Hengrui Medicine semi -annual report observation: The effectiveness of operational reform has begun to show, and sales costs have fallen sharply

Zhongxin Jingwei, August 21st. On the evening of August 19, Hengrui Pharmaceutical released the performance report in the first half of 2022. In the first half of the year, the company achieved operating income of 1.0228 billion yuan, and its net profit attributable to her mother was 2.119 billion yuan, a year -on -year decrease of 23.08%and 20.55%, respectively. In the first half of this year, the company announced the spent of RMB 600 million to 1.2 billion to repurchase restricted stocks. Stocks incentive.

Hengrui Pharmaceutical said that the cliff -like decline of the income of generic drugs, the implementation of a new medical insurance negotiation price of multiple innovative drugs, and the domestic epidemic situation has impacted the company's product sales, resulting in a significant decline in the company's income. The impact on profit also includes the continuous rise in major raw and auxiliary materials and energy prices, the continued rise in logistics costs, and the continued increase in the continued increase in R & D investment.

Facing the increasingly complex internal and external environment, the company actively responds to national policies, continuously adapts to higher requirements brought by industrial changes, and continues to steadily promote technological innovation and internationalization strategies. During the reporting period, the company's cumulative investment in R & D investment reached 2.909 billion yuan, an increase of 12.74%year -on -year, and the proportion of R & D investment accounted for 28.44%year -on -year sales revenue, of which 2.184 billion yuan in cost R & D investment, R & D expenses accounted for sales revenue ratio proportion proportion The year -on -year increase to 21.36%. Although this has greatly affected the current profit, it provides strong support for the company's long -term development.

It is worth mentioning that since last year, the company has promoted the results of organizational operation and evolution around the "precise management, cost reduction and efficiency", and the sales costs have been significantly reduced.

Long -term health, continuously return investors

Financial statements are equivalent to the "physical examination form", which can best reflect the health of a company.

Judging from the financial statements disclosed by this semi -annual report, although the performance declined, Hengrui Pharmaceutical continued to maintain a long -term steady and standardized financial management. According to the asset -liability statement in the first half of 2022, the company does not have interest liabilities such as short -term borrowings or long -term loans; holding 13.4 billion monetary funds, 5.1 billion trading financial assets, and a total of 18.5 billion liquid funds; the asset -liability ratio is only the only asset liability ratio is only a liability ratio; 10.1%, goodwill as zero.

Healthy financial situation is a good support for the development of enterprises. Although Hengrui Pharmaceuticals has had great revenue since last year, it has never been thriving in R & D investment. At the same time, he insisted on dividing shareholders.

In April of this year, while Hengrui Pharmaceutical released an annual report of 2021, he announced the annual dividend plan, and distributed a cash dividend of 1.60 yuan (including tax) to all shareholders, with a total dividend of more than 1 billion yuan. Throughout the 20 years since the listing, Hengrui Pharmaceutical only raised more than 400 million yuan when it was listed, and insisted on the annual dividend of each year. The cumulative cash dividend amount exceeded 5.95 billion yuan, which was more than 12 times that of the cumulative financing amount.

Firmly increased the research and development, the number of innovative drugs on the market has increased to 11 models

The report shows that in the first half of 2022, Hengrui Pharmaceutical's cumulative R & D investment reached 2.909 billion yuan, an increase of 12.74%year -on -year, and the proportion of R & D investment in sales revenue increased to 28.44%year -on -year, a record high.

After years of development, the company has created a large -scale, professional, and capable R & D team of more than 5,000 people. It has established R & D centers in Lianyungang, Shanghai, Chengdu, the United States and Europe to meet multiple diseases to meet multiple diseases Field pipelines' discovery and development needs of new molecular entities.

During the reporting period, the company accelerated the development and transformation of medical construction in the early days, followed the industry development trend of the forward movement of targets, and carried out a large number of pre -research work on novel and uncertain targets, with high -quality internal data Support early development strategy selection. In addition, based on the characteristics of diseases and target biology, combined with the characteristics of the company into clinical development molecules, the study of adaptive expansion and combined medication is actively carried out to fully tap the clinical value of candidate. Facing the influence of unfavorable factor in the first half of the year, the R & D team took the lead in re -production and re -production, and completed a total of more than 15 medical research, ensuring the smooth progress of the development of pipeline products.

Entering the back -end of the R & D chain, rich innovation results reflect the value of huge amount of R & D investment. In the first half of the year, Hengrui Pharmaceuticals had reached more than 60 new drugs and carried out more than 260 clinical research at home and abroad. The progress of the clinical trials of innovative drugs has accelerated. The independently developed AR inhibitors Revilunamine tablets have been approved to be listed, and innovative drugs have been listed to 11, ranking among the top in the same industry. The symptoms are approved to be listed, and the application of breast cancer is further expanded. Four products enter the listing stage, including PD-L1 inhibitors Adeberley monoclonal anti-anti-anti-injection, HR20033 tablets, SHR8008 capsules, SHR8554 injection solution, and the treatment field involves cancer, diabetes, anti-infection, analgesic, etc. In addition, there are 29 clinical studies made in more than 20 products such as Karelizumab, Penoninib, Apatinib, and SHR0302, and 29 of them have made progress, of which 2 have reached phase III or international multi -centers phase III, 7 items, 7 Entering phase III or international multi -centered phase III clinical, 10 items entering phase II clinical, 10 items entering phase I clinical.

In addition, in terms of project registration, a total of 2 innovative drug preparation production was obtained during the reporting period and 11 of the production approval of the production of generic drug preparations; 26 clinical approvals for drugs were obtained; the consistency evaluation approval of 2 varieties was obtained; 1 clinical trial was included in it. American FDA orphan drug qualification identification. Patent applications and maintenance work are successfully carried out. During the reporting period, 113 new applications for domestic applications, 44 new international PCT applications, 65 domestic authorization and 60 foreign authorized abroad. At the same time, Hengrui Pharmaceutical continued to strengthen the construction of the technical platform and laid the foundation for innovation and development. Relying on the National Enterprise Technology Center and Postdoctoral Research Station, the National Molecular targeted Drug Engineering Research Center, the special incubation base of the "National Major New Drug Creation", the company has produced a number of new technology platforms with independent intellectual property rights and internationally leading, such as protein, such as protein Hydrolyzed target chimeric (Protac), molecular gum, antibody coupling drug (ADC), double/polytomotomotomotor, gene therapy, etc. Many of the important products have entered different clinical stages, such as anti-HER2 ADC products SHR-A1811 have quickly entered the phase III study, PD-L1/TGFβ double-specific antibody drug SHR-1701 quickly promoted a number of clinical phase III research.

Based on the vitality and potential showed by innovative research and development, Hengrui Pharmaceutical has won many achievements in relevant selection at home and abroad this year: "Pharma RD Annual Review 2022" released by Informa Pharma Intelligence released by the global pharmaceutical think tank information platform Informa Pharma Intelligence was selected according to the scale of clinical research and development. The global pharmaceutical company's TOP25 list ranked 16th; the 2022 global biomedical invention patent TOP100 list was ranked 13th in the global patent database Incopat Innovation Index Research Center; The list of the top 50 of the enterprise has become a representative company in the field of great health.

Promoting internationalization steadily, academic achievements are recognized internationally

In terms of internationalization, the report shows that Hengrui Pharmaceutical's overseas R & D investment was 519 million yuan in the first half of the year, accounting for 17.85%of the overall R & D investment, and steadily promoted internationalization.

The report stated that the company adheres to the equal emphasis on independent research and development and open cooperation, strengthen international cooperation on the basis of internal development, will actively explore exchanges and cooperation with multinational pharmaceutical companies to achieve rapid transformation of R & D results. Analysts believe that this may indicate that Hengrui Pharmaceutical, which has long adhered to self -research, may adopt a more open attitude in internationalization.

In the first half of this year, Hengrui Pharmaceutical Innovation Pharmaceutical's clinical research results continued to dazzle the international academic circles. More than 30 important research results of more than 30 important research results of innovative drugs such as Peninib, Apatinib, Adeberg Mutteria, and SHR2554 are in Lancet OnCology (willow -leaf knife, Oncology), Journal of Clinical Oncology (Journal of Clinical Oncology), and The Journal of the American Medical Association Oncology (Journal of the American Medical Association · Oncology), Lancet Haematology, Journal of the American Academy of Dermatology (American Scholars Magazine) The cumulative impact factors reached 523.381 points, fully showing their independent innovation strength.

In the progress of specific products, Hengrui Pharmaceutical conducted nearly 20 international clinical trials in the first half of the year. The company's first international multi -center phase III clinical study -Karrilizab and Apatinib for the treatment of advanced liver cancer International Multi -Center III Studies have submitted a listing application in China. Preparations; Haiqu Pa Pa ethanlamine tablets are used for platelet reduction indication indication (CIT) to obtain orphan drug qualifications granted by FDA, which is expected to enjoy certain policy support in subsequent R & D and commercialization; Multiple projects have obtained clinical trial qualifications in many countries and regions such as the United States, Europe, and Asia-Pacific. SHR-A1811, INS068, SHR-1819, SHR-1707, SHR-1905, SHR-2002 and other products have successfully developed global simultaneous development in the world. Essence

In addition, the company's generic drugs also continued to expand overseas markets. Pupic acid amine injections and iodine algorne injections have been approved in the United States. Register for approval and continue to actively open up emerging markets.

The initial results of the operation reform, the company's governance continues to optimize

Since last year, in the face of industry changes and competition, Hengrui Medicine has promoted organizational operation and evolution around "precise management, cost reduction and efficiency", accelerating transformation and upgrading.

In the first half of this year, the Hengrui Pharmaceutical executive team had a significant adjustment: the general manager of the vacancy for nearly a year was made up by Dai Hongbin. The "young veteran" worked in Hengrui for a long time. Experience and industry perspective; newly appointed Zhang Xiaojing and Wang Quanren as the company's deputy general manager, responsible for clinical research and development of tumor and non -tumor lines, respectively. After the adjustment, the company's executive team further younger and specialized, and promoted the company's scientific and technological innovation and international development strategies to continue to make new progress. In terms of deeper, the active impact of operating reform on the company has begun to appear. By further strengthening basic management, the per capita production level has been effectively improved. The analysis of the data of the semi -annual report can be seen that the cost reduction and efficiency and efficiency have been obvious, and the sales costs have dropped by about 30%.

Earlier this year, Hengrui Pharmaceutical started stock repurchase. At the same time that the semi -annual report was released, the company announced that it would use the previous repurchase of stocks for new employee holding plans. It is expected that more than 1,000 employees will get an incentive of no more than 12 million shares. The average price is 15%.

While continuously optimizing the governance of the company, Hengrui Pharmaceutical is as always practicing social responsibility. In the first half of the year, the epidemic situation rebounded in the city where Hengrui Pharmaceuticals such as Lianyungang and Shanghai were mainly developed. The company actively supported the prevention and control of the epidemic in various places and donated a total of 6 million yuan. At the same time, the "Shangyuan Love Public Welfare" special fund jointly established by the company and Shanghai Medicine also assisted rural public welfare medical projects from Dali Prefecture, Yunnan Province.

Analysts pointed out that although Hengrui Pharmaceutical's performance was under pressure in the short term, its stable financial situation and firm R & D investment, and the strategic fixed force in the face of complex situations are expected to lead the company through the cycle and achieve long -term value. (Zhongxin Jingwei APP)

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