Wen | An Fujian
The first time in six years to stop! August 20, Hengrui Medicine (600276.SH) ushered in the "dark moment".
The stock price cut, the company layoffs, fund flight ...... Once the "big white horse" and "medicine brother", has been inferior to the Myriad Medical (300760.SZ) and WuXi Kangde (603259.SH) after.
19 evening, Hengrui medicine disclosure 2021 half-yearly report, the report period cumulative R & D investment of 2.581 billion yuan, an increase of 38.48% over the same period last year, R & D investment accounted for the proportion of sales revenue as high as 19.41%, but the net profit is nearly zero growth, the growth rate of a record low in 18 years.
After the opening of August 20, Hengrui Medicine shares repeatedly touched the stop, to 11:00 a.m., has been more than 25,000 hand sell orders sealed the stop, closing at 48.46 yuan / shares, the total market value of 310 billion yuan. Compared to the market value of 600 billion once this year, has been cut. At the same time, the Internet rumors of Anhui Province, clinical test reagent collection meeting minutes, so that the "instrument thatch" Meizu medical plummeted 17%.
By the "drug thatched" and "device thatched" impact, Nanwei medicine (688029.SH), Wanfu biological (300482.SZ), gold domain medicine (603882.SH), through the medical (600763.SH) and other leading pharmaceutical stocks. SH) and other leading pharmaceutical stocks have fallen more than 10%.
21 years on the market, the overall upward Hengrui share price although there are ups and downs, but this half of the downward curve of the steepest, unprecedented, "medicine thatched" how to this? The last two years, Hengrui successive mistakes, profit margins continue to narrow, as pointed out half a month ago by the "financial health Road": Hengrui medicine can not tolerate mistakes. The half-yearly report of the wind blowing grass, instantly in the capital market caused a wave of huge waves.
Generic drugs have been cut off, and the future of innovative drugs and internationalization is still uncertain. A few days ago, 63-year-old Sun Piaoyang returned to the chairman of the board of directors, is considered to be a ray of hope to save Hengrui medicine.
01
Collective purchasing is unfavorable
Health insurance negotiation blunder
The reason why Hengrui Medicine has a bad year is mainly due to two reasons:
According to the half-yearly report of the company, by the impact of the national and local band purchasing. The company's traditional generic drug sales declined. six drugs involved in the third batch of volume purchasing, which began to be implemented in November 2020, saw a 57% ringgit decline in sales revenue during the reporting period. On the other hand, the main product carilizumab since March 1, 2021 began to implement the health insurance negotiated price, the rate of reduction of 85%, coupled with the product into the hospital difficult, local health insurance implementation time is not the same and so on many problems, resulting in carilizumab sales revenue ring negative growth.
Three feet of ice is not a day's cold. In June this year, the fifth batch of procurement, due to the Hengrui offer strategy is not appropriate and made a big mistake, the heavyweight products iodixanol injection and glonidazide injection careless loss of bidding, the two accounted for the company's revenues totaled 7.1%; the price of other products won the bidding, the gap between the competitors compared to the lack of advantage, for example, the largest amount of bidding for the benzenesulfonyltransfonium atracurium injection offer $ 158, much higher than the other two ( 241.8 yuan and 343.8 yuan).
The importance of collective purchasing and health insurance for pharmaceutical companies is self-evident. If you're not careful, you can lose everything you've worked for.
Carelizumab PD-1 health insurance negotiations have failed, so the upcoming health insurance negotiations will be particularly critical.
July 30, 271 through the preliminary formal review of the list of drugs released to the public, Hengrui Pharmaceuticals, Baji Divine State have three new drugs into the Department of the largest number, and two of them face direct competition. Hengrui medicine new drugs include PD-1 monoclonal antibody, PARP inhibitors. There is also a heavyweight new drug is a chemical drug class 1 innovative drug TPO-R agonist Hetropofol ethanolamine tablets. According to Guosheng Securities calculations, if it can enter the health insurance rapid release, the drug is expected to peak sales are expected to exceed 1 billion yuan. This round of health insurance negotiations, for Hengrui Medicine, is a life-saving straw that must be grasped.
02
Pushed down the domino "stock" card
Since its listing in 2000, Hengrui has run out of a hundred times the long bull market, and even become the financial crisis of 2008. The most resistant to fall one of the big blue chips - at that time the annual share price fell only 18.79%. 2021 second quarter, Hengrui single-quarter non-deductible net profit slipped, and the last single-quarter profit year-on-year decline, 11 years ago in the fourth quarter of 2010.
But this was foreshadowed.
Hengrui medicine position fund in the first half of the year has been a succession of flight. As of June 30, *** there are 326 funds disclosed holdings of Hengrui medicine, a total of 236 million shares, compared with the last quarter, a decrease of 29.38%. Compared to the first quarter, the north of the funds Hong Kong Central Clearing Company Limited in the second quarter to reduce holdings of shares of about 0.19 billion shares, holdings of 766 million shares, the proportion of holdings from 12.26% down to 11.97%, is still Hengrui medicine 3rd largest shareholder; and Oppenheimer Funds - China Fund for the reduction of holdings, and even has been withdrawn from the list of the top ten shareholders.
Agency exit, the retailer to take over, but continue to enter the field "bottom" of the retailer has been trapped.
According to statistics, the number of shareholders of Hengrui Medicine has increased significantly, especially in the second quarter of the growth rate of more than 60%. 2020, the number of shareholders of Hengrui Medicine 281,800, to the end of March, the growth of 367,600, an increase of about 30%. At the end of the second quarter, the number of shareholders of Hengrui Medicine surged to 610,100 households, an increase of up to 65.97% from the end of March.
It's worth noting that High Tier Capital is passively emerging as one of the top 10 shareholders of Hengrui Medicine, which may be a signal that there are still big institutions in the capital market that are bullish on Hengrui Medicine. Gao Tiling capital since December 2015 around open position into the field of Hengrui medicine, within a year has twice to increase the position. From Hengrui medicine public top ten circulation shareholders data, the third quarter of 2016 increased to 21.93 million shares, last year 2020 to exit the top ten shareholders. To this day, High Tide Capital holds 40,461,900 shares, 0.63% of the shareholding.
At the same time, there are bulls told "Caijindao", the next trading day is to enter the bottom.
03
Layoffs continue to storm
Hengrui how to fight back?
August 20, on the "Hengrui medicine substantial layoffs" information on the Internet, the even on the "Oriental wealth" guide column. The layoffs are mainly related to generic drugs, medical representatives, and will increase the innovative drug research and development personnel. There is news that Hengrui medicine bold layoffs, to reduce the number of people from 30,000 to 20,000. In response to this matter, Hengrui medicine securities department staff responded that the company in the half-yearly report on this matter, "the company to focus on resources to do innovation and the internationalization of the operational reform". Earlier, a Hengrui Medicine insider interviewed by the media said, "In fact, the organizational structure evolution from June this year has begun."
New business adjustments, drastic layoffs, these new moves frequently behind, stood Hengrui medicine "big long", the number one soul Sun Piaoyang. August 4, Sun Piaoyang formally re-emerged as chairman. Can it become a shot in the arm for Hengrui? It is still not known.
The financial data show that Hengrui has established a 136-person overseas R & D team in the United States, Europe and other places, the main members are from Roche, Novartis, Pfizer, Merck and other well-known drug companies in the middle and senior talent; 23 international clinical trials are being carried out to promote the development of the international multicenter Ⅲ project, of which 7, and there are more than 10 studies in the preparatory stage, **** start 86 overseas centers.
It is worth noting that the main product Karelizumab, on the other hand, has brought Hengrui the first international multi-center Phase III clinical study - Karelizumab combined with Apatinib for advanced liver cancer international multi-center Phase III study has completed overseas enrollment, and initiated the preparation work before the submission of the U.S. FDA BLA/ NDA; In addition, several other products have achieved global synchronous development.
Can these overseas projects break through as soon as possible? This is testing Sun's speed.
In order to highlight Hengrui's ability to sustain innovation, this half-yearly report also disclosed Hengrui's innovative drug revenue and pipeline, innovative drugs to achieve sales revenue of 5.207 billion yuan, a year-on-year increase of 43.80%, accounting for the proportion of the overall sales revenue of 39.15%. And high R & D investment, Hengrui bet on innovative drugs of the nature has not changed at all. Although the competition is getting fiercer, R&D, internationalization, operational optimization, and the return of Sun Piao Yang's king are still the moats of Hengrui.
In 1990, 32-year-old Sun Piaoyang was appointed to serve as factory manager, to save a small factory with only 80,000 yuan of book capital "Jiangsu Hengrui Pharmaceutical Co.
Movie Darkness. At the end of the movie "Darkest Hour", Churchill said: there is no ultimate success, there is no fatal failure, the most important thing is to continue to move forward the courage.
(Lena Yin also contributed to this article)