Pharmaceutical giants do not love R & D and marketing

12 enterprises, such as Shanghai Pharmaceutical (19.88, - 0.17, - 0.85%) (02607 HK), Fosun Pharmaceutical (28.6, 0.30, 1.06%) (02196 HK), Hengrui pharmaceutical, dong'a Ejiao, etc., made net profit and entered the "billion club" A reporter from Beijing Business Daily found that one billion club members love R & D, M & A expansion, foreign investment and marketing M & A has become the driving force for the growth of performance of 1 / 3 enterprises including Fosun Pharmaceutical R & D innovation has become the main factor that more than half of enterprises, such as Hengrui pharmaceutical and Huadong pharmaceutical, have a net profit of more than 1 billion yuan Under the pressure of the implementation of the new medical reform, domestic pharmaceutical enterprises began to transform to drug research and development Enterprises increase investment in R & D, acquire high-quality targets and other measures to obtain growth momentum Domestic pharmaceutical enterprises that rely on marketing drugs to develop into high-quality, long-term and benefit oriented enterprises are more willing to invest their energy in the construction of sales system According to statistics from Beijing business daily, of the 12 pharmaceutical enterprises with a net profit of more than 1 billion yuan, 2 / 3 of them, such as Fosun Pharmaceutical, dong'a-jiao, China Resources 39, Bubu pharmaceutical, Jilin Aodong, Baiyunshan (23.05, 0.10, 0.44%), Tishi pharmaceutical and Huadong pharmaceutical, mentioned in the financial report that the innovation and construction of marketing mode had an important contribution to their performance It can be seen from the annual reports issued by various enterprises that the sales expense accounts for more than 40% of the revenue and the R & D expense does not exceed 5% The so-called sales expenses mainly include personnel compensation, market expenses, conference expenses, business (entertainment) expenses, travel expenses, advertising (publicity) expenses and transportation expenses Fosun Pharmaceutical achieved an operating revenue of 14.629 billion yuan and a net profit of 2.806 billion yuan in 2016 The reason for the growth of its performance is that the company attaches great importance to the construction of marketing capacity and has formed a marketing team of more than 3000 people The sales network base covers the main markets of the country, and its product promotion and sales capacity have been improved Last year, the operating revenue of Cr 39 was 8.982 billion yuan, the net profit was 1.198 billion yuan, the sales expense was 3.279 billion yuan, accounting for 36.72% of the revenue, and the R & D expenditure was only 280 million yuan, accounting for 3.12% Dong'a-jiao mentioned in the annual report that the value return is one of the three major projects of the company, and the value return proposed by dong'a-jiao is mainly reflected in product price increase From 2012 to 2015, the revenue growth rate of Ejiao's products was 23.4%, 17.86%, 16.82% and 26.19% respectively According to the latest 2011 Research Report on human resource management in the pharmaceutical industry released by tophr, 70% of enterprises focus on the training of marketing personnel, and more than 50% of the training budget is used for marketing personnel; only 20% of enterprises prefer the training of R & D personnel Zhao Heng, partner of latitudehealth, a medical strategy consulting firm, said the full implementation of the new health care reform forced pharmaceutical companies to change their marketing model The traditional marketing mode of pharmaceutical enterprises is to face the hospital, cancel the drug markup, and strictly check the doctor's withdrawal, which leads to the failure of the traditional marketing mode The innovation of marketing mode is the future trend of pharmaceutical enterprises For a long time, improving R & D has been criticized by the outside world, and R & D talents have been relatively scarce Despite the huge pharmaceutical market and rapid development in recent years, pharmaceutical companies do not seem to have a cold for R & D and lack of passion In terms of R & D investment of large pharmaceutical companies in Europe and the United States, international R & D expenses for new drugs need about 500-1 billion US dollars, accounting for more than 10% of operating revenue Compared with, the proportion of R & D investment and revenue of domestic pharmaceutical enterprises has been at a low level Guo yunpei, President of China Pharmaceutical Enterprise Management Association, said that the proportion of pharmaceutical sales in China is very high, which is much higher than that in foreign countries It is estimated that the cost of "bringing gold" sales will not be less From the data disclosed in the financial statements of various enterprises, we can see that the selling expenses are far higher than the R & D expenses In addition, new drug research and development is a complex system engineering, including compound research, preclinical research, clinical research, drug registration application and approval, and post market continuous research Many enterprises are deterred by high success, long cycle and high risk However, a reporter from Beijing Business Daily found that various pharmaceutical companies are gradually making efforts in drug research and development The R & D expenditure of Hengrui pharmaceutical, Fosun Pharmaceutical, Huadong pharmaceutical and other enterprises has significantly increased, and the proportion of the increase in the R & D expenditure of some enterprises' products even exceeds the sales expense Hengrui pharmaceutical said that the gradual harvest of innovation results has played a driving role in the company's performance growth Last year, Hengrui pharmaceutical continued to increase its R & D investment, with a total of 1.18 billion yuan invested in R & D throughout the year, an increase of 32.82% over the same period last year Fosun Pharmaceutical invested 1.107 billion yuan in R & D last year, an increase of 33.23% over the same period last year East China Pharmaceutical also takes drug R & D as an important development path, with a total expenditure of 264 million yuan, up 21.29% year on year According to the research results report of "building a more standardized and valuable clinical academic exchange system in China's pharmaceutical industry" released on March 24, the R & D expenses of foreign innovative pharmaceutical enterprises usually account for more than 10% of the sales revenue of enterprises, but the figure of most pharmaceutical enterprises in China is often less than 5% At present, domestic pharmaceutical enterprises continue to increase the proportion of drug R & D investment, and some enterprises can compare with foreign innovative pharmaceutical enterprises Take Hengrui pharmaceutical, a leading enterprise in the field of R & D, for example Last year, Hengrui pharmaceutical's R & D investment accounted for 10.6% of its revenue Zhao Heng believes that domestic pharmaceutical companies will tend to research and develop drugs in the future "Under the pressure of full implementation of the new health care reform, pharmaceutical enterprises will strive to make drugs enter the medical insurance catalogue in order to ensure their own profits When entering the price negotiation of medical insurance, the price of generic drugs will be lower, on the contrary, innovative drugs will have more advantages in price " At present, some pharmaceutical enterprises have changed the whole industry chain mode of "research, production and marketing" in the past, and shifted their focus to resource integration and global operation At the end of last year, Suzhou pharmaceutical company Peggy biomedical, together with Pfizer, was authorized to develop glucokinase activator (GKA) drugs in the field of diabetes The enthusiasm for M & A is also one of the main ways for pharmaceutical companies to gain momentum for performance growth and expand scale Shanghai Pharmaceutical said in its annual report that last year, the company entered the overseas health care product market through international M & A, sharing the benefits of future growth of the industry and promoting international development In October 2016, SHP plans to acquire 60% equity of vitaco, an Australian health products company, with a cash of 188 million Australian dollars (about 938 million yuan) Vitaco's business in China includes e-commerce sales of healtheries (he Shouli) and Musashi (Musashi), and "indirect sales" in Australia and New Zealand through local Chinese distributors In the first half of 2016, vitaco China's sales revenue was nearly $11.52 million Fosun Pharmaceutical mentioned in the annual report that the extension expansion is to seek to improve the product line and expand the market space through M & A, and to reduce the cost and improve the efficiency of the merged enterprises through deep integration, so as to speed up the expansion of business scale and market competitiveness Relevant statistics show that in 2016, Fosun Pharmaceutical invested in 11 M & A cases According to the public announcement of listed companies, Research Report of gotega and other statistics, in 2016, there were more than 400 mergers and acquisitions in the pharmaceutical and health industry, with a total amount of more than 180 billion yuan According to wind information statistics, in 2015, there were 279 M & A cases of listed pharmaceutical and biological companies, including 197 cases of horizontal integration, 10 cases of vertical integration, 9 cases of financial investment and capital operation, and only 2 cases of business transformation; last year, there were 70 m & A cases of listed pharmaceutical and biological companies, including 60 cases of horizontal integration, 2 cases of vertical integration, and only 1 case of business transformation In Zhao Heng's view, on the one hand, pharmaceutical enterprises can improve their performance by merging statements; on the other hand, domestic pharmaceutical enterprises are making continuous progress towards drug research and development, but the time of drug research and development is long, the investment is large, and they need to face more risks during the period Pharmaceutical enterprises accelerate drug research and development through mergers and acquisitions Zhao Heng said that in ten years, it's not necessarily possible to develop an innovative drug In the end, it will be killed in phase 3 and phase 4 of the clinical practice The investment in the past ten years has been wasted In this case, domestic pharmaceutical enterprises often choose to acquire enterprises with strong R & D capabilities, especially those whose product R & D has entered the clinical stage, so that they can obtain new drugs in a short period of time, so as to enhance the competitiveness of enterprises.