【Exclusive】WuXi, Fosun, Hengrui, CSPC are on the list, and the 2022 China Pharmaceutical Listed Companies Competitive top 20 are released!

In the 2022 list of China's top 20 pharmaceutical listed companies (hereinafter referred to as the "top 20"), there are old friends and new faces, but the gap in the ranking of old friends not only reflects market sentiment, but also represents whether these companies are sensitive to environmental changes and agile

2022 China's top 20 pharmaceutical listed companies competitive

Note: For the selection criteria and similar data of the 2022 China Pharmaceutical Listed Companies Competitiveness, please refer to the special in-depth report of

Under the background of the epidemic, Mindray Medical and Zhifei Bio have ranked as the champions and runners-up of the top 20 for two consecutive years, before that, Hengrui and China Biopharmaceuticals were in the same position, or Hengrui and CSPC

Among the biochemical pharmaceutical industry companies, there are two other companies that need to be mentioned: Fosun Pharma and Huadong Pharma

The former, as a listed company that has been listed 10 times in the past 14 years of the top 20 selection, although it is at the waist most of the time in the ranking, the strategic stability is worth affirming

Another one worth paying attention to is Huadong Medicine

In terms of traditional Chinese medicine, 3 companies have entered the list, in addition to Yunnan Baiyao, which is listed every year, there are also Tablet Zai Zhen and Yiling Pharmaceutical

Katazai is a "regular customer" in the past 5 years, and its total market value has briefly surpassed Hengrui in 2022, although it has only been maintained for two days, but it also seems to be telling that the competitiveness of listed companies, in addition to hard-core research and development innovation, also needs to resonate

Yiling Pharmaceutical entered the list for the first time in 2021, and this year won the top 20 consecutively, rising from the previous 18 to 14

There is no suspense in terms of pharmaceutical services, wuxi apptec is two companies wuxi apptec and wuxi biologics and gloria ying three companies into the list

The capital story of China's secondary market in 2021 revolves around two types of companies, one is CXO companies and the other is the new crown concept stock

In terms of pharmaceutical business, only Shanghai Pharmaceutical is shortlisted, which is located in Shanghai, the "giant crocodile" of pharmaceutical industry and commerce, from the financial level, the imagination space of the commercial sector in the capital market has affected the capital market performance

Overall, the results of the top 20 list in 2022 show the unique role of the new crown concept stocks under the epidemic, and also reflect the helpless "struggle" of the biochemical pharmaceutical industry under the influence of policy factors and the strength of traditional Chinese medicine pharmaceutical companies in the unlimited benefits of industrial policies

Since 2009, the selection of the top 20 competitiveness of China's pharmaceutical listed companies has lasted for 14 sessions, and we have tried to find the criteria for the longevity of pharmaceutical companies from the industrial logic behind the evolution of the

In the past 14 years, we have found that the mission of the medical and health industry at the national policy level has not changed

A new cycle has arrived, and every company has to be reborn

In this new cycle, which is superimposed by the global economic cycle, the uncertain catalysis of the epidemic, the changeable industrial policy, and the pessimism of the capital market, the general state faced by pharmaceutical companies is that there are many challenges, many problems, and it is not easy to
survive.
But as we have observed over the past 14 years, no matter how the environment changes, the pharmaceutical industry is faced with an immutable fundamental: people's increasingly diverse health needs at different stages of life, which determines that the essence of the pharmaceutical industry is the solution
that human health can provide.

Therefore, when the new cycle is "under the city" and tries to compete with the industrial development logic accumulated by historical experience, the consideration of sustainable development of enterprises, no matter who it is, needs to achieve strategic adaptability
.
The basis for supporting strategic resilience includes, but is not limited to, understanding the evolution of policy factors in the basic logic of industrial development, occupying a favorable position in industrial upgrading, rationally recognizing the dialectical relationship between the evolution of innovative technology and the essence of innovation, and fully exploring the influence
of digitalization after evolving from tools to production factors.

Solve the basic logic of the pharmaceutical industry under the "common prosperity"

Hengrui Pharmaceutical, CSPC Pharmaceutical Group, Lepu Medical, Fosun Pharma, Hualan Bio, Hansen Pharmaceutical, Tomson By-Health, beida Pharmaceutical, these 8 companies together have three commonalities
.
First, obviously, they are all pharmaceutical companies; Second, relatively obvious, they are all listed companies; Third, it is not obvious, they are all in the same list, this list is called "Goldman Sachs common wealth concept stocks" by the investment circle, the logic behind the list, by the financial media interpreted as "Goldman Sachs in 1994 into China, since entering China, the cognition of
China's national conditions.
" ”

Common prosperity is a holistic concept with rich connotations
.
Chinese society is moving from the speed priority era of "let some people get rich first" to the era of pursuing safer and fairer common prosperity
.
This historical process has profoundly affected all walks of life in China, and the pharmaceutical industry also needs to think about how to clarify future development strategies
in the context of the era of common prosperity.
Specifically, how to define the social attributes of pharmaceutical companies that are widely recognized as innovative and market attributes, which is guided by their policies, is a secret but significant mandatory question
.

"In 2021, I think the key words of the industry are collection, innovation and transformation of each of the miraculous powers, and the new crown epidemic, and in 2022, in addition to the collection and new crown, the key words of the industry have added another one, that is, under the goal of national 'common prosperity', the future development positioning
of China's pharmaceutical industry.
" A person in charge of a top 20 pharmaceutical company said
.

In fact, this is not the first time that the family of pharmaceutical companies has mentioned this issue
.
After in-depth analysis, the CEO of a Chinese medicine company once said that he understands that under the goal of "common prosperity", the national level will increase the expectation that medical and health service providers will increase more public welfare, charity and other social functions, hoping that enterprises can convert profits into services to a certain extent, or harvest profits from more services that are beneficial to people's health, especially in poverty alleviation and medical security for special groups
.

In fact, how to balance the commercial and social attributes of drugs with both commodity and social attributes has always been the core proposition
of this industry.
"In a sense, the action of collecting and collecting, national negotiations and other actions to reduce prices in exchange for certain access qualifications can also be regarded as a way for pharmaceutical companies to
fulfill their social responsibilities.
" The head of the above-mentioned top 20 pharmaceutical companies said
.

There are also some industry people who look for the mission and responsibility
that pharmaceutical companies should have under the "common prosperity" goal of the new medical reform.
In the list of tasks for the new medical reform, "strengthen the ability to guarantee the supply of drugs", in addition to the "three doctors" policy boost, enterprises should also consciously calibrate their business operations
.

"'Accelerating the listing of innovative drugs with clinical value' is particularly important", said an MNC government affairs leader, starting from the 2021 "Clinical Value-Oriented Guidelines for Clinical Research and Development of Anti-tumor Drugs" to solicit opinions, the policy guidelines issued by various ministries and commissions of drug supervision, medical insurance and medical treatment have "buried" the main line
of "clinical value".

On August 9, 2022, the CDE issued three "patient-centered" technical guidelines, involving clinical design, implementation, and trial benefit-risk assessment, and the basis of the three guiding principles in tandem is as described in the document, "Patient-centered drug development refers to patient needs as the starting point, patients as active participants, and clinical value as the ultimate goal, and this concept has become the core guiding ideology
of current drug development.
" ”

In addition, the update of the basic drug list, although there is no actual action to see the wind and grass, but in 2021, the Health Commission issued the "Notice on Carrying out Drug Use Monitoring and Clinical Comprehensive Evaluation", which is understood by the industry as a policy to pave the way for the update of the basic drug list, and also takes the clinical value as an important evaluation connotation
.

The same is true for
drug price negotiations.
"Judging from the practice of the past two years, for innovative drugs that do have clinical value, medical insurance experts will still 'spare their hands'
.
" A person in charge of innovative drug commercialization who participated in drug price negotiations believes that in the direction of the payer, whether the innovative drug has clinical value or not, the final payment price will be different
.

In fact, such a basic logical cognition of the pharmaceutical industry has been reflected in the strategic planning of some pharmaceutical companies, and the chief strategy officer of a top 20 pharmaceutical company has clearly stated that the BD strategy of the company in which it is located has been adjusted from the previous "have" to the current stage of "excellent", "have" will fall into the inner volume, and "excellent" is better
.

From the existential to the excellent, the industrial pattern is to be determined

For a long time, China's pharmaceutical industry was mainly composed of two types of companies, chemical medicine and traditional Chinese medicine enterprises
.
If it is extended to the industrial chain, it may also include API companies
.
In 2009, when E-Drug Manager Renrong Media United and Jun Consulting first selected the top 20 competitive pharmaceutical listed companies, the companies on the list were mainly in the above three categories
.
At that time, chemical pharmaceutical enterprises built their role and status in the industry by combining generic drugs and anti-trauma drugs, while Chinese medicine enterprises mainly relied on traditional Chinese medicine to protect varieties and exclusive varieties and health care products to "fight" the world
.

The next two industrial upgrades have both stemmed from policy
.

After the reform of drug review in 2015, the overall pattern of the pharmaceutical industry has evolved into a confrontation between traditional pharmaceutical companies and innovative pharmaceutical companies, and Chinese medicine is still an important part, but it is difficult to define its "innovative" color and is rarely mentioned
.

Since the beginning of 2018, the pharmaceutical industry has entered the era of collection and procurement, and has also opened another round of pattern differentiation in industrial upgrading, this time occurring within
traditional pharmaceutical companies.

According to the product structure, traditional pharmaceutical companies are further refined into generic drug companies and pharmaceutical companies that are determined to innovate and transform by imitation, and the latter can be subdivided into traditional pharmaceutical companies
that are transforming, completing transformation in stages and have completed transformation.

In fact, in the context of "no innovation, no tomorrow", few companies will admit that they are generic drug companies, but the product structure will not deceive people
.
At the moment when the collection is normalized, the development path of such companies is actually relatively clear, and generic drugs do a good job in upstream API control, fine management in production, and reduce costs and maximize
profits under the premise of ensuring drug quality.

Quite challenging are pharmaceutical companies
that started with imitation and aspired to innovate and transform.

At the moment when the collection reconstructs the industry pattern and the inherent cognition, the speed of the company's own transformation has not kept up with the efforts
of the collection to reshape the industrial pattern.
All companies are not ready, even the top companies
in the industry.
Hengrui, China Biopharmaceuticals, Xinlitai, Ganli, Changchun High-tech, Huadong Pharmaceutical, etc.
, before the collection, they occupied an advantage in a certain segment, but under the impact of the general trend of collection and procurement, without exception, they suffered wave after wave of stock price shocks, and almost every company's annual report in recent years will use a strong tone to tell the impact on
their business.

In 2021, Hengrui's annual report shows that since 2018, Hengrui has a total of 28 products included in the collection, and 18 are selected, with an average decrease of 73%.

Among them, the third batch of 6 products involved in the collection fell by 55% in 2021, and the 8 products involved in the fifth batch of collection and collection fell by 37%
in 2021.
Converted into absolute value, these 14 products reduced revenue
by more than 2.
5 billion yuan in 2021 alone due to collection and procurement.
This impact continues in 2022, with the fifth batch of 8 products that won the bid earned only 250 million yuan in the first half of 2022, a decrease of 1.
76 billion yuan from the same period last year, a year-on-year decline of 88%.

Gan&Lee Pharmaceutical, the local leader of the insulin subdivision track, also ushered in a drop stop due to the pre-disclosure of the first financial report after the insulin national collection, and the 2022 semi-annual report shows that Gan&Lee Pharmaceutical expects a net profit loss attributable to the mother in the first half of 2022 of 168 million to 200 million yuan
.
The same is true of Changchun Gaoxin, although growth hormone has not yet been included in the national collection, but any wind and grass purchased by local alliances, Changchun Gaoxin's stock price will fluctuate
with the trend.

However, there is also good news, in this confrontational competition between collection, corporate fundamentals and capital markets, the early entrants have begun to gradually "dissolve" the pressure
of collection and procurement through transformation.

In the recent annual reports of China Biopharmaceuticals and Huadong Pharmaceutical, there are positive signals
.
China Biopharmaceutical said at the 2021 performance conference that the impact of the first four batches of national collection on the company's performance has been basically digested, and the revenue of innovative drugs has reached 6.
4 billion yuan, accounting for 24%; According to the data of Huadong Pharmaceutical in the second quarter of 2022, its core company in the industrial sector, China and the United States, achieved revenue of 2.
71 billion yuan, an increase of 16.
2% year-on-year, which means that Huadong Pharmaceutical has reversed the downward trend and its performance has gradually entered the growth channel
.

But the medical people understand that these good signals are only good, and it will take time to complete the heavy responsibility of industrial upgrading
.
In the product structure, the revenue of innovative drugs accounts for more than 50%, which is still a long way to go
for traditional large pharmaceutical companies.

"We firmly believe that these leading pharmaceutical companies can complete industrial upgrading with their own resource accumulation, but the collection is still continuing, and the number of inclusions is increasing, which means that the fault tolerance space for all pharmaceutical companies is getting smaller and smaller, and the pressure is getting bigger and bigger
.
" An industry investor said
.

What is more severe is that the traditional pharmaceutical companies in transition not only have to bear the performance impact of adapting to the post-harvest era and unloading the "historical baggage", but also need to compete with the innovative forces gathered after 2015 on the
innovation track.
"From this perspective, the ordering of the industry may change
in the next 5 years for innovative pharmaceutical companies that are in transition, and innovative pharmaceutical companies that do not need to transform but only use rapid commercialization.
" An industry investor said
.

Around 2010, Hengrui bet on the track of oncology drugs and insisted on continuous innovation, achieving its industrial status
.
Next, who can complete their own product structure upgrade in the post-collection era and become the next "pharmaceutical brother", with the release of Hengrui's 2022 semi-annual report, the industry believes that uncertainty has increased by a few percent, although from the E drug manager Renrong Media and Clariva released another "China Pharmaceutical Innovation Enterprise Top 100" list, Hengrui has been at the top
of the list for four consecutive years.
"Perhaps those innovative drug companies with a total market value of about 30 billion to 50 billion yuan can "run" out a few and subvert the current pattern
.
The above-mentioned investor said
.

However, the basis of this judgment is that those scientists and entrepreneurs who are obsessed with scientific research can let go of their obsession with the aura of technology and seriously think about the real world
of China's pharmaceutical industry in addition to technology.

Innovative speculation in technological evolution

An interesting phenomenon
.

Although the drug review reform has lasted 7 years, the collection has been running for 4 years, the normalization of the medical insurance catalog has been updated for nearly 3 years, and the technology track is also surging, from PD-1, ADC, CAR-T, RNA, PROTEC, dual antibody, gene editing, synthetic biology, etc.
, after each technology or track hotspot has been "hyped", the delicate dividing line between the bosses of traditional pharmaceutical companies and innovative pharmaceutical companies is still "vertical" there
.

Traditional pharmaceutical companies talk about changes in the national macro environment, policy guidance direction, business model reshaping, drug channels and terminal layout; Innovative pharmaceutical companies discuss the technological evolution of a certain track, the analysis of the medicinal properties of specific targets, and the pattern of overseas pipelines under research in subdivisions
.

Although this difference has nothing to do with the superiority or inferiority, the rationality of its existence is explained as a product of the stage of the development of China's pharmaceutical industry, but in a sense, it reflects the "ungrounded gas"
of scientists and entrepreneurs in China's innovation ecology.
Because as long as it is based on the development of China, whether it is an innovative pharmaceutical company or a traditional pharmaceutical company, as a main body that exists as a company, its helmsman's grasp of the industrial situation, from macro to meso to micro, needs to be paid attention to, and internalized into the company strategy
after understanding.
For example, almost all companies started by scientists overestimate the impact of technology on the final form of drugs, and ignoring commercialization is an important yardstick for finally measuring all previous efforts
.

However, this delicate dividing line is beginning to show signs of
breaking.
Recently, at an industry conference dominated by scientific researchers, those who had previously only focused on research and development and technology tracks began to discuss the impact of collection on innovative drugs, although some of them may not have clearly distinguished the difference between the two concepts
of collection and national talk.

Although the concept is slightly confused, the conclusion is surprisingly consistent: any drug must have clinical value to bring commercial value and support the sustainable development of
the enterprise.
This description, which seems to be a general knowledge of the industry, in fact, let "seize" the policy east wind, under the escort of capital "hot money", cut into the research and development of China's innovative drugs scientists and entrepreneurs truly recognize and practice, it really took a lot of effort, but also paid a lot of "tuition"
.

Amazon founder Bezos famously said: "Someone always asks me what kind of changes
will occur in the next decade.
" But few people ask me what will remain the same for the
next decade.
I think the second question is more important
than the first.
Because you're going to base your strategy on things that don't change
.
"Changing the scene to the pharmaceutical industry, no matter when, the clinical value is a thing that will never change in the pharmaceutical industry, and the commercial value is fluctuating
up and down with the clinical value.
"

In June 2022, at the first life science live broadcast festival of micro-antidotes, E-drug manager Renrong Media talked with 10 industry leaders such as Wang Lei, Wu Xiaobin, Chen Qiyu, He Ruyi, Liu Yongjun, etc.
, to determine the next innovation cycle
.

In view of the innovative practice of the past few years, the 10 opinion leaders with more than 200 years of experience in the pharmaceutical industry believe that the last round of innovation explosion has accumulated five living forces for the future ecology of the industry, namely the gathering of high-end R&D and innovation talents, the international integration of regulatory concepts, the forward-looking layout of local pharmaceutical companies in the research pipeline, the formation of a group of scientists with entrepreneurial potential, and the in-depth understanding
of China's innovation strength in the international market.

But at the same time, they also believe that the innovation exploration in the past few years has also verified that there are 5 "unworkable" pharmaceutical innovations: the first is only for financing, rather than products that meet clinical needs, which do not work; Biotech's limitation of technological competitiveness only domestically, not globally, does not work; Biotech all aspires to make Pharma, it doesn't work; Biotech is self-built and commercialized, which does not work; Pharmaceutical companies do not go to overseas markets to expand their territory, which will not work
.

So in the face of the cold winter of financing and the "inner volume" of the project, what should we do? The more practical idea is to solve the problem of "living" first, and then think about how to "live better"
in the future.
Entering 2022, in order to survive, many innovative pharmaceutical companies have begun to fight, such as revaluing the company's internal value chain advantages and cutting into the CDMO track; Increase monetization methods; For example, endure the pain of cutting love, and sell the listed drugs that support more than half of the company's valuation in exchange for cash flow; More is to "swing the knife from the palace" to cut off their own pipelines
.

Interestingly, the founders of some companies that cut down pipelines in 2022 may have discussed with the industry two years ago the relationship between capital hot money and industrial bubbles, and believed that it is not a bad thing
to have a little bubble in the industry.

Imagination and impact after the upgrading of digital tools

The reality is already very bone-chilling, but the future may not be full
.
The wave of digitalization, wrapped in the subversive forces of the pharmaceutical industry, has "rushed" in
.

The integration of medicine and health + IT technology has evolved from the previous informatization and Internetization to the digital stage
.
Catalyzed by the epidemic, the pharmaceutical and health industry is embracing digital technology with unprecedented enthusiasm, and sacrificing transformation strategies
with different concepts of digitalization, digital governance, and digital intelligence, but with basically similar connotations.

From a practical point of view, most pharmaceutical people's understanding of digitalization is still based on the application level, and the focus is on the use of digital means to help reduce costs and increase efficiency of the original business, such as AI+ drug research and development, clinical research digitalization, marketing digitalization, etc
.
Especially in the context of industries such as collection and national talks, the use of digital marketing methods can indeed open up some incremental markets in addition to the stock market
.
However, if digitalization is regarded as a complete ecology that is being built by relying on the power of data to meet human health needs, then the impact of this digital ecology on the pharmaceutical industry will be subversive
.

Simple analysis, human health needs are divided into two stages, health management and disease management, in the general sense of the pharmaceutical enterprise service chain is mainly reflected in the clinical treatment plan of disease management of effective drug provision, although some pharmaceutical companies are also through various types of data, for health and sub-health population to provide some health and disease management related services, but its purpose is still around its business goals
.

Health management in the digital ecosystem is the opposite
.
PwC Strategy surveyed and interviewed 150 pharmaceutical industry executives in 2021, of which 78% came from biopharmaceuticals, and combined with PwC's own predictions, they believe that around 2035, a "LIFEcare system" that integrates health management and disease management will appear
.
The basic feature of this system is that healthcare will be personalized, digital and preventive at the center of human needs, and the solutions will be seamlessly integrated into daily life
.

PwC believes that under the "LIFEcare System", biopharmaceutical companies can play three types of roles, namely solution providers, disease and health management adaptors, and infrastructure providers
。 Among them, solution providers mainly provide personalized and affordable solutions for specific diseases or health management needs, thereby creating value; Disease and health management adaptors adopt a platform strategy, continuously integrating participants and solutions, using data analysis to provide each customer with a solution that best meets their needs and creates value; Infrastructure providers primarily provide the physical and technical foundation
for the LIFEcare system.

See? Throughout the chain, the role of therapeutic drugs is being integrated into solutions
.

In fact, no matter when this "LIFEcare system" with a beautiful vision is realized, at the moment when the digital wave sweeps through various fields, in the reality that the construction of SFE systems and the use of tools by most pharmaceutical companies are not yet mature, it is also the helmsmen of Local Chinese pharmaceutical companies, jumping out of the inherent thinking of the original business model, putting aside the topic scenarios such as collection, national talk, targets, and tracks, and calculating the mission of pharmaceutical companies and the future
of their own companies from a higher dimension.