Is the sea back in blood? Half year earning 240 million 4 new products winning the bid.

Pharmaceutical Network August 24 - Haizheng Pharmaceuticals has a strong raw material strength, and the marriage of multinational giant Pfizer has also been enviable.
But in recent years, the company's performance has been a roller coaster ride, which has left investors confused: net profit in 2018 was nearly $500 million, turning a profit in 2019 was just over 90 million, and in the first half of 2020 it exceeded 240 million for the first time. Behind the nearly four-fold surge in net profit, does it show that the company has been out of trouble, re-create the glory of the year? How will Haizheng Pharmaceuticals, which will make up huge losses by selling shares in 2019, "return to the main business" in 2020? On August 20, the third batch of national collection opened the tender, 55 varieties (Ramif fixed flow mark) a total of 189 enterprises to participate, resulting in 125 enterprises to be selected.
Haizheng Pharmaceuticals' Anaquotol tablets, lactos tablets, sulfate amino glucose capsules, Tigrello tablets successfully winning the bid, the company in the alliance expansion phase, the second batch of national collection have active participation, from the API transformation preparation road seems to be more powerful.
net profit in the first half of the year broke 240 million, sales costs plummeted 20% Figure 1: In the last three years, Haizheng Pharmaceuticals' net profit situation (units: 100 million yuan) Source: the company's annual report Haizheng Pharmaceuticals and Pfizer since the break-up in 2017, a large amount of revenue, coupled with the export of raw materials blocked, high gross margin product sales fell sharply, a number of adverse factors superimposed, performance is in an unstable state.
the company's net profit in 2018 nearly 500 million, 2019 entered the "reform year", put forward "focus, slim down, optimize" three principles.
In 2019, Haizheng Pharmaceuticals continued to sell houses, sell equity, return funds of more than 4 billion, and even sold 23 peacocks to make a profit of 15,000 yuan, a variety of holdings, the first three quarters of net profit rushed to 1.255 billion yuan, up 17542 percent year-on-year.
, due to the year-end "asset charge", "goodwill impairment" and other reasons, the final full-year net profit of no more than 100 million yuan, it seems that every effort is difficult to make the performance back to glory.
The first half of 2020 the global economy was greatly affected, the pharmaceutical industry has also been unprecedented challenges, this year is Haizheng Pharmaceuticals" management promotion year, the company strive to overcome the impact of domestic and foreign outbreaks, reduce losses, layout growth, go all out to ensure stable operation of production and operation, to achieve operating income 53 RMB18 million, down 6.13 percent year-on-year, and net profit of 241 million yuan, up 357.31 percent year-on-year, the company said, mainly due to higher gross margin on sales of preparation products, as well as improved operating efficiency, resulting in a year-on-year decline in operating expenses.
2: In recent years, Haizheng Pharmaceuticals sales costs (units: 100 million yuan) Source: the company's annual report mentions operating expenses, sales costs generally occupy a larger proportion.
In the first half of 2020, Haizheng Pharmaceuticals' sales expenses were RMB1.15 billion, down 20% YoY, of which marketing business expenses fell by 25%, the proportion of total sales expenses also fell from 72% to 67%, sales department funds also fell by 44%, the effect of internal control is obvious.
44 billion "buy out" Hanyu Pharmaceuticals, veterinary drug subsidiaries have filed for bankruptcy restructuring if 2019 Haizheng Pharmaceuticals is busy selling houses to sell equity return funds, the first half of 2020 busy optimizing operations, the second half of the main tone should be "return to the main industry."
In July 2020, the news that Haizheng Pharmaceuticals had bought a 49% stake in Hanyu Pharmaceuticals for $4.4 billion shocked the industry, and the subsidiary, which was originally co-financed with Pfizer and was sold by Pfizer for $286 million, suddenly skyrocketed in value and attracted inquiries from the Shanghai Stock Exchange.
Around the questions raised by SSE, such as "Why didn't you buy it in the first place" and "Why is it so expensive now", Haizheng Pharmaceuticals replied that Pfizer's decision to opt out of the commercial arrangement in 2017 had resulted in Pfizer's failure to meet Pfizer's requirements for full cash payments and payment times due to the delay in the refinancing process.
acquisition of a minority stake in Hanyu Pharmaceuticals will help the company further promote strategic transformation, focus on superior resources, enhance its core competitiveness in the pharmaceutical manufacturing industry, and strengthen its leading position in the industry.
figure 3: In recent years, Hanyu Pharmaceutical home net profit situation (unit: 100 million yuan) Source: The company announced that Hanyu Pharmaceutical has a general oral production line, Pernam powder needle production line, tumor freeze-dried production line, the production of pharmaceutical dosage forms including needles, capsules, tablets, etc., at the same time the company also has a strong sales channels and professional academic promotion capacity, marketing ability is very strong.
Haizheng Pharmaceuticals already owns 51% of Hanyu Pharmaceuticals, the last two years of home-made net profit of more than 500 million, the first half of this year also reached 390 million, compared with Haizheng Pharmaceuticals' own net profit can be said to contribute a lot.
, Haizheng Pharmaceuticals said in its reply that Pfizer's 2017 deal with Sapphire was worth $286 million (approximately $1,902 million at the current exchange rate), corresponding to the overall valuation of Hanyu Pharmaceuticals at $3,881 million; In July 2020, Haizheng Pharmaceuticals and HPPC's estimated price range was tentatively set at 4.337 billion to 4.484 billion yuan, corresponding to the valuation range of 100% of Hanyu Pharmaceuticals' shares of 8.850 billion yuan to 9.150 billion yuan.
Before and after less than 3 years, the valuation of Hanyu Pharmaceuticals skyrocketed, is based on the company's real estate expectations more clear, and through the development of pharmaceutical promotion business to form a new profit growth point, in addition, GaoYu Capital to use its rich medical resources, to help Hanyu Pharmaceuticals to promote the introduction of new products, open up retail channels cooperation and Internet online medical cooperation, so that the overall strength of Hanyu Pharmaceuticals has been enhanced.
Table 1: In recent years, Hanyu Pharmaceutical approved product sources: MED2.0 China Pharmaceutical Review Database Hanyu Pharmaceutical actively participate in the national collection, is one of Haizheng Pharmaceutical's right-hand men in the pharmaceutical field, the proportion of direct plus indirect shareholding of Hanyu Pharmaceuticals increased from 51% to 100%, not only the home-grown net profit is expected to rise significantly, but also to help the company's industrial model from "raw materials-based" to "preparation-oriented" transformation.
subsidiary is not all "good boy", Haizheng Pharmaceuticals announced on August 6th, its subsidiary Yunnan Biopharmaceuticals, due to continued decline in operating performance, long-term losses, is now insolvent, filed for bankruptcy restructuring.
It is understood that Yunnan biopharmaceutical business scope for veterinary biopharmaceutical research and development, production, sales, technology transfer and technical services, Haizheng Pharmaceuticals said that the bankruptcy reorganization of the subsidiary will not affect the company's existing main business production and operation, as to how to restructure the follow-up has not yet the latest news, Haizheng will take this opportunity to "break the arm" is not yet known.
8 new products have been approved, 4 new products won the bid, new drugs, the first imitation on the road on August 18, NMPA announced the latest approved drug information, Haizheng Pharmaceuticals for Grelo tablets 4 types of imitation listing applications were approved and as reviewed, won the third batch of national collection tickets.
years, Haizheng Pharmaceuticals has stepped up the implementation of the transformation and upgrading to the preparation business, the production and marketing scale of the preparation business has expanded year by year, has become the company's main source of revenue and profits.
2019, Haizheng and its subsidiaries have been approved for listing a total of eight new products, according to the company's intranet data.
Table 2: 2019 to date Haizheng and subsidiaries approved products Source: MED2.0 China Drug Review Database in the first half of the global epidemic environment, the approval of Theapirave tablets for domestic research and development to bring a new dawn.
Haizheng Pharmaceuticals said that at present, the Fapirave tablets have achieved some international sales, the domestic completion of 19 provinces hanging network, 35 hospitals have completed hospitalization, 20 hospitals to complete the bill of lading.
Peric acid Solina new tablets successfully won the second batch of national collection, Haizheng Pharmaceuticals won Beijing, Hebei, Jiangsu and other 10 regions;
Table 3: Listing Applications under review from 2017 to date Source: MED2.0 China Drug Review Database Haizheng Pharmaceuticals is currently in review of the listing applications, the two major category 1 new drugs have attracted much attention.
Haize mebu tablets for the treatment of primary hypercholesterolemia, the current foreign market has been listed the same target of the drug Yiyi Mebu in 2006 was approved to enter the Chinese market, in 2019 yiyi Mebu global sales of about 590 million U.S. dollars, in China's urban public hospitals, county-level public hospitals, urban community centers and township hospitals (referred to as China's public medical institutions) terminal sales of 510 million yuan.
injection ZL-2401 pairs of toluene sulfonate for Haizheng Pharmaceuticals and Reding Pharmaceuticals jointly declared a class 1 new drug, anti-tumor drugs, in February 2020 by CDE contractor, in April was included in the priority review.
Johnson and Johnson's Invlissi single anti-2019 global sales of more than 4.3 billion U.S. dollars, there is no domestic biosic drug approved, in 2019 in China's public medical institutions terminal sales of 450 million yuan, the product successfully entered the 2019 version of the national health care negotiations catalog.
hydrochloric acid lulassin tablets is an atypical (second generation) antipsychotic drug, the current domestic market only Bushu pharmaceutical import approval, in addition to the generic listing application in addition to Haizheng Pharmaceuticals also involved Yangzijiang, Zhengda Tianqing, Howson, the first imitation competition in the domestic giants to carry out killing.
table 4: Haizheng Pharmaceuticals to participate in the third batch of national collection of products Source: Mi Net database, Shanghai Sunshine Pharmaceutical Procurement Network up to now, Haizheng Pharmaceuticals and subsidiaries a total of 14 products have been evaluated (including Hanyu Pharmaceuticals has been evaluated 4 products ), of which 5 products participated in the third batch of national collection bidding, Anaquoise tablets, lactation tablets, sulfate amino glucose capsules, tigrillo tablets to be selected, and hydrochloric acid metformin slow release tablets lost the arm.
meters intranet data show that in China's public medical institutions terminal, Anaquoia tablets are more than 1 billion products, leading AstraZeneone market share of more than 80%, while Haizheng Pharmaceuticals only 0.70%; Pharmaceuticals accounted for only 2.27 percent; Tigrelo tablet sales reached 1.5 billion yuan, leading AstraZeneta market share of more than 90%, Haizheng Pharmaceuticals approved according to the new classification, belongs to the new market products, Haizheng Pharmaceuticals these three products successfully won the bid, the future market share will be greatly improved.
amino glucose oral preparation is a variety of more than 3 billion yuan, the leading enterprise Haizheng Pharmaceutical market share accounted for about 24%, the number of successful enterprises reached 4, it is expected that Haizheng can also successfully maintain the original leading edge.
sources: company announcements, Milnet database and other review data statistics as of August 21, 2020, if there are errors, please point out.
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