Heavy varieties soared by 223.21%!

After undergoing a round of policy baptisms in the pharmaceutical sector, Fosun Pharma’s 2021 interim results released a lot of investors’ eyes
.

In 2021H1, the company achieved a net profit of 2.

Heavy varieties soared by 223.
21%! Half-year net profit of 2.
482 billion

Heavy varieties soared by 223.
21%! Half-year net profit of 2.
482 billion

In the first half of 2021, Fosun Pharma achieved operating income of 16.
952 billion yuan, a year-on-year increase of 20.
85%; net profit was 2.
482 billion yuan, a year-on-year increase of 44.
77%
.

Fosun Pharma's net profit (unit: 100 million yuan)

Fosun Pharma is based in China and expands its global business.
Its direct operations include pharmaceuticals, medical devices and medical diagnostics, and medical and health services.
It also covers the pharmaceutical business field through its equity participation in Sinopharm Holdings
.

Among them, the pharmaceutical business is the company's main source of revenue, with 12.

As a veteran pharmaceutical company, Fosun Pharma’s stock of generic drugs is also facing the impact of centralized procurement.
The company’s existing varieties such as Ulitong (febuxostat tablets) and Bangzhi (pitavastatin calcium tablets) are included in centralized procurement, and their sales prices have fallen.
Brought a decline in sales revenue
.

In the first half of the year, the company's sales revenue of core products in the treatment of metabolism and digestive system, central nervous system, and cardiovascular system decreased by 19.

Sales revenue of core products in Fosun Pharma's main therapeutic areas

Thanks to the continuous implementation of innovation achievements, the increase in sales of innovative products has made up for the reduction in revenue of centralized procurement products and has promoted the sustainable growth of the company's performance
.

In the first half of the year, the sales revenue of Fosun Pharma's anti-tumor and immunomodulation core products increased by 256.
69% year-on-year, mainly due to the significant increase in sales of Han Likang (rituximab injection).
The cumulative revenue in the first half of the year was 724 million yuan, an increase of 223.
21% year-on-year; Hanquyou (trastuzumab for injection) and Su Kexin (avatropol maleate tablets), which were launched in the second half of 2020, achieved revenues of 325 million yuan and 206 million yuan respectively in the first half of the year
.

In the first half of the year, the company's anti-infective core product sales revenue increased by 45.
30% year-on-year, mainly due to the revenue contribution of Fubitai (mRNA new crown vaccine) and the sales revenue growth of micafungin
.

Among them, Fubitai (mRNA new crown vaccine) was included in the government's vaccination plan in Hong Kong and Macau in the first half of the year.

Holding 5 major explosives, 72 innovative drugs and 18 biosimilar drugs are on the road

Holding 5 major explosives, 72 innovative drugs and 18 biosimilar drugs are on the road

"Innovation" and "Internationalization" have become the distinctive labels of Fosun Pharma
.

With its pharmaceutical business as its core, Fosun Pharma insists on innovative research and development.
Through independent research and development, cooperative development, license introduction, and in-depth incubation, it focuses on tumor and immune regulation, four highs (hypertension, hyperlipidemia, hyperglycemia, hyperuricemia) Establish and form technology platforms for small molecule innovative drugs, antibody drugs, and cell therapy in key disease areas such as complications and central nervous system, and actively explore cutting-edge technology fields such as targeted protein degradation, RNA, oncolytic viruses, and gene therapy to enhance innovation Ability
.

In the first half of 2021, Fosun Pharma’s R&D investment in its pharmaceutical business was RMB 1.
77 billion, a year-on-year increase of 15.
31%.
The pharmaceutical business R&D investment accounted for 14.
51% of its pharmaceutical business revenue
.

Among them, R&D expenses were 1.

Research and development expenses of Fosun Pharma's pharmaceutical business (unit: 100 million yuan)

It is worth mentioning that the R&D expenses of Fosun Pharma’s pharmaceutical business have maintained high growth in recent years
.

With huge R&D expenditures, the company has also harvested a number of blockbuster products, and the high volume of innovative products has promoted sustainable growth in performance

There are currently 5 key innovative products of Fosun Pharma, including rituximab injection, trastuzumab for injection, avatropol maleate tablets, adalimumab injection and akirensex Injection
.

Among them, rituximab injection is the first biosimilar drug in China; trastuzumab for injection is the first biosimilar drug of trastuzumab in China; avatropol maleate is the first in the world Approved oral drugs for the treatment of chronic liver disease-related thrombocytopenia, filling the gap in China; Akirensai injection is the first CAR-T cell therapy product in China

Fosun Pharma's key domestic listed products

As of the end of the reporting period, Fosun Pharma's main research projects for innovative drugs, generic drugs, biosimilars, and generic drugs consist of 240 projects, including 30 small molecule innovative drugs, 29 bio-innovative drugs, and licensed introduction of innovative drugs 13 item, similar biological agent 18, 103 generic drugs, and the like consistency of 38 evaluation items
.

Among them, 5 products have been submitted for marketing applications, including slulimumab injection (PD-1 monoclonal antibody), bevacizumab injection, Parkinson's drug opicapone capsules, insulin glargine, and recombinant lispro Insulin
.

In addition, a number of product developments are in clinical phase III, including iron citrate pyrophosphate solution, Tenapanor tablets, RT002, protamine zinc recombinant insulin lispro mixed injection (50R), liraglutide injection, recombinant human booster Red element injection (CHO cells) and so on

Fosun Pharma's listing application for products under review

39 varieties have been evaluated, 19 varieties have won the bid collection

39 varieties have been evaluated, 19 varieties have won the bid collection

The national centralized procurement has carried out five batches and six rounds, and a total of 218 varieties have been included
.
Centralized procurement is the fate of generic drugs, and the reduction of profits of traditional generic drugs is an unavoidable challenge for leading domestic pharmaceutical companies
.
Under the impact of the normalization of centralized procurement, the "Innovative Drug One Brother" was also beaten back to the prototype, the market value fell sharply, and the stock price went down
.

Fosun Pharma’s stock of generic drugs has also been impacted by centralized procurement.
How has the company responded?

According to data from Meinenet, Fosun Pharma has passed/deemedly passed the consistency evaluation of 39 varieties (58 acceptance numbers) of Fosun Pharma, of which 16 varieties were the first to have passed the evaluation, propylthiouracil tablets, perphenazine tablets, and A Five varieties including Mitriptyline Tablets, Venlafaxine Hydrochloride Tablets and Potassium Chloride Granules are temporarily reviewed exclusively
.
From the perspective of the treatment field, the number of systemic anti-infective drugs and neurological drugs has the largest number of reviews, with 10 and 8 drugs respectively
.

Among the five batches of drugs purchased in a centralized manner, Fosun Pharma won the bids for 2, 4, 5, 6 and 2 varieties respectively, and a total of 19 varieties won the bids
.
It is worth noting that the 19 bid-winning varieties are dominated by stock varieties, of which the unit prices of febuxostat tablets, quetiapine fumarate tablets, pitavastatin calcium tablets and other products have fallen after the implementation of centralized procurement
.

For the stock varieties included in centralized procurement, Fosun Pharma takes advantage of multi-channel marketing and refined production to strengthen the life cycle management of centralized procurement products while exchanging price for volume, and at the same time actively promotes incremental products to quickly enter the market through centralized procurement.
, Effectively smooth the impact of existing product purchases
.

Selected products from Fosun Pharma's centralized procurement

Concluding remarks

Concluding remarks

In recent years, national medical reform policies have been frequently issued.
As an "all-rounder" player in the pharmaceutical and medical industry, Fosun Pharma has encountered multiple challenges, such as key monitoring, centralized procurement of generic drugs, medical insurance negotiations, etc.
The good news is that the company's early deployment of products ushered in gains In the period, through innovative products, it obtained strong "blood transfusion" support
.
At the same time, by virtue of the layout of the new crown vaccine and the medical beauty track, Fosun Pharma has stood out from the rest of the pharmaceutical stocks
.

The dividends of generic drugs have gradually faded, and a wave of industry innovation and transformation has emerged
.
Fosun Pharma has been running on the road of innovation for many years, and has very clear plans for the future, such as "building a US$5 billion blockbuster product" and "innovative drug business accounts for more than 50% of revenue
.
" Today, Fosun Pharma has pulled out the clouds and walked out of its own sky
.
It is believed that under the requirements of high standards, Fosun Pharma's innovative position will become more prominent
.