Huahai Pharmaceuticals' first three quarters of results are soaring sales costs are decreasing.

Pharmaceutical Network October 22 - A group of pharmaceutical companies, sales costs are dropping significantly well-known pharmaceutical companies on October 20, Huahai Pharmaceuticals released the first three quarters of this year's results.
2020, the company achieved revenue of RMB4.87 billion, up 21.41 percent year-on-year, and net profit attributable to shareholders of listed companies was RMB841 million, up 64.23 percent year-on-year, according to the announcement.
in the overall drug market sales growth rate of the environment, Huahai's performance growth is rare.
According to the announcement, Huahai Pharmaceuticals' net profit increased significantly from a year earlier, mainly due to the impact of a substantial increase in domestic preparations and API sales: First, domestic preparations are mainly with the promotion of centralized procurement by the state, the company relies on the expansion of the alliance region to select opportunities, product market coverage has been rapidly increased, thereby affecting a significant increase in domestic preparation sales;
Under the influence of this year's new crown outbreak, pharmaceutical listed companies have become a bright spot, from the company that has now released the third quarter report, more than half of the enterprises forecast an increase in net profit, especially its products due to the impact of the outbreak increased sales.
However, the capital market has ups and downs, some pharmaceutical listed companies in the context of the epidemic performance growth is considerable, but some of the weak degree of relevance of the sub-sector enterprises performance or pre-decrease, or continued losses, or the first loss.
such as three tablet companies, Shenzhou Cell, Zee-Pharma and Consino, all said they expected to continue to lose money from the beginning of the year to the end of the next reporting period because the company does not yet have drugs on the market.
sales costs are decreasing It is worth noting that Seber Blue Combs Huahai Pharmaceuticals' third-quarter report found that the company's total operating costs increased by 3.2% YoY, but sales expenses decreased significantly, by 37% YoY in the third quarter of 2020 and 4.1% YoY in the first three quarters of 2020.
According to Huahai Pharmaceuticals' 2020 semi-annual report, it has participated in the centralized procurement of drugs in the four-and-seven cities organized by the state, the centralized procurement of drugs in the regions of the cross-regional alliances, and the centralized procurement of drugs in the second and third batches of drugs in various provinces and cities throughout the country.
half-yearly reporting date, the company has 12 products winning bids.
and in the third round of national collection, Huahai Pharmaceuticals has three products successfully won the bid.
analysis suggests that it may be due to participation in volume procurement, resulting in a sharp drop in the company's sales costs.
is not only Huahai Pharmaceuticals, from the current disclosure of listed pharmaceutical companies in the third quarter of 2020 scheduling report, many are sales costs fell.
For example, according to Prop Pharmaceuticals' third quarter 2020 report, the company's total operating costs increased by 2.2% YoY, but the current sales expenses decreased by 39.8% compared with the previous period;
company's third-quarter 2020 results found that its sales expenses in the third quarter of 2020 decreased by 58.2% YoY, while sales expenses decreased by 61.5% YoY in the first three quarters of 2020.
fact, this year due to the outbreak, will indeed have a certain impact on the marketing of pharmaceutical companies.
But for pharmaceutical enterprises, the impact of their sales costs, from the beginning of the volume of procurement has been continuous fermentation, transformation into an inevitable choice for survival, sales costs gradually decreased is also an inevitable trend.
june last year, the Ministry of Finance and the Health Insurance Bureau issued a notice to jointly verify the financial problems of 77 pharmaceutical companies, with a focus on sales costs.
Recently, a number of listed pharmaceutical companies received a 2019 annual inquiry letter from Shenzhen Stock Exchange, asking for an explanation of the proportion of academic promotion fees in sales costs, whether the sales cost rate is at a reasonable level in the industry, and whether there are commercial bribery or to facilitate commercial bribery.
enterprises want to gain an advantage in strip procurement, enterprises will squeeze out "water", in the optimization of personnel structure, a large sales team into the first part of the adjustment.
Take Xinlitai, which has previously participated in the nationwide centralized procurement of pharmaceuticals, whose 2019 annual report shows that the number of sales staff at Xinlitai fell by about 20% from 2,108 at the end of 2018 to 1,666.
addition, since the pattern of volume procurement ensures the use of selected drugs, the sales costs of enterprises are reduced by volume-for-price.
People's Daily previously reported that sales staff in key enterprises were reduced by an average of 49%, and sales expenses as a percentage of sales amount fell from 40% to 5% to 10%.
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