Interpretation of the paediatric drug market pattern, track overtaking focuses on subdivisions

At a press conference held by the National Health and Health Commission on August 25, Jiang Jiandong, president of the Institute of Materia Medica of the Chinese Academy of Medical Sciences and academician of the Chinese Academy of Engineering, introduced that in 2021, a total of 47 children's drugs have been approved for marketing

At a press conference held by the National Health and Health Commission on August 25, Jiang Jiandong, president of the Institute of Materia Medica of the Chinese Academy of Medical Sciences and academician of the Chinese Academy of Engineering, introduced that in 2021, a total of 47 children's drugs have been approved for marketing

The recent investment actions and attention related to pediatric medicine are also quite high

There is a great market demand for medicines for children, and it is also related to the healthy growth of the next generation of the motherland, which has far-reaching social significance

Analysis of the current situation of the market

Attractive 100 billion market Attractive 100 billion market

According to statistics, in 2021, China's children's drug market will be about 200 billion yuan

However, in the pediatric drug market, many drugs are the discretionary reduction of adult drugs, such as lung cancer treatment drugs, which are basically not specially developed for children, and children with lung cancer patients are basically used for adults

Even the roughly 100 billion yuan market for children's medicines estimated by Founder Securities is very large, and there should be a lot of investment and participation from many companies, but this is not the case

R & D's chronic problem solves R & D's chronic problems

Pediatric medicine has always been a difficult area to develop
.
As Jiang Jiandong said at the meeting, "Children's physiological status varies greatly at different ages, clinical trials are difficult to do, and parents do not agree
.
"

Pediatric medicine has always been a difficult area to develop
.
As Jiang Jiandong said at the meeting, "Children's physiological status varies greatly at different ages, clinical trials are difficult to do, and parents do not agree
.
"

These basic underlying logics bring great challenges to the development of pediatric medicines
.
For a single enterprise, there is basically no good solution to such a challenge, and the cost of solving the problem is too high
.
The Chinese government has advantages in solving such problems, such as special fund support and inclusion in priority approval procedures
.
It is particularly worth mentioning that, through the establishment of the National Children's Medical Center, the National Health and Medical Commission organized 23 national pediatric related units to establish the "Chinese Pediatric Population Drug Clinical Trials Collaboration Network".
In the future, this collaborative network will continue to expand and is expected to gradually expand from Solve the problem of clinical trials at the source
.

These basic underlying logics bring great challenges to the development of pediatric medicines
.
For a single enterprise, there is basically no good solution to such a challenge, and the cost of solving the problem is too high
.
The Chinese government has advantages in solving such problems, such as special fund support and inclusion in priority approval procedures
.
It is particularly worth mentioning that, through the establishment of the National Children's Medical Center, the National Health and Medical Commission organized 23 national pediatric related units to establish the "Chinese Pediatric Population Drug Clinical Trials Collaboration Network".
In the future, this collaborative network will continue to expand and is expected to gradually expand from Solve the problem of clinical trials at the source
.

Low-key multinational pharmaceutical company

low-key multinational pharmaceutical company low-key multinational pharmaceutical company

From the perspective of manufacturers, it can be divided into international enterprises and domestic enterprises
.
A typical multinational company is Johnson & Johnson Medical, which has Merrill Ibuprofen Suspension and Tylenol Acetaminophen Suspension Drops, two hot-selling antipyretics in the market, and many other products; Tocilizumab for arthritis, etc.
; Sanofi has a well-known cold medicine brand Haobao, and its prescription drug dupilimumab is indicated for moderate-to-severe atopic dermatitis in adolescents aged 12 and above; Merck’s well-known prescription drug Shuner Ning has indications for the prevention and long-term treatment of asthma in children aged 2 to 14; AstraZeneca's blockbuster product Pumik Lingshu has indications for bronchial asthma in children, and its pediatric market is estimated to have a peak annual sales of at least 5 billion yuan; GSK's well-known brand Fushuliang has indications for the prevention and treatment of seasonal allergic rhinitis in children over 12 years old
.

From the perspective of manufacturers, it can be divided into international enterprises and domestic enterprises
.
A typical multinational company is Johnson & Johnson Medical, which has Merrill Ibuprofen Suspension and Tylenol Acetaminophen Suspension Drops, two hot-selling antipyretics in the market, and many other products; Tocilizumab for arthritis, etc.
; Sanofi has a well-known cold medicine brand Haobao, and its prescription drug dupilimumab is indicated for moderate-to-severe atopic dermatitis in adolescents aged 12 and above; Merck’s well-known prescription drug Shuner Ning has indications for the prevention and long-term treatment of asthma in children aged 2 to 14; AstraZeneca's blockbuster product Pumik Lingshu has indications for bronchial asthma in children, and its pediatric market is estimated to have a peak annual sales of at least 5 billion yuan; GSK's well-known brand Fushuliang has indications for the prevention and treatment of seasonal allergic rhinitis in children over 12 years old
.

From this, the characteristics of the paediatric drug layout of multinational pharmaceutical companies can be summarized: 1.
The mainstream multinational pharmaceutical companies basically no longer invest in common medicines such as colds and fever, but they have strong brand strength; 2.
More efforts are made in prescription drugs In the expansion of children's indications in the field, branding is rarely carried out in these fields, but it actually has a strong influence; 3.
The future focus will be more on new fields such as rare diseases; 4.
Basically, from adult medicine to children There are no companies that focus on pediatric drugs and become giants
.

From this, the characteristics of the paediatric drug layout of multinational pharmaceutical companies can be summarized: 1.
The mainstream multinational pharmaceutical companies basically no longer invest in common medicines such as colds and fever, but they have strong brand strength; 2.
More efforts are made in prescription drugs In the expansion of children's indications in the field, branding is rarely carried out in these fields, but it actually has a strong influence; 3.
The future focus will be more on new fields such as rare diseases; 4.
Basically, from adult medicine to children There are no companies that focus on pediatric drugs and become giants
.

Powerful local companies

Powerful local companies Powerful local companies

Among domestic pharmaceutical companies, the largest paediatric drug company is Changchun Jinsai, and most of the 8.
198 billion yuan in operating income in 2021 is paediatric drugs
.
Kinsey's pediatric drug is not a drug for the two major diseases of breathing and digestion.
Its core product is recombinant human growth hormone for children with short stature.

.
Ranked second is Sunflower Pharmaceutical.
At least half of Sunflower Pharmaceutical's revenue of 4.
454 billion yuan in 2021 should come from the pediatric drug market.
Its main products focus on mainstream fields such as respiratory diseases, gastrointestinal diseases and immune supplementation.
The brand has strong market recognition
.
China Resources Sanjiu is also a giant in the field of pediatric medicines.
The Sanofi Good Doll brand is actually operated by China Resources Sanjiu, and there are also well-known brands such as 999 Aonuo vitamin mineral supplements and 999 pediatric cold series.
In the field of prescription drugs, China Resources Sanjiu also has Recombinant human growth hormone product
.

Among domestic pharmaceutical companies, the largest paediatric drug company is Changchun Jinsai, and most of the 8.
198 billion yuan in operating income in 2021 is paediatric drugs
.
Kinsey's pediatric drug is not a drug for the two major diseases of breathing and digestion.
Its core product is recombinant human growth hormone for children with short stature.

.
Ranked second is Sunflower Pharmaceutical.
At least half of Sunflower Pharmaceutical's revenue of 4.
454 billion yuan in 2021 should come from the pediatric drug market.
Its main products focus on mainstream fields such as respiratory diseases, gastrointestinal diseases and immune supplementation.
The brand has strong market recognition
.
China Resources Sanjiu is also a giant in the field of pediatric medicines.
The Sanofi Good Doll brand is actually operated by China Resources Sanjiu, and there are also well-known brands such as 999 Aonuo vitamin mineral supplements and 999 pediatric cold series.
In the field of prescription drugs, China Resources Sanjiu also has Recombinant human growth hormone product
.

In addition, domestic enterprises include traditional representative enterprises such as Yabao Pharmaceutical, Renhe Pharmaceutical, Jianmin Group, Dyne Pharmaceutical, Hansen Pharmaceutical, Huluwa Pharmaceutical, and Guizhou Sanli, as well as new entrants in the past ten years.
Biopharmaceutical companies such as Kebi, Weisheng Pharmaceutical, Aike Baifa,
etc.

In addition, domestic enterprises include traditional representative enterprises such as Yabao Pharmaceutical, Renhe Pharmaceutical, Jianmin Group, Dyne Pharmaceutical, Hansen Pharmaceutical, Huluwa Pharmaceutical, Guizhou Sanli, etc.
Biopharmaceutical companies such as Kebi, Weisheng Pharmaceutical, Aike Baifa,
etc.

It is also worth mentioning that the field of children's vision protection, typical representatives such as OPCOM
.
The company's operating income in 2021 is only 1.
295 billion yuan, but its net profit is as high as 555 million yuan, with a net profit margin of 42.
86%, far ahead of the net profit margin level of general drugs or medical devices
.
As of August 26, the market value of OPCOM is as high as 38.
585 billion yuan, which is close to 4 times the market value of Sunflower Pharmaceuticals
.

It is also worth mentioning that the field of children's vision protection, typical representatives such as OPCOM
.
The company's operating income in 2021 is only 1.
295 billion yuan, but its net profit is as high as 555 million yuan, with a net profit margin of 42.
86%, far ahead of the net profit margin level of general drugs or medical devices
.
As of August 26, the market value of OPCOM is as high as 38.
585 billion yuan, which is close to 4 times the market value of Sunflower Pharmaceuticals
.

Summarize the characteristics of the pediatric drug layout of domestic pharmaceutical companies as follows: 1.
Mainly focus on the mainstream fields of respiratory, digestive, and immune supplementation, and build brands based on products to occupy the market; 2.
Existing companies occupy the pediatric drug market and continue to perform well.
Biological The entry of pharmaceutical companies has become a bright spot; 3.
Star companies in the field of growth hormone and vision protection are rising
.

Summarize the characteristics of the pediatric drug layout of domestic pharmaceutical companies as follows: 1.
Mainly focus on the mainstream fields of respiratory, digestive, and immune supplementation, and build brands based on products to occupy the market; 2.
Existing companies occupy the pediatric drug market and continue to perform well.
Biological The entry of pharmaceutical companies has become a bright spot; 3.
Star companies in the field of growth hormone and vision protection are rising
.

Enterprise layout essentials

From the perspective of the types of medicines, the diseases with high prevalence of children in China are mainly respiratory diseases and digestive system diseases, which are further subdivided according to the types of diseases: cold, fever, cough, indigestion (constipation, etc.
), gastroenteritis ( diarrhea, etc.
), tonsillitis, bronchitis, rash, sore throat and pneumonia
.
Other areas such as immune supplementation, children's myopia, height barriers, etc.
are also getting more and more attention
.

From the perspective of the types of medicines, the diseases with high prevalence of children in China are mainly respiratory diseases and digestive system diseases, which are further subdivided according to the types of diseases: cold, fever, cough, indigestion (constipation, etc.
), gastroenteritis ( diarrhea, etc.
), tonsillitis, bronchitis, rash, sore throat and pneumonia
.
Other areas such as immune supplementation, children's myopia, height barriers, etc.
are also getting more and more attention
.

So, what are the opportunities and risks for companies that want to overweight the field of pediatric medicine?

So, what are the opportunities and risks for companies that want to overweight the field of pediatric medicine?

A giant is expected to be born

A giant is expected to be born A giant is expected to be born

The underlying logic of the opportunities in the pediatric drug market lies in the huge Chinese market, the increasingly wealthy citizens' attention to children's health, the government's continuous attention and investment in this field, and the advantages of the national system
.
This makes it possible that although there are no strong independent pediatric drug companies in the international market, there may be companies in the Chinese market that can grow into Chinese and even global giants by focusing on the field of pediatric drugs
.
Changchun Jinsai, Sunflower Pharmaceuticals, and Opcon Vision all have such potential
.

The underlying logic of the opportunities in the pediatric drug market lies in the huge Chinese market, the increasingly wealthy citizens' attention to children's health, the government's continuous attention and investment in this field, and the advantages of the national system
.
This makes it possible that although there are no strong independent pediatric drug companies in the international market, there may be companies in the Chinese market that can grow into Chinese and even global giants by focusing on the field of pediatric drugs
.
Changchun Jinsai, Sunflower Pharmaceuticals, and Opcon Vision all have such potential
.

Of course, focusing on paediatric drugs does not mean only paediatric drugs.
It can be expanded to other fields based on the accumulated technology and resources of paediatric drugs, just like the expansion of international mature pharmaceutical companies from adult drugs to paediatric drugs
.
Kinsey is a typical example.
In addition to pediatric drugs, it has been expanding into tumor immunity, gynecology, and geriatric diseases
.

Of course, focusing on paediatric drugs does not mean only paediatric drugs.
It can be expanded to other fields based on the accumulated technology and resources of paediatric drugs, just like the expansion of international mature pharmaceutical companies from adult drugs to paediatric drugs
.
Kinsey is a typical example.
In addition to pediatric drugs, it has been expanding into tumor immunity, gynecology, and geriatric diseases
.

After the waves judge the situation

The back waves judge the situation and the back waves measure the situation

In the fields of common diseases such as breathing and digestion, pediatric medicines have strong brand effects, such as Sunflower’s Little Sunflower, China Resources Sanjiu’s 999, and Dyne Pharmaceutical’s Yikexin
.
For companies that already have brand and channel advantages, this is a natural moat
.
Similar products from late-stage companies will be difficult to compete with existing brands if they do not have obvious product advantages: not only do they have to seize the minds of doctors, but also the minds of end consumers.
It is an expected result that the investment is large and the effect is limited
.
For new entrants, if there is no unique product advantage, common diseases should be avoided
.

In the fields of common diseases such as breathing and digestion, pediatric medicines have strong brand effects, such as Sunflower’s Little Sunflower, China Resources Sanjiu’s 999, and Dyne Pharmaceutical’s Yikexin
.
For companies that already have brand and channel advantages, this is a natural moat
.
Similar products from late-stage companies will be difficult to compete with existing brands if they do not have obvious product advantages: not only do they have to seize the minds of doctors, but also the minds of end consumers.
It is an expected result that the investment is large and the effect is limited
.
For new entrants, if there is no unique product advantage, common diseases should be avoided
.

Segment opportunity areas

Segment Opportunity Areas Segment Opportunity Areas

Where are the new opportunities? The answer is segmented areas
.

Where are the new opportunities? The answer is segmented areas
.

One obvious opportunity is myopia prevention in children
.
For example, the children's orthokeratology (commonly known as OK lens) market is still dominated by European, American, Korean and Japanese manufacturers, and the market is still growing
.
This means that there are still great opportunities for domestic substitution of companies like OPCOM.
Through technological breakthroughs combined with model innovation, the story of follow-up to leadership has been staged countless times in the Chinese market
.

One obvious opportunity is myopia prevention in children
.
For example, the children's orthokeratology (commonly known as OK lens) market is still dominated by European, American, Korean and Japanese manufacturers, and the market is still growing
.
This means that there are still great opportunities for domestic substitution of companies like OPCOM.
Through technological breakthroughs combined with model innovation, the story of follow-up to leadership has been staged countless times in the Chinese market
.

Children with short stature or growth disorders, rare diseases in children, and mental illnesses in children caused by various reasons are also worthy of attention
.
The former has a successful case of Kinsey, but the market is far from mature.
With the improvement of domestic market awareness, academic promotion, clinical recognition and patients' spending power, there are still opportunities for new entrants in the market
.

Children with short stature or growth disorders, rare diseases in children, and mental illnesses in children caused by various reasons are also worthy of attention
.
The former has a successful case of Kinsey, but the market is far from mature.
With the improvement of domestic market awareness, academic promotion, clinical recognition and patients' spending power, there are still opportunities for new entrants in the market
.

Rare diseases are a track that has attracted more attention in recent years.
According to the data of the "Phase Report on the Living Conditions and Disease Burden of Rare Disease Patients in Zhejiang Province" released in 2021, among the 121 rare diseases in the National Rare Disease Catalogue, children's There are many types of rare diseases
.

Rare diseases are a track that has attracted more attention in recent years.
According to the data of the "Phase Report on the Living Conditions and Disease Burden of Rare Disease Patients in Zhejiang Province" released in 2021, among the 121 rare diseases in the National Rare Disease Catalogue, children's There are many types of rare diseases
.

In addition, there is also a large unmet need in the market for children with mental illnesses such as autism
.

In addition, there is also a large unmet need in the market for children with mental illnesses such as autism
.

R&D breakthroughs in these fields not only have strong social effects, but also have strong economic effects
.

R&D breakthroughs in these fields not only have strong social effects, but also have strong economic effects
.