From 40 billion to 150 billion in seven years, behind the leaping growth of Hengrui's market value

Everytime Hengrui's market value leaping growth comes from three breakthroughs: first, the harvest of innovation achievements, the volume of new drugs on the market or the expectation of innovation achievements; second, the breakthrough progress of regulating markets in Europe and America; third, the optimization of its own product structure Hengrui pharmaceutical, which has the status of "market value first brother" and "R & D first brother" of A-share pharmaceutical listed company, has a market value of more than 150 billion yuan With the goal of building "Chinese patent pharmaceutical enterprise", centering on the two strategies of "scientific and technological innovation" and "internationalization", Hengrui has been paid more and more attention when it has entered the market value Club of 100 billion yuan, accelerated the pace of internationalization and entered the harvest period of new drug research and development In 2016, Hengrui's performance maintained steady growth, with revenue of 11.09 billion yuan, a year-on-year increase of 19%, and net profit of 2.59 billion yuan, a year-on-year increase of 19% Hengrui was founded in 1970 and listed on the Shanghai Stock Exchange in 2000 with a market value of 4 billion yuan In 2006, the market value of Hengrui exceeded 10 billion yuan for the first time, stabilized at 20 billion yuan in 2008, and exceeded 40 billion yuan in 2010 After two years of adjustment, the market value of Hengrui once again entered the stage of rapid growth, and in 2015, the market value was close to 100 billion yuan In the past, every jump in the market value of Hengrui has come from three breakthroughs: first, the harvest of innovation achievements, the market value growth brought by the large amount of new drugs or the expected innovation achievements; second, the breakthrough progress of foreign standard markets such as Europe and the United States; third, the optimization of its own product structure 1 Hengrui pharmaceutical products, a key and large-scale product, cover many fields such as anti-tumor drugs, surgical anesthesia drugs, characteristic infusion, contrast agents, cardiovascular drugs, etc., forming a relatively complete product layout It has a deep product line, focusing on anti-tumor, anesthesia, imaging, biomedicine and other fields, and develops parallel in domestic and foreign markets to promote the global sales of innovative achievements In 2016, the overseas sales revenue reached 430 million yuan, and the internationalization of generic drugs and innovative drugs moved forward simultaneously At present, the domestic market is still the main market of Hengrui pharmaceutical, accounting for 94% of the operating revenue According to IMS data, in 2016, 42%, 34% and 15% of Hengrui's terminal purchase amount were anti-tumor, psychoanesthesia and imaging In 2016, the terminal purchase amount of anti-tumor line products reached 4.34 billion yuan, while the terminal purchase amount of psychoanesthesia and contrast agents maintained a rapid growth of 3.47 billion yuan and 1.55 billion yuan, respectively In the domestic tumor market, cytotoxic drugs such as antimetabolic drugs, plant alkaloids and alkylating agents occupy the mainstream According to incomplete statistics of IMS data, in 2016, the purchase amount of domestic anti-tumor drug terminals was more than 28.5 billion yuan, with a year-on-year growth rate of 11% The highest market share of antimetabolic drugs is 33%, followed by the market share of plant alkaloids is 26% It should be noted that 10% of mAbs (trastuzumab and rituximab) and 7.7% of TiNi drugs are monoclonal antibodies Hengrui pharmaceutical is one of the largest anti-tumor drug R & D and production enterprises in China In 2016, Hengrui pharmaceutical's anti-tumor products achieved an operating revenue of 4.83 billion yuan, with a gross margin of 91.23% In 2016, Hengrui terminal purchased more than RMB 100 million varieties, including docetaxel injection, oxaliplatin for injection, letrozole tablets, irinotecan hydrochloride for injection, tegio capsule, apatinib and zoledronic acid Docetaxel, oxaliplatin, tegio capsule and capecitabine are all large varieties with a market space of more than one billion Among them, the terminal purchase amount of docetaxel injection and oxaliplatin remained stable with low growth rate Letrozole tablets, irinotecan hydrochloride and tegio capsules maintained a growth trend of more than 10% Capecitabine and apatini, although the terminal purchase amount is relatively low, but the growth is rapid In particular, the terminal purchase amount of apatinib reached RMB 171 million in 2016 After the adjustment of the medical insurance catalogue, the drug is expected to be further used as a negotiated product of medical insurance In terms of market share, the market share of docetaxel injection, oxaliplatin, letrozole tablets, tegio capsules and zoledronic acid has remained stable in recent years, while the market share of irinotecan hydrochloride and capecitabine has shown an increasing trend Among them, apatini, as the exclusive product of Hengrui, enjoys exclusive market share The overall sales growth of docetaxel injection and oxaliplatin is less than 10%, and the market pattern has not changed much in recent years In 2016, the growth rate of sales amount in the generic name market of letrozole tablets was 15.6%, and the growth rate of Hengrui's terminal purchase amount was basically the same; the growth rate of the terminal purchase amount of irinotecan hydrochloride for injection was higher than the growth rate of sales amount in the generic name market, and Hengrui's market share was also increased to 63% The main competitor of tegio capsule is Lunan pharmaceutical, with a market share of 55% The domestic market pattern of capecitabine is imported varieties and three domestic varieties, and the main competitor is Roche's Xeloda Heroda's market share has been reduced from 100% in 2013 to 67% in 2016, and import substitution is in progress Surgical anesthesia is the second largest product line of Hengrui In 2016, Hengrui anesthesia products achieved an operating revenue of 3.01 billion yuan, with a gross margin of 90.26%, which is higher than that in the same field Dexmedetomidine, atracurium and inhaled sevoflurane are the three core varieties of anesthesia line In 2016, the proportion of terminal purchase amount was 34%, 30% and 27%, respectively These three varieties maintain a high-speed growth trend in recent years, which is the main driving force for the growth of anesthesia line revenue Among them, dexmedetomidine belongs to sedative and analgesic drugs According to PDB, the overall market of sedative and hypnotic drugs has maintained a rapid growth of more than 20%, of which dexmedetomidine's market share is about 70% Atracurium belongs to muscle relaxant, and its proportion slightly decreases However, sevoflurane belongs to inhalational anesthetics According to PDB data, propofol is still the largest variety in the general anesthesia market, and the share of sevoflurane is about 30% Hengrui's market shares of dexmedetomidine and atracurium are stable and occupy a leading position In addition, in recent years, Hengrui has developed rapidly in the field of contrast media, and has become the largest domestic enterprise in the field of technical threshold In 2016, Hengrui contrast agent product line achieved a revenue of 1.308 billion yuan, with a gross margin of 71.06% At present, Hengrui medicine has two kinds of X-ray radiography, i.e iodofol and i.k.s.a injection The total purchase amount of iodofol in the whole product line accounts for 63%, which is the most important product The overall growth rate of iodofol generic market is not outstanding, and the growth rate of Hengrui iodofol products is expected to be the same as that of generic market in the future The general name market of iodroxol shows a rapid growth trend, and the growth rate of Hengrui products is significantly higher than the overall growth rate of the general name market The domestic market pattern of iofool is imported varieties and 1-2 domestic varieties, and its main competitors are the injectivity series of malincro company of the United States In recent years, Hengrui's market share in iodofol has increased year by year, and it has occupied an absolute leading position Another main competitor of iodroxol is GE's vispec series At present, Hengrui occupies half of the market of iodroxol 2 Products under research are ready to invest in R & D and innovation Hengrui has always been the leader of domestic enterprises In 2016, Hengrui invested 1.18 billion yuan in R & D, accounting for 10.68% of its revenue In 2016, Hengrui obtained 7 clinical approval documents for innovative drugs, 36 clinical approval documents for generic drugs and 2 production approval documents for generic drugs It has submitted 9 product reference reagent filing materials and completed the bioequivalence test of 4 products During the period, 116 domestic new patent applications and 31 international PCT new applications were submitted Continue to increase the pace of internationalization strategy, and Hengrui has achieved good results in expanding overseas markets In terms of generic drugs, inhaled sevoflurane was successfully sold to the United States, and sales of cyclophosphamide for injection and other products grew steadily and actively expanded emerging markets In terms of innovative drugs, the first is to continue to carry out phase I clinical trials of pyrrolidine in the United States; the second is to introduce oncolytic adenovirus products of Japan's Oncology biopharma to supplement the tumor immune product line; the third is to establish a subsidiary in the United States that is specifically responsible for the introduction of overseas projects At present, the ongoing clinical trials of Hengrui cover many fields, such as tumor adjuvant therapy, diabetes, immune system and respiratory system, among which the most anti-tumor drugs are followed by nervous system drugs On the whole, its R & D has three characteristics: first, the pattern of traditional varieties is stable, and new varieties are helping the endogenous growth; second, the product pipeline structure is constantly optimized to open up new treatment fields; third, the injection advantage is used to enter the overseas market, expecting the international strategy to blossom Specifically, on the one hand, Hengrui terminal's product lines with a large share of purchase amount are anti-tumor lines, anesthesia lines and contrast agents Hengrui's anti-tumor product line is rich in reserves, including not only traditional drugs but also cutting-edge small molecule targeted drugs and monoclonal antibodies These new drugs are the guarantee for the future continuous growth of its anti-tumor drugs, and also the guarantee for stabilizing Hengrui's market position in the field of anti-tumor In the anti-tumor line, the terminal purchase amount of docetaxel injection, oxaliplatin for injection and other traditional varieties is stable, the market of the second-line products, letrozole tablets, irinotecan hydrochloride for injection and tegio capsule is mature, and the terminal purchase amount is expected to maintain a growth rate of more than 10% The market performance of new varieties capecitabine and apatinib is good, showing a high-speed growth trend The three core varieties of Hengrui anesthetics are dexmedetomidine, atracurium and sevoflurane Hengrui, the three products, has a leading position in the market and a stable competitive pattern In the study of intravenous general anesthesia drug rimazolum, the original research variety is AstraZeneca propofol In 2016, total terminal procurement of propofol reached 2.77 billion yuan Once it comes into the market, remazolam and sevoflurane will complement each other and improve the product line layout of the general anesthesia market In 2007, when iodofol was launched, Hengrui officially entered the field of contrast agents At present, its contrast agents have been listed in the market, such as iodophor injection, iodroxol injection and meglumine gadolinate injection In the past, the domestic contrast agent market was mainly occupied by foreign enterprises In recent years, Hengrui's purchase amount of contrast agent terminal increased rapidly Among them, meglumine gadolinate injection was approved as an exclusive imitation in 2015 In 2016, the terminal purchase amount was about 7.32 million yuan, accounting for 36% of the market share On the other hand, Hengrui's existing product advantages are concentrated in three fields: tumor, surgical anesthesia and contrast agent By accelerating the adjustment and optimization of product pipeline structure and intervening in other promising and fast-growing subdivision fields, Hengrui's anti-tumor drugs are gradually improving In addition, Hengrui entered the international market through injection advantages and made good progress In 2016, the operating revenue of Hengrui's export business reached 430 million yuan, and the key products were cyclophosphamide and oxaliplatin At present, in the international market, there are not many generic pharmaceutical manufacturers with injection special competitive advantages, forming a relatively competitive market pattern Also in the field of inhalants and oncology drugs that Hengrui is good at, the market competition pattern is relatively relaxed due to the high threshold At present, inhaled sevoflurane has been successfully sold to the United States While vigorously promoting the internationalization of generic drugs, Hengrui pays more attention to the internationalization of innovative drugs At present, Hengrui has set up a subsidiary in the United States, which is specially responsible for the introduction of overseas projects In July 2017, its desflurane products in the UK