Original title: Hengrui Medicine’s third-quarter revenue and net profit both fell
Our reporter Zhang Min
On the evening of October 19, Hengrui Pharmaceuticals announced the results of the first three quarters. The data shows that from January to September this year, the company achieved operating income of 20.199 billion yuan, a year-on-year increase of 4.05%; net profit attributable to shareholders of listed companies was 4.207 billion yuan, a year-on-year decrease of 1.21%. Among them, the operating income in the third quarter was 6.9 billion yuan, down 14.84% year-on-year; the net profit attributable to shareholders of listed companies was 1.54 billion yuan, down 3.57% year-on-year.
Hengrui Pharmaceuticals, known as the “Big Brother of R&D”, has ushered in a “critical moment” since its listing.
Regarding the performance decline, Hengrui Medicine did not disclose the specific reasons in the third quarterly report. However, the company previously stated in its semi-annual report that the company’s traditional generic drug sales declined due to the impact of national and local procurement. The 6 drugs involved in the third batch of centralized procurement started in November 2020, the sales revenue fell 57% month-on-month during the reporting period. In addition, the main product, Karelizumab, began to implement the negotiated price of medical insurance from March 1, 2021, a reduction of 85%. In addition, many problems such as difficulty in entering the hospital and different implementation time of medical insurance in various regions have caused Kareliz The sales revenue of virizumab increased month-on-month negatively.
Flush data shows that as of October 19, Hengrui Medicine’s market value has shrunk by about 46% this year, and it has lost its position as the No. 1 A-share medicine company, and its market value ranks third in the industry.
Innovation and transformation is a key aspect of Hengrui Medicine. Data shows that in the first three quarters, Hengrui Pharmaceuticals further increased its investment in innovation, with a total of 4.142 billion yuan invested in research and development, a year-on-year increase of 23.9%, accounting for 20.5% of operating income. However, the involution and competition in the innovative medicine industry have become increasingly fierce, and the rapid rise in R&D, manpower, and production costs has also brought severe challenges to the company’s biomedical innovation.
Hengrui Medicine, which has always been low-key and emphasizes independent research and development, is also determined to change. One of the important messages it releases is to accelerate the pace of license in. On August 25, the company announced that it would make a 100 million yuan equity investment in Dalian Wanchun, and pay a total of not more than 1.3 billion yuan in down payment and milestone payments. Dalian Wanchun will grant Hengrui the general purpose of the GEF-H1 activator. Nabulin’s joint development rights and exclusive commercialization rights in the Greater China region; On September 6, Hengrui Medicine announced that it had signed a strategic cooperation agreement with Beijing Tianguangshi Biotechnology, and Tianguangshi awarded Hengrui Medicine for the third-generation anti-CD20 Monoclonal antibody MIL62 has exclusive commercialization rights in the Greater China region. At the same time, it will jointly develop the clinical development of the combination of MIL62 and the company’s products with Hengrui Medicine.
On October 15, Hengrui Pharmaceuticals held a “R&D Day” event. Hengrui Pharmaceuticals Chairman Sun Piaoyang shared with the outside world the company’s development status, R&D strategy adjustment, innovative drug pipeline layout, innovative R&D progress, and translational medicine development. . Zhang Lianshan, Deputy General Manager and President of Global R&D of Hengrui Pharmaceuticals, said that the company’s innovative drug research and development is currently gaining ground. 8 innovative drugs have been listed in China, more than 50 innovative drugs are in clinical development, and more than 240 clinical trials are in China. In addition, 24 innovative drug projects have been approved to carry out global multi-center or regional clinical research.
“Hengrui Medicine is one of the few companies in China that has invested heavily in pharmaceutical innovation.” A person in the pharmaceutical industry told reporters that in the process from the main revenue contribution from generic drugs to the performance of innovative drugs, Hengrui Medicine must be responsible for performance. Face the pain of transformation.
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