Taienkang’s business of subscribing for self-produced products has become a new profit growth point_Company_Drug_Agent

Original title: Taienkang’s business of subscribing for self-produced products has become a new profit growth point

Author: Yuan Yiman

On March 18, 2022, Taienkang (301263.SZ) officially started the offline and online simultaneous subscription work, which is only one step away from landing on the Growth Enterprise Market.

And successfully has a marketing network covering 28 provincial-level regions, nearly 3,000 hospitals and nearly 200,000 terminal pharmacies across the country.

Steady growth of core agency products and rising competitiveness

The proportion of self-produced products in the main business has risen to about 50%

According to public information, as early as 1999, Taienkang started the agency operation of Heweizhengchang Pills and Volitin. As the only general agent in China, Taienkang has promoted the operation of the two major agent products into gastrointestinal medicines and ophthalmic medicines in my country. Well-known products in the field with obvious economic benefits. In recent years, the compound growth rate of my country’s gastrointestinal drug retail terminal market has reached 7.4%, and the population with gastrointestinal conditioning needs is still gradually expanding, which means that the market space for gastrointestinal drugs is still very broad. At the same time, the compound annual growth rate of the number of ophthalmology hospitals in my country is as high as 11.66%. With the continuous increase in the incidence of eye diseases, the industry boom is bound to continue to rise. At present, Volitin accounts for only 10% of the retail market of prescription ophthalmic drugs in my country. At about 5%, there is huge room for growth.

In addition, Taienkang has also successfully operated many products such as Baoxinan Oil, New Snow and Johnson & Johnson staplers and sutures. From 2014 to 2019, Taienkang’s agency operating business revenue has steadily climbed from 210 million yuan to 390 million yuan. During the same period, the gross profit margin of this business has also increased significantly from 38.64% to 48.44%, which means that the company’s agency operation business scale has remained unchanged. With the trend of steady expansion, the competitiveness is also constantly improving, thus successfully providing the company with continuous and stable cash flow.

At the same time, relying on the advantages of strong marketing network, Taienkang is also vigorously and continuously promoting the development of self-produced products business. It is understood that in 2018, the company’s self-developed docetaxel polymer micelles for injection obtained the clinical trial approval, becoming the first enterprise in my country to obtain the clinical trial approval for this product. In the same year, the company and the holding subsidiary of Fosun Pharma Signed the project transfer contract, and then obtained the return of “down payment + milestone payment + future sales commission”. In 2020, the company successfully received the drug registration approval for dapoxetine hydrochloride tablets, and officially put it on the market in August of the same year, and was selected for the third batch of national centralized drug procurement list.

It is reported that “Ai Ting Jiu” Dapoxetine Hydrochloride Tablets is the first domestic product of the same type to be declared in accordance with Category 4 chemical drugs and approved in accordance with the quality consistency evaluation requirements of the original research. It is the “first imitation” in China. Equivalent to the original research drug, it is mainly suitable for the treatment of male patients with premature ejaculation aged 18-64. With the rapid introduction of the product to the national market, the company’s self-produced product business has also ushered in a new breakthrough. Data shows that in the first half of 2021, Taienkang’s self-produced product business revenue reached 150 million yuan, and the proportion of main business quickly increased to 47.59%, successfully occupying “half of the company’s revenue”.

Based on the positive adjustment of the product structure, Taienkang’s performance has also achieved rapid growth: the company expects to achieve operating income of about 190 million to 210 million yuan from January to March 2022, a year-on-year increase of about 37.97% to 46.47%. From January to March 2022, the deducted non-net profit will be about 52.6991 million yuan to 60.3619 million yuan, a year-on-year increase of about 439.09% to 517.48%.

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