What's wrong with Hengrui?

What's wrong with Hengrui?

On July 26, Hengrui fell 6%to close 36.17 yuan. On the news, Hengrui did not have obvious sharpness. On the evening of the 25th, Hengrui even released the latest clinical research and development progress. Three products including PD-L1 Adeberry monetabette injection received approval from the State Drug Administration and were about to develop clinical clinical.

But early in the morning on the 26th, a photo of the "returning my son" in the entrance of Hengrui Pharmaceutical began to spread on the Internet. Hengrui insiders said that the incident occurred on the 25th, the company had reported to the police, and the company's entrance was no situation that afternoon. I don't know why the photos suddenly circulated the next day.

It is reported that this is a dispute caused by the handling of a traffic accident in employee.

Hengrui's stock price has reached the point where it can be left or so on the Internet?

No one will deny Hengrui's past excellence, but under the dual changes of the external policy and market environment, the posture of the "veteran" of the medicine is indeed slightly difficult.

On research and development, Hengrui now holds nearly a hundred pipelines and has opened more than 250 clinical clinicals worldwide. The announcement column is full of clinical approval and product registration certificate. Home; On the strategy, Hengrui has adjusted the capitalization of research and development, share repurchase, and industrial funds since the second half of last year.

But Hengrui's stock price still couldn't get up, which was the most unacceptable.

Embrace the market, but is abandoned by the market

Oriental Fortune shows that the data that has been announced as of June 30 has a total of 176 funds holding 225 million shares of Hengrui Pharmaceutical and a market value of 8.328 billion yuan.

Compared with last year, the number of fund holdings was halved, and the market value of the position was reduced to about one -third of the same period last year.

Hengrui is no longer the "darling" of the pharmaceutical market. This fact does not seem to be surprising.

On April 23 this year, Hengrui also announced the 2021 annual report and the first quarterly report of 2022: The annual revenue of 2021 was 25.906 billion yuan, a year -on -year decrease of nearly 7%; the revenue in the first quarter of 2022 was 5.479 billion yuan, a year -on -year decrease of 20.93% It is difficult to say which is a bit worse.

Among the fifth batch of drugs of drugs carried out in June 2021, Hengrui quoted mistakes, heavy products iodine gramol injection, and grussium bromide injection liquid were lost. The total income of these two products reached the company More than 7%of the total revenue; and the winning products are also "heavy losses". Taking the largest bidded benzam sulfa Aquan ammonium ammonium injection as an example, Hengrui's quotation is 158 yuan, and the price of the other two competing products is more than 240 yuan.

The fifth batch of National Cai let Hengrui fall a big heel. In August, Sun Piaosheng re -appointed chairman and tried to turn the tide.

In November of that year, Hengrui made the first action of "away from Hengrui": capitalization of R & D expenditure. This is the conventional operation of domestic pharmaceutical companies in recent years, and the benefits and disadvantages are equally obvious. The advantage is that the company's costs on financial statements are reduced and net profit is increased, which is conducive to financing; the disadvantage is that this is only to make financial data beautiful in the short term.

After Hengrui announced this decision, the outside world speculated that it had a picture of the stock price. The development of the matter really predicted that from November last year, Hengrui's stock price fell almost all the way.

During the "imitation transformation", Hengrui has always lacked a "pick -up" product, while the market for generic drugs was eaten a little bit. Hengrui said in an annual report of 2021 that more than 60%of the company's generic products have entered the national collection, with an average decrease of 73%, which is about 20%higher than the average decrease of previous national collection. On the one hand, it shows that Hengrui's price strategy may have a problem, and on the other hand, it also shows that Hengrui's variety is facing huge pressure on competition.

Innovative drug price negotiations are also not "friendly". Hengrui's core innovative product PD-1 Karrilizab's price reduction 85%entered the national medical insurance, which brought great pressure on the company's performance.

Hengrui desperately wanted to prove himself. In 2021, Hengrui invested 6.2 billion yuan in R & D, with more than 60 research pipelines, and 250 clinical clinicals developed at home and abroad, of which nearly 20 were clinically clinical.

Hengrui should face traditional pharmaceutical companies that start with their own ages, as well as BIOTECH, which has risen by the times and was fed by capital. The two -line operation made Hengrui unhappy.

Can transform be restored market confidence

PD-1 was an innovative variety of Hengrui's high hopes. Up to now, Carelzumab has been approved by nearly 10 indications, which is the most domestic PD-1.

In addition, Hengrui has listed 10 innovative medicines including Ericosib and sulfonic acid golfinic acid in China.

These are important reasons for Hengrui to make innovation from imitation to innovation in the past decade. However, from the perspective of capital, Hengrui today is no longer cost -effective to pursue self -research. In the past five years, Hengrui's weighted average net asset yield has dropped from 23%to 14%. In other words, Hengrui's hematopoietic ability is worse.

健识局统计发现，在过去的5年中，恒瑞总共从外部引进了8款药物，其中有4款都是在2021年时达成的交易，分别来自璎黎药业、万春布林、 Four innovative pharmaceutical companies of Tianguang Shi and Cornerstone Pharmaceuticals.

In July of that year, Zhang Lianshan, president of the company's global R & D, said at a conference call that Hengrui was unwilling to introduce in the past because "there are many good projects within the company itself." But in the future, Hengrui will be willing to try to cooperate and push it to the market. Hengrui buys a large number of products, and he always encounters problems. In December 2021, the US FDA rejected the listing application of Wanchun Bolin's innovative drug "Ponablin" for the reason for "inadequate clinical research data". This is the variety of Hengrui spent 1.3 billion yuan. Although Hengrui announced that except for 200 million yuan of down payment, he did not have other investment in this medicine. But the market still regards it as the first Waterloo in Hengrui's "introduction of big plan".

The self -developed pipeline, Hengrui seems extremely powerful, but has never achieved the results.

Taking the hottest ADC as an example, Hengrui is the company with the most ADC pipelines in China. At present, 8 products have been declared clinical. But the overall use is still fast imitation. For example, SHR-A1201, which started in 2011, "imitation" was Roche's famous Enmengustezab; SHR-A1811 was the enhertu that marked Astrikon/Three Communists.

These ADC innovation drugs have not yet achieved results, I am afraid that even Fast Follow can't be called.

There is still a trick, and Hengrui also tried to do his best. In June of this year, Hengrui announced that it would use industrial funds with a scale of 2 billion yuan to invest in foreign investment with subsidiary Shengdi Investment and extended its business to the largest boundary that pharmaceutical companies could reach.

This time, whether Hengrui can come back, maybe only time to know.

Writing | Guyue

Edit ｜ Jiang Yun Jia Ting

Operation | Twenty -thirty

Illustration | Visual China

#Hengrui Medicine ## ADC Innovation Drug#

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