Weigh! Hengrui stopped a large number of generic drug research and development

Cybelan learned that Hengrui has stopped its research projects of generic drugs and only made innovative drugs and high-end generic drugs with core value ▍ Hengrui, stop the generic drug project on October 9 At a meeting, Cyprian blue learned on the spot that because of the fierce competition of generic drugs, especially after the reform of the national review and approval system, there are more approvals and slower access after the listing; therefore, last summer, Hengrui had stopped the general generic drug projects and only made innovative drugs and high-end generic drugs with core value To this end, sun piaoyang, chairman of Hengrui pharmaceutical, said: up to now, the original research drug with the patent expired has been imitated Even for the drug with a long time before the patent expires, we believe that its market value is not high after evaluation Therefore, from the perspective of input-output ratio, Hengrui thinks that the investment value is not too large - Hengrui should invest in a more effective place Hengrui is also doing this It is understood that the company has been continuously investing in R & D this year, its R & D expenditure will exceed 3 billion yuan At present, it has approved the listing of five innovative drugs, which plays a key role in promoting the growth of the whole company That is to say, Hengrui is more determined to achieve differentiated competition through innovation On the premise of 4 + 7 and consistency evaluation, it is better to take the road of innovation and find its own development path than to jam with most pharmaceutical companies on narrow track "There are dozens of innovative drugs in Hengrui's pipeline, especially those in phase III clinical practice, with considerable investment We can save money in other aspects, but innovation can only increase but not decrease." "Without innovation, there will be no development - to change the status quo of enterprises and have more competitive advantages, we must take the road of innovation," Sun said ▍ to some extent, these enterprises will find a living space As a leading enterprise in China's pharmaceutical industry, Hengrui's strategic adjustment will have some enlightenment to other pharmaceutical enterprises In particular, with the volume purchase, the first imitated, difficult imitated and improved new drugs as well as the breakthrough in technology will continue to be favored by the market, and the development mode of high sales cost to high R & D investment will gradually change In other words, the volume procurement will promote the pharmaceutical industry to increase the investment in the development of high-end generic drugs and the field of innovative drugs, and accelerate the industrial upgrading Cypress blue learned that the global heavyweight drugs basically reached the sales peak in 10-15 years When the patent expires, the sales will drop rapidly, that is, the so-called "patent cliff" However, the patent cliff lags far behind in China No matter the original research drug or the generic drug, the domestic price is generally higher than that of the United States and Britain In fact, generic drugs are based on small profits and quick sales Reasonable production profit is the basic logic of making money, rather than using the price of original research drugs to buy generic products In the future, with the promotion of the mode of volume purchasing and the expansion of the whole country, generic drugs without technical barriers will gradually return to the profit level of the manufacturing industry, and the era of "high gross profit" of generic drugs will come to an end At this time, it is easier for generic pharmaceutical enterprises with the ability of continuous product launch and innovative pharmaceutical enterprises with high R & D investment to find a living space If the generic pharmaceutical enterprises rely too much on a single variety, they are vulnerable to the impact of low prices of new entrants and significantly affect their revenue, then only if the generic pharmaceutical enterprises are rich in products and continue to launch new products, and then rapidly develop the market with the help of volume procurement, can they remain invincible in the future bidding and price reduction competition However, innovative drugs (especially the first new drugs) will make a huge profit to the enterprise by virtue of the advantages of less exclusive competition and low price reduction pressure after being put on the market, which is beyond the reach of generic drugs or me too / me better drugs ▍ innovative drugs, about to usher in explosive growth iqvia data shows that in 2017, innovative drugs accounted for about 5% of China's drug sales It is worth noting that the statistics are not included in a large number of primary medical institutions, and the actual proportion will be lower, while the sales of patented drugs in the United States and Japan are 77% and 56% respectively, and the sales proportion of innovative drugs in China has a huge space to increase The favorable policies will also promote the sales growth of innovative drugs: drug review / marketing will be accelerated; a national drug negotiation system will be established to speed up the integration of innovative drugs into the medical insurance process; at the same time, the monitoring and restrictions on the use of auxiliary drugs will be strengthened, and the limited resources will be used for more valuable aspects, such as reimbursement of innovative drugs, by purchasing with a large amount of money to replace birds It is reported that by 2023, the sales proportion of patent drugs in China is expected to reach 30% It is expected to reach 50% by 2028 China's innovative drug industry may witness explosive growth In addition, the risks of innovative drugs mainly come from huge R & D investment, long R & D time and high R & D risk Therefore, enterprises that can effectively shorten R & D cycle, save R & D investment or reduce R & D risk in technology or business model will be more favored In recent years, Hengrui pharmaceutical has continuously increased its investment in innovation It has grown from a generic pharmaceutical enterprise to a generic pharmaceutical enterprise, and then gradually become a fully innovation driven pharmaceutical enterprise The market value of Hengrui pharmaceutical has increased by 100 times from the initial listing of 3 billion yuan to the current 300 billion yuan This time, Hengrui has begun to suspend the research and development of generic drugs Its strategic positioning is worthy of our consideration.