Hengrui medicine holds 6 billion varieties and many new heavy drugs are coming out

[China Pharmaceutical network enterprise news] on April 15, Hengrui pharmaceutical released its 2017 annual report The company's operating revenue reached 13.836 billion yuan, an increase of 24.72% year-on-year; the net profit attributable to the parent company was 3.217 billion yuan, an increase of 24.25% year-on-year; the R & D investment was 1.759 billion yuan, an increase of 48.53% year-on-year, a new record of the company More than 99% of Hengrui pharmaceutical's revenue comes from the pharmaceutical industry Among the products in production, there are more than 20 single products sold more than 100 million, including 6 billion varieties In addition, the company has rich R & D pipelines, and many products have been approved for clinical use at home and abroad Heavy new drugs such as rimazolen, pyrrolidine, shr-1210 (PD-1) for injection, hhpg-19k are expected to be approved for listing in 2018, bringing the company's performance Come to a new turning point Implement the strategy of "innovation + internationalization" to drive steady growth of performance figure 1: performance growth of Hengrui pharmaceutical in 2014-2017 (unit: 100 million yuan) (source: annual report of listed companies) According to the annual report data of Hengrui pharmaceutical, in recent years, the company's performance shows a steady growth trend, with its operating revenue increasing from 7.452 billion yuan in 2014 to 13.836 billion yuan in 2017, and its net profit attributable to the parent company increasing from 1.516 billion yuan in 2014 to 3.217 billion yuan in 2017 In 2017, Hengrui pharmaceutical's operating revenue reached 13.836 billion yuan, with net profit attributable to the parent company and non net profit attributable to the parent company exceeding 3 billion yuan 99% of the revenue came from the pharmaceutical industry, which shows that endogenous growth is still the company's development mode Hengrui pharmaceutical is a pharmaceutical enterprise that implements "innovation" and "internationalization" in China Its performance growth mainly depends on two major areas: innovative medicine and internationalization Innovative drugs: performance growth guarantee innovative drugs are the source power of Hengrui's performance growth, and also the basic guarantee of the company's future performance growth Its products in production cover anti-tumor drugs, surgical anesthesia drugs, characteristic infusion, contrast agents, cardiovascular drugs and many other fields In the past, Hengrui's anti-tumor drugs have been in a dominant position, but in recent years, the company has constantly adjusted its product structure, which is gradually being disintegrated In addition to the stable growth of anti-tumor products, non anti-tumor drugs such as surgical anesthesia and contrast agents have also gradually expanded their market in their respective treatment fields Table 1: Sales of Hengrui pharmaceutical's main products in 2017 (unit: 100 million yuan) (source: annual report of listed companies) According to the data of the annual report in 2017, anti-tumor drugs are still the main source of the company's operating revenue, bringing 5.722 billion yuan of revenue to the company in 2017, accounting for 41.39% of the total operating revenue, with a gross profit rate of 91.86%; The revenue of narcotics reached 3.6 billion yuan, with a gross profit margin of 89.89%, becoming the second growth point of the company's performance The growth rate of contrast media is high among all products, up 44.85% year on year Hengrui pharmaceutical has not only adjusted the product structure, but also made efforts in the marketing mode In 2017, the company continuously innovated on the basis of the original market experience, promoted the sub line sales mode, divided the original sales system into five sales lines, including tumor, imaging, anesthesia, etc., and brought the anti-tumor new drug apatinib out to form a single product sales pipeline The reform of the sales sub line greatly expanded the scale of the sales team and promoted the growth of the company's performance Internationalization: add to the performance figure 2: performance growth of Hengrui pharmaceutical at home and abroad in 2015-2017 (unit: 100 million yuan) (source: annual report of listed companies) In recent years, Hengrui pharmaceutical has actively expanded its overseas market and accelerated the export process of preparations Its overseas income has continued to grow, and its proportion in total income has also increased year by year 2017 is a good harvest year for the internationalization of the company's pharmaceutical products The revenue of foreign businesses reached 637 million yuan, an increase of 47.4% over the previous year, accounting for 4.61% of the total operating revenue In 2017, the number of products exported by the company continued to increase, and the sales of export products in standardized foreign markets grew steadily, which promoted the growth of the company's operating revenue and profits At present, about 12 preparations of the company have been listed and sold in many countries, bensulfonaatracurium injection, docetaxel injection and dexmedetomidine hydrochloride injection have been approved and listed in the United States, caspofungin for injection has been approved and listed in Europe, cyclophosphamide for injection and other series of products have been sold steadily; Desflurane for inhalation has been approved for marketing in the UK, Germany and the Netherlands In February 2018, desflurane for inhalation, as the first imitated product in the U.S market, was approved by FDA for marketing Leading enterprise of innovative medicine, annual sales of 6 single products exceed 1 billion Table 2: Top 10 products of Hengrui pharmaceutical sales in 2016 (source: minenet database) According to the data of mienei.com, in 2016, in China's urban public hospitals, county-level public hospitals, urban community centers and township health centers (referred to as China's public medical institutions) terminals, Hengrui pharmaceutical has more than 20 products in production, with an annual sales volume of over 100 million Among the top 10 products in sales, anti-tumor drugs account for 40%, and contrast agents and nervous system drugs account for 20% Among the top 10 products, there are 6 products with sales volume of more than 1 billion yuan, including docetaxel injection, bensulfonaatracurium / bensulfonaatracurium injection, sevoflurane for inhalation, dextromethomidine hydrochloride injection, iodoform injection, oxaliplatin injection / oxaliplatin for injection Docetaxel injection, trade name is AI Su, mainly used in the treatment of advanced breast cancer, ovarian cancer, non-small cell lung cancer The docetaxel injection of Hengrui medicine has 4 specifications: 2.0ml: 80mg, 1.5ml: 60mg, 0.5ml: 20mg and 1ml: 20mg, all of which are national medical insurance class B products Figure 3: in 2016, the market pattern of China's public medical institutions terminal docetaxel (source: the competition pattern of China's public medical institutions in minenet) according to the data of minenet, in 2016, the sales volume of China's public medical institutions terminal docetaxel was 4.43 billion yuan, an increase of 2.97% over the previous year The market concentration of docetaxel is relatively high Hengrui pharmaceutical, Qilu pharmaceutical and Sanofi account for 81% of the market share, of which Hengrui pharmaceutical accounts for 42.19% of other enterprises Sevoflurane is a kind of anesthesia and sedation product It is mainly used for induction and maintenance of general anesthesia in adults and children Heptafluorone for inhalation of Hengrui medicine is a class B medical insurance product, with two specifications of 120ml and 250ml, of which 120ml is the specification Figure 4: in 2016, China's public medical institutions terminal sevoflurane market pattern (source: minenet China's public medical institutions competition pattern) According to minenet data, in 2016, China's public medical institutions terminal sevoflurane sales was 2.5 billion yuan, an increase of 4.73% over the previous year The market of sevoflurane is mainly divided by Hengrui pharmaceutical and marushi pharmaceutical of Japan, among which Shanghai Hengrui pharmaceutical ranks first with 65.41% advantage Figure 5: end narcotics market pattern of public medical institutions in China in 2016 (source: minenet competition pattern of public medical institutions in China) Heptafluorone for inhalation of Hengrui medicine is also in a position in the whole anaesthetic market According to the terminal data of China's public medical institutions on midnet, the total sales volume of anaesthetic in 2016 was 11.178 billion yuan, an increase of 8.17% compared with the previous year Its market concentration is relatively high Top 5 brand products have accounted for half of the total, of which Shanghai Hengrui medicine's heptafluorone for inhalation accounts for 15% Iofool injection is a kind of contrast agent, which is mainly used for cardiovascular angiography, head and body CT enhanced scanning and intravenous excretory urography in adults and children According to the data of mienei.com, in 2016, the sales volume of iodofol in public medical institutions in China was 1.323 billion yuan, an increase of 12.05% year on year, of which Jiangsu Hengrui pharmaceutical accounted for 88.65% Figure 6: in 2016, China's public medical institutions terminal contrast agent market pattern (source: minenet China public medical institutions competition pattern) in 2016, China's public medical institutions terminal, the overall contrast agent market was 9.33 billion yuan, an increase of 6.18% over the previous year The market concentration of contrast medium is not high and the competition is fierce The iohexol injection of Yangzijiang Pharmaceutical Co., Ltd ranked first with 14.29%, followed by the iohexol injection of Jiangsu Hengrui Pharmaceutical Co., Ltd with 12.56% In addition, it is worth mentioning that apatinib, a new and heavyweight new drug approved and launched by Hengrui pharmaceutical, will probably become the core driving force of the company's future performance growth Up to now, only gastric cancer has been approved as an indication of apatinib, and other indications (such as liver cancer, lung cancer, colorectal cancer, etc.) are in clinical trials in succession With the continuous expansion of new indications and the continuous volume of new medical insurance catalog, apatinib is expected to become a company's over 3 billion heavyweight varieties in the future High R & D investment and heavy new drugs R & D innovation on the road are the major strategies that Hengrui pharmaceutical has been adhering to for many years, and also the power source to promote the future development of the company To measure the core competitiveness of a pharmaceutical enterprise, to a large extent, depends on its R & D ability, including the level of R & D investment and the number of R & D talents Hengrui pharmaceutical has a R & D team of more than 2000 people, more than 50% of which are doctors and masters The company has successively set up R & D centers and clinical medicine departments in Lianyungang, Shanghai, Chengdu and the United States, and also set up R & D centers in the United States, Japan and other places Figure 7: investment in R & D of Hengrui pharmaceutical in 2014-2017 (unit: 100 million yuan) (source: annual report of listed companies) according to the annual report data of the company, in recent years, the R & D investment of Hengrui pharmaceutical has increased year by year, and its proportion in total operating revenue has also increased year by year In 2017, the R & D investment of the company was 1.759 billion yuan, with a year-on-year growth of 48.53%, accounting for 12.71% of total operating revenue, a new record of the company Table 3: Hengrui pharmaceutical and some of its subsidiaries' products under research (source: minenet database, annual report of listed companies) have rich R & D pipelines The products under research cover various treatment fields, such as anti-tumor and immunomodulator, cardiovascular system drugs, nervous system drugs, digestive system and metabolic drugs, muscle bone system, blood and hematopoietic system drugs According to the data of minenet, among the class 1 new drugs approved by the company, shr-1316 injection, shr-1210 (PD-1) for injection, retagliptin phosphate tablet, famitinib malate capsule, rimazolen toluenesulfonate for injection, proline henggliptin tablet, and haitrapopa ethanolamine tablet have all entered the phase III clinical stage and are on the market For Hengrui pharmaceutical, 2018 is likely to be a year for R & D investment to achieve harvest The heavyweight new drugs, such as rimazolum, pyrrolidine, PD-1, hhpg-19k, paclitaxel (albumin binding) and bevacizumab, are expected to be approved for listing in 2018, bringing a new turning point for the company's performance With excellent phase II clinical data of breast cancer, pyrrolidine has become an innovative product applied for production by phase II clinical data of the company, with an accumulated R & D investment of 520 million yuan; PD-1 monoclonal antibody has completed phase II clinical trials of Hodgkin's lymphoma, has entered phase III trials, and is at the forefront of domestic monoclonal antibody R & D, with an accumulated R & D investment of 112 million yuan In terms of international innovative drugs, shr-a1403, shr9146, shr-1316 injection, shr8554 injection, shr-1314 injection and other products are approved to carry out clinical trials overseas Data source: minenet database, annual report of listed companies and original title of announcement: "R & D first brother" is indeed worthy of the name! Hengrui medicine holds 6 billion varieties, and many new drugs are coming out Author: Linglong