Step pharmaceutical replied to the inquiry letter of Shanghai Stock Exchange late at night and disclosed the details of 8 billion sales expenses!

On the evening of May 21, step pharmaceutical released the notice of reply to the inquiry letter of 2018 annual report of the company, and replied to the questions in the inquiry letter of post audit of 2018 annual report of the company previously submitted to the stock exchange In the announcement, step pharmaceutical mainly explained the problems of high sales cost, low salary of R & D personnel, and adverse reactions of Danhong injection R & D personnel include management and logistics? In the inquiry letter, Shanghai Stock Exchange expressed doubts about the rationality of the salary of R & D personnel of step pharmaceutical According to last year's annual report, the total number of R & D personnel of step pharmaceutical is 950, and the salary of employees in R & D expenses is 35.7 million yuan According to this calculation, the annual salary of each R & D personnel is only 37578 yuan Such a small salary is incredible in the well paid pharmaceutical research and development industry In response, step pharmaceutical explained in the announcement that because the R & D personnel disclosed by the company include core technical personnel and auxiliary personnel participating in and cooperating with R & D in production, management, logistics and other departments, the proportion of such personnel is relatively large, the salary of such auxiliary R & D personnel is not included in the 35.7 million salary, and the salary is reflected in the production cost and management expense, so the per capita salary of R & D personnel Within a reasonable range It's hard for us to understand that step pharmaceutical has listed the involved personnel in production, management and even logistics as the R & D personnel, and this reply does not indicate the number of these personnel There are many doubts about the sales expenses in the inquiry letter of Shanghai Stock Exchange, and the sales expenses of step pharmaceutical become the focus of attention According to the data, the sales expenses of step pharmaceutical in 2018 were 8.036 billion yuan, accounting for 58.81% of the total operating revenue of 13.665 billion yuan in the same period Among them, 93% of step pharmaceutical's sales expenses are spent on marketing, academic promotion and consultation, and the total cost of the three in 2018 is 7.486 billion yuan Among the similar enterprises, the sales expenses of Yiling pharmaceutical, Yunnan Baiyao and Tishi pharmaceutical accounted for 39.23%, 15.15% and 15.75% of the revenue respectively last year, none of which exceeded 40% It can be said that such a high proportion of sales of step pharmaceutical is obviously abnormal The reply of step pharmaceutical to Shanghai Stock Exchange is also very interesting Step pharmaceutical explained that the company's main products are prescription drugs In addition to the market capacity of indications, the demand for prescription drugs mainly depends on the efficacy of the drug and the doctor's cognition of the drug Therefore, the company adopts the professional chemical promotion mode prevailing in the industry for marketing Step pharmaceutical also said that the promotion and marketing model of professional chemistry is an important driving force for the company's rapid development From this point of view, step pharmaceutical interprets such a high sales cost as normal commercial promotion, but for step pharmaceutical, which has only one or two dominant varieties in terms of products at present, the above explanation of maintaining such a large sales team and spending so much is obviously difficult to be accepted In addition, it is worth noting that the sales mode of Steph is also controversial The SSE raised doubts in the previous inquiry letter: please ask Steph to explain the income distribution arrangement with dealers, as well as the specific time point of income recognition, whether the main risks and rewards have been transferred, and whether there are relevant arrangements that do not meet the conditions of income recognition, such as after-sales repurchase or return The Shanghai Stock Exchange's query is not unreasonable, after media reports said that in Heilongjiang, Shaanxi and other places, a number of sales personnel of step pharmaceutical have been involved in bribery According to the information of judgment document network, Yu, the director of internal medicine of the staff hospital of Huzhong Forestry Bureau, Heilongjiang Province, took advantage of his position to sell 16 pieces (360 pieces each) of changchangdanhong injection (5760 pieces) sold by Xia, a salesman employed by Cui, a saleswoman of Daxinganling District of Heilongjiang Medicine Co., Ltd., and received bribes in the form of 8 yuan rebate each time 46080 yuan In addition, since 2009, in order to develop the pharmaceutical market in Yiyang, Shaanxi step Pharmaceutical Co., Ltd has entrusted Ma and Zhang as sales managers of Yiyang, and Ma has hired Jiang and others as medical representatives of counties and cities to sell the drugs In order to expand the sales volume, the promotion mode of giving kickbacks to doctors who prescribe drugs to hospitals and health centers by medical representatives was established From February to September 2014, Zhang, then the manager of Yiyang District of Shaanxi step Pharmaceutical Co., Ltd., and Jiang, then the salesman of the company, paid a cash rebate of 106793 yuan to Hu, the chief of Pharmacy Department of Anhua County Hospital of traditional Chinese medicine In response to the above bribery issue, step pharmaceutical explained that the company had transferred the main risks and rewards of the ownership of the goods to the buyer in the sales stage Step pharmaceutical did not retain the continuous management right usually associated with the ownership, nor effectively control the sold goods The amount of revenue can be reliably measured and the relevant economic benefits are very good The realization of revenue from sales of goods is recognized when the costs that may flow in or are incurred or to be incurred can be reliably measured It can be said that step pharmaceutical has given a relatively general and ambiguous answer to its controversial sales model, and it is certain that this answer is not satisfactory to the public and the SSE For step Pharma, the biggest source of revenue last year is Danhong injection, which has been monitored more and more However, in this reply announcement, step Pharma insists that Danhong injection has no adverse reactions and quality problems More than 40000 hospitalized patients using Danhong injection have been observed with relevant institutions by Bu pharma The conclusion shows that the adverse reactions caused by Danhong injection are sporadic and rare, which can be relieved or eliminated after discontinuation or disposal, and no serious adverse reactions have been observed Step Pharma also said that with reference to the results of safety research, it actively revised the instructions of Danhong injection, and added warning words, new adverse reaction performance, and revision of precautions However, in recent years, there are more and more doubts about the safety and scientific nature of traditional Chinese medicine injection In fact, since 2015, more than 47 traditional Chinese medicine injections have been required to modify the instructions or clinical use restrictions In terms of policy, this year's national auxiliary drug catalogue and new medical insurance catalogue may be the last two straws to crush traditional Chinese medicine injection As a matter of fact, Danhong injection is indeed the main product of step pharmaceutical's performance From 2013 to 2015, the total sales reached 11.352 billion, accounting for more than 30% of the revenue and more than 40% of the profit Perhaps for fear of causing unhealthy doubts about the performance source structure of step pharmaceutical, step pharmaceutical has not disclosed the revenue share of the product since 2016 But even so, in last year's performance income, Danhong injection still suffered from Waterloo due to the impact of the environment According to last year's annual report, in 2018, the output and sales volume of "Danhong injection (10ml)" were 75.2174 million and 80.4599 million respectively, down 28.96% and 24.9% year on year respectively; the output and sales volume of "Danhong injection (20ml)" were 14.2127 million and 15.5756 million respectively , down 28.25% and 19.86% year on year respectively As a result, last year's overall revenue of step pharmaceutical decreased by 1.44% compared with that of 2017 It can be said that the negative impact of relying on a single variety has been gradually shown in step pharmaceutical, and it is also the industry-specific policies required by the Shanghai stock exchange that step pharmaceutical supplementary disclosure has an important impact on the company's operation, and the important reasons for the specific impact are explained Where is the way to develop new varieties? It should be said that in the face of the variety being monitored more and more, and the industry itself will also face a big limit, step pharmaceutical should have a more urgent mood than other peers in the research and development of new products, but compared with the high proportion of sales expenditure, the R & D expenditure of step pharmaceutical is not high According to the 2018 annual report, the company's R & D expenditure totaled 576 million yuan, accounting for 4% of operating revenue and 17% of capitalization In this regard, the Shanghai stock exchange requires step pharmaceutical to disclose the project name and current progress corresponding to the R & D expenditure, and explain the criteria basis and rationality of obtaining clinical trial approval as the starting point of the development stage based on the research and development of new drugs The R & D status of step pharma and the detailed R & D expenditure of step Pharma are listed in the reply announcement, including 74 entrusted R & D projects and independent R & D projects, with a total expenditure of 496 million yuan However, it is worth noting that only one of the 74 projects, Shuxuening injection, is fully self-developed In addition, there are 12 independent R & D and outsourcing R & D, and the remaining 61 are pure outsourcing R & D The risk of entrusting others with R & D in this way is conceivable.