Innovation is unstoppable! The revenue of innovative drugs of leading pharmaceutical companies will strive to increase by 10 billion yuan

Under the resonance of policies, talents, capital and other factors, domestic pharmaceutical innovation has become the main theme in recent years, local pharmaceutical companies have ignited the trend of hard work and innovation, R&D investment has continued to increase, and the entire innovative drug industry has shown spurt growth, promoting the high-quality development of
the pharmaceutical industry.
Since the second half of 2021, affected by the new policy to crack down on pseudo-innovation, the capital market has cooled down, but it will not change the determination of
pharmaceutical companies to innovate.
Through continuous R&D investment, the revenue of innovative drugs of many pharmaceutical companies will strive to increase by 10 billion yuan
.
Pharmaceutical industry (Image source: Pharma.
com) On the evening of November 2, China Biopharma, a traditional pharmaceutical company that transformed from generic drugs to innovation, released its third quarterly report, in the first three quarters of 2022, the group recorded a cumulative revenue (unaudited) of about RMB22.
667 billion, a year-on-year increase of about 10.
5%.

China Biopharmaceutical mentioned in the report that the group plans to exceed the RMB 10 billion mark in innovative drug revenue in 2023, and the proportion of innovative drug revenue will further increase
.
Also transforming from traditional pharmaceutical companies to innovative pharmaceutical companies are Hengrui Pharmaceutical, Simcere Pharmaceutical, CSPC Pharmaceutical Group, Hansen Pharmaceutical, etc.
, and the revenue of innovative drugs of these pharmaceutical companies will also approach
the goal of 10 billion yuan.
Among them, Hengrui Pharmaceutical has had an average of one new drug on the market every year since the first innovative drug Irisib was launched in 2011, and the innovative drug has now accounted for nearly 50%
of the company's revenue.
Hengrui mentioned in the equity incentive plan released in the second half of this year that the equity will be unlocked in three phases from 2022 to 2024, and one of the first unlocking conditions is that the revenue of innovative drugs will reach more than 8.
5 billion yuan (including the principal number) in 2022, and at the same time, the revenue of innovative drugs will reach 10.
5 billion yuan by 2023 and 13 billion yuan
in 2024 。 It is reported that Hengrui is also actively increasing R&D investment, the company's R&D investment in the first three quarters of this year exceeded 4.
5 billion, accounting for 28.
3% of revenue, at the same time, the company's sales expenses in the first three quarters of this year fell by 26%, the analysis believes that Hengrui's R&D-driven logic has become clearer
.
Simcere has a rich R&D pipeline, with nearly 60 innovative drug R&D pipeline projects and 20 clinical studies of 16 drugs, including 8 phase III clinical trials, 5 phase II clinical trials and 6 phase I clinical trials
.
In terms of commercialization, since 2020, the company has had blockbuster innovative drug products approved for marketing every year, including Xianbixin, Envida, Cosella, etc.
, and the newly approved products have brought considerable revenue volume
.
According to public disclosure, Simcere Pharmaceutical's innovative drug revenue has reached 65.
4%, and it is expected to reach 70%
within the year.
Hansen Pharmaceutical's innovative drug revenue also accounted for more than 50%.

As of the first half of this year, Hansen Pharmaceutical has listed six innovative drugs, five of which are in the medical insurance directory, and the company's innovative drug revenue in the first half of this year was about 2.
321 billion, accounting for 52.
3% of the total revenue, which grew rapidly compared with the 752 million innovative drug revenue in the same period of 2020, accounting for 18.
9%, and the compound growth rate of innovative drug revenue during the two years was as high as 75.
68%.

CSPC's innovative drug revenue will also cross the 10 billion mark
in two or three years.
By the end of 2021, the group has about 300 research projects, including more than 40 small molecule innovative drugs, more than 40 large molecule innovative drugs, and more than 30 new preparations, mainly focusing on oncology, immunology and respiratory, psychoneurological, metabolic, cardiovascular and cerebrovascular systems and anti-infection therapy; The company plans to launch more than 30 innovative drugs covering 55 indications
during the "14th Five-Year Plan" period.
In addition to traditional pharmaceutical companies, innovative drugs from emerging innovative pharmaceutical companies such as BeiGene are also very explosive, and the overall growth momentum is strong
as these companies' new drugs are gradually entering the harvest period.
In the first half of this year alone, BeiGene's R&D expenses reached 5 billion yuan, an increase of 20.
82% year-on-year, exceeding the revenue
of 4.
2 billion yuan in the first half of the year.
At present, the company is still in the early stage of development, but under the huge investment in research and development, the industry believes that the company will have a place in the domestic innovative drug market
.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice
to anyone.