In 2021, revenue and net profit will decline. Where is Hengrui's hope?

On the afternoon of April 22, Hengrui released its 2021 annual report.

Source: Company Annual Report

Source: Medicine Times

The decline in profit was greater than the decline in operating income.

Centralized procurement and doctors discuss the price of double hammer drugs

The 2021 annual report shows that since 2018, a total of 28 varieties of generic drugs have entered the national centralized procurement, and Hengrui Medicine has selected 18 varieties, and the average price has been reduced by 73%

Source: Hengrui Pharmaceutical Annual Report

In addition, the increased investment in research and development of Hengrui Medicine also greatly affected the current profit

Source: Medicine Times

Income structure is still not broken

Source: official website

The 2021 annual report shows that anti-tumor drugs still occupy half of the country (51%), and the domestic market accounts for 97.

Source: Company Annual Report

Is there any hope?

Not only the bleak data of the existing business output, but also the future R&D pipeline has twists and turns, and it has not been smooth

As the star target of CDK 4/6, there are four inhibitors in the world, including Pfizer’s Palbociclib, Eli Lilly’s Abescilli, Novartis’ Libreccil and G1/ Simcere’s Tralaciril, the first two have been approved in the country

Source: Company Annual Report

In 2021, Hengrui Medicine has a total of four "License-in" drugs under development, costing 1 billion yuan.

Source: Yaodu.

This year, Hengrui also released its first ESG report so far, which seems to have no direct relationship with profit and profit, but is actually a forward-looking layout.

Source: Flush Finance

The report also disclosed that Hengrui Medicine actively responds to the registration and research and development of rare disease drugs advocated by the state, and is currently developing 3 rare disease drugs and orphan drugs in the fields of tumor and blood system

Epilogue

The management system of Hengrui Medicine has been gradually straightened out, most of the risks of centralized procurement of generic drugs have been implemented, and the company's transformation to innovation and internationalization has accelerated

References:

Hengrui Pharmaceutical Annual Report, Official Website, Announcement

"The market value has evaporated by 400 billion! Medicine King Hengrui, fell from the altar? " , Yaodu.

Other public information