Lepu Medical Shenzhen Nadi Pu Zhongjie mou scheming the whole industrial chain

Pharmaceutical Network January 17, 2016 half-yearly report disclosed that the medical device sector revenue of 1.042 billion yuan, gross margin of 62.61%, of which self-produced consumables products revenue of 569 million yuan, gross margin as high as 83.12%In terms of products, bracket system revenue of 503 million yuan, gross margin as high as 83.24%hot Shenzhen land market ushered in medical device giant Lepu Medical (300003SZ, referred to as "Lep" or "Lep Medical")On the afternoon of January 5, the Shenzhen Municipal Planning and Land Commission listed a commercial land, and Lepu Medical Subsidiary bid for more than 700 million yuan at a low priceLepu Medical was founded in 1999 and is headquartered in Changping Park, Zhongguancun (000931, stock bar) technology park in Beijing, and was IPOd in 2009The company engages in coronary artery drug stents, pre-heart blockers, heart valves, contrast machines and other cardiovascular equipment anddrugsLepu Medical is one of the few medical device listed companies in China, the company's head, the actual controller is Pu Zhongjie, the 54-year-old medical device research and development scholar, is transforming into a capital operation master
"From a spiritual leader to a de facto controller, he can't say that he's purely a businessman, more a scholar and a scientistOn January 13, a source close to Pu Zhongjie told The TimesPu Zhongjie is not satisfied with a single medical device manufacturer, its in recent years continued to carry out diversification attempts, through continuous acquisition and capital operation, to try to turn Lepu into a cardiovascular industry-wide industrial chain platform-oriented enterprises, namely medical devices,pharmaceutical, medical services and strategic businessPu Zhongjie in the continuous cultivation of the domestic cardiovascular health market at the same time, but also try to through the industrial operation, the company into an international enterpriseat present, in the context of the National Health and Planning Commission continued to deepen the reform in the field of drug circulation, the medical device industry supplies prices remain high, Lepu's medical device products also have a high gross marginIn this regard, Lepu Medical Deputy General Manager, Dong Secret Zhang Xia did not reply to the Times Weekly reporter's interview letter land to meet the needs of the Shenzhen in the "13th Five-Year Plan for development" clearly, to strive to enable the masses to enjoy a higher level of medical care, priority to ensure that medical and other major infrastructure land demand Pu Zhongjie's Lepu medical treatment clearly fits the demands of this hot land this time, the Landi (Shenzhen) International Development Center Co., Ltd (hereinafter referred to as "Lepu International"), is a wholly-owned subsidiary of Lepu Medical established in Shenzhen in May 2016, registered capital of 200 million yuan, the legal representative is Pu Zhongjie, the scope of business for medical device research and development, medical research and experimental technology development, technical consulting, operating import and export, health and wellness management consulting, as well as medical device production and sales according to the Shenzhen Land Use Rights Transfer Announcement (Shenzhen Land Transfer (2016) No 32) documents show that the land number T501-0082, the qualification requirements of the bidder, for Shenzhen registered, with independent legal personality of the enterprise In addition, the bidder should also be the state or Shenzhen high-tech enterprises, or the Shenzhen high-tech projects identified enterprises 's Weekly Reporter's investigation found that Lepu International clearly met the requirements In October 2016, the Shenzhen Science and Technology Innovation Commission published the "On Lepu International", "Bio-absorbable polymer kirepamycin elution bracket system" as a high-tech project publicity, the Committee on Lepu International declared this project, organized an expert review, to be identified as a high-tech project in addition to the , T501-0082 parcelland use is "industrial land (new industrial land)", access industry category is "full degradation crown bracket." According to Lepu Medical's 2015 annual report, the independent research and development of core new products such as fully degradable stents and cardiac double-cavity pacemakers is a project being progressively advanced by the company to further strengthen and expand cardiovascular-related medical devices Times Weekly reporter found that Lepu International bought this T501-0082 plot is located in nanshan Yuxiandong headquarters base, this is the future of Shenzhen emerging industries in the gathering area, the same day (January 5) Anbang Financial Insurance in the area a few kilometers away from the Shenzhen Nanshan Houhai Financial and Business District, with a base price of 3,019 million yuan to bid for a parcel it is understood that Lepu International purchased this land, 30 years of use, land area of 16384.44 square meters, a total construction area of 138660 square meters According to the land transfer contract, the parcel project is completed, can only be used for their own use, not transferable The industrial site has a capacity-to-population area of 138,700 square metres, or about $5,335 per square metre
"It's not expensive, I think the price is very low "Lepu Healthcare insiders close to management spoke to Time Weekly it is understood that the source of funds for the international purchase of land will be the full use of their own funds In the payment method, not a one-time payment, but will choose the installment method, "from the effective date of the contract within 15 working days to pay not less than 50% of the total transaction price, the balance of 1 year without interest to pay." in accordance with Shenzhen's five-year plan for the next five years, in the field of medical devices, the formation of more than 50 billion yuan of industrial clusters At present, Shenzhen in the field of medical devices, there are a number of listed companies, such as Meirui Medical (privatized de-listing), Shangrong Medical (002551, stock bar) (002551 SZ) and the opening of medical (pre-disclosed) etc internationalization ambition
public information shows that Lepu Medical was founded in 1999, formerly known as Beijing Lepu Medical Devices Co., Ltd., by China Shipping (600150, stock bar) heavy industry group 725 Research Institute and the United States WP Co., Ltd jointly funded the formation, the total investment of 12.6 million Yuan, the former contributed 8.82 million yuan, the latter with "the transdermal cavity and coronary artery molding catheter" and "expansion of blood vessels stent" two proprietary technology and production technology (recognized by the Beijing Municipal Science and Technology Commission as high-tech achievements) as a price of 3.78 million yuan According to the prospectus, The sole shareholder of WP Corporation of the United States, Mr Zhang Yuexuan, is a U.S citizen and is a spouse with Mr Pu Zhongjie, the shareholder and senior manager of the issuer In 2014, Mr Pu took the position of Lepu's "Big Masters" with a 13.04 percent stake as one of the few enterprises in the field of high-end medical devices in China that can form strong competition with foreign products, Lepu is a high-end medical product selling industry group of cardiovascular disease intervention devices and equipment 2015, Pu Zhongjie put forward the strategic goal of establishing China's leading cardiovascular industry chain ecological enterprises On the basis of Lepu, after the rapid development in recent years, the initial formation of cardiovascular health ecology Lepu Medical said that the land will be used to build the company around the cardiovascular medical industry as the core of the international business operation platform, to enhance the company's international and domestic medical industry in-depth integration
"Now the company to expand, to develop, Lepu is already an industrialization group, cardiac disease treatment platform, we have related extension of drugs, equipment, services should be (included), with the development, the future to go international, existing resources will certainly not be enough, Shenzhen to set up a piece of land, in fact, is imperative On January 13, a source in the securities department of Lepu Medical Company told The Times Lepu Medical Deputy General Manager, Board Secretary Zhang Xia previously introduced, Lepu's future development goals are the device accounted for 50% (40% cardiovascular-related devices, 10% of diagnostic reagents), 30% of drugs, 15% of medical services, strategic business accounted for 5% the above-mentioned people also pointed out that (for the above-mentioned projects) there must be some investment, but are in control, and the company has developed to the present, the merger and acquisition did for several years, this acquisition of the land, is the result of management's careful consideration, "in the end is not worth it, certainly everyone wants to discuss, such a large enterprise, can not be a momentary impulse." Times Reporter noted that Lepu Medical hopes to use the absolute resource advantages accumulated in the field of cardiovascular in the early years, through the future international business operation platform in Shenzhen, to build an international industrial base, broaden international marketing channels, strengthen the international regional cardiovascular field medical industry chain upstream and downstream influence Lepu Medical planning ambitious goals, the specific approach is to rely on the platform, will also build cardiovascular medical device equipment research center, precision medical center, remote electrocardiogram blood pressure monitoring center, cardiovascular and cerebrovascular region network hospital and cardiovascular cloud data operation center; in the eyes of the industry, Lepu Medical in the internationalization of the results, has not yet fully reflected in the performance In 2015, Lepu Medical's foreign revenue was RMB446 million, accounting for 16.12% of total revenue, and in the first half of 2016, Lepu Medical's overseas business revenue was RMB231 million, contributing to the increase in performance, accounting for 13.81% of total revenue high gross margin not long ago, Medtrony, the world's largest medical device company, was fined Rmb1185.2m for imposing a price monopoly in China, revealing the fact that China's medical device industry had made a price windfall in fact, China has become the world's second largest medical device market after the United States, but China's medical device industry's high-end market has long been dominated by Foreign-led foreign companies led by Medtroni Lepu Medical as a local medical device giant, with the approval of its dual-cavity pacemaker and other advantages of products, breaking the situation of long-term monopoly by foreign enterprises, in the field of cardiovascular medicine, in recent years continued to occupy a voice According to Lepu Medical's 2015 report, the medical device sector is currently the company's largest body volume of the sector: "In the company's traditional cardiovascular medical device business, stent systems, blockers and other products continue to grow steadily, the grass-roots hospital intervention diagnosis and treatment business rapid growth." "
to date (Q3 2016), medical devices remain the largest source of revenue for Lepu, accounting for more than 60% In the first three quarters of last year (January-September), Lepu achieved revenue of RMB2.525 billion, attributable to the parent company's net profit of RMB544 million, of which the medical device sector achieved revenue of RMB1,554 million, accounting for 61.54 percent of total revenue Times Weekly reporter noted that Lepu Medical relyon lepu Medical Electronic Instruments Co., Ltd (formerly: Shaanxi Qinming Medical Instruments Co., Ltd.) medical products agent distribution business, trying to build a domestic high-quality cardiovascular high-end medical products agent distribution platform This is a company founded in 1986, formerly known as the Sino-US joint venture Qinming Medical Instruments Co., Ltd., the company is headquartered in Shaanxi Baoji High-tech District, is the only domestic manufacturing, operation of pacemakers and related medical devices products enterprises In 2010, after the listing of Lepu Medical to its strategic investment, currently Pu Zhongjie as the company's legal representative and chairman 2016 semi-annual report disclosed: "During the reporting period, through the adjustment of the structure of the agent distribution business products, actively expand high gross margin products, the company's comprehensive medical products agent distribution business achieved operating income of 170 million yuan, down 7.28% YoY." "
Lepu Medical's gross margin for medical device products is quite impressive The 2016 semi-annual report disclosed that the revenue of the medical device sector was RMB1,042 million, with a gross margin of 62.61%, of which revenue from home-grown consumables products reached RMB569 million and the gross margin was as high as 83.12% In terms of products, bracket system revenue of 503 million yuan, gross margin as high as 83.24%
"We stand these products (gross margin) is really high, this can not simply look at gross margin, (although) gross margin is high, but the profit is actually in the middle, the distribution of profits is definitely not to say how much money manufacturers can earn, because we are not direct sales." Lepu medical related people told the Times weekly reporter in fact, the domestic medical device industry medical device product sales are mostly dealer model It is understood that a factory price of only a few thousand yuan of imported stent products, in the middle dealer layer price increase commercial model, to the patient's use link, the price can soar to tens of thousands to tens of thousands of yuan
"We're definitely not making money at the median price "Lepu related people told the Times Weekly reporter, (but) the tender price is set by the state, the factory price has a lot of investment, " (e.g ) we are now studying the fully biodegradable bracket, studied seven or eight years, at least 100 million yuan more than the investment, but also the national approval and evidence, the early input and spend time is very large, the risk is also very large "