On the highlights and R & D investment of Hengrui pharmaceutical product line

Photo source: Recently, Hengrui announced that it will carry out phase III clinical trial of bevacizumab injection in the near future It seems that the payback period of 32.9 million yuan of R & D investment in this project is around the corner The drug approval documents with three to five differences are used to Hengrui medicine, and we can see the strong R & D strength and huge R & D investment of Hengrui The author only talks about the focus and R & D investment of Hengrui pharmaceutical product line "R & D first brother" Figure 1 The revenue and profit of Hengrui pharmaceutical over the years The financial data of Hengrui pharmaceutical can see how Tieda Hengrui has grown rapidly into the leading echelon of domestic pharmaceutical enterprises in recent years Fig 2 in recent years, Hengrui pharmaceutical has developed into a variety of models, including M & A, introduction, independent R & D, etc Hengrui pharmaceutical has always paid attention to endogenous R & D, with few M & A, so the R & D costs of Hengrui are increasing year by year with the increase of projects Under such a large number of projects, the R & D costs are also full, efficient input and output Figure 3: investment in some new drugs of Hengrui pharmaceutical The product line of Hengrui pharmaceutical innovative drugs basically covers all hot targets, ranging from generic drugs to small molecule innovative drugs to biomacromolecule innovative drugs Cell therapy is also developed in hengruiyuan joint venture It is expected that the product line cost of Hengrui pharmaceutical innovative drugs will continue to rise in the next five years As most of the R & D of Hengrui medicine adopts the me better mode, it is more likely to go on the market However, innovative drugs such as famitinib and furoglitazone have disappeared in its product line I guess it may be because the data is not particularly good that we give up In addition, 19K, pyrrolidine and PD-1 are expected to be approved for listing in the near future Although Incyte terminated the cooperation with Hengrui PD-1, it got at least $25 million, which also played a good role in the R & D cost This year Hengrui made out license for Btk and Jak1 inhibitors, although the down payment may not be much But milestone payments have reached several hundred million dollars, and these transactions have also started Hengrui Innovation Medicine's pace of going abroad Figure 4 R & D investment of some generic drugs of Hengrui pharmaceutical For Hengrui pharmaceutical, a large pharmaceutical company, the development of generic drugs is a drop in the bucket Basically, it has done a lot of generic drugs covering the field of indications, and the clinical approval success rate is also high From the cost of clinical approval input, we can see that the R & D cost of different dosage forms is different, and the high-difficulty generic drugs investment has reached tens of millions of yuan The author expects that Hengrui's generic production approval will gain a lot under the new policy Figure 5: part of the reported generic R & D investment of Hengrui Pharmaceutical Co., Ltd as most of the R & D cost data come from the public data in the past two years, there is no doubt that it gives investors a positive signal to drive its stock price up year after year As of today (March 15), its market value has exceeded 230 billion yuan In recent years, Hengrui has obtained high production approval value, which is also differentiated for us declaration Not all projects have been declared anda At present, Hengrui's R & D investment accounts for the largest proportion of sales revenue in China's pharmaceutical companies, because Hengrui basically relies on internal R & D, with few license in, except for the oncolytic virus project introduced from Japan before R & D is the only way for the development of a large R & D and production-oriented pharmaceutical enterprise Hengrui pharmaceutical has always been on the way for how to graft global R & D into Chinese R & D in the future Just as sun piaoyang, chairman of Hengrui pharmaceutical, made a voice on innovative drugs at the 2018 NPC and CPPCC medical representatives' Symposium: continue to encourage the development of new drug clinical trials; continue to optimize the new drug market review and approval process; establish data protection suitable for national conditions, and actively improve innovation enthusiasm; We should strengthen the publicity, implementation and guidance of drug regulatory reform policies, and establish a necessary transitional period.