Hengrui PD-1 sales rose 166% in one year!

On July 21, the "2020 China Pharmaceutical Industry Top 100 Series List" was released, and a total of 260 companies from the top five sub-lists were selected

In the past year, multiple factors such as the epidemic and policies have impacted medical institutions and retail pharmacies, and terminal demand has continued to change: innovative drugs are included in medical insurance through negotiation and become normalized, medical insurance dual-channel policies have been implemented, and the consistency evaluation of generic drugs and injections has been further promoted.

When generic drugs enter the era of meager profit, the "prices" of key monitored drugs, nationally-sourced varieties, and original research drugs that have passed the patent period have both dropped.

01 Policies accelerate the changes in market demand for reshuffle

Public hospitals are the largest terminal market in the domestic pharmaceutical field, with sales reaching 1051.

As we all know, generic drugs occupies a dominant position in the terminal of public medical institutions, with sales of about 660 billion yuan in 2020, accounting for 68.

2020 is the implementation period of "4+7" centralized procurement, "4+7" centralized procurement expansion, the second and third batches of centralized procurement, and the total sales of varieties during the implementation period of centralized procurement in the terminals of public medical institutions in China The proportion of total pharmaceutical sales in public medical institutions is only 2.

The changes brought about by a series of policies are also reflected in the drug market in public hospitals

At the same time, the normalization of medical insurance negotiations has also had a profound impact on the medication use of medical institutions

Driven by policies such as accelerated approval of new drugs and normalization of medical insurance negotiations, innovative drugs or high-end generic drugs will become the focus of companies seeking breakthroughs and long-term survival, accelerating the transformation of domestic pharmaceutical companies to innovation and upgrading

From the perspective of industry segments, among the TOP100 chemical drugs (including preparations and APIs) companies, R&D investment in 2020 is 43.

The increase in R&D investment of pharmaceutical companies is most intuitively reflected in the number of clinical trial registrations and the number of new drug declarations

Second only to the public hospital terminal market, the retail pharmacy terminal sales reached 433 billion yuan in 2020, an increase of 3.

It is worth noting that among the top 20 best-selling brands of chemical drugs (including biological drugs) in physical pharmacies (including cities above prefecture-level) in China in 2020, Hengrui PD-1 Carrelizumab will become the sales champion with 2.

With the implementation of the dual-channel policy of medical insurance negotiation varieties, the retail pharmacy market will further expand

The dual-channel policy is essentially to guide the flow of patients to retail pharmacies

02 Multinational pharmaceutical companies still maintain a relatively high share in hospitals and retail

"The future focus of most mature products of multinational pharmaceutical companies is on the external markets, including retail pharmacies, grassroots markets, etc.

This is true.
Among the top 10 best-selling companies in physical pharmacies in Chinese cities in 2020, apart from Chinese medicine companies such as China Resources, Guangyao, Taiji, Tongrentang, and Yunnan Baiyao, the other five are all multinational pharmaceutical companies, such as Hengrui, Yangtze River, and CSPC.
No major chemical drug company has entered the TOP10
.

The diversified sales methods of the retail terminal and the grassroots market are being favored by multinational pharmaceutical companies.
JD Health has disclosed data.
As of May 2021, it has reached cooperation with 46 pharmaceutical companies among the top 50 global pharmaceutical companies, such as AZ’s Osimertinib, gefitinib, and Eli Lilly's dulaglutide have all been launched in JD Pharmacy
.

On the other hand, in the market share of TOP10 manufacturers of chemical medicines in urban public hospitals, there are seven multinational pharmaceutical companies, accounting for 17.
82%, and the total market share of TOP20 manufacturers is 34.
23%
.

This may explain that multinational pharmaceutical companies maintain a “participation” strategy in national centralized procurement.
They can still maintain a relatively high market share in off-hospital terminals and in-hospital resources retained by original research drugs
.
In addition, driven by the acceleration of review and approval, multinational pharmaceutical companies are also accelerating the pace of new product launches, which can make up for the missing share of patent expired products in the competition of generic drugs to a certain extent
.

03 The industry is being restructured, and the Matthew effect is accelerating

Among the top 20 companies in the chemical and medicinal drug market in urban public hospitals, there are 9 local companies (two CSPC Ouyi and CSPC Enbipusuan), and among the top 10 companies, only 3 companies are Hengrui, Yangzijiang and Qilu
.
In terms of market share, 20 companies accounted for a total of 34.
33%, of which local pharmaceutical companies accounted for 12.
58%, Hengrui, Yangzijiang and Qilu accounted for 2.
86%, 2.
01% and 1.
74% respectively
.

Looking at the five batches and six rounds of centralized procurement that have been conducted so far, according to the statistics of the E-pharmaceutical manager, in the fifth batch of centralized procurement, 61 varieties were successfully purchased, all the 11 shortlisted varieties in Kelun won the bid, and Qilu won the bid for 11 varieties and 13 products.
In the fourth batch of centralized procurement, Qilu, Yangzijiang, CSPC, and Nanjing Zhengda Tianqing all tied for the first place with 6 winning varieties; the third batch of TOP10 was also awarded by Qilu, Yangzijiang, CSPC, Hausen, Heng Large companies such as Switzerland take over
.

In terms of overall quantity, on the day of the opening of the fifth batch of centralized procurement, according to Gong Bo, Director of the Medical Price and Bidding Purchasing Department of Shanghai Medical Security Bureau, there are currently 218 types of drugs involved in centralized procurement, and there are now more than 620 clinical drugs.
Among them, chemicals account for about 490 kinds
.
The goal of the national centralized procurement in the next year is to include 490 chemical drugs into the centralized procurement
.

Based on the above data, centralized procurement has shown a trend of "strengthening strength", and the concentration of winning bidders is getting higher and higher
.
This means that nowadays the number of centralized procurement of chemical drugs is nearly half.
With the implementation of centralized procurement, companies that focus on one field may win more bids in a centralized procurement, but they have the ability to develop diversified generic drugs and can invest There will be a small number of companies that conduct consistency evaluation of resources and can guarantee production capacity
.

On the other hand, the accepted logic of centralized procurement is "purchase with quantity and exchange quantity with price"
.
Behind the successful low-cost, large-scale production capacity is an indispensable factor in ensuring consistency of evaluation by the premise, the logic of the enterprise would be "marginal cost of large-scale decline in production costs to achieve"
.
Scale is obviously more advantageous for large pharmaceutical companies.
Therefore, under the promotion of centralized procurement, the position of leading pharmaceutical companies will continue to consolidate, and small and medium generic pharmaceutical companies without raw materials, technology, channels, and high costs will continue to consolidate It is also entering the countdown to death.
As expected by many industry insiders, “industry concentration will further increase, and the industry Matthew effect will accelerate
.
”

04 Release of the top 100 series list, focusing on innovation and promotion

Meinnet.
com "2020 China Pharmaceutical Industry Top 100 Series List" released a total of 5 sub-lists, including "Top 100 Chinese Chemical Pharmaceutical Companies Ranking", "Top 100 Chinese Pharmaceutical Companies Ranking", and "China CRO (including CDMO) Companies" "TOP20 ranking", "Top 20 ranking of Chinese medical device (including IVD) companies", "Top 20 ranking of Chinese biomedicine (including blood products, vaccines, insulin, etc.
) companies", a total of 260 selected companies, showing the Chinese pharmaceutical industry The professionalism and influence of the top 100 companies
.

It is understood that the selection focuses on the innovation driving force and professional promotion power of pharmaceutical industry enterprises.
The innovation driving force is mainly judged from the R&D comprehensive index of enterprise R&D investment, that is, the R&D comprehensive index score of R&D investment in 2020, accounting for 40% of the weight; professional promotion power is It focuses on rigid definition based on the terminal quantitative data determined by the final selection needs of clinicians and patients in 2020, and finally combines the terminal data of the three major terminals and six major markets of Minai.
com for quantitative analysis, accounting for 60% of the weight
.

In response to the results of the selection, Zhang Buyong, President of Punctuation, General Manager and Chief Researcher of Meinenet, stated that the "Top 100" companies have high concentration and good growth potential.
They propose transformation and upgrading, effective supply and specialization in public medical institutions and retail pharmacies.
Based on the demand for capabilities, the top 100 industrial companies, as pioneers in the pharmaceutical industry, have the characteristics of high concentration, good growth, and strong R&D efforts to meet the new needs of the terminal market
.

Note: The original text has been deleted