Fosun Pharma, whose R&D investment ranks among the top 3 in China, is attacking everywhere

On April 26, Fosun Pharma disclosed its 2022 first quarter report, total revenue was 10.

The new crown epidemic has entered its third year, the virus is constantly mutating, and the difficulty of epidemic prevention is also escalating.

However, Fosun Pharma is so outstanding in the current situation where everything is in the dust.

New crown vaccine new crown generic drug new crown antigen detection kit

In fact, the excellence of Fosun Pharma goes beyond the prevention and treatment of the new crown

Figure 1.

1.

1.

On the day Wuhan was closed down in 2020, Fosun Pharma had already begun to lay out a vaccine cooperation plan, and soon contacted BioNTech.

In November 2020, Fosun Pharma announced that BNT162b2 (Fubitai) was approved for clinical trials by the State Food and Drug Administration and will soon start a Phase II clinical trial; in May 2021, Fosun Pharma and BioNTech announced the establishment of a joint venture in China , for the local production and commercialization of the Fubitai vaccine

Just when everyone inside and out was full of confidence in the approval and listing of Fubitai in China, there was no new news about the approval, and the reason was unknown

But fortunately, the promotion of Fubitai in Hong Kong, Macao and Taiwan regions is still smooth

Although it has not been listed in the domestic mainland, Fubitai has achieved sales revenue of more than 1 billion yuan in 2021, becoming one of the three preparations of Fosun Pharma with an annual sales volume of more than 1 billion yuan

For the whole year of 2021, Fubitai has achieved sales revenue of more than 1 billion yuan, becoming one of the three preparations of Fosun Pharma with an annual sales volume of more than 1 billion yuan

Figure 2.

In addition to the new crown vaccine, Fosun Pharma is also clinging to the new crown oral medicine

In addition to the new crown vaccine, Fosun Pharma is also clinging to the new crown oral medicine

Before winning the generic rights of these two blockbuster new crown oral drugs, in July 2021, Fosun Pharma had already reached a cooperation with Kintor on the commercialization of proclutamide for the treatment of new crown in India and 28 African countries agreement
.
You know, at that time, the Phase III clinical trial of Prokluamide was announced in Brazil, and the Phase III clinical results that could reduce the death risk of severe new crown patients by 92% were widely questioned, and even relevant authoritative journals refused to publish papers for it
.

After the temporary failure of Phase III clinical trials in the United States that "did not reach statistical significance" in December 2021, Prokalutamide ushered in a big turnaround on April 6, and Kintor Pharma announced another key data of Phase III clinical trials.
It shows that the protection rate of proclutamide reaches 100% in patients taking the drug for more than seven days and in middle-aged and elderly patients with high risk factors
.

According to market forecasts, proclutamide may soon be approved for listing, and this gamble by Fosun Pharma can be described as thrilling
.

Recently, the novel coronavirus antigen detection kit (colloidal gold method) independently developed by Fosun Pharma was approved by the State Food and Drug Administration
.
The product has passed the EU CE certification, completed the German BfArM registration, and has been included in the EU general white list
.

So far, Fosun Pharma has completed the final piece of the jigsaw puzzle in the prevention and treatment of the new crown, becoming the first and only domestic pharmaceutical company with vaccines, oral drugs and antigen detection products
.

Fosun Pharma has completed the final piece of the puzzle in the prevention and treatment of COVID-19, becoming the first and only pharmaceutical company in China that has vaccines, oral medicines and antigen detection products at the same time
.

However, the prevention and treatment of the new crown is not the whole of Fosun Pharma, and its arsenal is full of a series of blockbuster products
.

2.
The innovation and transformation have yielded a lot

2.
The innovation and transformation have yielded a lot

2021 is the first year of CAR-T cell therapy in China, and the product that has achieved this milestone in the history of pharmaceutical development is Akilence Injection (Ikaida) from Fosun Kite
.

Achilles injection was approved for marketing in China in June 2021, becoming the first CAR-T cell therapy product approved for marketing in China .
Adult patients with large B-cell lymphoma
.
According to the data of the domestic multi-center bridging clinical trial of akirenxe injection, the best overall response rate (ORR) is as high as 79.
2%, bringing hope of cure for relapsed or refractory patients
.

Became the first approved CAR-T cell therapy product in China

As of the end of February 2022, Akilence injection has been included in urban Huimin Insurance and more than 40 commercial insurances in 23 provinces and cities.
The number of registered treatment centers has reached 75, and about 100 patients have entered the treatment process
.

The BD team of Fosun Pharma is the credit for winning the first domestic CAR-T product launch
.
But apart from "buy, buy, buy", does Fosun Pharma have any other skills?

It is its subsidiary, Henlius, which undertakes the important task of innovation of Fosun Pharma
.

It is its subsidiary, Henlius, which undertakes the important task of innovation of Fosun Pharma
.

Henlius is an 18A company listed on the Hong Kong Stock Exchange earlier.
These early listed Biotechs have a common feature, that is, they use biosimilars as a breakthrough, and use the success that has been proven by others as a profit basis, and then feed back their own innovations pipeline to achieve innovation and transformation
.

From the current point of view, this development strategy has proved to be an effective shortcut
.

In 2019, Hanlikang (rituximab biosimilar) was approved for marketing;

In July and August 2020, Hanquyou (trastuzumab biosimilar) was approved for marketing in Europe and China, respectively;

In December 2020, Handayuan (adalimumab biosimilar) was approved for marketing;

In 2021, Henlius will add another member of Henlius’ biosimilars—Hambetai (bevacizumab injection)
.

In the follow-up research pipeline, Henlius has 6 biosimilars on the way, including cetuximab and ramucirumab
.
These biosimilars will contribute 1.
682 billion yuan in revenue to Henlius in 2021, a year-on-year increase of 186%
.

These biosimilars will contribute 1.
682 billion yuan in revenue to Henlius in 2021, a year-on-year increase of 186%
.

Entering 2022, Henlius finally ushered in its own PD-1, and slulimumab was approved for marketing in March, becoming the seventh domestic PD-1
.

As of the end of 2021, Fosun Pharma has a total of 64 innovative drugs under development
.
Among them, there are 27 self-developed small molecule innovative drugs, 26 self-developed biological innovative drugs, 14 licensed and imported innovative drugs, and 14 self-developed biosimilar drugs
.
The research and development expenses of the pharmaceutical business for the year were 3.
359 billion yuan, an increase of 36.
10%, second only to BeiGene and Hengrui Medicine
.

The R&D expenses of the pharmaceutical business were 3.
359 billion yuan, an increase of 36.
10%, second only to BeiGene and Hengrui Medicine
.

From the perspective of the completeness of the categories, Fosun Pharma has integrated cutting-edge technologies such as mRNA, gene therapy, immunotherapy, oncolytic virus, targeted protein degradation, etc.
, and it is hard to meet domestic competitors
.

As a veteran BigPharma, while actively innovating and transforming, Fosun Pharma is not satisfied with the pharmaceutical business, and is still looking for opportunities to attack everywhere
.

3.
"Large and complete" multi-point blooming

3.
"Large and complete" multi-point blooming

Unlike most domestic pharmaceutical companies that focus on the pharmaceutical business, Fosun Pharma has also deployed medical devices, medical diagnosis, medical cosmetology, and medical and health services
.

For the whole year of 2021, Fosun Pharma's total revenue was 39.
005 billion yuan, a year-on-year increase of 28.
7%; net profit was 4.
735 billion yuan, an increase of 29.
28%; non-net profit attributable to the parent was 3.
277 billion yuan, an increase of 20.
6%
.

Among them, the pharmaceutical sector contributed 28.
904 billion yuan in revenue, accounting for 74.
1% of the total revenue; the medical device and medical diagnosis revenue was 5.
938 billion yuan, accounting for 15.
22%; the medical and health service revenue was 4.
118 billion yuan, accounting for 10.
56%
.

Figure 3.
Segment distribution of Fosun Pharma’s operating income; Source: Fosun Pharma Official WeChat

The business income and net profit of medical devices and medical diagnostics , the same-caliber growth is mainly due to the strong growth of the Sisram business in North America and the Asia-Pacific region, as well as the “Duanfen” of the associate company Intuitive Fosun.
The installed capacity and the number of surgeries have increased significantly
.
In 2021, Furui Medical Technology will achieve an operating income of US$294 million and a net profit of US$32.
52 million; the installed capacity of "Da Vinci Surgical Robot" is 73, an increase of 18 units over the same period of last year
.

Medical device and medical diagnosis business

In the medical and health service business , Fosun Pharma will vigorously promote the transformation of medical Internet in 2021, and will change the name of “Fosun Medical”, the main body of medical service operation and management, to “Fosun Health”, and has obtained 6 Internet hospital licenses
.
In addition, as of the end of February 2022, Fosun Pharma has basically formed a business layout with 6 tertiary hospitals as business and discipline leaders, leading and supporting the development of 8 secondary hospitals.
The main hospitals include Foshan Fosun Chancheng Hospital, Shenzhen Hang Seng Hospital, Guangzhou Xinshi Hospital, etc.
, with a total of 5,532 approved beds
.

Healthcare service business

In terms of internationalization and commercialization , Fosun Pharma has advantages that can even compete with some large multinational pharmaceutical companies
.

Internationalization and commercialization

Figure 4.
Global commercialization map of Fosun Pharma, source: its 2021 annual report

The main overseas assets of Fosun Pharma include:

Fosun Pharma USA, an innovative R&D and commercialization platform in the United States; Gland Pharma, an Indian injection R&D and production company; Sisram, an Israeli medical and cosmetic equipment R&D and production platform; Tridem Pharma, a drug distribution company deeply engaged in the African market; Swedish ventilator research and development Producer Breas
.

Its commercialization team has more than 6,900 people, including about 1,700 innovative drug commercialization teams, about 600 drug OTC and new retail teams in online channels, and over 1,200 professional marketing teams in Africa, Europe and the United States
.
In 2021, Fosun Pharma's overseas revenue will be 13.
599 billion yuan, accounting for 34.
86% of the total revenue
.

4.
Conclusion

4.
Conclusion

Of course, Fosun Pharma is not perfect in every aspect.
In addition to the sadness of Fosun's failure to enter the mainland market, as a typical enterprise with an extensional M&A strategy, its goodwill has reached 9.
4 billion yuan
.

In the history of the development of Chinese pharmaceutical companies, there are many examples of failure to expand the sequelae, which is a hidden worry that has to be seriously faced
.

In addition, in the process of pursuing the tuyere, it is easy to cause ups and downs, and there is also the risk of losing control
.
As a typical enterprise with a clear path, Fosun Pharma is constantly proving its correctness
.

Yaodu will continue to pay attention to the follow-up development
.

References:

References: References:

1.
Fosun Pharma’s official website, announcements, and annual reports

1.
Fosun Pharma’s official website, announcements, and annual reports

2.
"5 billion R&D investment, twice the market value of the parent company, Fosun Pharma has outstanding advantages in internationalization and mergers and acquisitions", Lishi Business Review, April 13, 2022

2.
"5 billion R&D investment, twice the market value of the parent company, Fosun Pharma has outstanding advantages in internationalization and mergers and acquisitions", Lishi Business Review, April 13, 2022

3.
"Fosun Pharma's annual report is released.
How much "moisture" is behind the double increase in revenue and net profit? ", International Financial Times, 23 March 2022

3.
"Fosun Pharma's annual report is released.
How much "moisture" is behind the double increase in revenue and net profit? ", International Financial Times, 23 March 2022

4.
"R&D investment is approaching Hengrui, what big game has Fosun Pharma made? ", Xiaobei Reading Financial Report, April 1, 2022

4.
"R&D investment is approaching Hengrui, what big game has Fosun Pharma made? ", Xiaobei Reading Financial Report, April 1, 2022

5.
"From Vaccines to Oral Medicines, Fosun Pharma's New Crown Drift", Box Lunch Finance, March 24, 2022

5.
"From Vaccines to Oral Medicines, Fosun Pharma's New Crown Drift", Box Lunch Finance, March 24, 2022