How much pain is in the throes of Xinlitai?

Medicine Network May 27th, the outbreak of the wind, burst the capital enthusiasm of pharmaceutical stocks.
The quarterly report showed that pharmaceutical biology was the first in the actively managed equity fund heavy position industry, up two places from the previous period, with a market value of 17.5%The entire pharmaceutical and biological sector has risen by more than 17% since the start of the year.
But not all practitioners share this cool heat.
For example, as of the close on May 25, the share price of Dajiao Litai was 18.76 yuan per share, compared with the opening year of 19.69 yuan, and also fell against the trend.
However, compared to the capital cold, Xinlitai also has another topic of heat.
May 19, 2020, there is a news from the media microblog of The letter-type product line clopidogrere (commodity name: Tyja) layoff news, compensation scheme n1.
Later, in response to investors, the head of Xinlitai said, "the company did not lay off staff, as to whether the clarification announcement will also need to ask the superior leadership after the decision." This is not the first time That Xinlitai has been exposed for layoffs.
According to the 2019 report, Xinlitai cut 26 products, more than 25%The anti-tumor biosimilars and antibiotics program sat in the clinical phase have been discontinuedThe number of sales people was 1,666, 442 fewer than in 2018This is in sharp contrast to the increase in the number of people in previous years.
This kind of product, project plus personnel's slimming action, by some public opinion became broken arm survival.
There is no shortage of radical and biased views, but it also reflects the development dilemma of Xinlitai.
Industry insiders pointed out that the above-mentioned turmoil or by the volume of procurementDue to the collection of competition to subvert the original model, generic drug sales promotion effect is not goodTherefore, many enterprises gradually reduce the cost of sales links, reduce drug prices.
In its annual report, Xinlitai also said that the collection subverts the existing competitive model, generic drugs will increasingly need to sell promotion.
However, this "quantity-for-price" road tests the comprehensive strength of pharmaceutical companiesFor some of the bad people, it's inevitable to show problem snaresFirst and foremost is performance pressure.
In the case of Xinlitai, revenue in 2019 was RMB4.470 billion, and net profit attributable to shareholders of listed companies was RMB715 million, down 3.9% and 50.95 percent year-on-year respectivelyIn 2018 and 2017, revenue was RMB4.65 billion and RMB4.15 billion, up 11.99 percent and 8.35 percent YoY, while net profit attributable to shareholders of listed companies was RMB1.46 billion and RMB1.45 billion, up 0.44 percent and 3.97 percent year-on-year.
In 2020, the situation remains bleak.
By the end of March 2020, 11 pilot cities have completed the "4 plus 7" band procurement pilot renewal, Xinlitai's results are still relatively bleak.
The first quarter of 2020 reported that Xinlitai achieved revenue of 866 million yuan, down 27.13% YoY, and net profit attributable to shareholders of listed companies was RMB150 million, down 53.33% YoY.
Looking at the industry, such a profit double down, especially the net profit of the continuous waist cut can be described as dismalWith revenue growth of more than 20% of Beijing New Pharmaceuticals, net profit growth of more than 400% of Huahai Pharmaceuticals than, Xinlitai's growth is worryingSome public opinion pointed out that in the face of aggressive band procurement, in the short term, Xinlitai performance or more difficult to reverse.
Well, here's the problemThe same is to go "to quantity for price", why Xin Litai pain so strong?
This is to say its product problem.
For pharmaceutical companies, in the Red Sea competition and pattern of sudden change of the environment, grinding and product structure optimization, is the core competitiveness.
As a comprehensive pharmaceutical group, Xinlitai's product structure needs to be upgraded, relying mainly on the sulphate clopidogretablet tablets (Tyja).
Public information shows that Shenzhen Xinlitai Pharmaceutical Co., Ltd (hereinafter referred to as "Xinlitai") was established in 1998, is a pharmaceutical product research and development, production and sales in one of the integrated pharmaceutical listed companies, with 7 major industrial base.
When it went on the market in 2009, The main revenue came from cardiovascular drugs and antibiotics, which accounted for about 40% Among them, sulphate chloride birreg tablets (Tyja) is the main anti-platelet coagulation drug products, accounting for more than 90% According to brokerage estimates, chloropidogrel revenue for 2017-2018 was 2.772 billion and 3,036 million, respectively, accounting for 66.73 percent and 65.26 percent of current operating income.
The risk of uncertainty is self-evident in this large single-item dependence With the introduction and implementation of policies such as belt procurement and disease-based charges, the market pattern has changed significantly, and once products are restricted, performance is naturally impaired.
In the second collection in September 2019, Stone PharmaceuticalGroup, Sanofi, Lepu Pharmaceuticals and Xinlitai were "participants" In the end, the core product Tyja unfortunately lost its bid.
Data show that in 2019, Tyjia's revenue was 4.47 billion yuan, down 3.90 percent from a year earlier.
As a result of the collection, Stone Pharmaceuticals Group, Sanofi and Lepu Pharmaceuticals gained 70% of the market share of hydrosulphate clopidogrel tablets The impact on Clopidogre, which accounts for about two-thirds of Cinlitt's revenue, is predictable.
Experts say this reflects the lack of prejudging of the collection policy, underestimating the determination of competitors and reflecting a gap in its own strength.
The above view is not a hollow wind.
In fact, the impact on large single-item enterprises is most obvious in the evaluation of volume procurement and consistency.
Take Beijing Jialin Pharmaceuticals, for example Beijing Jialin Pharmaceuticals is mainly engaged in the development, production and sales of cardiovascular drugs, al-Le is its main product, in 2016 in the sample hospital sales revenue reached 1.2 billion yuan.
Jialin Pharmaceuticals' revenue fell 46.06 percent year-on-year in 2019, putting more pressure on its performance in 2020, as the band's purchase expansion was not won.
Xin Litai, Jialin Pharmaceuticals can be described as "difficult brother and brother." From an industry perspective, this is not an exception For a long time, the medical industry has been filled with a wave of impetuous wind, holding one or two generic drugs can eat the market Simple and brutal savage growth, so that many enterprises ignore innovation, ignore the core product research and development, there is no long-term development plan, which is also the main cause of China's pharmaceutical industry is not strong It is also the core breakthrough point of this reform.
Obviously, in the face of performance pressure, product crisis, Xinlitai has been to the critical moment of refinement, innovation.
The high gross margin of generic drugs is unsustainable, and for pharmaceutical companies, it is the key to breaking the situation by using research and development innovation to cultivate new profit points.
In this regard, the domestic leading pharmaceutical enterprises Hengrui Pharmaceuticals, Stone Pharmaceutical Group, Zhengda Sunny, etc., has already made an example And with the new revision of the Management Law, drug registration management measures into the implementation stage, the value of innovative pharmaceutical companies is more prominent, which can be seen from the above-mentioned rapid increase in research and development costs and market value performance.
Xinlitai Chairman Ye Chenghai also said: short-term operation to see product lines and policies, in the medium and long term to see the product ladder, to achieve long-term leapfrog development depends on the development and sales platform construction and efficiency.
Objectively speaking, in order to get rid of a single product dependence, Xinlitai has also made a lot of efforts: intended to form an innovative and imitation product line layout.
In 2019, Xinlitai invested 763 million yuan in research and development, an increase of 356 million yuan, an increase of 87.37 percent, mainly to increase the investment in research and development in the current period, strategic optimization in the research pipeline, some clinical stage of anti-tumor biosimilars, antibiotic projecttermination, capitalization and cost-effective.
Specifically look at The innovations of Reliance, first and foremost, cardiovascular drugs represent alsametin (Sinlitan).
In 2013, Xinlitai Research and Development Innovation was approved by the original CFDA for listing, was added to the Health Insurance Catalog in 2017, and renewed the Health Insurance Catalog in 2019 at a price lower than the average decline in access drugs, with no restrictions on the use of adaptation in health insurance payments.
Unfortunately, the above benefits did not make the product occupy a sufficient market.
According to the data of the Ameida sample public hospital, the total sales amount of Xinlitan in 2015 was 200,000 yuan, the total sales amount after being included in the health insurance catalogue in 2017 was 3.6 million yuan, and the total sales amount in 2019 was 141 million yuan Despite the obvious growth rate, the market is still only 1.40% Short-term difficult to resist the main role.
The second is osteoporosis drugs representing tripades.
On April 12, 2019, The Application for Tripapeptide Injection Phase 3 Clinical (15 Class Registrations, Short-Acting Water Needle Preparations) was accepted by CDE Previously, its injection of tripapeptide (short-acting powder needle preparation) has been approved for market, acetate tripatide (the long-acting preparation) is in the 1/2 clinical stage.
It is reported that in 2016, the size of the market for osteoporosis in public hospitals in key cities reached 2,668 million yuan, with an estimated domestic anti-osteoporosis market of 26-28 billion yuan With the aging of the population, the number of osteoporosis patients in the mainland is expected to rise to 150 million by 2025, with the potential for osteoporosis drugs to be enormous.
Then there's cerebrovascular drugs.
It is reported that Xinlitai Maurora cerebrovascular drug elution stent declaration after production, in February 2019 to accept the NMPA expert review, in March to obtain the supplementary advice, and then in March 2020 formally submitted supplementary information LaMax left heart ear blocker, the first implant completed in April 2019, and all 236 patients enrolled in the group in November, are currently in clinical follow-up.
GStream's lower limb arterial drug elution balloon is in the FIM trial stage, and the SAEXTEN cavity intravenous filter is currently progressing well after launching a clinical trial in November 2019 During the reporting period, THE PTCA cystic catheter was approved for production and will be developed in collaboration with alpha stents to improve the company's product line of devices in the cardiovascular field.
It is not difficult to find that a number of cutting-edge new products are being fully developed, and the promotion is relatively smooth This is why it has been selected as one of the top 10 listed companies for research and development innovation in China for two consecutive years.
Also on this basis, many investors have no shortage of expectations for the future of Xinlitai.
The problem is that innovative drug research and development is also a double-edged sword, difficult, high cost, long cycle, uncontrollable risk, combined with its performance pressure and layoffs, The continuity, robustness and quality level of Xinlitai innovation force to be confirmed Whether the follow-up research and development can break through and the market-oriented effect after landing, etc., also needtime verification.
uncertainty, and multidimensional performance.
From the point of view of API, Xinlitai also needs to be vigilant.
China's exports of raw materials have fallen year-on-year this year, with most products down 10 to 20 per cent, according to the Ministry of Industry and Information Technology Especially because of the suspension of non-epidemic medical needs, such as the foreign pharmaceutical industry to stop for a longer period of time, it will have a negative impact on China's API exports as a whole And the domestic market, is also in the stage of gradual recovery, the market needs time to accumulate conduction effects At the same time, foreign obstruction, will inevitably increase the domestic return brought about by the intensity of competition.
Data show that in 2018, Xinlitai API sales of 745 million yuan, accounting for 16.02 percent of the total body, 2019 sales of API 613 million yuan, accounting for 13.72 percent of the total body, down 17.70 percent year-on-year.
In other words, it will not be easy to save the country through the API curve in 2020, thereby reversing a fall in performance.
It is interesting to note that, in the face of the dark time of the multi-dimensional dilemma, Xinlitai has continued the tradition and made a large dividend.
In 2019, Xinlitai's dividend of 517 million yuan, plus a $63.12 million repurchase, accounted for 81.17 percent of net profit The high proportion is remarkable.
It is worth noting that The IPO raised 1,156 million yuan, the cumulative cash dividend is more than four times the amount raised.
Objectively speaking, dividends are one of the performances that list to investors responsibly However, this is not affecting the healthy development of the enterprise, moderate and appropriate circumstances.
Separatefrom the actual, excessive wayward dividends, no doubt kill chicken eggs, damage the growth of enterprises, in the long run is irresponsible to investors Chengde Lulu, Ogilvy Medical, etc., famous for its lavish dividends, continues to fall into a downward trend, that is, a strong proof.
Look at the financial situation of Xinlitai, the above performance is even more dazzling.
In 2019, Reliance borrowed 124 million yuan of short-term loans for the first time, increasing to 176 million yuan in the first quarter of 2020 Long-term borrowing also increased from 159 million yuan at the end of 2019 to 287 million in the first quarter of 2020, while long-term borrowings due in one year increased by 45 million yuan and other payables increased to 394 million yuan.
At the same time, from its construction budget of nearly 800 million yuan, the project progress calculation still needs to invest 600 million yuan, the external additional 152 million yuan of long-term equity investment, the financial pressure of Xinlitai should not be underestimated.
Industry insiders pointed out that the decline in performance may be a symptom, the deterioration of assets behind the focus, the above-mentioned costs or further increase the financial pressure of Xinlitai This one side of the big dividend, while reaching out to the capital market to ask for money, is not sustainable If there is a problem with solvency, the derivative risk may further aggravate the enterprise.
The new medical reform, which originated in 2009, has entered the deep water area where the market pattern has been reshaped A significant change is also a continued expansion of the primary drug market.
In 2019, the sales of terminals in public primary medical institutions reached 180.8 billion yuan, up 8.2% YoY, significantly higher than public and retail terminals Not only domestic enterprises, AstraZeneca, Pfizer and other multinational pharmaceutical companies are also optimistic about the grass-roots market, have come out of the layout.
This indicates that the change of China's pharmaceutical market pattern has changed from quantitative to qualitative change.
Elephant drugs mainly trigger two dimensional changes: high quality and low price.
Obviously, in the past, relying on a few generic drugs to eat the world, short-profit harvest, extensive development of the good days have ended Pain, Nirvana, rebirth is the arrow in the string.
Objectively speaking, as a comprehensive pharmaceutical listed company, Xinlitai has the performance volume, sales channels, mature product system, experience management and other first-mover advantages, but these are far from letting it rest easy, also far from enough to resist the above-mentioned uncertain changes Even some traditional experience, mode thinking, inherent diseases, etc may also be linked to the pace of enterprise transformation and innovation and upgrading sensitivity.
"Patient-centered" is the core value of Xinlitai, "China's most influential innovative international pharmaceutical enterprises" is its corporate vision.
How to know the unity of practice, how to be in efficiency first, quality first, innovation first on the new track strategic card position, refined fast change As soon as possible out of the dark moment, change the pain, test inglitai executive son of the great wisdom, the financial will continue to pay attention.