Pharmaceutical Enterprises Move Forward In Shock: Elimination Competition Upgrade Under The Policy Market, Several Pharmaceutical Enterprises Apply For Bankruptcy Reorganization

Confirmed by many sources, the third batch of national procurement with volume will be launched this month. According to industry insiders, this tire volume purchase quotation, settlement and other rules have changed, the pressure on enterprises is greater than before.

As a matter of fact, due to the superimposed influence of many new medical reform policies, such as volume purchase, two vote system, key monitoring catalogue, and medical insurance fee control, some pharmaceutical enterprises have been greatly impacted. For example, not long ago, Yuheng Pharmaceutical Co., Ltd. and Xinbang Pharmaceutical Co., Ltd. both announced that Harbin intermediate people's court has accepted the application for bankruptcy reorganization of Yuheng group from creditors of Yuheng group, which leads to uncertainty in the change of control right of listed companies.

In its previous reply to the inquiry letter of Shenzhen Stock Exchange, Yuheng pharmaceutical said that in recent years, the policy reform of pharmaceutical regulatory agencies has brought significant changes to the policy environment of the pharmaceutical industry. The sales volume and price of the company's main products have continued to decline, and the operating performance has declined significantly.

According to the incomplete statistics of 21st century economic report, more than ten well-known pharmaceutical enterprises (subsidiaries) have announced bankruptcy and reorganization since 2019. Shi lichen, head of Beijing Dingchen pharmaceutical management consulting center, said that the structure of the pharmaceutical industry has been changing. The era of "focusing on sales and ignoring R & D" has passed, and enterprises need to have real core competitiveness.

With the transformation of medical enterprises, a new round of pharmaceutical reform is imminent. Visual China

Pharmaceutical commercial companies become the main bankrupt

On July 7, Yuheng Pharmaceutical Co., Ltd. and Xinbang Pharmaceutical Co., Ltd. both announced that Harbin intermediate people's court has accepted the application for bankruptcy reorganization of Yuheng group from creditors of Yuheng group, which leads to uncertainty in the change of control right of listed companies. In addition, Yuheng group has planned to transfer its 15% equity of Yuheng pharmaceutical for nearly a year, and has also announced its termination.

On July 11, Yuheng pharmaceutical announced that Yuheng group had entered bankruptcy reorganization procedure, and Shenzhen Branch of China securities registration and Clearing Co., Ltd. had frozen the company's shares held by Yuheng group.

According to the incomplete statistics of public reports, more than ten well-known pharmaceutical enterprises have applied for bankruptcy liquidation or declared bankruptcy for various reasons since 2019. Among them, five pharmaceutical companies declared bankruptcy in the first week of December 2019. At the same time, the medical field of wage cuts, layoffs and other news are also frequent.

According to the data of qixinbao, the first 30 words of business scope include "medicine, pharmacy, medicinal materials, drugs, tablets, antibiotics, Chinese patent medicine, western medicine" and "Production, manufacturing, R & D", or the main business contains "medicine, pharmacy, medicinal materials, drugs, tablets, antibiotics, Chinese patent medicine, western medicine" or the national standard secondary industry is "pharmaceutical manufacturing industry". There are 114 pharmaceutical enterprises whose bankruptcy announcement time is on or after January 1, 2019, and 6037 pharmaceutical enterprises have been annotated / revoked.

Shi lichen analysis said that the pharmaceutical enterprises that can not adapt to the policy adjustment belong to the "front wave" of being eliminated. From the perspective of type, pharmaceutical commercial companies have become the main force of bankruptcy in recent two years.

A person in charge of an enterprise currently engaged in the production of epidemic prevention materials told the reporter of 21st century economic news that he had been a pharmaceutical manufacturer in South China, but since the implementation of the two vote system, it has been difficult to carry out business. At present, the implementation of the "one vote system" is accelerating, and the survival of small and medium-sized pharmaceutical companies is directly challenged.

In 2016, two months after the full implementation of the "two vote system", Guangdong Weierkang Pharmaceutical Co., Ltd., the largest pharmaceutical company in northern Guangdong, announced its dissolution and bankruptcy due to the superposition of multiple policies. According to other statistics, in the first half of 2018, nearly 100 small-scale drug distribution enterprises in Henan Province were closed down or acquired.

Not long ago, on June 18, the people's Court of Shandong Jining high tech Industrial Development Zone announced the civil judgment, and Shanghai leiyunshang Pharmaceutical Co., Ltd. also filed a bankruptcy application against the private pharmaceutical wholesale enterprise Shandong Ruizhong Pharmaceutical Co., Ltd. However, the court finally held that the evidence submitted by Leiyun was not enough to prove that the assets of Shandong Ruizhong Pharmaceutical Co., Ltd. were not sufficient to pay off all the debts or were obviously lack of solvency, so it was not accepted.

In addition, senior people in the industry believe that some enterprises that lose the market qualification in the procurement with volume are also facing great pressure. At present, the centralized procurement of drugs and medical consumables has gradually entered the stage of normalization, and the varieties and scope will be gradually expanded. Under this trend, the survival of pharmaceutical enterprises whose performance depends on single product or products that may be included in the scope of procurement will be under pressure. "The third batch of procurement with volume is coming, and the rules are more stringent than before, and pharmaceutical enterprises will face greater pressure."

Time is pressing for pharmaceutical enterprises to transform

According to the company's core asset sales, the group's shareholders began to cut down the key assets. However, in fact, Yuheng Pharmaceutical Co., Ltd. has frequently acquired "thunder spots" before. According to the 21st century economic report, the core subsidiaries and core businesses of Yuheng Pharmaceutical Co., Ltd., which contribute major profits, are stepping on the "thunder" of pharmaceutical policy. For example, many products are listed in the key monitoring catalogue.

In reply to the inquiry letter of Shenzhen Stock Exchange, Yuheng pharmaceutical also said that in recent years, the policy reform of pharmaceutical regulatory agencies has brought significant changes to the policy environment of the pharmaceutical industry. Affected by multiple policy factors such as the two vote system policy, key monitoring catalogue and medical insurance fee control, the sales volume and prices of main products of Shanghai Huatuo, Nanjing Wanchuan and Pude pharmaceutical, which were wholly-owned subsidiaries of the company in previous years, kept on selling and pricing Business performance declined sharply.

The main products of Shanghai Huatuo and Nanjing Wanchuan are creatine phosphate sodium for injection, which is one of the 20 products listed in the key monitoring catalogue. Creatine phosphate for injection was originally listed in the local medical insurance list of 17 provinces and regions. By the end of May 2020, 11 provinces and autonomous regions had transferred creatine phosphate for injection out of the local medical insurance directory.

With the introduction of provincial key monitoring catalogue, the implementation of supporting policies and the adjustment of local medical insurance catalogue, the sales volume of creatine phosphate for injection showed a rapid downward trend. As a result, the sales volume of creatine phosphate for injection of the company decreased from 9.2995 million grams in 2018 to 7.145 million grams in 2019, a year-on-year decrease of 23.17%; the sales volume of creatine phosphate for injection (Viagra) decreased from 7.3584 million grams in 2018 to 3.355 million grams in 2019, with a year-on-year decrease of 54.41%.

Yuheng Pharmaceutical Co., Ltd. said that it had realized the existing problems three years ago and was also making relevant layout. However, due to frequent "thunder explosions" such as mergers and acquisitions, many problems such as product aging and market shrinkage could not be solved in a short time. Its layout of biomedical PD-1 has also been in the red sea of competition.

Yuheng Pharmaceutical Co., Ltd. said that it can only timely adjust its thinking, shrink its business scale and focus on business transformation. On the premise of ensuring the smooth operation of the company, it should try its best to delay the decline of market share of existing products and actively and steadily promote the transformation of the company.

Under the background of consistency evaluation, volume purchase and medical insurance payment reform forcing the transformation and upgrading of the whole industry, the time for enterprises like Yuheng pharmaceutical to transform is running out.

Wang Ying, CEO of Bosia management consulting, pointed out to the reporter of 21st century economic report that with the pressure of compliance upgrading, multiple medical reform policies superimposed, and the development environment of China's pharmaceutical industry has changed, pharmaceutical enterprises in the future should focus on core business or accelerate transformation and upgrading. Previously, has been in the wait-and-see, the transformation and upgrading of enterprises will gradually start.

"Enterprises must invest in R & D. generic drugs have entered the era of meager profits under the policy of purchasing with quantity. Only products with core competitiveness can adapt to market development. The earlier the layout of innovative drugs and high-end generic drugs, the more obvious the follow-up advantages will be." Shi lichen pointed out.

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