What is the future imagination space for Hengrui with a market value of more than 300 billion yuan

Source: on June 6, 2018, the closing of e drug manager, Hengrui's market value reached 303.5 billion yuan, holding a market value of 300 billion yuan! It took 16 years, from 100 billion yuan to 200 billion yuan, and Hengrui one year, from 200 billion yuan to 300 billion yuan, only half a year So how far is 400 billion yuan? For Hengrui's performance, some netizens once joked that "Hengrui is the rhythm of heaven" On June 1, Hengrui was able to sign a contract with China Astronaut Research and training center to participate in the unique mission drug support project in the microgravity environment of the space station According to the agreement, Hengrui pharmaceutical and China Astronaut Research and training center will carry out long-term cooperation on "development and long-term guarantee of multiple pre filling injection for space station mission", and the first batch of new drug varieties to be included in the development will be 6 The market value of Hengrui has reached the top 30 among all A-share enterprises Hengrui's breakthrough has laid a great imagination space for Chinese pharmaceutical listed companies Of course, we need to see the strength that leaders need Before that, many enterprises took foreign enterprises as their targets Now, some enterprises began to take Hengrui as their target enterprises, and launched an impact on them to surpass Hengrui Hengrui has been pushing forward for 40 years Like most enterprises, Hengrui is a small factory engaged in the business of red medicine and purple medicine It has no fame and technology, so it can only do some small business of API In the business of hongyaoshui, Hengrui has worked for 20 years, and its profit is only tens of thousands of yuan Under the market competition, bankruptcy has become an inevitable trend However, in 1990, sun piaoyang, 32, took the post of factory director, reversing the difficulties at that time and laying the foundation for today's Hengrui In the face of the difficulties at that time, sun piaoyang, the new executive, made the new Hengrui with an extraordinary strategic adjustment Of course, it may not have been called strategic adjustment at that time, just to live But how to live is an entrepreneur's choice for the future development of the enterprise Any choice is risky Choosing right is a smooth one and choosing wrong is doomed Fortunately, sun piaoyang chose the right one At that time, he proposed the choice of entering the "generic" track for the situation of small technical content and low added value of the enterprise's products, and made an article on the product structure Now it seems that the success was actually achieved by "pushing out the consensus" at that time In 1990, there were not many institutions and pharmaceutical factories for the research of tumor drugs Sun piaoyang, however, set Hengrui's development direction on tumor drugs With loans, he acquired the patent right of ifosfamide, an antineoplastic drug developed by the Institute of medicine, Chinese Medical Academy, which opened the development of tumor drug industry, and made Hengrui's sales rapidly go up to the next level, breaking through 100 million yuan Another important year for Hengrui is 1996, when it started the layout of anesthesia product line As we all know, there are policy barriers in the narcotics market There are strict controls in this field, and no enterprise can do it if it wants to But once in, they will enjoy the dividend of policy barriers After passing the layout of the two product lines, we have the original accumulated Hengrui, as sun piaoyan said: "if you have no technology, your destiny is in the hands of others, and we need to grasp the destiny in our own hands." What starts from this is the course of Hengrui towards R & D innovation In 2000, Hengrui invested nearly 200 million yuan to establish a new research center in Shanghai, which was regarded as a milestone event of Hengrui innovation The design, planning and construction of the center refer to the research center standards of American pharmaceutical companies, and the scientific research personnel employed are also paid according to American wages Through more than 10 years of low-key stealth, Hengrui's R & D strength has become increasingly prominent, and its product line has become increasingly full Hengrui's product line covers many fields such as antineoplastic drugs, surgical anesthetics, special infusion, contrast agents, cardiovascular drugs, etc., and has formed a relatively complete product layout, among which, the market share of antineoplastic, surgical anesthetics, contrast agents and other fields ranks first in the industry According to its published annual performance report, in 2017, it achieved revenue of RMB 13.836 billion, a year-on-year increase of 24.72%, and net profit of RMB 3.217 billion, a year-on-year increase of 24.25% In 2016, Hengrui's revenue and net profit increased by about 19% Compared with last year, the growth rate of the largest pharmaceutical A-share market value is picking up It is worth mentioning that on April 12, the executive meeting of the State Council proposed to reduce the import tariff of all ordinary drugs, including anticancer drugs, alkaloid drugs with anticancer effect and Chinese patent drugs with actual import to zero By the end of April 13, the market value of Hengrui a share had evaporated by 11 billion yuan in half a day, but this episode did not seem to affect the market value of Hengrui 1 In 2018, Hengrui new drug will be in a state of high-speed production First, on March 1, Hengrui issued a public company announcement The imitated products benzenesulfonaatracurium injection and paribone alcohol injection were approved by CFDA Hengrui became the first enterprise in China to obtain the production approval of these two products In addition, Shanghai Hengrui, a subsidiary of Hengrui, previously declared that the desflurane for inhalation of Anda was also successfully approved by the US FDA Then on May 4, the new drug shr7280, a new oral small molecule GnRH receptor antagonist, was approved by CFDA and said that it would carry out phase I clinical trial in the near future Then five days later, another new drug shr2554 was also approved for clinical trial On the same day, Hengrui pharmaceutical also announced that it has successfully obtained the batch number of Anda in the United States, which is used to treat breast cancer, ovarian cancer and other diseases, marking the further internationalization of its strategy Then on May 18, the State Food and Drug Administration issued a message confirming the listing of Hengrui 19K For this product, the external expectations are very high, and it is considered to be the next large variety of Hengrui after docetaxel, apatinib, atracurium, dexmedetomidine and iodophor It can be predicted that the sales volume of Hengrui will still increase rapidly in 2018 In the past 2017, the sales of Hengrui has also performed well, and anti-tumor products are still the main force of Hengrui's performance In 2017, the revenue of antitumor drugs reached 5.722 billion yuan, accounting for 41.36% Among them, apatini achieved remarkable results by entering the new version of the national medical insurance catalog During the reporting period, the sales volume reached 826600 boxes, with a growth rate of 73.55% In the future, the peak sales volume is expected to exceed 2.5 billion yuan, becoming the heavyweight product driving the growth With the adjustment of medical insurance catalogue in 2017, pegylated recombinant human granulocyte stimulating factor will enter the national medical insurance category B catalogue, and the domestic long-acting G-CSF will enter a rapid development period, contributing to the sales of Hengrui In addition, in Hengrui's main research and development projects, 6 products, including pyrrolidine maleate and tablets, azilsartan tablets, temozolomide for injection, desflurane for inhalation, bensulfonaprin atracurium injection and paclitaxel for injection (albumin binding type), have entered the application production stage, and are expected to promote performance growth in 2018 In recent years, Hengrui, whose innovation ability is open, has greatly increased its R & D investment According to the 2017 financial report data, its R & D investment has reached 1.759 billion yuan, an increase of 48.53% over 2016, and the proportion of R & D investment in sales has also reached 12.71% Last year, 154 new domestic applications, 45 new international PCT applications, 23 domestic authorizations and 30 foreign authorizations were submitted It is reported that Hengrui has 17 innovative drugs under clinical development 2 Hengrui, which has taken the leading position in China, is expected to grow into a global giant Of course, this is Hengrui's big strategy to break through its own development limitations Whether Chinese pharmaceutical companies can make great moves overseas, Hengrui, as the leader of Chinese pharmaceutical industry, is bound to achieve something in the world, otherwise, the innovation talked about every day can only be regarded as "Chinese characteristics" In 2011, since irinotecan became Hengrui's first drug product approved by FDA, Hengrui has opened a small universe Subsequently, bensulfonatracurium injection, docetaxel injection and dexmedetomidine hydrochloride injection were approved for marketing in the United States, caspofungin for injection was approved for marketing in Europe, and desflurane for inhalation was approved for marketing in the United Kingdom, Germany and the Netherlands In 2017, Hengrui continued to increase its internationalization strategy, with overseas sales revenue reaching 637 million yuan, a year-on-year increase of 47.40% In addition to promoting existing products, Hengrui has also actively expanded its new product listing plan In 2017, four injections and two APIs were submitted to the FDA of the United States, one injection to Japan, one tablet and one API to Europe; other emerging markets such as Australia, South Africa, the Middle East and other countries have gradually strengthened their registration efforts In terms of internationalization of innovative drugs, shr-a1403, shr9146, shr-1316 injection, shr8554 injection, shr-1314 injection and other products were approved to carry out clinical trials overseas It is worth noting that the vast majority of its innovative drugs are injections This is also related to Hengrui's strategy of internationalization of pharmaceutical preparations Hengrui has always focused on injection and other fields with complex technology and high technical difficulty, as well as anti-tumor, surgical anesthesia and other fields with huge market capacity Therefore, although the number is not large, almost the products approved by Hengrui are heavyweight products that can bring a lot of profits Since 2018, Hengrui's innovative products have made new breakthroughs in the world On January 4, 2018, Hengrui and arcutis company of the United States formally reached a license agreement on Jak1 inhibitor (shr0302) for the treatment of immune system diseases Arcutis company obtained the exclusive rights of clinical development, registration and marketing of Hengrui's products in the United States, the European Union and Japan What's more, Hengrui has also started to plan to build its own sales team overseas If the strategy is implemented, it will undoubtedly be an important step for Hengrui to step out of the Chinese market 3 Hard marketing strength although Hengrui pharmaceutical has been praised by the outside world for its image of R & D, its actions are not only in R & D In fact, in terms of marketing, Hengrui's strength is not weaker than those enterprises that are good at marketing In order to further improve market share and marketing efficiency, Hengrui has made a major change in its marketing system since 2017 In terms of marketing, Hengrui has promoted the sub line sales mode, adopted the strategy of vertical sub line and horizontal coordination, refined the sub market to tap the market potential, and increased the promotion of academic and professional In 2017, Hengrui has expanded its scale to about 10000 people on the basis of more than 7200 people in 2016 In order to meet the requirements of rapid volume of new approved products in the future, the net number of sales personnel increased by 2200 after the line division adjustment, forming a professional sales team of academic type and professional promotion At the same time of expanding the team, we will gradually set up regional management centers in all provinces of the country, strengthen platform management and territorial management, expand the sales team, pay attention to the comprehensive quality of sales personnel, combine the introduction of talents with self-cultivation, and improve the professionalism of personnel in all departments through a systematic and professional training system Hengrui pharmaceutical also mentioned in the annual report that in the future, it will continue to make efforts in the county market development, and build academic, medical clinical and public affairs through the regional management centers established in the provincial capitals