Xinlitai, Jingxin, stone medicine performance comparison!

April 13, the three major A-share indexes opened lower collectively, but the overall performance of the pharmaceutical sector is not bad. In particular, the field of chemical drugs Jingfeng medicine led the rise for many days. However, as capital markets adjust, many of the big generics profits have fallen sharply in the past: even though Jingfeng Pharmaceuticals is now sought after, its results predict a big loss in 2019, with net profit expected to fall 447.94 per cent to 555 per cent year-on-year.This situation is not only in the ice and fire two days of Jingfeng medicine. "The company will ST?" This is the Asia-Pacific pharmaceutical industry in the recent online performance presentation, by investors asked the most questions. Concerns about the Asia-Pacific pharmaceutical industry are inextricable to its 2019 "report card". Its 2019 results fell sharply, with a net profit loss of RMB2,069 million, down 1095.57 percent from a year earlier. Such a picture seems to be quite different from the current situation of pharmaceutical stocks as a whole.More importantly, it has been revealed that one of the priorities of the National Health Insurance Administration in 2020 requires all localities to formulate a three-year digestion plan for additional varieties as soon as possible, to remove the key national monitoring varieties from the catalogue by the end of June this year and to complete the digestion of 40% of the additional varieties in the province. Regardless of the focus on monitoring varieties and local medical insurance varieties specifically when to be included in the official agenda, it is clear that the push-out of volume procurement means that the past generic drugs large single high-profit development model gradually ended, and with product clusters, with the advantages of raw material preparation integration enterprises will thicken profits, while forcing enterprises with research and development capabilities to accelerate the transformation to innovation. High-end preparations, innovative drugs will become the pharmaceutical stocks profit growth of the new "train."

polarization between the two levels ofRecently, the first batch of "4 plus 7" selected enterprises have announced the 2019 financial results. It can be found from the financial results that the earnings of pharmaceutical companies are polarizing.Take Xinlitai, for example, which reported revenue of 4.470 billion yuan in 2019, down 3.90% from a year earlier, and net profit of 7.7%, according to its consecutive annual results for 2019 and first quarter 2020. 1.5 billion yuan, down 50.95 percent from a year earlier, and revenue of 870 million yuan in the first quarter of 2020, down 27.13 percent from a year earlier, and net profit of 150 million yuan, down 53.33 percent from a year earlier. Its explanation said that all over the volume of procurement and charges according to disease and other policies have been introduced and implemented one after another, the trend of terminal price reduction is obvious. The main product Taijia won the bid "4 plus 7 city drug centralized procurement", through the volume of price, income has declined. Jialin Pharmaceuticals' Atovastatin calcium tablets accounted for more than 95% of its parent company's health revenue, after De-Exhibition Health disclosed three-quarter financial results, the average sales price of its main Ale products fell sharply, resulting in a sharp decline in the company's operating income and net profit.Of course, how to adjust product strategy and continuous breakthrough and innovation according to the changing market environment and industry is the challenge that every pharmaceutical company has to face and think about.After reading the latest reports, such as Beijing New Pharmaceuticals benefited from the expansion of the collection surface, in the first half of 2019 the "4 plus 7" varieties of left ethyl laxitam tablet sales increased by 253 percent, and Therschavastatin calcium tablet sales also increased by 16 percent. Its 2019 annual report showed revenue of RMB3,647 million, up 23.88 percent year-on-year, and net profit of RMB520 million, up 40.92 percent year-on-year. The company's sales of finished drugs exceeded 2 billion yuan, cardiovascular drugs, psycho-nerve drugs, digestive drugs market share continues to improve. Up to now, Beijing New Pharmaceuticals 5 varieties selected in the national volume procurement. The reason for its performance growth is that by virtue of the integration of raw material preparations in the collection to win the calcium reschuvastatin tablets, benzodiamin chloride tablets, left ethyl laxitan tablets in the selection. Take the left-hander Laxitan film, for example, in the "4 plus 7" expansion of the successful bid to boost the company's performance. In 2018, China's public medical institutions terminal zuo-laxitan sales of 1.039 billion yuan, thanks to the collection, the variety in the first half of 2019 sales revenue increased by 253 percent year-on-year, according to Minernet data.Once the volume of procurement contracts have been implemented, the relevant enterprises will certainly drive the company's performance growth.

the combination force of the competitionTake stock of china's hospital drug market in 2019, ranked by sales 2019 hospital drug use top ten products are Garonen, Pumiklingshu, Lipto, Shupu deep, Bolvier, Hessetin, Embiid, injection thrombosis, Kewei, lipotin.For now, health care is accelerating the re-structure. Shanghai Pharmaceutical Centralized Tendering and Procurement Management Institute recently announced the "Work Tips on the Implementation of the Results of the Second Batch of State-organized Drug Central Procurement", which has a bright spot: some did not pass the consistent evaluation of drugs to stop procurement and medical insurance settlement. In addition, Fujian Province to the joint price-limiting sunshine procurement list catalog classification adjustment, the state key monitoring of 20 varieties to be deleted. And Beijing with volume procurement renewal results show that Atovastatin calcium tablets, Entekawe, Montessin scattered 3 varieties of suppliers, its original winning enterprises are in the "4 plus 7" pilot winning bid, but in the national expansion of the pharmaceutical companies."In the context of volume procurement, although the profits of the dominant enterprises are shrinking, but occupy the market C position. The deep-seated significance it brings lies in the background of increasing the concentration of generic drugs, which supports the development of innovative drugs. Many large-scale enterprises, more mature enterprises have increased the development of innovative drugs. However, price-for-volume focus on generic drug bidding, or high-investment high-risk innovative drugs, all need technology support, capital investment and time test. Industry analysts said that the changes in the generic drug pattern and the encouragement of innovative drugs is a combination of fists, conducive to promoting the formation of a healthy competitive landscape.Perhaps the adjustment of industrial policy will affect short-term profit growth, but future profits are innovative drugs. If you look at Stone Pharmaceuticals Group's earnings, according to its 2019 annual report, Erbip achieved revenue of RMB5.6 billion in 2019, up 35.8% YoY, and sales of anti-tumor drugs increased 148.8% YoY, becoming the core growth driver of the performance. From this point of view, the future performance of pharmaceutical enterprises is still innovative drugs and high-tech barriers to the first generic drugs. (
Medical Economics
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