Hengrui Pharmaceuticals: The company's sales expense rate is in the industry's middle level

Medical Network May 13 hearing recently, Liandu Lishui City, Zhejiang Province People's Court released a criminal verdict, Lishui Central Hospital disclosed the original anesthesiology Leimou bribery case, about ten pharmaceutical or medical device companies roll into themThe verdict from the media content is more forward interpretation, the Internet continuesAs the subsidiary of employees involved, the leading domestic pharmaceutical innovation into the vortex of public opinion Hengrui Medicine, published its annual sales charges, fees and other academic promotion raises questions about the mediaMay 12, Henryannouncement respond to media questionsThe company said that the incident is a subsidiary of employee personal behavior, a serious violation of the company's management system, but also reflects the flawed corporate governanceAt present, the relevant personnel have left, the subsidiary responsible leadership have been removed from their postsIn the future, the company will learn, strengthen compliance management subsidiaries, to prevent that from happeningannounced that the 2019 Hengrui Medicine selling expenses rate 36.61%According to data Flush, sales expense ratio in the Shanghai and Shenzhen stock markets over 230 pharmaceutical manufacturing companies (including raw material drug companies), the ranked No85, the middle level in the industryThe cost of sales includes the promotion, innovative drugs market specialization platform construction costs of the company's products, travel expenses and equity incentive costscost of sales for the media to focus on where in the end spent? Announcement made specific and detailed listSales costs, academic promotion, professional platform for building innovative drugs and other marketing expenses accounted for 88.29%, while the academic activities like cost accounting for these costs more than half the proportion of the market, mainly for organizing academic conferences and promotional activities to support the exchange of medical and patient education, and launched a series of academic activities for innovative drugs, the company developed the different stages of training doctors medicine knowledge,of managementannouncement said that as in recent years, the introduction of more high-level academic and medical personnel to augment the sales force, the standard travel sales staff increase over the years, staff travel at higher frequencies, and travel expenses related allowance, wrong meal allowance and other expenses increasedWhy did not significantly reduce the cost of sales for the period epidemic media questioned? Hengrui Medicine said that in the first quarter of 2020, the company needs to conduct on-site exchange sales activities affected by the epidemic has decreased, but the cost of sales included sales staff salaries, relatively fixed costs five insurance payments, office expenses, academic research, etc and with the improvement of treatment and increase sales, the corresponding increase in costs domestic pharmaceutical commercial bribery cases in the medical field has always been the focus of media attention Hengrui Medicine as a Chinese leading innovative pharmaceutical , innovative drugs on the market has formed a group to develop a number of clinical batch of pattern, there are a large number of academic promotion is a normal phenomenon, and its cost of sales rate centered in industry rankings , may not be typical After the verdict announcement triggered media attention, which is a reflection of deep-seated domestic sales outside of the entire pharmaceutical industry, high expense ratio of anxiety and doubt With the reform of the national pharmaceutical, medical and health care fields to further promote, in particular national focus of normalization and large-scale promotion, the future cost of a substantial decline in domestic drug sales are an inevitable trend, compliance transformation will become the law of survival of the domestic pharmaceutical companies, and the cost savings will ultimately profit to the drug consumers.