On May 23, Amicus announced that the company recently signed a distribution cooperation framework agreement with Huons BP in South Korea, which stipulates that the company will introduce Huons BP's botulinum toxin products by means of R&D registration and import and distribute the products as the latter's designated sole legal distributor in the agreed distribution area.
Health Gross margins exceed Maotai, what is this company that only does women's business?" img_height="529" img_width="1090" data-src="//imgq8.q578.com/ef/0601/7562d82fe2f48d48.jpg" src="/a2020/img/data-img.jpg">(Source: Aimee)
In recent years, with a gross profit margin of more than 90%, Amica has been hailed by investors as a "medical maize".
The company mainly operates hyaluronic acid business, specializing in women's business, the recent layout of the botulinum toxin business news undoubtedly for its business incremental space for the imagination, after all, in China's medical market, botulinum toxin has a high technology, resources and cycle barriers.
What kind of company is Amicus that can maintain such a high gross margin steadily? And how did it become a leader in the medical aesthetic industry?
A botulinum toxin injection, open unlimited imagination
According to the announcement of the botulinum toxin business recently released by Amec, Amec and Huons BP of South Korea entered into a framework agreement on distribution and cooperation on May 20, 2022, which stipulates that the company introduces Huons BP's botulinum toxin products by means of research and development registration, and distributes the products in the agreed distribution area. The agreement stipulates that the company will introduce Huons BP's botulinum toxin products in the form of R&D registration and act as the sole legal distributor designated by the latter for the importation and distribution of the products in the agreed distribution area (referring to the People's Republic of China including Macau and Hong Kong).
Health Gross margins exceed those of Maotai, what is the origin of this company that only does business with women?" img_height="873" img_width="773" data-src="//imgq8.q578.com/ef/0601/638d1ea0c60a4349.jpg" src="/a2020/img/data-img.jpg">(Source: Aimeeke) (Screenshot of the announcement)
Meanwhile, Amicus also said that the company had entered into a distribution agreement with Huons (a subsidiary of Huons Global along with Huons BP) in 2018, which stipulated that the company would introduce Huons' Botulinum Toxin Type A 100U product by way of R&D registration. In view of the fact that the rights of the said Botulinum toxin type A 100U product have been vested in Huons BP and the new distribution agreement signed between the Company and Huons BP includes the said Botulinum toxin type A 100U product, the original distribution agreement signed between the Company and Huons was terminated.
It is worth noting that the announcement also pointed out that the above distribution agreement to reach the premise of cooperation is that the Amicus must obtain the agreement under the product import and sales license, the import and distribution of the product shall be the company in the distribution area to obtain the product registration certificate. In this regard, Wanlian Securities issued a research report pointed out that "relative to the second only to hyaluronic acid botulinum toxin market demand and space, the domestic botulinum toxin is still a blue ocean market, if the love beauty of the customer successfully approved, will enjoy a rich market dividends."
Public information shows that botulinum toxin is a toxin produced by the bacterium Clostridium botulinum, also known as botulinum toxin or botulinum toxin, a bacterial exotoxin produced by the bacterium Clostridium botulinum in the process of reproduction, is one of the most toxic natural substances. Botulinum toxin is one of the most toxic natural substances. Botulinum toxin blocks nerve impulses between nerves and muscles or temporarily paralyzes the muscles to achieve wrinkles and skinny faces.
Health Gross profit margins exceed Maotai, what is this company that only does women's business?" img_height="449" img_width="1269" data-src="//imgq8.q578.com/ef/0601/5a3203a43be06f8b.jpg" src="/a2020/img/data-img.jpg">(Source: Dongwu Securities Research Institute)
According to public data released by Frost & Sullivan, a leading global market research organization, China's botulinum toxin market size was approximately 10.9 billion yuan in 2017, with a CAGR of 20.56% between 2017 and 2022, and is expected to reach 27.7 billion yuan in 2022.
According to Wanlian data statistics show that the hyaluronic acid product botulinum toxin from conducting clinical trials to be approved generally takes 3 to 5 years, and botulinum toxin products as a poisonous numbing products, its approval standards are more stringent, botulinum toxin products over the license time of up to 8 years or more, and the agent products also need 3 to 5 years before they can be listed.
Public information shows that the current domestic market **** there are four kinds of botulinum toxin products, respectively, HengLi (Lanzhou biological), BOTOX (Aljen), JiXi (Lpsen) and LeTipo (Hugel), compared with hyaluronic acid products, botulinum toxin market has a certain scarcity, and therefore, botulinum toxin is known as the medical beauty industry's "oil of gold! "
It's worth noting that Botox has been used for a long time.
It is worth noting that, according to the data of the financial report of Sihuan Pharmaceuticals, from February to June 2021, the botulinum toxin Le Tipo's botulinum toxin products hit a record of more than 200,000 bottles of sales in four months on the market, with revenues of up to 260 million yuan. At the same time, the sales of the product also has the Lotepo botulinum toxin products exclusive rights of the four rings of the pharmaceutical share price soaring to provide support - data show that in the first half of 2021, the four rings of the pharmaceutical share price to achieve more than four times the increase.
Gross profit margins exceeded Maotai, only to do women's business "medical beauty Mao"
"At that time I saw a 70-year-old lady, Europe and the United States, the expression of the exaggerated, wrinkles are deeper. But after the injection was completed, her wrinkles were significantly reduced." Jane Jun, the founder of Aimer, revealed in a media interview, "That was the first time I saw hyaluronic acid (also known as 'sodium hyaluronate') injections up close and personal, and at that time I thought, there must be a market for this."
In June 2004, after 13 years of work in the United States, Jian Jun returned to China, and her husband *** with the creation of the Beijing Yingzhihuang Bio-technology Company Limited (the predecessor of the Amicus, in 2005 changed its name), began her hyaluronic acid business.
According to the research report released by Wanlian Securities, "First Time Coverage: Executing the Way of Beauty to Defend Against the Long Wind", the hyaluronic acid industry chain, the industry upstream for the medical beauty raw materials, consumables, drug producers and manufacturers of instruments and equipment, the industry middle reaches for the medical cosmetic institutions, including the plastic surgery of the public hospitals, skin and non-public medical cosmetic institutions, and the downstream for the docking of the majority of end-consumers of online channels and the traditional offline channels. traditional offline channels. Among them, the high threshold of the upstream segment makes the entire upstream manufacturers present high concentration and strong profitability, with gross profit margins as high as 70% to 90%.
However, from the point of view of the domestic hyaluronic acid market environment at that time, the raw material end has a large factory Huaxi Biological, its hyaluronic acid raw material capacity in 2000 has landed 0.8 tons, sitting in the industry boss position. In addition, Huaxi biological industry chain also vertically extended to medical, food, cosmetics and other fields.
In this context, Aimer walked the road of differentiation, focusing on the blue ocean market at the time - light medical beauty (refers to the non-surgical medical means, non-invasive medical beauty to improve the traditional surgical procedures, to achieve the purpose of beauty).
It turns out that in recent years, China's light medical aesthetic market is witnessing rapid development. According to the data of "2020 Market Research Report on Global and Chinese Hyaluronic Acid (HA) Industry" published by Frost & Sullivan, the market size of China's non-surgical medical aesthetics industry grew from RMB 30.8 billion to RMB 77.3 billion from 2016 to 2020, with a CAGR of up to 25.9%, and its share increased from 39.7% to 49.9%, and it is expected to continue to grow in the future
With the prioritization of the market, the market size has grown from RMB 30 billion to RMB 77.3 billion.
With the first-mover advantage of prioritizing the layout, Aimek has also achieved remarkable results. Financial data show that in 2021, Aimek realized operating income of 1.448 billion yuan, up 104.23% year-on-year; net profit was 1.122 billion yuan, up 123.06% year-on-year.
Correspondingly, Amica has also grabbed a high market share. According to the annual report 2021 released by Amec, as of 2020, Amec's market share in the sodium hyaluronate-based dermal filler market reached 27.2% of the domestic market share by sales volume, ranking first among all manufacturers, and 14.3% of the domestic market share by sales volume, ranking first among domestically produced manufacturers.
The most profitable medical beauty company, where is Amica headed?
As a company with a first-mover advantage and high market share in the core industry chain in a popular industry, Amec's revenue quickly exceeded the 1 billion yuan mark right after it went public, and its profit margins are among the best in the industry. However, its over-reliance on a single business and low technology barriers have been criticized by the market.
First, there is the problem of its single operating income structure. The financial report data show that in 2021, the total revenue of Aimek was 1.448 billion yuan. However, it is worth noting that, according to the product classification, the solution injection products contributed revenue of 1.046 billion yuan, accounting for 72.25% of the total revenue. Public information shows that at present, the solution class injection products are mainly HEARTY Hi body, used for intradermal dermal layer injection filling to correct moderate to severe wrinkles.
Health Gross profit margins exceed Maotai, what is this company that only does women's business?" img_height="689" img_width="1123" data-src="//imgq8.q578.com/ef/0601/39cf1eab398168ea.jpg" src="/a2020/img/data-img.jpg">(Image source: State Drug Administration official website screenshot)
Secondly, "how high are the technical barriers of Aimark" has also been a concern for investors. According to the listing prospectus of Aimer, from 2017 to 2019, the purchase price of its sodium hyaluronate raw materials is higher than that of other leading enterprises in the same industry. In addition, according to the annual report of Aimer 2021, the procurement amount of its top five suppliers accounted for 72.36% of the total annual procurement, of which the first supplier's procurement amount accounted for 41.23% of the total annual procurement.
In the face of market skepticism, Amicus has also taken a series of targeted initiatives. Public information shows that in 2021, Aimek's R & D investment is about 102,312,200 yuan, an increase of 65.54% over the same period last year. On the other hand, Amec is laying out the botulinum toxin business, powering the second growth curve.
However, whether it is the market share accumulated by the first-mover advantage, or the resource advantage relied on by the agent of the new product, in the face of the competitor's enthusiastic entry, it is difficult for Amica to have the confidence to always walk in the forefront of the industry.