Centralized procurement will reshape the pharmaceutical industry, and these three giants will accelerate their "run"

The National Medical Insurance Bureau has adjusted the medical insurance drug catalogue for three consecutive years since 2018, organizing a total of five batches of national drug centralized procurement, bringing many common diseases, major diseases, and rare disease drugs into medical insurance, benefiting the majority of patients
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As for the ultimate goal of centralized procurement, some industry pointed out that it should allow pharmaceutical companies to invest more resources in research and development, so as to make the industry more healthy and quality development
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Therefore, with the deepening of centralized procurement in the future, pharmaceutical companies with strong innovation or transformation capabilities, such as pharmaceutical companies with high A stock market value, Hengrui Pharmaceuticals, Mindray Medical, and WuXi AppTec, may accelerate their transformation and growth
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Taking Hengrui Medicine as an example, the company has adopted technological innovation as its development strategy for many years.
Data shows that in the first three quarters of 2021, Hengrui Medicine has invested a total of 4.
142 billion yuan in R&D funds, accounting for more than 20% of operating income, setting a record high
.
From 2018 to 2020, Hengrui Pharmaceutical's research and development expenses will be 2.
670 billion yuan, 3.
896 billion yuan, and 4.
989 billion yuan respectively
.
At the same time, Hengrui Pharmaceuticals has also vigorously implemented its internationalization strategy in recent years, and has continuously increased its investment in internationalization
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Among them, in the first half of 2021, Hengrui Medicine will spend 643 million yuan in overseas R&D to build an international clinical R&D team and deploy international clinical trials of innovative drugs
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Statistics show that in recent years, Hengrui Pharmaceuticals has continuously invested more than 17% of its sales in research and development funds, and it has basically formed a benign development trend in which innovative drugs are applied for clinical applications every year and every 1-2 years
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Today's innovative drugs [1] Irecoxib, apatinib mesylate, thiopefigrastim, pyrrotinib maleate, carrelizumab, remazolam tosylate and fluazole Pali has been approved for listing
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In addition, Hengrui Medicine stated on the investor interaction platform on November 23 that the company’s innovative drugs Proline Hengligliflozin, Retagliptin Phosphate, SHR6390 (CDK4/6), SHR3680 (AR inhibitor), etc.
It is already in the state of applying for listing
.
It is understood that Hengrui Medicine's research and development focuses on anti-tumor drugs, surgical anesthetics, contrast agents, special infusions, major diseases and no effective treatment drugs as the key scientific research direction.

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As of 2021H1, Hengrui Medicine has carried out more than 240 clinical projects at home and abroad, including 23 international multi-center clinics, obtained 5 production approvals for innovative pharmaceutical preparations, 9 production approvals for generic pharmaceutical preparations, and 41 clinical approvals for drugs
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In the future, Hengrui Pharmaceuticals will develop the company into an internationally influential multinational pharmaceutical company with the development direction of "technological innovation" and "internationalization"
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As for Mindray Medical, the industry said that although Mindray’s stock price has fallen due to its recent centralized procurement, Mindray’s hard power will accelerate Mindray’s accelerated transformation and growth in the long run
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Data shows that since its listing on the A-share market in October 2018, Mindray Medical has achieved a year-on-year growth rate of more than 20% in net profit for 12 consecutive quarters, and the quarterly year-on-year growth rate of revenue has basically been above 20%
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Today, Mindray's medical product line has more than 20 categories
.
Among them, monitors, anesthesia machines, and blood cell analysis products have a large market share, and monitors, color Doppler ultrasound, defibrillation, infusion pumps, lamp bed towers, and POC ultrasound are among the top in China
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In the three core areas-life information and support, in vitro diagnostics, and medical imaging, Mindray already has a very complete product line in the same industry in China
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In the field of medical equipment, Mindray Medical has already occupied a number of subdivision tracks and has a strong moat.
Through capital mergers and acquisitions and integrated R&D, the future growth of overseas revenue is also worth looking forward to
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According to the industry, Mindray Medical’s 30 years of high-intensity R&D has cultivated a tough endogenous force; at the same time, it relies on mergers and acquisitions to broaden the growth boundary; internationalization has already begun, and it has a high probability of becoming a new growth engine.
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and these are expected in the future Raise the valuation of Mindray Medical
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Take another look at WuXi AppTec.
It was established in 2000.
Based on the two core businesses of "drug discovery + CDMO business", it actively deploys cell and gene therapy CDNO field, innovative business DDSU and clinical CRO field
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Thanks to the continuous improvement of operating efficiency, WuXi AppTec, as a CRO (pharmaceutical outsourcing) company, has maintained rapid growth in performance
.
Data show that in the first three quarters of this year, WuXi AppTec's operating income increased by 39.
84% year-on-year to reach 16.
521 billion yuan, and the net profit attributable to shareholders of listed companies increased by 50.
41% year-on-year to 3.
562 billion yuan
.
Analysts pointed out that centralized drug procurement will have a greater impact on generic drugs, but the demand for enterprises that transform to innovative drugs will be even stronger
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WuXi AppTec, as a giant in the pharmaceutical outsourcing industry of innovative drug sellers, will become a beneficiary of the upsurge of innovative drugs
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In addition, some analysts also said, “In the future, WuXi AppTec, as an integrated service company of'drug development + preclinical research + clinical business and CDMO business', will continue to benefit from the industry’s high boom and continue to show rapid growth
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” Yes Data predicts that from 2018 to 2025, WuXi AppTec's annual compound revenue growth rate is expected to remain at about 26%, and its revenue is expected to reach 48 billion yuan by 2025
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It is understood that WuXi AppTec's rapid growth in performance is supported by its strong R&D team and technical strength
.
Data show that in 2020, WuXi AppTec's R&D expenses will reach 693 million yuan, and there will be 21,942 R&D personnel, accounting for 83.
08% of the company's total number
.