Financial Medicine Point|The market value of domestic listed pharmaceutical companies in the first half of the year was announced, and the market value of the two leading pharmaceutical companies rose and fell

On June 30, Wind announced the “Top 500 Listed Companies in China by Market Value” for the first half of 2021.
A total of 45 pharmaceutical and biotechnology companies entered the list, 6 more than in the second half of 2020.
The pharmaceutical industry is still a market concern.
Hot spot
.

The author sorted out the A-share listed pharmaceutical companies based on the database of the Food and Drug Public Opinion Monitoring System of China Health Media Group, and ranked the market value of pharmaceutical companies in the first half of 2021

01.
The strong Hengqiang has become the focus of overseas expansion

On the whole, the composition of the Top20 is relatively stable, and most companies' rankings are only fine-tuned within the top 20.
Compared with the second half of 2020, the ranking of the leading domestic orthokeratology lens, Opcom, has jumped from 35th to 20th; hyaluronic acid is full The market value of Huaxi Biological, the market leader of the industry chain, rose to 15th; Watson Biological ranked 18th with mRNA and other related vaccine products (see Table 1)
.

Table 1: Top 20 A-share listed pharmaceutical companies by market value on June 30, 2021

(Data source: Food and Drug Public Opinion Monitoring System of China Health Media Group)

The overseas expansion of leading pharmaceutical companies has achieved results
.

Take Mindray Medical, which is currently ranked No.
1 as an example, the company's market value reached 580 billion yuan, 120 billion yuan higher than the second place

Hengrui Pharmaceuticals completed three overseas patent authorizations in 2020.
Among them, the relevant rights of SHR-1701 in South Korea were transferred to East Asia Pharmaceuticals.
Hengrui could obtain a down payment of US$139 million, milestone payments and additional sales shares
.

In 2020, Fosun Pharma's domestic revenue increased by only 0.

02, Changpo thick snow medical beauty, medical outsourcing service companies and other high-quality tracks are still favored by the market

Changpo refers to the huge development space in the industry where the company is located, and the ceiling for development is far from coming; thick snow refers to the company's strong profitability
.

At the same time, the market value of medical aesthetics, pharmaceutical outsourcing service companies, and biologics companies that possess these two attributes has also been rising with the pursuit of investors.

The market always gives a higher valuation to the high-quality targets of Changpo Thick Snow
.

Take Huaxi Biological, a newly entered top 20 medical and aesthetic company in market value, as an example.

Huaxi Biology has also maintained good profitability.
The company's annual report disclosed that the gross profit margin of hyaluronic acid raw materials was 78.
09%, and the gross profit margin of cosmetics was as high as 81.
89%.
This was due to the company's R&D investment and product layout
.

In 2020, Huaxi Biotechnology invested 140 million yuan in research and development, an increase of 50.

The market never hides its preference for such companies
.

In the first half of 2021, Huaxi Biotech's P/E ratio (P/E ratio = stock price/earnings per share) was as high as 208 times, and its market value exceeded 130 billion yuan, an increase of 89.

Pharmaceutical outsourcing service companies are also the focus of the market, and the industry continues to benefit from the high-quality development of domestic innovative drugs
.

Since 2021, Kanglong Chemical's stock price has continued to hit new highs, and on July 1, it even reached a recent historical high of 228 yuan per share

03.
The elephant turned around and went up and down differently

Fosun Pharma and Hengrui Pharma, the two leading domestic comprehensive pharmaceutical companies, faced different situations in the process of transforming into innovative pharmaceutical companies
.
In the first half of this year, Fosun Pharma's market value increased by 33.
6%, and its ranking rose from tenth to eighth; Hengrui Pharma's market value fell by 26.
83%, and its ranking dropped from first to third
.

The transformation of the main business to innovative drugs is the common choice of the two leading pharmaceutical companies
.
In contrast, innovative drugs have stronger bargaining power, and national drug collections often give certain support to innovative drugs, so there is more profit margins
.
At the same time, the market is more optimistic about the future development potential of innovative pharmaceutical companies and gives higher valuations
.
Although Fosun Pharma and Hengrui Pharma have already embarked on the road of transformation, the market value of the two companies has risen and fallen
.
The author believes that this is the result of the product pipeline and business strategy
.

The stock price of Hengrui Pharmaceuticals fell from a high of 92.
5 yuan/share in early 2021 to 68 yuan/share on June 30.
During the period, the company’s share price suffered several significant declines.
Hengrui Pharmaceuticals released a centralized procurement plan on June 24.
The announcement of the successful selection showed that the company had a total of 6 products selected.
The announcement stated that "the price of the proposed selection has dropped significantly compared with the original winning bid price, which may cause certain pressure on sales performance.
" At the same time, the company has two products that were not selected.
They are iodixanol injection and glycopyrrolate injection.
The sales of these two products accounted for approximately 7.
09% of the sales in the first quarter
.
Affected by the sharp drop in the price of the winning product and the loss of the high-sales product, the share price of Hengrui Pharmaceuticals fell by 4.
43% on the day of the announcement
.

Fosun Pharma was not affected by this collection
.
At the same time, according to media reports, Fosun Pharma's mRNA vaccine factory has already landed, with a production capacity of 350 million doses ready, and localized production is about to be completed
.
On May 10, Fosun Pharma's stock price rose at a limit
.

The author believes that in addition to the above-mentioned product pipeline reasons, the slower expansion of overseas markets is also another factor in the sharp drop in the market value of Hengrui Pharmaceuticals, which is the result of its business strategy
.
As mentioned above, Fosun Pharma is actively exploring overseas markets and diversifying its income sources.
The proportion of overseas revenue has reached 27%, and continues to maintain rapid growth; while Hengrui Pharma’s overseas revenue in 2020 only accounted for 3.
17%, a decrease from 2018 0.
66%, the product did not "go global" as expected in the annual report
.

According to a report from Sina Finance, at the end of 2020, the chairman of Hengrui Pharmaceuticals emphasized in the exchange with institutional investors that the company's future internationalization is no longer a simple slogan.
It is necessary to focus on promoting the construction of clinical teams in the United States and Europe and start to build overseas sales teams
.
Fosun Pharma has taken the lead.
Its 2020 annual report shows that in order to continue to expand the international market, as of the end of 2020, the company has formed an overseas commercialization team of about 1,000 people, mainly covering the United States, Africa, Europe and other countries and regions
.