Sinopharm marches towards 500 billion!

A few days ago, the world's first new crown pneumonia "special effect drug" was approved for clinical trials
.
The intravenous COVID-19 human immunoglobulin (pH4) developed by Tiantan Biological, a Chinese biological blood products company of Sinopharm Group, has been approved for clinical trials.
It is understood that no such product has been listed in the world, and no other manufacturer has been immunized based on the new crown vaccine.
Afterwards, the clinical application of intravenous COVID-19 human immunoglobulin was carried out
.
In recent years, Sinopharm’s revenue has repeatedly hit record highs, approaching 400 billion yuan in 2018 and breaking through the 500 billion yuan mark in 2020
.
Recently, the performance of listed companies in the first half of 2021 has been disclosed, and the performance of six listed companies under Sinopharm Group has also surfaced.
Among them, Sinopharm Group's revenue is close to 250 billion yuan, and the net profit of Sinopharm Hyundai, China Traditional Chinese Medicine and Sinopharm Co.
, Ltd.
The growth rate exceeds 20%.
.
.
While the performance is growing rapidly, what is its integrated layout?
　　Organizational structure of Sinopharm Group's 6 listed companies under Sinopharm Group in the first half of 2021 performance (unit: 　　100
million yuan)
Sinopharm: a solid pharmaceutical distribution leader and rapid device growth.
　　Sinopharm's revenue (unit: 100 million yuan) Sinopharm's sales revenue in the first half of the year It reached a new high, approaching 250 billion yuan, a year-on-year increase of 22.
26%
.
Among them, pharmaceutical distribution revenue was 190.
446 billion yuan, a year-on-year increase of 20.
92%, accounting for 74.
17% of total revenue.
The increase was mainly due to the increase in the scale of retail pharmacy distribution and the increase in sales in the e-commerce market; medical device revenue was 47.
78 billion yuan, a year-on-year increase of 33.
19%.
Accounting for 18.
61% of total revenue, the increase was mainly due to acquisition and expansion and business expansion of medical devices; pharmaceutical retail revenue was 13.
722 billion yuan, a year-on-year increase of 24.
57%, accounting for 5.
34% of total revenue.
The growth was mainly due to the growth of the retail drug market and the network of retail pharmacies Expand
.
It is worth mentioning that Sinopharm Group has repeatedly set new highs after its first public revenue in the medical device sector in 2018.
In 2020, it will be close to 90 billion yuan.
In the first half of 2021, it will increase by more than 30% year-on-year.
It has the fastest growth rate among the three business sectors.
Fast
.
Sinopharm Group stated that 2021 is the first year for the Group to implement the "14th Five-Year" development strategy plan
.
In the first half of the year, under the challenges of overcoming the impact of the epidemic and the pressure on the industry's gross profit, it actively undertook new service demands such as vaccine distribution and marketing promotion, and consolidated its leading position in the core core business on the basis of the steady growth of various businesses
.
At the same time, in-depth advancement of digital transformation, coordinated promotion of key tasks such as business development and model transformation
.
The advantages of pharmaceutical distribution are solid, and service innovation is accelerating
.
By coordinating network distribution and supply chain resources, Sinopharm Group promotes an orderly increase in market share and promotes high-quality transformation of service models
.
Among them, the acquisition rate of the varieties involved in volume procurement is still the industry leader, and the market share and total distribution volume continue to increase
.
At the same time, the group focuses on the adjustment and optimization of the business structure and channel proportions, and accelerates the improvement of the coverage of end customers.
With the endogenous business expansion and network sinking, the proportion of direct sales business income from medical institutions and retail terminals has continued to increase.
The revenue from direct sales of primary and secondary hospitals increased by nearly 30% year-on-year, and the revenue from direct sales of primary medical institutions and retail terminals both increased by nearly 20% year-on-year, and the advantages of network coverage accelerated
.
In addition, in the first half of the year, Sinopharm promoted the marketing cooperation of 4 oncology and blood products in 18 provinces, and the revenue structure was further enriched and optimized
.
The distribution of equipment is growing rapidly, and the upstream manufacturing is proceeding in an orderly manner
.
By continuously strengthening the systematic construction of the distribution service team, Sinopharm continued to improve the network coverage and service capabilities, and promoted the rapid growth of the medical device sector.
The revenue increased by more than 30% in the first half of the year.

.
It is worth mentioning that device manufacturing is an important strategic sector that Sinopharm Group focuses on promoting development.
Through active deployment of the expansion and extension of upstream industrial manufacturing capabilities, it has initially possessed the production and manufacturing capabilities of more than 100 products in the category of medical consumables, and quickly relied on downstream distribution networks.
Advantages, completed sales in more than 30 provinces across the country
.
In addition, for some important categories that have the potential for synergy with the group's distribution network, relevant research has been actively carried out, and the screening of relevant targets has been initially completed to provide reserves for the subsequent expansion and expansion of upstream manufacturing business
.
Batch and retail synergies to consolidate advantages, and policies lead to steady growth
.
Sinopharm has fully implemented the development strategy of “Lot and Retail Coordination”, coordinated procurement and logistics resources, promoted the coordinated development of retail and wholesale, medicines and equipment, professional pharmacies and social pharmacies, and continued to improve the availability of prescription varieties and pharmaceutical services in retail pharmacies
.
As of the end of June 2021, the total number of retail stores has reached 9,782, an increase of 805 from the end of 2020
.
Among them, there are 8439 NUS pharmacies and 1343 specialty pharmacies
.
In addition, Sinopharm simultaneously optimized the efficiency of retail operations and promoted the informatization and digital transformation of retail business
.
Regarding future development, Sinopharm said it will speed up the process of digital transformation; strengthen the synergy of business segments, further strengthen the integration and synergy between business segments, consolidate the leading position of pharmaceutical equipment distribution, and deepen the exploration of "integration of batch and retail", "pharmaceutical equipment linkage", and " Innovative business models such as "zero-device linkage", improve the accessibility and convenience of high-quality pharmaceutical equipment supply chains and pharmaceutical services, optimize the comprehensive service level of circulation channels inside and outside the hospital, and lay a solid foundation for consolidating competitive advantages in the new development environment
.
In addition, we will enhance the coordination of business resources, further strengthen the matching and coordination of network resources between various business types and regions, explore business management and control model innovation, and accelerate the promotion of supply chain network integration and service standardization upgrades
.
Comprehensively build a joint innovation system and continue to optimize the efficiency of business governance
.

　Chinese Traditional Chinese Medicine: Focusing on traditional Chinese medicine formula granules, the business segments are linked to development
　　China Traditional Chinese Medicine Performance Summary (Unit: 100 million yuan) China Traditional Chinese Medicine's operating income in the first half of the year was 8.
149 billion yuan, a year-on-year increase of 22.
4%
.
Among them, the operating income of the Chinese medicine formula granule business was 5.
321 billion yuan, an increase of 16.
4% year-on-year, accounting for 65.
3% of the total revenue; the operating income of the finished medicine business was 1.
755 billion yuan, an increase of 34.
6% year-on-year, accounting for 21.
5% of the total revenue
.
Performance growth On the one hand, the improved recognition of the quality controllability of TCM formula granules and the operation model of dispensing machines have promoted the steady development of the TCM formula granules business; on the other hand, as the epidemic improves, the patent medicine business has gradually recovered and increased substantially
.
In addition, Chinese Herbal Medicine, the medicine major health, origin integrated services to develop new business also increased boost for performance
.
It is worth mentioning that, starting from the 2019 mid-year report, China Traditional Chinese Medicine has divided the production area integrated business segment from the traditional Chinese medicine formula granule segment, and adjusted the original four major business segments to five major business segments.
The production area integrated business will achieve operating income in 2020.
383 million yuan, a year-on-year increase of more than 75% in the first half of this year, close to the level of 2020
.
Regarding the substantial growth in performance, China Traditional Chinese Medicine said that on the one hand, Heilongjiang Sinopharm Shuanglanxing Pharmaceutical, Sichuan Sinopharm Tianjiang Pharmaceutical Co.
, Ltd.
and Yunnan Tianjiang Yifang Pharmaceutical Co.
, Ltd.
have developed steadily increasing sales of TCM formula granules.
Chongqing Tianjiang Yifang Pharmaceutical Co.
, Ltd.
is also in the first half of the year.
Started sales of traditional Chinese medicine formula granules; on the other hand, Shandong Zhongping Pharmaceutical launched the sales of authentic Chinese medicinal materials mainly based on honeysuckle, and its external operating income doubled year-on-year
.
In addition, other integrated business companies in the production area are actively expanding the production and sales of Chinese herbal medicines, and the trading of medicinal materials
.
In the second half of the year, China Traditional Chinese Medicine has clarified its ten major work priorities: First, quickly advance the work related to the transformation of traditional Chinese medicine formula granules standards; second, adhere to multi-mode marketing thinking in the Chinese patent medicine sector, strengthen market terminal development and sales volume; third, comprehensively promote the decoction piece business market Expansion, the integrated development of industrial decoction pieces, medical decoction pieces and premium decoction pieces; fourth is to continue to promote the construction of the GACP system for Chinese medicinal materials, and to consolidate the quality management capabilities of the whole life cycle together with the middle and downstream industries; the fifth is to continue to cultivate new business models of traditional Chinese medicine and strive for There have been more breakthroughs in the fields of traditional Chinese medicine and consumer products; six is ​​to establish strategy-centered group management and control, and comprehensively promote the improvement of governance; seventh, to strengthen the leading role of scientific research and innovation, and provide core competitiveness for enterprise development; eight is to accelerate digitalization, Information construction to adapt to the future digital transformation; nine is to increase the promotion of the "Longyin Chinese Medicinal Materials" brand to enhance the brand's influence and driving force; ten is to explore strategic talent management reforms and build a positive incentive compensation system.
Fully mobilize the enthusiasm and creativity of talents
.

　　Sinopharm Accord: Centering on the integration of
　　 batch and retail to build the core competitiveness of the business, Sinopharm Accord's operating income (unit: 100 million yuan) Sinopharm Accord's operating income in the first half of the year was 33.
163 billion yuan, a year-on-year increase of 22.
06%; net profit was 741 million yuan, an increase of 15.
23% year-on-year
.
Among them, the operating income of the distribution business was 22.
824 billion yuan, a year-on-year increase of 20.
24%; the net profit was 462 million yuan, a year-on-year increase of 14.
26%
.
The operating income of Guoda Pharmacy was 10.
841 billion yuan, a year-on-year increase of 25.
87%; the net profit was 199 million yuan, a year-on-year increase of 10.
62%
.
Sinopharm unanimously stated that under the influence of the new crown epidemic, centralized drug procurement, and national talks on price reductions, the company took multiple measures to promote the implementation of the "14th Five-Year" plan, build core business competitiveness around the integration of batch and retail, and technology empowers to build a smart supply chain , Service upgrading accelerates transformation, and comprehensively builds a new pattern of high-quality development
.
Sinopharm Accord's pharmaceutical distribution business is mainly based in Guangdong and Guangxi, and has achieved the largest scale in Guangdong and Guangxi.
Through continuous integration of distribution and logistics business, the company deeply penetrates the terminal market, improves the stepped distribution network, and builds a smart supply chain, and is committed to becoming a South China The district has the strongest influence, the highest share, the most complete variety, the best service, and the fastest delivery of medical and health products and service providers
.
As of June 30, 2021, there were 1061 secondary and tertiary medical institutions in operation in 2021, 6,564 primary medical customers, and 4947 retail end customers (chain pharmacies, single stores, and hospital self-financed pharmacies)
.
In the field of pharmaceutical retail, Guoda Pharmacy is the leading pharmaceutical retail company in the country in terms of sales scale, and one of the few domestic companies that have a nationally-operated pharmaceutical retail network
.
As of June 30, 2021, the National University Pharmacy has 8,439 stores, covering 20 provinces, autonomous regions, and municipalities across the country, entering nearly 155 large and medium-sized cities, forming a network of pharmacies covering coastal cities in Northeast, East, North, and South China , And gradually spread into the northwest, central plains and inland urban agglomerations
.

　Sinopharm: The leading position of hemp and special medicines is stable, and the
　　 operating income of the special business of Sinopharm is (unit: 100 million yuan).
The hemp and medicine business of Sinopharm still has a solid core competitiveness in the special medicine market and channels
.
In the first half of the year, Sinopharm’s operating income was 22.
076 billion yuan, a year-on-year increase of 25.
92%; net profit was 766 million yuan, a year-on-year increase of 23.
56%
.
Sinopharm said that the company focuses on stabilizing basic businesses and guaranteeing key businesses, and at the same time actively explores new business development models in order to seek strategic transformation
.
The overall operating performance has increased significantly, recovering and catching up with the level of the same period in 2019, and basically getting rid of the impact of the epidemic and policies
.
On the one hand, Sinopharm has consolidated its regional pure sales business and maintained steady growth.
Among them, direct sales of grade hospitals have grown rapidly, reaching 41.
32% year-on-year.
The stickiness of suppliers improves awareness; in terms of community medical direct sales, the company optimizes and adjusts, analyzes the product structure, and focuses on new business varieties such as Chinese patent medicines
.
On the other hand, the business of hemp essence continued to grow, and the transformation of marketing services was initially explored
.
Sales increased by 25.
79% year-on-year .
On the basis of consolidating the business of hemp essence, the company actively seeks new product distribution cooperation, and strengthens the promotion of anesthetic marketing construction to seek transformation
.
For commercial distribution, sales increased by 14.
67% year-on-year
.
In addition, Sinopharm actively deploys characteristic business formats to enhance core competitiveness
.
The first is to explore the transformation of industrial marketing.
In May of this year, in order to realize the layout of the entire industry chain, the company promoted the transformation of industrial strategic development through the establishment of a new Industrial Development Department; the second is to seize market opportunities and accelerate the development of equipment business; the third is to innovate marketing models.
Enhance profitability; fourth is to increase the share of retail direct sales and promote the strategic layout of retail formats.
The company actively promotes the opening of specialized pharmacies and is expected to officially operate within the year; fifth is to promote dental brand building and improve product structure; sixth is to deepen the layout of "Internet + "Medical", the company seized the development opportunities of medical logistics terminal distribution brought by "Internet + medical", and actively carried out projects such as Internet pharmacies and home delivery of medicines
.

Sinopharm Hyundai: deepen the advantages of the chemical medicine health industry platform, and
　　 deploy the biopharmaceutical and health sector Sinopharm Hyundai's operating income (unit: 100 million yuan) In April this year, the abbreviation of Hyundai Pharmaceutical Securities was changed from "Modern Pharmaceutical" to "Sinopharm Hyundai"
.
As a unified platform for the development of the chemical medicine industry under the Sinopharm Group, Sinopharm Hyundai continues to deepen the advantages of the chemical medicine health industry platform through the overall coordination of the industry, and actively seeks to lay out the biopharmaceutical and big health sectors around the strategic pattern of "one body and two wings" to achieve leapfrogging develop
.
Sinopharm Hyundai's operating income in the first half of the year was 7.
632 billion yuan, a year-on-year increase of 22.
86%; net profit was 426 million yuan, a year-on-year increase of 30.
48%
.
Regarding the substantial growth in performance, Sinopharm Hyundai stated that the market prices of the company's main pharmaceutical intermediates and some key API products have stabilized and rebounded, and market demand has continued to improve.
The rise in volume and prices has driven the overall revenue of the API sector to increase by 33.
46% year-on-year
.
In terms of preparation products, market demand has recovered from the same period last year, and sales revenue increased by 18.
51% year-on-year
.
From the perspective of product therapy, there is a trend of differentiation
.
Cardiovascular and cerebrovascular field: the company’s key product nifedipine controlled-release tablets has continued to show market expansion effects, with sales increasing by 40% year-on-year; anti-infection field: volume procurement is expanding nationwide and the scope of bidding in various provinces, and the country’s clinical application of antibacterial drugs Strict management restrictions and other comprehensive effects, the company's large varieties of cefuroxime series and cefixime series sales increased by more than 20% year-on-year.
Although the sales volume of cefdinir increased due to the national centralized procurement, it could not make up for the loss caused by the decrease in unit price.
, Its sales revenue showed a downward trend year-on-year; Metabolism and endocrinology: The company’s key product, methylprednisolone sodium succinate for injection, fell in volume and price due to the impact of centralized procurement, resulting in a year-on-year decrease of 8.
67% in sales revenue in this therapeutic area
.
In addition, the company is actively exploring potential products, and products in therapeutic areas such as vitamin and mineral drugs and digestive system drugs have increased year-on-year
.
In terms of research and development, Sinopharm Hyundai adheres to the innovation-driven development strategy and continues to increase investment in consistency evaluation and new product research and development.
In the first half of the year, research and development expenses increased by more than 25% year-on-year
.
Consistency evaluation of 7 product-regulated drugs, 8 product-regulated drugs passed the consistency evaluation, 2 generic drug development projects were declared, 3 API registration numbers were obtained through related review, 12 patents were applied for, and 6 authorized patents were obtained
.
Expanding cooperation areas through multiple channels, completing 45 scientific research projects, and more diversified R&D models
.
Recently, Sinopharm Hyundai issued an announcement stating that its holding subsidiary Sinopharm Zhijun (Shenzhen) Pharmaceutical’s wholly-owned subsidiary DALI Pharma GmbH in Germany has received approval from the Maltese Pharmaceutical Regulatory Authority to issue ceftriaxone sodium for injection (250mg/ 500mg/1g) marketing authorization, marking that DALI Pharma can sell the product in the Maltese market, which will have a positive impact on the company's expansion of the EU market
.
Sinopharm Hyundai stated that 2021 is the first year of the company’s 14th Five-Year Plan.
It will seize the development opportunities of steady growth in the post-epidemic era, focus on building a new development pattern, benchmark the industry’s first-class standards, and make precise efforts.
Improve the supply capacity of high-quality products and services, strengthen the overall synergy of industrial chain integration, forge a strong synergy of pragmatic advancement, and gradually move towards high-efficiency governance and high-quality development
.

　　Tiantan Bio: To further consolidate its leading position in the blood products industry,
Tiantan Bio's operating income (unit: 100 million yuan) Tiantan Bio's operating income in the first half of the year was 1.
811 billion yuan, a year-on-year increase of 16.
50%; net profit was 337 million yuan, a year-on-year increase of 18.
75%
.
Regarding performance growth, Tiantan Biotech pointed out in the semi-annual report that on the one hand, the company continued to increase its marketing efforts to increase product sales, resulting in increased sales revenue and increased profits; on the other hand, the company continued to increase its sales in the blood system company.
Plasma allocation is carried out in time to increase the utilization rate of production capacity; the third is to reduce costs by strengthening cost control, tap the potential and increase efficiency, and effectively promote the work of improving quality and efficiency
.
In the first half of the year, 55 Tiantan Biochemicals collected 874.
89 tons of plasma at operating pulp stations, achieving a recovery increase of 25.
48%.
Affected by the epidemic in the same period last year, pulp stations stopped their pulp extraction business to varying degrees from January to March, and compared with the same period in 2019, the year-on-year increase 9.
26%
.
In terms of pulp station expansion, the company has set up 12 new pulp stations in Gansu, Hebei, Jiangsu and other places this year
.
In addition, Tiantan Biology strengthens academic promotion and continues to expand in terminals
.
The total number of covered terminals reached 19,750, a year-on-year increase of 68.
46%, including 12,247 medical institutions, a year-on-year increase of 57.
07%, and 7,323 retail pharmacies, a year-on-year increase of 91.
70%
.
In the first half of the year, the company continued to deploy benchmark hospitals and at the same time strengthened the promotion of approved benchmark hospitals
.
In terms of research and development, Tiantan Biotechnology obtained two clinical approvals in the first half of the year.
Chengdu Rongsheng was the first domestic company to obtain clinical approval for subcutaneous injection of human immunoglobulin.
Recombinant human coagulation factor Ⅶa entered phase I clinical trials
.
In addition, five clinical studies are progressing smoothly, and Chengdu Rongsheng Human Prothrombin Complex successfully passed the GMP on-site inspection
.
Recently, Tiantan Biological released an announcement stating that its affiliated Sinopharm Wuhan blood products have been issued the "Clinical Trial Approval for Drugs" issued by the State Food and Drug Administration, agreeing to Wuhan blood products to carry out the "Intravenous COVID-19 Human Immunoglobulin (pH4)" clinical trial.
At present, there is no similar product on the market at home and abroad
.
Analysts in the industry pointed out that if the product is approved for listing, it will greatly help the global fight against the epidemic.
At the same time, the market structure will also undergo major changes
.
Source: Sinopharm official website, public company announcement