Zhendong Pharmaceutical’s "Bald Ran" regrets killing the crazy medical beauty track, which other pharmaceutical companies have entered the game?

Text | haon

The medical beauty market in 2021 will be crazy hot.

01 Zhendong regrets doing medical beauty

On the evening of June 1, Zhendong Pharmaceutical (300158) announced that it decided to terminate the spin-off of its subsidiary Ante Pharmaceutical.

Unexpectedly, within a month, Zhendong Pharmaceutical suddenly "changed its face" and announced the termination of the spin-off of Ante Pharmaceutical! The reason given is also very simple and rude: Ante Pharmaceuticals has suffered losses for years before, but this year’s hair loss economy and beauty economy have suddenly risen.

Not only will Ante Pharmaceutical "turn waste into treasure"! Zhendong Pharmaceutical also announced that it will create a series of anti-hair loss medical beauty products, and rename Ante Pharmaceuticals to the softer-sounding Anxin Company, which specializes in medical beauty products and health care products.

As soon as the news came out, under the trend that the medical beauty market had been hot for half a year, in the early trading of June 2nd, the daily limit of Zhendong Pharmaceutical's share price opened.

Despite the enthusiastic response from capital, Zhendong Pharmaceutical's too trivial and inconsistent attitude has aroused the disgust and doubts of many investors.

According to the data, Zhendong Pharmaceutical started as a gas station in the early years.

In recent years, Zhendong Pharmaceutical has performed well.

However, contrary to the situation of high performance, its stock price is relatively sluggish.

According to a person familiar with Zhendong Pharmaceutical, Zhendong Pharmaceutical attaches great importance to the response of the capital market and has been looking for a bargaining chip to boost the stock price.

Before that, Zhendong Pharmaceutical had tossed about the pharmaceutical circulation business, but later it was thought that "this business is not profitable" and gave up this hard bone.

Nowadays, Zhendong Pharmaceutical aims at the medical beauty market.

According to the survey data of the National Health Commission in 2019, the number of people with hair loss in my country exceeds 250 million.

Can the revival of the anti-hair loss business and the increase in the medical beauty track become the "dongfeng" that Zhendong Pharmaceutical has been eagerly looking forward to boosting its stock price? To be tested by the market.

However, what needs to be vigilant is that, contrary to the seemingly bright and lofty prospects of the hair loss economy, the related concept stocks that have been slammed have recently experienced corrections, such as Rebecca (600439), Renhe Pharmaceutical (000650), and Longzi shares ( 002612) showed a downward trend in the past two days.

02 What other traditional pharmaceutical companies are competing for medical beauty

In recent years, the beauty economy has prevailed, and my country's medical aesthetics market has developed vigorously and its scale has continued to expand.

Statistics show that the size of my country's medical cosmetology market will be approximately 197.
5 billion yuan in 2020, a year-on-year increase of 11.
6%.
It is estimated that by 2023, the scale of my country's medical aesthetics market will exceed 300 billion yuan, with an average annual compound growth rate of 15.
2% from 2019 to 2023, showing a trend of high growth.

Against the backdrop of the booming medical aesthetics market, more and more traditional pharmaceutical companies are competing to cross-border.

★Huadong Medicine

As early as 2013, Huadong Medicine (000963) began to get involved in medical beauty.
At that time, Huadong Medicine obtained the exclusive agency rights of South Korea's LG company's hyaluronic acid brand Yiwan in China.

In August 2018, Huadong Medicine announced the acquisition of Sinclair Pharma PLC, a British medical beauty company.

After the Spring Festival of 2021, Huadong Medicine issued an announcement to acquire a 100% stake in Spanish energy-based medical equipment company High Technology Products, SLU for a maximum of 85 million euros (about 660 million yuan).

On April 13, 2021, the medical beauty product Ellansé produced by Sinclair Pharma PLC was awarded the "Medical Device Registration Certificate" by the State Food and Drug Administration.
Ellansé is the world's only "girl needle", and it is expected to go on sale in mainland China in the second half of 2021.
As soon as the news came out, the market instantly exploded.

It is reported that, in addition to the layout of girl needles and frozen fat-melting photoelectric medical beauty, Huadong Medicine is also in the field of hyaluronic acid, botulinum toxin, and thread-embedding products.

Huadong Medicine was established in 1993 and listed on the Shenzhen Stock Exchange in 1999.
Its business covers three major sectors: the pharmaceutical industry, pharmaceutical commerce, and the medical aesthetics industry.
Among them, the pharmaceutical industry products involve the treatment of kidney disease, diabetes, immune transplantation, digestive tract and other therapeutic fields, and it is a dual-material leading enterprise in the field of diabetes and immune preparations in China.

In recent years, Huadong Medicine has been hit by the failure of centralized procurement, price cuts in medical insurance negotiations, and the new crown epidemic at home and abroad.
Now its layout in the medical beauty track has undoubtedly brought gratifying returns to itself.

Stimulated by a series of good news, Huadong Medicine's share price has also repeatedly set new highs since March 2020, and now it has risen as high as 175% from its lowest point at the time.

★Sihuan Medicine

At the beginning of 2021, Sihuan Pharmaceutical (00460.
HK)'s exclusive agent of Korean botulinum toxin (Letybo 100U, trade name: Le Tibao) was officially listed, marking that its medical aesthetics sector has entered the harvest period.
As soon as the news came out, Sihuan Pharmaceutical's stock price continued Take off, so far it has risen by more than 300%.

Sihuan Pharmaceutical was originally a supplier of China's cardiovascular and cerebrovascular prescription drugs.
It once had a leading market share in the industry.
However, due to negative news and other influences, the stock price was sluggish.
Before this rise, Sihuan Pharmaceutical's stock price had been hovering below 1 Hong Kong dollar for a year, with very few transactions and almost no one cared about it.

As early as 2014, Sihuan Pharmaceutical signed an exclusive agency agreement with South Korean biopharmaceutical company Hugel to jointly develop its botulinum toxin and hyaluronic acid products in the Chinese market.

After 6 years of hard work, Le Tibao was approved by the China Food and Drug Administration in October 2020.

At the beginning of 2021, the product was officially launched, becoming the fourth type A botulinum toxin approved to be marketed in China (the other three are the domestic "Hengli", the US-made "Botox" and the British-made "Lishutuo Dysport" ").

It is reported that as early as in the parallel imports market, Le Tibao has become very popular, and now it has been officially approved, and its market share is even higher.

In addition, according to Sihuan Pharmaceutical, its hyaluronic acid products will be launched this year.
In the future, there will be follow-up iterative products such as Tongyan Needle and Girl Needle, as well as a series of weight-loss drugs under development.
There is no doubt that Sihuan has been silent for a long time.
Huan Medicine has ushered in a bright moment with the help of medical beauty, and is currently full of enthusiasm.

★Kangzhe Pharmaceutical

On February 1, 2021, CMS (00867.
HK) announced that the Group acquired all issued shares of Luqa Ventures Co.
, Limited (), a skin line specialist company, from certain third-party sellers through its subsidiaries, officially Cut into the medical beauty track.

CMS is a pharmaceutical sales company, listed on the main board of the Hong Kong Stock Exchange on September 28, 2010.
At present, it mainly provides drug promotion services for overseas pharmaceutical companies, and its products cover cardio-cerebrovascular lines, digestive lines, ophthalmic lines, skin lines, etc.

With this acquisition, CMS has taken a fancy to Lu Kai's skin line prescription drugs, medical devices and medical beauty and skin care products, especially its Mestic series of Meso-U, Micola and Nomia hyaluronic acid series, etc.
At the same time, Lu Kai also has a wealth of overseas medical beauty product channel resources and domestic medical beauty institutions and distribution network layout, providing synergy for CMS.

After officially entering the medical beauty track, CMS took off in the capital market.
As of today, it has increased by more than 200%.

However, it is worth noting that, according to China Business News, in March 2021, the "weight loss capsule" of CMS, "Plenity Panliting", was removed from the shelves due to unknown product attributes.
It was previously published on the official website of CMS.
Under the business list, "Plenity Pan Li Ting" was displayed as a weight-loss and body-sculpting product, and it was called "Satisfaction and Weight Loss Capsule", and the product function was weight management.
However, the registration or filing information of "Plenity Pan Liting" can be found on the official websites of the State Drug Administration and State Administration for Market Regulation.

This incident had a certain impact on the medical beauty image of CMS, but CMS did not stop its pace in the layout of the medical beauty track.

On May 17, 2021, CMS announced that it has signed equity transfers with Shanghai Aisen Technology Development Co.
, Ltd.
(hereinafter referred to as "Aishen Technology") and Shanghai Kangnaixin Medical Technology Co.
, Ltd.
(hereinafter referred to as "Shanghai Kangnaixin Medical").
Agreement and capital increase and share expansion agreement.

Shanghai Carnation Medical is a R&D and production enterprise focusing on using focused ultrasound technology to provide medical beauty solutions.
With the acquisition of Shanghai Carnation Medical, Kangzhe Pharmaceutical aims to further increase the medical beauty track and deepen the advantageous layout of products in the medical beauty equipment line.

★Teyi Pharmaceutical

On May 18, Teyi Pharmaceutical issued an announcement stating that the company plans to invest 100 million yuan to establish Guangdong Temei Health Technology Industry Co.
, Ltd.
(tentative).

According to the announcement, Guangdong Temei Health Technology Industry Co.
, Ltd.
(tentative) to be established is Teyi Pharmaceutical Group's large health industry investment and operation platform, and its main development direction is to fully deploy the development and investment in the field of medical aesthetics services.

After the announcement, Teyi Pharmaceutical's stock price immediately rose.
However, in recent days, Teyi Pharmaceutical has continued to pull back.

It is worth noting that before the layout of the medical beauty track, the serious decline in the business of Teyi Pharmaceutical and the insufficient competitiveness of the product structure have been exposed.

According to the data, the main business of Teyi Pharmaceutical includes the R&D, production and sales of proprietary Chinese medicines, chemical preparations, and chemical raw materials.
The main pharmaceutical preparations cover cough and phlegm, kidney tonification, anti-infection, cardiovascular and cerebrovascular and digestion.
System medication and other aspects.
The company's total revenue for the whole year of 2020 is 633 million yuan, a decrease of 31.
31%; net profit is 43.
8165 million yuan, a decrease of 74.
48%.

The development of the medical beauty track this time, Teyi Pharmaceutical said that it is to reduce the single dependence on core products and enhance the company's competitiveness.
But despite the popular medical aesthetics label, the capital market does not seem to buy it so much.

The medical beauty industry has become a new "rich-making myth" this year.
It can be seen that many pharmaceutical companies have found a new development "antidote" and ushered in a bright moment after they cross-border medical beauty.

However, although pharmaceutical companies have certain brand and R&D advantages in the process of transforming medical beauty, it is no easy task to transform medical beauty.
For pharmaceutical companies that want to deploy, in addition to determination, perhaps they should pay attention to the growth potential of their industry.
Don't underestimate the threshold for entering the medical aesthetics industry, not only must master the core competitiveness, but also pay attention to marketing and channels.