With the intensification of pharmaceutical reform, the gross profit margin of a large number of biopharmaceutical companies has declined

As of April 27, statistics show that among the listed companies in the pharmaceutical and biological industry that have disclosed their annual reports on A-shares and H-shares, a total of 44 companies will have revenue of more than 10 billion yuan in 2021
.
But it is worth noting that in the past year, the market value of these 44 pharmaceutical companies has shrunk by more than 1.
7 trillion yuan, and the gross profit of more than half of the pharmaceutical companies has declined
.
Specifically, among the 44 listed pharmaceutical and biological companies with a revenue of over 10 billion yuan, 13 have a gross profit margin of over 50%, and only 3 have a gross profit margin of over 80%
.
Among them, Changchun Hi-Tech ranks first with a gross profit margin of 87.
61%
.
Changchun Hi-Tech's 2021 annual report shows that the total operating income in 2021 will reach 10.
747 billion, an increase of 2.
17 billion from 8.
577 billion in 2020, a year-on-year growth rate of 25.
3%
.
The company's main business is the research and development, production and sales of biopharmaceuticals and proprietary Chinese medicines, supplemented by real estate development, property management and services.
The overall gross profit margin of the pharmaceutical business is as high as 91%
.
The gross profit margins of Hengrui Medicine and China Biopharmaceuticals last year were also above 80%
.
Among them, Hengrui Medicine's 2021 annual report shows that the gross profit margin of the company's pharmaceutical manufacturing business is 85.
61%, of which the gross profit margin of anti-tumor products is 90.
68%; the gross profit margin of anesthesia business is 89.
08%, and the gross profit margin of contrast agent business is 72.
24%
.
In addition, there are 8 companies whose gross profit margin is below 10%, including Sinopharm Holding, Intel Group, Nanjing Pharmaceutical,
etc.
Of course, there is a rise and a fall, and the gross profit margin of 23 listed pharmaceutical companies has declined
.
For example, on the evening of the 22nd, Fosun Pharma released its annual report, showing that the company's operating income in 2021 was 39.
005 billion yuan, a year-on-year increase of 28.
70%; the net profit after deducting non-return to the parent was 3.
277 billion yuan, a year-on-year increase of 20.
6%
.
However, the gross profit margin of sales decreased by 7.
54 percentage points year-on-year.

.
Regarding the decline in gross profit margin in 2021, Fosun Pharma mentioned in its 2021 annual report that the unit price of existing generic drug varieties such as Youlitong (Febuxostat Tablets) and Bangzhi (Pitavastatin Calcium Tablets) will drop after the centralized procurement.
, which resulted in a year-on-year decrease in revenue from core products of the metabolic and digestive system and core products of the cardiovascular system, respectively
.
In addition, after Aodejin (calf serum deproteinized injection) was included in the list of monitored drugs by the National Health and Health Commission, it gradually withdrawn from the medical insurance lists of various provinces, which also led to a decrease in sales, which made the sales revenue of core products of the central nervous system lower than the previous year
.
In addition to the centralized procurement factor, the lower gross profit margin of Fubitai is also one of the reasons for the year-on-year decline in the overall gross profit of the pharmaceutical sector
.
According to the annual report, the gross profit of the drug decreased by 20.
57 percentage points year-on-year, a tenth of the decline
.
Industry analysts believe that, on the whole, factors such as volume purchases, lower medical insurance negotiated prices, intensified competition, and rising costs are the main reasons for lowering the company's gross profit margin
.
Although the reduction of gross profit margin is only a phenomenon, sometimes the reduction of gross profit margin increases the competition of enterprises, which cannot be generalized
.
However, in most cases, the reduction of gross profit margin is not a good thing.
Therefore, companies with lower gross profit margins need to pay attention to carefully analyze the reasons for this result, and make active responses and adjustments
.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice to anyone
.