7 -year cooperation terminal!Huaxi creatures who "wrongly pay" have lost the advantage of "face -to -face needle"?

The "suspension" in the layout of botulinum toxin products this time may have a deeper impact in addition to the "water drift" of Huaxi creatures in the project.

"Investment Times" researcher Luo Yi

Huaxi Bio (688363.SH) in the hyaluronic acid industry (688363.SH) encountered some setbacks when another popular product of the medical territory, botulinum toxins, but this may make it lose its first advantage in the field.

Huaxi Biological recently announced that all -funded subsidiaries have issued lawyers' letters to South Korean companies Medytox, which will terminate all rights to cooperate with Medytox and keep it in this matter for the legal liability of Medytox.

The announcement shows that the cooperation between Huaxi Biological and Medytox in South Korea began in 2015. This time is equivalent to the outbreak of international and domestic and domestic botulinum projects in medical cosmetology. According to the more beautiful and new oxygen released by the Medical Aesthetic APP, since 2016, the botulinum toxin project has been ranked second in the most popular medical beauty project in China.

Although the product hotspot and early layout have been settled, from the announcement of the termination of the cooperation, Huaxi Biological seems to have chosen the wrong partner. The announcement shows that the reason why Huaxi Biological decided to terminate cooperation with Medytox is based on the MedyTox series of products (including botulinum products). Product registration procedures have not yet been completed in China.

The "suspension" in the layout of botulinum toxin products may have a deeper impact in addition to the "water drift" of Huaxi creatures in the project.

In the context of the original main business hyaluronic acid raw material business growth, Huaxi Biological has completed the transformation of functional skin care products, but in the face of the high sales expenses of C -end terminal customers, the company's net profit margin has continued to pressure in recent years. In 2021, its net profit margin fell to 15.80%on the basis of the previous year.

The first half of the performance of Huaxi Bio's recent release shows that the company achieved operating income of 2.936 billion yuan in the first half of the year, and the net profit attributable to the mother was 470 million yuan. The net profit margin increased compared with the whole year of last year. , Still at a lower level, 16.01%.

In response to the aforementioned situation, the researcher of the "Investment Times" sought communication from the company. The person in charge of Huaxi Biological Department responded that the company was about to disclose the semi -annual report and is currently in a silent period to answer questions.

The termination of botulinum toxin projects for 7 years

In this Huaxi Biological Announcement, the project intends to terminate cooperation with Korean company Medytox involves botulinum toxin. Huaxi Bio said in the announcement that his wholly -owned subsidiary, the company, has issued a lawyer's letter to Medytox, will stop cooperating with the latter, and retain all rights for the legal responsibility of Medytox.

The announcement shows that the cooperation between the two parties began on May 7, 2015. Through the joint venture company Huaxi Mimi Decrene, the specific injection of type A botoxin to the development, expanding and selling MEDYTOX produced in mainland China Essence

Huaxi Biological said in the announcement that after the signing of the joint venture agreement, the Medytox never provided Huaximi for any related products for sales. And Huaxi Biological finally decided to terminate cooperation with it, mainly based on the administrative measures adopted by the Ministry of Food and Drug Safety in 2020 -a series of products (including botulinum products) of Medytox (which includes botulinum products). , And suspend the manufacturing and use commands.

Or affected by the above information and product quality problems, the botulinum toxin products registered in China in China have been registered since November 11, 2019, and have been reviewing and approval for the review and approval of the drug review of the State Drug Administration. Product registration procedures.

According to relevant regulations, unregistered related products cannot be sold in China, which causes Medytox to provide botulinum products to Huaxi Mimi in a legal way. Huaxi Bio said in the announcement that the subsidiary Slang Company signed a joint venture agreement with Medytox and operated the cooperation purpose of the project under the joint venture agreement, which could not be achieved in the foreseeable future.

However, Huaxi Biological stated in the announcement that the termination of cooperation this time does not affect the company's existing medical terminal business, nor does it affect other normal production and operation activities. At the same time, the company said that Huaxi Bio did not rule out cooperation opportunities to seek other botulinum products.

Lost the advantages of the botulinum market first

Botoxin, also known as "Botox toxin", is the main ingredient is bacterial toxin secreted by Botox. By preventing the nerve ending from absorbing acetylcholine, the nerve can no longer pass the signal to the muscle to achieve muscle relaxation or even muscle paralysis. Domestic is also known as "face -to -face needle".

Botoxin is mainly used for wrinkle removal in the field of medical beauty, which has also become the core aid thrust of the development of botulinum toxin market. According to data from the International Association of Beauty Plastic Surgery, in 2015, the number of global botulinum toxin injection reached 4.6278 million. By 2017, data released by the American Cosmetic Plastic Surgery Society showed that botulinum injection became the number one medical beauty project.

The domestic botulinum market also erupted shortly after Huaxi Biological Layout. According to data released by domestic medical beauty apps more beautiful and new oxygen, since 2016, botulinum toxin projects have ranked second in the most popular medical beauty projects for three consecutive years. As of now, China has approved 4 regular botulinum products, including the first botulinum product "Hengli" approved in 1993 and produced by Lanzhou Bio. "Sui", as well as Jishi, who was approved in the past two years, was produced by French Yipusheng and Latti, produced by Hugal, South Korea.

In addition to the four botulinum products approved, there are 8 botulinum toxins to be approved clinically. Among them, the domestic agent of HUTOX in South Korea is a beautiful guest, and the two parties began cooperation in 2018. In October 2021, the investor relationship record forms announced by Aimei showed that the company's botulinum toxin products were in the third phase of the clinical stage and were expected to submit a new drug application in 2023.

In addition, there are many domestic companies grabbing the beach of the beach. East China Pharmaceutical, a domestic pharmaceutical company in China, signed a contract with Jetema, South Korea in 2020. It is expected to be listed in 2024. In March 2021, Haohai Biological and Eirion Therapeutics in the United States signed an equity investment agreement and product license agreement to act in the mainland of Mainland China and Hong Kong. , Exclusive R & D, sales and commercialization permits in Macau and Taiwan.

Because botulinum toxin is a poisonous product, the approval process in China is longer than medical device products. The research report released by Soochow Securities shows that it takes at least eight years from the establishment to the approval of botulinum toxins. If it is directly introduced to overseas certification products, it will take at least five or six years from clinical trials to approval.

It can be seen that the partners who have lost their cooperation for 7 years in this time, even if they start to lay down the botox market from now on, have lost their first advantages for it.

Influence

In the medical beauty industry, botulinum toxin is regarded as another growth pole beyond hyaluronic acid. According to the Ferrisanli report, the sales of the factory price were calculated. From 2016 to 2020, the market size of botulinum toxin products in my country increased from 1.5 billion yuan to 3.9 billion yuan, with a compound annual growth rate of 26.9%. From 2025 to 2030, the market size of botulinum toxin products in my country will reach 11.4 billion yuan and 29.6 billion yuan. The botulinum toxin projects that have lost their layout for many years will cause it to be at a disadvantage of a tens of billions of medical beauty projects.

On the other hand, the hyaluronic acid business currently focused on Huaxi Bio is already in full and fierce competition, and the company's profit may continue to be affected in the future.

Data show that as of now, there are more than 40 types of medical hyaluronic acid in the market for three types of medical skills, which is far more approved by domestic botulinum toxins.

The previous prospectus of Huaxi Biological shows that the unit price of hyaluronic acid is declining year by year. From 2017 to 2019, the sales unit price of injection -grade hyaluronic acid raw materials decreased from 122.62 yuan/gram to 111.69 yuan/gram in 2019. People in the industry said that the price of hyaluronic acid raw materials has been reduced in the context of fierce market competition, with an average of about 5%per year, and the current production capacity has excessive.

The company's business structure adjustment in recent years also shows that the hyaluronic acid market has entered a fierce competition. Data show that Huaxi Biological Hyaluronic acid raw material products accounted for 62.09%in 2017 to 18.29%in 2021. From 2019 to 2021, the operating income of hyaluronic acid raw materials products was 761 million yuan and 703 million yuan, respectively. And 905 million yuan, weak growth.

In order to cope with the atrophy of the hyaluronic acid raw material market, Huaxi Biological has begun to work on functional skin care products. In 2021, functional skin care products accounted for the company's revenue ratio to 67.1%, and the revenue growth rate exceeded 100%in nearly 3 years.

But similar to the entire skin care industry, the growth of Huaxi biological functional skin care products is also mainly due to huge marketing investment. Data show that in 2021, Huaxi biological sales expenses reached 2.436 billion yuan, a year -on -year growth rate of 121.62%. Compared with the annual revenue growth rate, it was nearly 34 percentage points high, accounting for nearly 50%of the revenue ratio. The annual report shows that in 2018, Huaxi biological sales costs were 284 million yuan, accounting for 22.5%of the revenue rate.

Compared with their peers, the revenue ratio of Huaxi biological sales costs is also in a high position. The data shows that the sales expense ratio of Ai Meike, Haohai Biological and Shanghai's domesticization in 2021 accounted for 10.81%and 41.71%, respectively. And 41.58%.

At the same time, due to the rise in sales costs, the net profit margin of Huaxi Bio has fallen sharply in recent years. From 2019 to 2021, it was 31.07%, 24.53%, and 15.80%, respectively.

Huaxi Bio's revenue and net profit in 2021 in 2017 (100 million yuan)

Data source: annual report over the years

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