The industry analyzes the sustainable development capacity building of the enterprise from the research and development expense investment of the pharmaceutical company

Recently, the semi-annual reports of domestic and foreign pharmaceutical companies have successively disclosed that from the data released by major companies, we put aside the much-anticipated revenue data and focus on the R&D investment of pharmaceutical companies

Among multinational pharmaceutical companies, we see that Roche has topped the list of R&D expenditures with R&D investment of US$7.

In recent years, Roche’s R&D expenditure has been ranked first in the world: Roche’s R&D expenditure in 2017 was US$11.

The pharmaceutical industry is a knowledge-intensive industry.

Looking back at the R&D investment of domestic pharmaceutical companies, the industry feels continuous pressure

The first is domestic Chinese medicine companies.

In the domestic chemical and biopharmaceutical fields, the top five domestic pharmaceutical R&D investments in 2020 are: BeiGene (8.

BeiGene

BeiGene is a biotechnology company focusing on the research, commercialization and production of innovative tumor drugs

Hengrui Medicine

Hengrui Pharmaceutical's main business involves drug R&D, production and sales, and its main products cover many fields such as anti-tumor drugs, surgical anesthetics, contrast agents, special infusions, and cardiovascular drugs

Hengrui Pharmaceuticals is a representative enterprise of domestic pharmaceutical innovation, and pharmaceutical innovation is gradually entering the harvest period.

In addition, Hengrui Medicine obtained 5 production approvals for innovative drug preparations and 9 production approvals for generic drug preparations in the first half of the year, obtained 41 clinical drug approvals and consistency evaluation approvals for 10 varieties, and completed the consistency evaluation application for 2 products.

CSPC

In the first half of 2021, CSPC achieved a sales revenue of 13.

CSPC is one of the world’s largest production bases of antibiotics and vitamins.

In addition, CSPC has established eight innovative drug technology platforms.

In the next five years, CSPC is expected to have more than 30 innovative drugs and new preparations on the market, including multivalent mRNA vaccines for mutant strains of the new coronavirus and small nucleic acid drugs administered once every six months, all of which are blockbuster drugs with global patents

China Biopharmaceuticals

In the first half of 2021, Zhongsheng Pharmaceutical achieved operating income of 14.

Zhongsheng Pharmaceutical is a pharmaceutical company that focuses on the R&D, production and sales of biological and chemical drugs.
In the first half of 2021, Zhongsheng Pharmaceutical will maintain a dual position in the five core areas of anti-tumor, parenteral nutrition, cardiovascular and cerebrovascular, respiratory, and orthopedics.
With high growth in numbers, anti-tumor drugs have become the largest business segment of Zhongsheng Pharmaceutical, with the growth rate of 7 major products exceeding 50%
.
The company's existing pipelines have huge market potential, especially the strong tumor and respiratory pipelines, which are currently the core track for global new drug research and development
.
In addition, in recent years, Zhongsheng Pharmaceutical’s R&D investment has continued to increase, and 50% of the projects entering the clinical stage are independent research and development products
.
More than 60 new products launched after 2018 have contributed more than 80% to sales growth, and accounted for more than 40% of sales revenue and are still growing rapidly
.

Fosun Pharma

In the first half of 2021, Fosun Pharma achieved operating income of 16.
952 billion yuan, a year-on-year increase of 20.
85%; meanwhile, R&D investment was 1.
954 billion yuan, an increase of 15.
69% year-on-year, accounting for 11.
53% of business revenue; of which, R&D expenses were 1.
562 billion yuan, a year-on-year increase An increase of 29.
73%
.

Fosun Pharma is one of the domestic leaders in biopharmaceuticals, and has made achievements in the three fields of monoclonal antibodies, CAR-T and vaccines
.
In recent years, Fosun Pharma has been committed to promoting innovative research and development, and is oriented towards meeting unmet clinical needs and improving the availability of drugs, accelerating the implementation of innovative technologies and products
.
Currently, there are 240 projects in research on the consistency evaluation of innovative drugs, generic drugs, biosimilar drugs and generic drugs, among which 72 are innovative drugs
.

Fosun Pharma has a strong ability to integrate resources within the group
.
International advantages and flexible and strong investment capabilities are the other two strengths of Fosun Pharma
.
If Fosun Pharma wants to transform R&D projects into R&D results, and maintain its leading position in the fierce competition, it still needs to work hard for the continuous management and control of internal R&D resources and the stable work of the R&D core team
.

Summarize

It stands to reason that paying attention to market and research and development capabilities should not be a new topic
.
However, in the face of such a topic that has been repeated countless times by industry professionals, many pharmaceutical companies that have been honed in the market for many years have not been able to grasp it
.

We can see from the above data:

◆Compared with international superior pharmaceutical companies, leading domestic pharmaceutical companies still need to continue to work hard and develop and strengthen their internal strengths before they can stabilize their positions
.

◆Although the National Pharmaceutical Administration and local governments continue to issue policies to promote traditional Chinese medicine, limited to product characteristics, it is difficult to change the situation that the traditional Chinese medicine industry is difficult to expand
.

◆The industry characteristics of the strong Hengqiang become more and more obvious
.
From the annual report for the first half of 2021, without a profit of about 2 billion yuan, it has been difficult to enter the top camp in China
.

◆Due to strategic mistakes and the management's disorientation for many years, many old state-owned enterprises that were once glamorous have basically been unable to disturb the industry layout
.

Reference materials:

1- Each pharmaceutical company reports for the first half of 2021

2- Official website information of each pharmaceutical company