Germany Exhibition Health (000813): Busy Transformation Of Performance Pressure

In November 27th, after 8 consecutive trading days, the health share price of German exhibition fell to a new low, closing at 6.22 yuan / share, and its market value was below 14 billion yuan.

And in April this year, the German exhibition health market also hit a high of 15.5 yuan / share, the total market value has exceeded 31 billion 800 million yuan.

What about health?

In just half a year or so, what happened to the pharmaceutical company with 3 billion levels of hypolipidemic drugs?

One

Performance suffered "Waterloo"

The health development of the German exhibition is Tianshan textile and its main textile business. In September 2016, Tianshan textile was put into Beijing Jialin pharmaceutical industry through major asset reorganization. Jialin pharmaceutical is a wholly owned subsidiary, and its product, "Atorvastatin Calcium Tablets", is also the core of the health development.

Atorvastatin calcium is the largest market share of lipid-lowering drugs. For a long time, only two products, Lipitor and Alto, occupied the market. In May 2018, the company's first music product, which passed the conformance assessment, became the largest single product in the 3 billion market scale.

In 2018, the company achieved a healthy business income of about 3 billion 291 million yuan, and the proportion of the music company accounted for over 95%.

However, with the promotion of "4+7" purchase, the good days that we can live and enjoy the scenery alone will never return. In December 2018, ah Le first cut the price in the first batch of "4+7" purchase with 83%, and won the bid. In the pilot cities, the sales volume of ah Lok increased significantly, but both revenues and profits declined sharply.

According to the financial data, in the first three quarters of 2019, the company achieved 1 billion 404 million yuan in business income, a 46.95% decrease compared with the same period last year, and a net profit of 338 million yuan, down 53.67% from the same period last year.

Why is that? Is it just because of price cuts?

The head of the marketing department of a large circulation pharmaceutical company said in an interview with the international finance daily that it is not that the price of drugs will not be profitable. When initially designing prices, pharmaceutical companies will take into account factors such as the cost of drug production, the willingness of the masses to pay, and the demand for their own profits. In the current market situation, drug profit is not only based on high price, but needs the collaboration ability of the entire pharmaceutical ecosystem.

What is even more worrying is that in September 25th this year, the results of the procurement of the new tyre quantity were eliminated, and the result of the procurement of the next tire quantity was also very uncertain.

Two

Multi domain open acquisition

After the failure of Ai Le Dan, Germany exhibition health is also trying to find new growth points.

In the past 3 months, the health promotion of de exhibition has been frequent. Investment targets involve the fields of medicine, technology, pharmacy and biomedicine.

In September 24th, Germany exhibition health and Beijing Changjiang Mai pharmaceutical technology limited liability company signed the investment intent letter. In September 25th, the German exhibition health was about 2 billion 100 million yuan to 2 billion 600 million yuan in cash to purchase Jincheng medicine 25.05% shares; in October 24th, the German exhibition health was about to add 300 million yuan cash to Beijing Oriental bio pharmaceutical Polytron Technologies Inc.

In March this year, Germany exhibition health and Han Zhong business management group, hemp investment group reached a strategic partnership.

At present, Dezhou health has jointly established Deyi Pharmaceutical Co., Ltd., Beijing, USA and so on.

But only on the stock market performance, after announcing the layout of industrial hemp, the healthy share price of Germany has not improved much.

In the face of the difficulties in the profitability of the single product, how will the health regulator adjust its strategy and achieve transformation? How to expand the main business and how to coordinate the new businesses? In this regard, as of press release before, German exhibition health did not give a reply.

Three

The 6 pharmaceutical companies are also sad.

Throughout the pharmaceutical industry, there are many similar pharmaceutical companies in Germany, such as Shu Tai Shen, Zhong Heng Group, Beida pharmaceutical, Shanghai Kai Bao and Wu Wu biology. Enterprises that rely more on single products depend on policy influence and have greater pressure to transform.

In August 20th, the National Health Insurance Bureau released the 2019 edition of the national health insurance directory, which sent out 150 varieties, including 20 first batch of national key monitoring and rational drug list published in July 1st, and Su Tai Shen Su Su Sheng was among them. Affected by this, the net profit of the three quarter was 133.83% -724.1, a year-on-year decrease of 133.83%. The net profit in the first three quarters was 28 million 301 thousand, down 75.09% from the same period last year.

In an interview with the international finance daily, he said that the company is still a biopharmaceutical research and development company. At present, there are some innovative drug research and development projects, and specific progress is disclosed in the annual report.

The Chung Hang group, which has a single injection of thrombus (freeze-dried), is also transforming itself. In 2018, the total revenue of China Heng group was 3 billion 299 million yuan, and the drug delivery in cardiovascular and cerebrovascular fields was more than 3 billion yuan, the total sales volume was 13 million 581 thousand and 700 boxes, while the sales of important products were 12 million 923 thousand and 700 boxes.

Now, Zhong Heng group not only participates in the industrial fund's efforts to develop innovative drugs, but also cooperate with Jingfeng pharmaceutical and Lai Mei pharmaceutical company in November 23rd and 25th. The cooperation with the former mainly revolves around the fields of API, chemical drugs and generic drugs, and mainly cooperates with the latter in the field of biopharmaceutical industry.

In regard to the transformation of enterprises, Shi Lichen, founder of Beijing Ding Chen Management Consulting Co. Ltd., believes that the competition of the pharmaceutical industry in the future is the competition of resources and capabilities, and resources are not necessarily only funds, talents and R & D, but also production resources, government resources, product resources, medical and pharmaceutical business platform resources, etc. At present, the global pharmaceutical industry is in transition. Without innovation, there is no development, and there are many innovations, such as product R & D innovation, business model innovation, internal management innovation, resource integration and innovation, platform construction innovation, marketing mode innovation, etc. This requires pharmaceutical companies to have clear strategic positioning according to their own conditions. The transformation of pharmaceutical companies takes time, and it is not enough to keep a close eye on short-term performance.