Haichen Pharmaceutical's core product diuretic sales decline, sales expenses account for more than half of revenue, and net profit margin is only 7.72%

The problem of single and scattered products of Haichen Pharmaceutical (300584.

Haichen Pharmaceutical's torsemide for diuretic injection and antibiotic cephalosporins account for more than 60% of revenue.

Last year and the first quarter of this year, Haichen Pharmaceutical's revenue dropped by 23.

A reporter from the Yangtze River Commercial Daily found that Haichen Pharmaceutical's sales expenses accounted for more than half of the current revenue for the three years of listing, and the growth rate far exceeded the revenue, and the net interest rate fell from 14.

Decline in sales of core product diuretics

Haichen Pharmaceutical’s main products are torsemide for injection, tigecycline for injection, cefoxicilone sodium for injection, cefotiam for injection, and esomeprazole sodium for injection.

From 2017 to 2019, Haichen Pharmaceutical's torsemide sales increased by 63.

However, the sales of main products disclosed by Haichen Pharmaceutical last year showed that the sales of torsemide for injection were 300 million yuan, down 16.

Affected by this, last year Haichen Pharmaceutical achieved sales revenue of 706 million yuan, a year-on-year decrease of 23.

The company said that due to the impact of the epidemic, the number of medical institutions at all levels has decreased, and the company's operating income and net profit have declined.

However, as the impact of the domestic epidemic weakened, Haichen Pharmaceutical's performance still failed to recover.

In the first quarter, Zhenjiang Derui Pharmaceutical Co.

At the same time, Haichen Pharmaceutical has adopted a sales-based production model to formulate production plans.

Net profit margin is only 7.

Haichen Pharmaceutical Co.

Haichen Pharmaceuticals has increased the academic influence of its products by holding professional academic forums and training meetings.

In the past three years of listing, the performance has increased significantly, but the most important thing is to rely on marketing.

Therefore, although the gross profit margin of Haichen Pharmaceutical has been around 80%, the net profit margin has been declining.
The net profit margin for 2017-2020 was 14.
42%, 11.
69%, 10.
51%, and 7.
72%, which dropped to only about half in three years.
The net profit margin of most listed chemical preparation companies is above 10%, or even 20%.

At the time of listing in early 2017, the company had 67 drug production approval document numbers, but the product structure was relatively scattered and the sales scale of a single product was small.
At the end of last year, Haichen Pharmaceutical had 68 drug approval document numbers, only one increased in more than three years.
drug.
And among the more than 20 perennial product categories, most of the products have annual sales of less than 50 million yuan, and the problem of product fragmentation and singleness has still not been solved.

Judging from the annual report, with the advancement of medical reform, the use of sales promotion to achieve expansion may no longer be sustainable.
Haichen Pharmaceutical's annual report also stated that the sales scale and profit margins of existing products have been compressed, and accelerating the transformation of product structure has become an urgent need for the company's development.

However, in recent years, Haichen Pharmaceutical's new products have temporarily failed to support revenue.
Last year, the company's research and development personnel decreased from 90 to 69.
Among the fundraising projects, the Anqing Huichen API and Intermediate Project, and Anhui Haichen's new high-end preparation capacity project have not yet achieved revenue and are in a state of loss.

In recent years, Haichen Pharmaceutical has adhered to the development strategy of transforming its R&D pipeline from generic drugs to innovative drugs.
In 2017, Haichen Pharmaceuticals, as the sole industrial partner of the joint company, the controlling shareholder Cao Yuping and other investors initiated the establishment of an M&A fund to acquire 90% of the equity of NMS Group, Italy's largest anti-tumor drug research and development institution.
NMS Group is a comprehensive research and development group dedicated to the field of tumor treatment, with a history of more than 50 years of innovative drug research and development.

Last year, Haichen Pharmaceutical and NMS Group signed a "License Agreement" on the introduction of IDH (isocitrate dehydrogenase) inhibitor candidate compounds.
By the time NMS Group has many subsequent projects that will enter the I and II clinical stages, the company said the project is in the territory The implementation entity-Hefei Gaoyan Oujin Biomedicine Co.
, Ltd.
is accelerating the implementation of the project in the capital market.