Capital Original Sin Thestar's Step-Long Pharmaceutical Fall.

TextTang Lin", "China's Johnson and Johnson, the pace of the world", after the 2016 listing of such a slogan of self-paced pharmaceutical (603858SH), how far is it now to become "China's Johnson and Johnson"? As a well-known chinese pharmaceutical enterprises, step-by-step pharmaceutical once against the "most expensive new shares" of the halo straight to the market value of hundreds of billionstime, has aroused the millions of investorsafter several years of development, step pharmaceutical is indeed in the cardiovascular field of the position is more prominentAccording to the data of the inner net, from 2013 to 2017, the drug use of cardiovascular diseases has always belonged to the first category of traditional medicine in public medical institutions in China, and step-by-step pharmaceutical has been in the field of cardiovascular medicine in the field of the city accounted for the firstand, step pharmaceutical in the cardiovascular field has also produced a lot of exclusive products, such as: heart-pass capsules, heart-stabilizing particles, danred injection, gudo red injection ..However, it is said that "the higher you stand, the worse you fall.""in less than 14 months of time, the market value "instantly" evaporated 70 billionits share price has continued to fall since it went public in November 2016 and reached an all-time high of Rmb11.98 per share, falling below its original offering price by early December 2018from the "most expensive new shares" to the ipo of the first breaking stock, to the valuation of the constantly low, now step-by-step pharmaceutical market value of only 33.7 billion yuanat the same time, along with the performance of the waist- and American college admissions scandal, and then recently with the "hand in hand" less than 3 years of Kyushu Tong (600998SH) to break up, but also in the "ten years of contract" before the end of the decision to leavea series of situations, causing small shareholders to ask step-by-step pharmaceutical, the company's good performance, but why is the stock price so depressed? Does the company have market capitalization management measures? Valuation, the company's reputation can be enhancedwants to become China's Johnson and Johnson, step-by-step pharmaceutical and its gap is really more than one and a half points's "golden single" to dial the time back to 1995, as a step-by-step pharmaceutical gold single product "brain", the company to its crazy marketingin order to make patients understand the meaning of "brain thrombosis", Chairman Zhao Tao specially in the advertisement plus "dizzy" and other words, in three months, the cost of 2 million yuan in advertising in exchange for 50 million salesis the time of the "small investment big return" for the step pharmaceutical brought a lot of sweetness, so that step-by-step pharmaceutical after the market, for the cost of sales has been very generousAccording to WIND statistics, the total sales expenses of 336 listed A-share pharmaceutical companies in 2019 amounted to 297.6 billion yuan, up 11.67 percent year-on-year, equivalent to an average investment of about 885 million yuan per pharmaceutical company in sales expenseshowever, the sales costs of listed pharmaceutical companies, the amount of more than 10 billion yuan is only Shanghai Pharmaceutical (12.856 billion yuan), more than 22% of the pharmaceutical companies sales costs in more than 1 billion yuan, about 23% of the sales costs of pharmaceutical companies less than 100 million yuan, the remaining 55% of the pharmaceutical enterprises spend more than 100 million yuan, not more than 1 billion yuan, the total sales expenses of Step Pharma in 2019 are nearly 10 times the industry average, reaching 8.08 billion yuan, of which "market, academic promotion fees and consulting fees" accounted for 94.66 percent, reaching 7.649 billion yuanaccording to the's 2019 annual report, Step Pharma's operating income was RMB14,255 million, up 4.32% YoY, while the net profit of parenting was RMB1,946 million, up 3.05% YoYin the case of the return of net profit less than 1/5 of operating income, the company's sales costs are high all year roundthe three full fiscal years after the listing, step-by-step pharmaceutical sales costs reached 8,287 million yuan, 8,036 million yuan and 8,081 million yuan, respectively, sales costs in 2019 accounted for 60% of operating income ratiosomeone has listed the details of step-by-step pharmaceutical: 2018 Step Pharmaceuticals organized more than 19,000 marketing activities, organized market research more than 23,000 times, organized academic exchange activities more than 20,000 timesthis means that an average of 169 events are held on average every day to complete more than $8 billion in expendituresuch data makes people look daredevilsurprisingly, the ultra-high investment in step-by-step pharmaceuticals has brought about a three-year decline in sales of core productsStep Pharmaceuticals from 2017 onwards, its Danhong injection, brain heart capsules, stable particles three major products sales are shrinking, the decline in sales of Danhong injections was most pronouncedaccording todata, sales of 10ml/branch of Danhong Injection in 2019 were down 25.93 percent from the previous year, and sales of 20ml/branch were also down 12.3 percent from the previous year compared to 108.9 million units sold in 2016, Danhong's 10ml/branch sales in 2019 were only 59.6 million units, nearly waist-lower in four years The same is true of brain-to-heart capsules and stable-heart particles 36 capsules/box of brain-to-heart capsules sold 86.69 million boxes in 2016, down to 64.28 million boxes in 2019, and sugar-free heart-free particles sold 53.2 million boxes in 2016 and fell to 43.8 million boxes in 2019 four years, sales of only 48 capsules per box rose from 36.94 million to 55.69 million in 2019 today's Danhong injection has been at least 32 provinces and cities in the focus of monitoring of the drug catalog, and many times by early warning (strict monitoring), limited use, almost to the "death penalty" to the point, the search for the next "Danhong" has also become an important task of step pharmaceutical the prisoner's dilemma of transformation, in the core products are "blocked", product market competitiveness weakened and policy risks, step pharmaceutical began a "strategic transformation", but can be seen as a "forced" component starting in 2018, Step Pharma is preparing to transition from a sales company to a scientific research company in the high-tech fields of biopharmaceuticals, Internet medicine and vaccines September 2019, Step Pharma said it had publicly invested RMB1.72 billion in biopharmaceuticals, mainly in areas such as physical tumors and breast cancer currently has 10 biological products under development, some products have entered the clinical phase II to Phase III stage, the expected market time as early as 2021, the latest in 2029 once caused concern, in December, Step Pharma announced an investment of 93.45 million to make a generic drug In addition , Step Pharma has officially entered the field of vaccines, joining the global gene through the capital increase to control Nanjing Huapai Biopharmaceutical Co., Ltd., Step Pharmaceuticals also indirectly controlled The Nanjing Huapai's wholly-owned subsidiary Zhejiang Tianyuan Biopharmaceutical Co., Ltd., indirectly obtained GlaxoSmithKline's vaccine business in China since Step Pharma says "to change from a sales company to a research company" and is also making a series of expansions, what about the company's investment in research and development? Step-by-step pharmaceutical investment in research and development in the past two years is still extremely "stingy" data show that between 2018 and 2019, step pharmaceutical research and development costs were 576 million yuan and 639 million yuan, respectively, accounting for only 4.42 percent and 4.48 percent of current operating income this figure is not comparable to the more than $8 billion in sales costs transformation is not easy and the riskist is difficult to assess even the step of their own issued a risk warning announcement that the company's main business is chinese medicine, biopharmaceutical sourcing for the future strategic planning, short-term can not produce benefits, and the amount of prior investment is larger, may affect the company's performance at present, step pharmaceutical in the research and development of BC002, PD-1, PD-L1 project, there are a number of domestic research and development declaration enterprises, there are 4 domestic PD-1 approved for listing: Junshi Bio (688180.SH) Of Trepri sing-resistant, Cinda Bio (01801 HK) Xindeli sing-i, then Hengrui Pharmaceuticals (600276 SH) of the Karelli BeadS asingle the current popular PD-1 field, the increasing number of research enterprises with the same target has increased the intensity of market competition, which will be the pace of PD-1 products in the future market share and sales prices adversely affected, not to mention the product is not yet known when can be marketed in order to transform, Step Pharma was also forced to make a "non-commitment" decision On the evening of July 6, , Step Pharma announced that it would sell a 51% stake in its subsidiary, Step Head Kyushu Tong, to Kyushu Tong (600998 SH) a paper transfer announcement, announced that the cooperation ended with a "break-up", also means that the step of the pharmaceutical to professional pharmacy of the end of the disease know, the cooperation between the two at the beginning of the industry is also called a good word, and also agreed to cooperate for a period of ten years and now, step-by-step pharmaceutical is not the original "sweet" and determined to tear up the "ten-year contract." While Step Pharma has been on the road to transformation for the past two years, it has to be said that strategic decisions such as the company's development of biopharmaceuticals and new vaccines may at best be a vision especially in the current industry situation, traditional Chinese medicine in the policy of the clampdown, in the end the risk first or opportunity first, it is difficult to determine so, the transformation of step-by-step pharmaceuticals has become a kind of "gambling game" the annihilated "China Johnson" and "China's Johnson and Johnson, the pace of the world" the slogan that was called out that year, the concession long pharmaceutical chairman Zhao Tao in the industry once eye-catching Who Johnson? Founded in 1886, Johnson and Johnson is the world's largest and diversified health care and consumer care products company ranked 109th in the Fortune 500 in 2019 What are the biggest strengths of Johnson and Johnson? R & d , according to its 2019 annual report, Johnson and Johnson's research and development spending was $11.36 billion, up 5.3 percent year-on-year and 13.9 percent of total revenue became the world's second-largest pharmaceutical research and development investment company after Roche, which spent $12.09 billion on research and development step-by-step pharmaceutical? Although research and development costs in 2019 are the highest since the company went public, it is 639 million yuan (RMB), representing 4.48 percent of operating income such a low proportion of research and development, and Johnson and Johnson at all there is no comparison Not only that , but the difference in market capitalisation is only 80 times Based on the July 9 close, the total market capitalisation of Step Pharma was Rmb33.7bn, while Johnson and Johnson's was worth Rmb2.65trillion can't help but ask again, "the pace of the world" with what to compare with Johnson? Moreover, the current step-by-step pharmaceutical steam ingestion has failed to emerge from the crisis of confidence, and even the announcement that it will develop a new vaccine has raised questions among investors to make a more concession to The Long Pharmaceuticals, its chairman Zhao Tao sent his daughter to Stanford University for $6.5 million, causing widespread public attention Although Zhao Tao said in a statement after the incident, "my daughter's study in the United States is a personal and family behavior, the source of funds and step pharmaceutical has nothing to do with", but still led to a sharp decline in the share price of listed companies Not only that, Zhao Tao's father and son are suspected of bribery cases are concerned according to incomplete statistics, in recent years, step pharmaceutical at least six times involved in bribery cases, its founder Zhao Stepandand and his son, the current chairman Zhao Tao are caught in it in the development process of step-by-step pharmaceutical, the most famous bribery occurred in 2007, when the company's founder, the former chairman of the board of directors Zhao step was exposed to bribery of the former State Food and Drug Administration Director Zheng Wei, to help step-by-step pharmaceutical's core products from local standards to national standards Zheng Wei has since been executed for taking bribes to help eight pharmaceutical companies, including Step Pharmaceuticals today's step-by-step pharmaceutical, core product sales decline at the same time, product quality problems , Danhong injection softened adverse reactions, and the brain heart capsule was exposed by the food and drug supervision department because it contained danserket iiA content testing failed not only, its thrombosis, blood plug-in and other best-selling drugs are also under surveillance such an indisputable step of pharmaceutical can still shout out the original slogan? Obviously, the pace of the moment has not been four years ago, a uncertain future how can investors look forward to the slogan of the "step of the world"? The author notes that the relationship between listed companies and the capital market is like a boat and water, water can carry a boat can also capsize some enterprises seize the opportunity of listing to complete the large-scale expansion, or strategic transformation, become a typical representative of the development of the industry from this point of view, holding a good hand of the step-by-step pharmaceutical in the capital market lost itself Chinese pharmaceutical companies are at a new and declining crossroads, innovative drugs are the main track for the future development, which is no longer the marketing intensity but the thickness of technology therefore, the richness of innovative product pipelines, hard indicators of research and development investment, keen judgment of market changes and the shaping of the company's brand and product reputation, these are the indicators to measure the competitiveness of pharmaceutical companies .