Whose cheese was braked by two tickets? Pressure on revenue growth of these pharmaceutical enterprises in 2017

Source: in the past year of May 11, 2018, a series of medical reform policies, such as the two vote system, are forcing pharmaceutical enterprises to adjust their strategies By the end of April, all pharmaceutical companies listed in Shanghai and Shenzhen have disclosed their 2017 annual reports According to statistics, 219 listed pharmaceutical enterprises have achieved a total operating revenue of 1084.76 billion yuan and a net profit of 95.655 billion yuan While the overall trend is improving, it is inevitable that "a few are happy and a few are worried" The negative impact of the two vote system and other policies is also reflected in the performance of some enterprises Here, the health sector combed the enterprises affected by the health reform policy in 2017, resulting in both revenue and profit decline, which may be able to have a glimpse of the survival of pharmaceutical enterprises under the policy wave "Two ticket system" shock wave: revenue and profit double pressure 2017, is the year of implementation of many important policies in the pharmaceutical industry, medical reform gradually entered the deep-water area Under the market environment of constant trend of medical insurance fee control and drug bidding price reduction, a series of policies such as public hospital reform, anti drug restriction order, hierarchical diagnosis and treatment, two vote system, drug review and approval, generic drug consistency evaluation, etc., as well as the adjustment of medical insurance catalog and the introduction of negotiation catalog, have a profound impact on the development of the pharmaceutical industry By the end of April, 219 listed pharmaceutical manufacturing enterprises in Shanghai and Shenzhen had fully disclosed their 2017 annual reports (the data comes from Dongfang fortune.com, and no annual report was released due to the suspension of issuance of aosaikang and Ciming medical examination) According to the statistics of the health sector, of 219 listed pharmaceutical enterprises, 60 suffered a loss in net profit, 21 suffered a decline in both revenue and net profit, and half of them suffered a loss due to the impact of pharmaceutical policies During the reporting period, the revenues and net profits of Shanghai Laishi, Harbin Pharmaceutical Co., Ltd., Jingfeng Pharmaceutical Co., Ltd and zoelli Pharmaceutical Co., Ltd were significantly affected Taking Beida pharmaceutical as an example, the product exetane, as a domestic innovative anti-tumor drug, has been included in the new version of the national health insurance catalogue published by the Ministry of human resources and social security After the release of the catalogue, due to the long working process from scheme formulation to implementation of medical insurance in different regions, the difficulty of market connection has brought great challenges to the sales of exetane In addition, the listing of domestic generic drugs of gefitinib has further intensified the market competition Under the influence of the policies related to the control of medical insurance fees, the performance of Dali pharmaceutical industry is also under pressure According to the annual report, the main reason for the drop in operating costs of Dali pharmaceutical industry is that the production and sales of the company's products have declined to varying degrees due to the restrictions on the use of traditional Chinese medicine injections and related policies such as medical insurance fee control Under the implementation of the "two ticket system" policy, the product sales price has risen compared with the product sales price under the traditional sales mode, resulting in a small drop in operating revenue year-on-year Also affected by the medical insurance control fee is guangshengtang Due to the assessment of medical insurance control fee and proportion of hospital drugs, the market growth of guangshengtang's main product nucleoside (acid) anti hepatitis B virus products slowed down, and the bid winning price of the company's products in multiple regions decreased, resulting in a 5.34% decrease in operating income over the same period of last year, and a 49% decrease in net profit attributable to shareholders of listed companies over the same period of last year 46%, net profit attributable to shareholders of listed companies after deducting non recurring profit and loss decreased by 53.30% over the same period of last year Under the influence of factors such as the proportion control of hospital drugs, medical insurance fee control, bidding price reduction, etc., the drug sales and prices of longshenrongfa are under pressure For this reason, longshenrongfa increased the construction of marketing network last year and actively carried out marketing promotion The sales expense increased by more than 80% year on year, but the effect was not obvious: the sales volume of Chinese patent medicine was basically the same as that of last year, and its income decreased, and the substantial increase of expense directly led to the decrease of profit At the same time, the R & D investment of longshenrongfa is obviously insufficient: the R & D cost has been continuously reduced from 10.19 million yuan in 2015 to 6.14 million yuan in 2017, accounting for only 2% of the company's revenue, far below the industry average level In the disclosure of weixinkang, the impact of the two ticket system on the company is mainly reflected in the cost of revenue and accounts receivable Before the implementation of the two ticket system, weixinkang was responsible for the exclusive distribution of the cooperative products nationwide, with the main business income and main business cost of selling and purchasing goods; after the implementation of the two ticket system, it collected the patent and technology use income, trademark / brand use income, market management and promotion service income from the partners, and paid the related market promotion cost to the downstream The company was in the process of research and development The business advantages and income of the sales link have been realized, and the income level has not changed significantly due to the promotion of the two vote system policy In terms of the net cash flow from accounts receivable and business activities, before the implementation of the two ticket system, weixinkang's sales mainly adopted the settlement method of "payment before delivery", with small accounts receivable; after the implementation of the two ticket system, the partner sold and delivered the cooperative products to the designated drug distribution enterprise according to the order of the company at the specified price and quantity, because the drug distribution enterprise Generally, the account period of accounts receivable is 3 months, and the payment period of the partner to the company is extended accordingly During the reporting period, the accounts receivable of the company increases, and the net cash flow generated from operating activities decreases Among the 21 enterprises whose sales channels are sinking due to the impact of policies, the sales expenses of Haite biology account for 66.13% of the business income, the sales expenses of Guonong technology and Jingfeng medical care account for more than 50%, and the sales expenses of sapais and guangshengtang account for more than 40% The implementation of the two vote system is intended to control the unreasonable growth of drug prices, compress some potential rules that may bring gray areas in the middle, and urge enterprises to adjust their marketing models, but make the sales costs of drug manufacturers keep rising Shi lichen, founder of Beijing Dingchen medical management consulting center, once said, "when the original multi vote system, many business links can solve the problem of high opening, and even some links can implement the semi high opening, but after the two vote system, pharmaceutical enterprises are basically high opening and high return So, the cost of marketing goes up naturally " That is to say, after the implementation of the "two ticket system", pharmaceutical enterprises carry out high invoicing and base price settlement The difference between the high invoicing and the base price, one part of which pays taxes and the other part of which is given to dealers, but the sales expenses drawn by dealers from pharmaceutical enterprises must provide legal offset invoices In fact, in order to comply with the national pharmaceutical policy and the development trend of the pharmaceutical industry, pharmaceutical enterprises are also seeking transformation The promotion of the two vote system has restrained the existing sales network with pharmaceutical representatives as the sales channels Pharmaceutical enterprises have begun to try some new sales strategies: expanding sales business types, further sinking channels and strengthening pharmaceutical retail services Take Fosun Pharmaceutical as an example, the self built marketing team is growing By the end of 2017, Fosun Pharmaceutical has formed a domestic and international marketing team of nearly 5000 people, an increase of nearly 2000 people in one year compared with the marketing team of 3000 people in the same period of the previous year In addition, in response to the promotion and sales of lenalidomide, a new heavy drug, Shuanglu Pharmaceutical Co., Ltd also established a marketing team of about 100 people at the end of 2017 Harbin Pharmaceutical Co., Ltd adopts the "franchising mode" It selects franchisees in different regions of the country Through the "franchising agreement" signed by both parties, it carries out contractual constraint management on them, stipulates that industrial products shall be sold in cash, and gives them the sole franchise of Harbin pharmaceutical products in the region This mode adopts the way that the company delivers goods directly to the franchisee, and then the franchisee delivers goods to each sales terminal, so as to shorten the product logistics transportation chain and the intermediate circulation link to the greatest extent At the same time, Harbin Pharmaceutical Co., Ltd relies on the product digital interconnection platform invested and developed by the company, and through the unique "Harbin pharmaceutical product traceability code" of the product, realizes the whole process traceability from product manufacturing, logistics and transportation, commercial distribution, and terminal sales, and all products realize the traceability of source, destination and responsibility On the other hand, the integration of circulation links means "reshuffle" of existing pharmaceutical circulation enterprises The sales, promotion and distribution functions of the whole circulation link are either undertaken by large-scale pharmaceutical commercial companies with both upstream and terminal, or incorporated by upstream pharmaceutical manufacturing enterprises, or become independent third-party pharmaceutical service companies, which is beneficial for leading pharmaceutical circulation enterprises to obtain Greater market share According to the national drug distribution industry development plan 2016-2020 issued by the Ministry of Commerce, by 2020, the proportion of China's top 100 pharmaceutical wholesale enterprises in the total wholesale market will increase to 90%, while the current proportion is 86% Analysts pointed out that according to the existing market size estimates, this will make the top 100 pharmaceutical wholesale enterprises obtain nearly 70 billion market share growth Therefore, the implementation of the two vote system policy can "storm" some enterprises that really conform to the market circulation rules For small pharmaceutical enterprises, the circulation enterprises will face bankruptcy or integration, and for large circulation enterprises, it is an opportunity If the company wants to have a good development momentum, it must occupy more commercial channels to be more competitive in the market Under the policy of medical reform, it will be a long-lasting battle for pharmaceutical enterprises to consolidate their business territory and market share, and what kind of "reshuffle" will appear in the industry in the near future, which is worth looking forward to (data source: annual reports of pharmaceutical enterprises, China Securities Journal)