The pharmaceutical industry maintained stable growth in the first three quarters, and some pharmaceutical companies raised their annual revenue growth targets twice

【Pharmaceutical Network Market Analysis】On November 7, Donghai Securities mentioned in a newly released research report that in the first three quarters of 2022, 414 stocks in the A-share Shenwan pharmaceutical and biological industry achieved a total operating income of 1,763.
1 billion yuan, net profit of 184.
6 billion yuan, and non-net profit of 162.
3 billion yuan, with year-on-year growth rates of 9.
00%, 1.
59% and 6.
73%
respectively.
Overall, the pharmaceutical industry maintained a stable growth trend
in the first three quarters.
Entering the fourth quarter, the business performance outlook of pharmaceutical companies in 2022 is also highly anticipated by the industry, especially the leading enterprises
in the R&D outsourcing, in vitro diagnostics, medical devices and other subdivisions with relatively bright performance and high prosperity in the third quarter of this year.
The pharmaceutical industry maintained stable growth in the first three quarters, and some pharmaceutical companies raised their annual revenue growth targets twice (Image source: Pharmaceutical Network) It is reported that earlier the CRO head company set the goal of achieving revenue growth of 65-70% in 2022, and updated the annual performance target in July this year, raising the target to 68% to 72%.

。 In the case of outstanding performance in the first three quarters of 2022, combined with the company's unique integrated CRDMO (contract research, development and production) and CTDMO (contract testing, R&D and production) business models, the company is full of confidence in the future, so it has made another target adjustment, adjusting the annual revenue growth target from 68%~72% to 70%~72%, and will also maintain the target
of compound revenue growth rate of not less than 34% from 2021 to 2024 。 According to WuXi AppTec's third quarterly report, the company achieved operating income of 28.
395 billion yuan, a year-on-year increase of 71.
9%; The net profit attributable to shareholders of the listed company was 7.
378 billion yuan, a year-on-year increase of 107.
1%.

Among them, in the third quarter, the company's operating income reached 10.
638 billion yuan, which is also the first time that the company's quarterly revenue exceeded 10 billion yuan
.
WuXi AppTec's outstanding performance in the third quarter and the two annual revenue growth targets raised can be seen that the company currently has good orders on hand, and is full of confidence in the prospects of the industry and its own strength
.
According to the data, WuXi AppTec mainly empowers pharmaceutical companies in drug research and development, meeting the needs of the latter from drug discovery, development to production
.
The company's specific business covers chemical business, testing business, biological business, cell and gene therapy CTDMO business, domestic new drug research and development service business and other major businesses, of which chemical business revenue accounts for a high
proportion.
In the first three quarters of this year, the business achieved revenue of 20.
817 billion yuan, a year-on-year increase of 106.
6%, and the gross margin was 41.
2%.

As of the end of the third quarter of 2022, the company's chemical business services involved 2,123 new drug molecules (including 53 phase III, 288 phase II, 1,738 phase I and preclinical projects, and 44 approved for marketing).

。 From the perspective of WuXi AppTec's CRO industry, with the promotion of favorable pharmaceutical innovation policies, domestic innovative drug R&D and production presents a hot scene, driving the rapid development of pharmaceutical R&D and production outsourcing industry, although affected by the environment, new policies to combat "pseudo-innovation" and other factors, some innovative pharmaceutical companies gradually reduce R&D expenditure, but from the CRO head enterprises, orders have not decreased, in the first three quarters of 2022, WuXi AppTec added more than 1,000 new customers and more than 5,900 active customers, It can be seen that the demand for the company's services from customers around the world is still strong
.
However, compared with the head enterprises, the performance of some small and medium-sized CRO enterprises has not been able to maintain rapid growth, and the growth rate of net profit attributable to shareholders of listed companies in the first three quarters of many companies has declined significantly, such as the growth rate of Baihua Pharmaceutical has fallen by nearly 80%, and the growth rate of Boji Pharmaceutical, PharmaBlock and Tigermed has also declined, which shows that the performance of the industry has been differentiated
。 In addition to WuXi AppTec, Mindray Medical, a domestic medical device head with a net profit attributable to the parent in the first three quarters of this year exceeding the net profit attributable to the parent in 2021, also recently said, "Entering the fourth quarter, although the external environment still has certain variables, the company has sufficient confidence
in achieving the growth targets of annual operating income and net profit attributable to the owner.
" It is understood that Mindray launched its first employee stock ownership plan after the A-share listing at the beginning of this year, and took an annual net profit increase of 20% as a condition for
unlocking.
According to Mindray's third quarter report in 2022, it achieved a total revenue of 23.
296 billion yuan, an increase of 20.
1% over the same period of the previous year.
The net profit attributable to shareholders of the listed company increased by 21.
60% over the same period of the previous year to 8.
102 billion yuan, which has exceeded the net profit attributable to the parent in 2021, and the business development is stable
.
The analysis believes that the domestic medical device market is expected to maintain a rapid growth trend throughout the year, the main logic includes: first, the new medical infrastructure has become a trend; Second, the National Health Commission has introduced relevant policies on the use of subsidized loans to purchase medical equipment, which have been implemented rapidly; In addition, the impact of the environment on domestic routine business has improved
month-on-month.
Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.