With the disclosure of performance forecasts of A-share listed companies, the overall performance of Listed Companies in the biomedical industry in 2021 has surfaced.
According to the data, as of February 6, a total of 238 listed companies in the biomedical industry in A-share issued performance forecasts for 2021, of which 155 listed companies had good performance forecasts, accounting for 65%. Among the 235 listed companies that disclosed the range of performance changes, 77 listed companies expect the net profit to increase by more than 100%.
However, good performance papers are hard to hide the hitherto unknown challenges facing the biomedical industry: this year, the IPO breaks out frequently, and the valuation accelerates to bubble up. The star companies and star medical funds adjust to the same. The biomedical industry seems to be ushering in “darkest moments”.
more than 60% of listed pharmaceutical companies pre Xi
Among the listed companies in the biomedical industry that announced their expected performance in 2021, 37 are expected to turn around their losses, 2 continue to make profits, and 116 are expected to increase their performance (of which 25 are expected to increase slightly).
Among the 238 listed companies in the biomedical industry that issued the performance forecast for 2021, 29 are expected to suffer the first loss, 18 are expected to continue the loss, and 36 are expected to suffer a decrease (of which 10 are expected to suffer a slight decrease).
In terms of profit changes, Chimin Health Management Co.Ltd(603222) , Beijing Hotgen Biotech Co.Ltd(688068) , Tianjin Lisheng Pharmaceutical Co.Ltd(002393) , Harbin Medisan Pharmaceutical Co.Ltd(002900) and other expected net profits increased by more than 1000% year-on-year. The net profit of Chongqing Zhifei Biological Products Co.Ltd(300122) , Wuxi Apptec Co.Ltd(603259) , Zhejiang Orient Gene Biotech Co.Ltd(688298) , Zhejiang Nhu Company Ltd(002001) is expected to exceed 4 billion yuan in 2021.
Many pharmaceutical companies such as Zhongzhu Healthcare Holding Co.Ltd(600568) , Beijing Bohui Innovation Biotechnology Group Co.Ltd(300318) , Guangdong Taiantang Pharmaceutical Co.Ltd(002433) are expected to suffer the first loss in performance, and the net profit fell by more than 1000%.
After combing, the reporter found that goodwill impairment is an important factor in the performance change of listed companies. For example, Beijing Bohui Innovation Biotechnology Group Co.Ltd(300318) is expected to lose 270 million yuan to 375 million yuan in 2021. The company said that the provision for impairment of goodwill was one of the reasons for the decline in performance. On the one hand, the goodwill formed by the acquisition of Zhongke biological by Hebei Daan Pharmaceutical Co., Ltd., the holding subsidiary of the company, showed signs of impairment due to the shutdown and transformation of Zhongke biological and the approval of the operation qualification of the pulp station under Zhongke biological was less than expected. On the other hand, Changzhou pilot quantum Biomedical Technology Co., Ltd. (hereinafter referred to as “pilot quantum”), a holding subsidiary of the company, showed signs of impairment in the goodwill formed by the company’s acquisition of pilot quantum due to its lower than expected operating performance.
A number of listed companies also announced the impact of centralized procurement on performance. Zhejiang Yatai Pharmaceutical Co.Ltd(002370) said that the main reasons for the decline of the company’s performance in 2021 include: the reduction of sales revenue due to the implementation of centralized procurement policy in this period; According to the requirements of the accounting standards for business enterprises, the company plans to withdraw the impairment of some fixed assets and long-term equity investments.
Industry Valuation accelerated bubble
The emergence of the epidemic has made the pharmaceutical industry the hottest sector in the capital market. However, after the rapid rise in valuation, the bubble in the pharmaceutical industry was quickly broken.
According to the data, since 2022, as of February 6, the share prices of 388 biomedical listed companies have closed down, accounting for more than 90% of the total number of Listed Companies in the whole industry. In addition, a number of pharmaceutical new shares broke, which is particularly obvious in Hong Kong stocks. Since 2022, more than 70% of the 196 listed medical and health care companies with transaction data have seen their share prices fall.
Where will the biomedical industry, which once had unlimited scenery in the epidemic, go in the future?
Qu Rong, executive deputy general manager of Dongfang Gaosheng, said in an interview with the reporter of Securities Daily that in the past two years, the outbreak of the epidemic has heated the pharmaceutical industry, especially the valuation of Listed Companies in the fields of vaccines, drugs, diagnostic reagents and epidemic prevention materials related to the epidemic has also risen.
“The heat of the secondary market has cooled down in advance. The vast majority of pharmaceutical stocks listed in Hong Kong stocks last year broke on the day of listing. The overvalued value of the primary market is still struggling to support, and there is expected to be a significant adjustment in the first half of this year.” Qu Rong believes that whether it is the primary market or the secondary market, the share price of listed companies will eventually return to the real value, good enterprises will have higher valuation, and enterprises that rub hot spots will be beaten back to their original shape.
Qu Rong told reporters that at present, the financing rhythm of many innovative drug companies in the late clinical stage has slowed down significantly, and the valuation has been continuously adjusted downward. The story of listed arbitrage alone has been difficult to attract investors to pay. Investment institutions began to pay general attention to earlier projects, and many institutions began to participate in Angel round investment, or even directly hatched.
innovation and transformation is still the bottom color of the industry
Although the stock price of the pharmaceutical industry continues to adjust, the background color of innovation and development has not changed.
On January 30, 2022, the Ministry of industry and information technology, the national development and Reform Commission, the National Health Commission, the national medical insurance administration, the State Food and drug administration, the State Administration of traditional Chinese medicine and other nine departments jointly issued the notice on printing and distributing the “14th five year plan” for the development of the pharmaceutical industry (hereinafter referred to as the notice), which injected another “shot in the arm” into the development of the pharmaceutical industry.
The industry objectives set out in the notice are: by 2025, the main economic indicators of the pharmaceutical industry will achieve medium and high-speed growth, outstanding innovation achievements in frontier fields, enhanced innovation driving force, significantly improved the modernization level of the industrial chain, further improved the supply guarantee system of pharmaceutical machinery, and comprehensively move towards high-end internationalization.
Specifically, the average annual growth rate of the industry’s operating revenue and total profit remained above 8%, and the proportion of added value in all industries increased to about 5%; The concentration of industry leading enterprises was further improved. At the same time, innovation driven transformation has achieved remarkable results, and the R & D investment of the whole industry has increased by more than 10% annually; By 2025, the proportion of new sales of innovative products in the increment of operating revenue of the whole industry will further increase.
Innovation is still the key to the future development of the pharmaceutical industry. According to the notice, “Vigorously promote the research and development of innovative products. Promote enterprises to focus on the unmet clinical needs, increase investment and carry out the development of innovative products. Support enterprises to focus on new targets and new mechanism drugs based on local resources and advantages, face the global market, carry out research and development layout, and actively lead innovation. Promote the positive innovation of traditional Chinese medicine, and develop traditional Chinese medicine to adapt to and reflect its clinical positioning New Chinese medicine with action characteristics and advantages. Improve the clinical value oriented guiding principles of drug clinical R & D, strengthen information guidance, and promote enterprises to reasonably layout R & D pipelines. “
“The core of the circular is still to promote the innovative development of the pharmaceutical industry. Enterprises need to focus on key technologies and industry weaknesses for R & D and innovation. The era dominated by generic drugs is changing, and innovative drugs still have investment value in the future.” An industry person who declined to be named told reporters.
