The performance of Lianhua Qingwen Capsule has doubled, but Yiling Pharmaceuticals wants to lay off medical representatives?

Reporter | Zheng Jie

Edit | Xie Xin

In 2020, Yiling Pharmaceutical, which took a ride on the new crown epidemic and sold its best performance in the past three years, has recently been reported about its sales layoffs
.

Industry self-media "Brother Luo Shi" stated that because Lianhua Qingwen Capsules had sold too well before and the sales staff were in a hurry, Yiling Pharmaceuticals expanded the recruitment of this position last year.
Now, the manager of the provincial and regional urban and rural department of Yiling Pharmaceuticals has received The notice stated that the company would lay off 10% of its staff and cut 60 offices, and then representatives whose targets were lower than 70% would be laid off
.

The rumors of the layoffs of Yiling Pharmaceutical this time are alleged to be related to the failure to reach the desired sales volume after the expansion of the pharmaceutical representative
.

On the morning of May 17, the Jiemian News reporter learned from industry insiders that Yiling Pharmaceuticals did not carry out formal layoffs with documentary notices, but was making layoffs in disguised form, that is, leaving without reaching the target

Regarding this, the news reporter of Jiemian contacted the representative office of Yiling Pharmaceutical Securities and the Brand Center by phone, but as of the time of publication, no reply was received from the other party
.

After the outbreak of the new crown epidemic in 2020, Lianhua Qingwen Capsule was listed as the recommended medication during the medical observation period by the "Diagnosis and Treatment Plan for Pneumonia Infected by the New Coronavirus" and was once sold out
.

According to the 2020 annual report of Yiling Pharmaceutical, during the reporting period, the operating income of Yiling Pharmaceutical was approximately 8.

In contrast, according to its 2019 annual report, Yiling Pharmaceutical's operating income was 5.
825 billion yuan, an increase of 20.
99% year-on-year, and its net profit over the same period was 602 million yuan, an increase of 1.
21%
.

According to its 2018 and 2017 annual reports, the average year-on-year increase in operating income was below 20%, and the average year-on-year increase in net profit was below 10%

       Judging from the data published in its annual report, the main reason for this jump in performance is the performance of Lianhua Qingwen series.
Yiling Pharmaceutical started with cardiovascular Chinese patent medicines.
In 2020, Lianhua Qingwen will be the representative of respiratory system.
Chinese patent medicines surpassed cardio-cerebrovascular Chinese patent medicines for the first time, achieving an annual income of 4.
255 billion yuan
.

According to industry insiders, this performance is even roughly equal to the sum of the PD-1 sales of three well-known domestic innovative drug companies in 2020

       In the scope of sales of similar drugs nationwide, in 2020, Lianhua Qingwen Granules/Capsules will be listed in the "New Coronavirus Pneumonia Diagnosis and Treatment Plan", and its sales performance will also force other Chinese patent medicines and cold medicines to occupy the "C position".

.

According to the 2020 annual report of Yiling Pharmaceutical, in the first half of 2020, Lianhua Qingwen series products accounted for 37.

Starting from the second half of 2020, the domestic epidemic has been well controlled, and even the demand for the Huaqingwen series has gradually become rational, and sales have gradually stabilized.
According to the data released by Yiling Pharmaceutical in the 2020 annual report, it can be seen from the first quarter to the fourth quarter of the year.
Net profit showed a clear downward trend, with 437 million yuan, 276 million yuan, 301 million yuan, and 202 million yuan respectively
.

Judging from the current situation, this year has been nearly half of the time.
The domestic epidemic is well controlled and vaccination is rapid.
It is unlikely that Yiling Pharmaceutical will achieve a high growth similar to last year with the Lianhua Qingwen series in China; on the other hand, although Lianhua Qingwen series The Huaqingwen series has plans to go overseas, and achieved approvals and sales in more than 20 countries and regions before December 31, 2020.
However, according to Yiling Pharmaceutical’s 2020 annual report, the company’s overseas sales in 2020 will only be For 304 million yuan
.

       In addition to the Lianhua Qingwen series, the performance growth rate of cerebrovascular Chinese patent medicines started by Yiling Pharmaceutical is also stable and fluctuating, but when it is stable, the growth rate basically hovered at 10%.
From 2016 to 2019, The year-on-year growth rates of the company's operating income of this product were 18.
31%, 9.
60%, 1.
10%, 10.
39%, and the growth rate of cardiovascular and cerebrovascular products in 2020 was 11.
31%
.

       For pharmaceutical companies to maintain a high growth rate for a long time, in the final analysis, it depends on their R&D capabilities
.

In 2020, from the perspective of the annual report, Yiling Pharmaceutical's R&D expenses increased rapidly, reaching 654 million yuan, compared with 390 million yuan in 2019, an increase of 67.

       It is worth noting that, according to Caixin.
com, on May 4, the well-known scientific research website Retraction Watch disclosed a signed paper "Efficacy and safety of traditional Chinese medicine Lianhua Qingwen Capsules in patients with new crown: more than one.
Central, Prospective, Randomized Controlled Trial" report
.

The research results were published in Phytomedicine in May 2020, which is the first international journal to include research on Chinese medicine against COVID-19

       The core of the report is that Jia Zhenhua, as a member of the board of directors, secretary of the board of directors, and actual controller of Yiling Pharmaceutical, and the husband of Wu Rui, the daughter of Wu Yiling, the founder of Yiling Pharmaceutical, was not disclosed when the paper was published.