/6 inhibitor Dulceli, and more than 50 innovative drugs under development in the R&D pipeline, covering anti-tumor, diabetes, rheumatism, and immunity.
Cardiovascular disease, anti-infection, blood, pain management, ophthalmology and other fields
.