The first three quarters of China's biopharmaceutical revenue exceeded that of hengruian rotini, which led to an 85% increase in tumor line

How has the company performed in the past four months? Which products support 10 billion revenue? Where is the future R & D layout and growth space of biopharmaceuticals in China? Recently, China biopharmaceutical disclosed its third quarter financial report of 2018 During the reporting period, the company achieved a total revenue of 6 billion yuan, a year-on-year increase of 51.5%, and a net profit of 836 million yuan, a year-on-year increase of 18.6% The total revenue and profit in the first three quarters were 15.73 billion yuan and 2.25 billion yuan respectively, up 37.4% and 22% year on year On May 11 this year, the approval of a new class 1.1 drug, androtinib, made China's biopharmaceutical industry stride into the era of innovative drugs Because of its strong R & D strength and product pipeline, it is often compared with Hengrui, the "first brother of R & D" In the first three quarters, the revenue of China biopharmaceutical exceeded 12.46 billion yuan of Hengrui pharmaceutical with 15.7 billion yuan In the first three quarters, its R & D investment was 1.7 billion yuan, which was also comparable to Hengrui Data source: how has China's biopharmaceutical industry performed in the past four months since its IPO? Which products support 10 billion revenue? Where is the future R & D layout and growth space of biopharmaceuticals in China? 1 Data source of the sharp increase in the sales of anti-tumor products: the most concerned new product of China's biopharmaceutical industry in the third quarter of China's biopharmaceutical industry is the class 1.1 new drug, amphetamine, which was launched in May this year and entered the medical insurance catalog through drug price negotiation Sales of androtini were not disclosed in the financial statements However, the field of oncology medicine has achieved strong growth, with the sales volume of the first three quarters increasing 85% year on year, reaching 2.3 billion yuan, accounting for 14.6% of the total sales volume of the group According to the data of CITIC Securities research, the sales momentum of anlotini after listing is strong, with the sales volume reaching 130 million yuan on the first day and over 300 million yuan in August CITIC Securities expects its annual sales to exceed 700 million yuan CICC forecasts that androtini contributed 600-700 million yuan in the third quarter In view of this, it has been recognized that androtinib is the fastest innovative drug after being put on the market According to the financial report, after the batch supply of class 1 new drug, the market response was warm, recognized by Chinese doctors and patients, and the performance was excellent Driven by heavyweight new anti-tumor products, the sales performance of the group increased significantly, which also led the sales performance of other anti-tumor drugs, such as qingweike, genico and enisu According to data from Shenwan Hongyuan, in the first three quarters, sales of saiweijian increased by 50% year-on-year, that of genico by 37%, that of enishu by 51%, and that of sunny by 37% New products with high volume speed have become a landmark feature of China's biopharmaceutical industry In addition to enrotinib, the digestive system drug, azzuripine (esomeprazole sodium), was launched into the market in May 2016 In 2017, the sales volume rapidly reached 469 million yuan, and in the first nine months of 2018, the sales volume was 570 million yuan, an increase of 72.6% year on year Runzhong (entecavir) was listed in 2010, with sales of HK $145 million in the first year, and sales of HK $2.57 billion in the first nine months of 2018 On the one hand, thanks to the strong R & D strength, China's biopharmaceutical industry has won the first imitation of many large varieties and gained great market space According to data from Guoxin Securities, China's biopharmaceuticals, with the halo of "the first king of generic drugs", are the most approved and declared listed pharmaceutical companies, surpassing Hengrui pharmaceutical and Shiyao group In its most powerful field of liver disease, its anti HBV heavyweight product, entecavir, is the first successful product of Zhengda Tianqing to challenge the patent In addition, desetabine for injection (qingweike), imatinib mesylate (genico), dasatinib tablets (inishu) in the field of haematoma, elanpine in the field of cardiovascular, and aisu equal products in the field of digestion have been successfully imitated, It established its king position in the field of first imitation On the other hand, the strong sales ability determines the high market share and high volume of products According to the data of Guosen Securities, as of June 2018, China biopharmaceutical group has 12000 professional academic promotion personnel, ranking first in the country, covering more than 90% of the hospitals in the country In 2017, the company's sales expenses reached 5.918 billion yuan, accounting for nearly 40% of its revenue It is one of the few pharmaceutical enterprises in China that invested more than 5 billion yuan in sales Under the support of this sales ability, the sales of multiple generic drugs increased all the way Taking Runzhong as an example, the compound growth rate from 2010 to 2015 reached 84.8%, rapidly growing into a large variety with annual sales exceeding 3 billion yuan Under the premise that the original research product boluting already has a certain market share, it will realize import substitution within 6 years after listing, and catch up with and surpass the original research product to rank first in the market Ginico (imatini) was listed in China in 2013, and began to increase its volume in 2014 By Q3 in 2017, its market share has increased to 6% In September 2018, the listing application of androtinib for soft tissue sarcomas was accepted by CDE and then included in the priority review The results of phase IIB clinical study on the treatment of soft tissue sarcoma were reported orally at the annual meeting of the American Society of Clinical Oncology (ASCO) In December 2015 and June 2017, androtinib was certified as an orphan drug by FDA for the treatment of ovarian cancer and soft tissue sarcoma At present, the third stage of soft tissue sarcomas is in the process of international multicenter clinical practice This will further drive the sales growth of androtini 2 The growth of liver disease is slowing down Due to the fierce competition, the growth of product income in the field of hepatitis B virus is obviously slowing down In the first three quarters, the sales revenue of drugs for liver diseases was 5 billion yuan, accounting for 31.8% of the total revenue In 2017, the revenue of liver disease was 6.543 billion yuan, accounting for 44.2% of the total revenue According to the estimation of Shenwan Hongyuan, in the third quarter, the growth rate of Runzhong (entecavir), entecavir series and the overall hepatitis B antiviral product line was - 3.5%, - 0.9%, - 1.3% In the first half of the year, they were 7.2%, 7.7% and 5.7% respectively In addition, in the first three quarters, sales of Runzhong (entecavir) increased by 3.4% year-on-year, accounting for 16.4% of the group's overall revenue and 21.7% in the same period last year It is still the core of biopharmaceutical products in China, but the sales growth has slowed down Entecavir was originally developed as borudine of BMS Since its launch in 2005, its sales volume in the global market has grown rapidly In 2013, it reached a peak sales volume of 1.527 billion US dollars (10.6 billion yuan) It is one of the most effective anti HBV drugs in clinical use Zhengda Tianqing's Runzhong (entecavir) dispersive tablet was approved in February 2010, the first one in China It was launched in March 2012, and its sales reached 3.169 billion yuan in 2017 Since then, Zhengda Tianqing has launched Tianding (entecavir maleate), and Nanjing Zhengda Tianqing has launched GANZE (entecavir) capsule With these three heavyweight drugs, in the first quarter of 2018, Zhengda Tianqing and Nanjing Zhengda Tianqing accounted for 45.1% of the market share of entecavir in the sample hospital The other 10 companies have only 16.5% market share But fierce competition has led to a steady decline in the tender price of entecavir Taking Runzhong dispersible tablet as an example, the bidding price of 0.5mg specification dropped from 185 yuan / box in 2010 to the latest bidding price of 70.66 yuan / box But China's biopharmaceutical industry has not been in the awkward position of being the only one At the end of 2017, its first generic drug, tenofovir dipivoxil fumarate tablets, became the first enterprise to pass the consistency evaluation The latter is the first-line drug for chronic hepatitis B compared with other therapies, tenofovir has stronger and faster anti-virus effect and lower resistance than entecavir Its original research product is Werder of Gilead, which was approved for hepatitis B indication in China in August 2013, and its peak sales reached US $1.186 billion (8.2 billion yuan) in 2016 In the first three quarters of 2018, tenofovir contributed only 51 million yuan to China's biopharmaceutical industry At present, 80% of tenofovir's market is occupied by foreign-funded enterprises, and there is a large space for substitution Since 1994, Zhengda Tianqing has established the leading position in the market of liver protection and enzyme reduction by virtue of three major products of liver protection and enzyme reduction series: Ganlixin, Tianqing Ganping and Tianqing Ganmei Among them, Tianqing Ganmei has always been the largest variety of liver disease drug market in sample hospitals, which is also a pattern that Zhengda Tianqing can rapidly open up the situation in the field of liver disease first drug imitation later However, in the first three quarters of 2018, there was a collective decline in the three products of Tianqing Ganmei, Ganlixin and Kaishi The decline was 12%, 15% and 29% respectively According to Shenwan Hengyuan analysis, this is affected by the restrictions on the clinical use of auxiliary drugs and injections However, according to its calculation, the three products accounted for 18.1% of the overall sales revenue in the first three quarters of this year, with limited impact on the overall revenue of China's biopharmaceuticals The launch of 20 new drugs under development, androtinib, marks an important step in the transformation of Zhengda Tianqing from the combination of imitation and innovation to innovative drugs As of June 2018, there are 10 biopharmaceutical R & D bases in China with more than 2000 R & D personnel According to the financial report, in the first three quarters, China's R & D expenditure of biopharmaceuticals was 1.7 billion yuan, accounting for 10.8% of the group's revenue According to the data in the semi annual report, the company's cumulative R & D investment in the past five and three years ranked first in China's listed pharmaceutical companies In the third quarter, 6 new products were applied for production, 3 of which were innovative drugs; 8 new clinical approval documents were obtained, including 5 chemical drugs of category 1.1, 1 chemical drugs of category 2.1, 1 biological products of category 2 and consistency evaluation; 489 products under research with clinical approval documents, ongoing clinical trials and application for production were accumulated Among them, 54 drugs were used for cardiovascular and cerebrovascular diseases, 37 for liver diseases, 206 for anti-tumor, 25 for respiratory system and 26 for diabetes According to the expectation of Guoxin Securities, in the next three to five years, China biopharmaceutical is expected to list more than 20 heavyweight drugs and biopharmaceuticals in the fields of liver disease, tumor, analgesia, endocrine, cardio cerebrovascular, autoimmunity, etc It is estimated that there will be more than 10 varieties of more than 1 billion yuan on sale by 2020 Data source: Guoxin Securities