Focus this week: sorting out the key points of Roche and Merck's 2021 Annual Report
On February 3, 2022, multinational pharmaceutical companies Roche and Merck successively released the performance summary report of fiscal year 2021. In this week's weekly report, we combed in detail the performance and R & D Progress of the two companies in 2021, and reviewed the growth path of the pharmaceutical giant in a year when the global epidemic spread and the medical and health pattern continued to change.
Roche: newly listed drugs performed well, and covid-19 test boosted performance growth. In 2021fy, Roche achieved a total revenue of CHF 62.801 billion, with a year-on-year increase of 9% at a constant exchange rate; The adjusted net profit was chf18.071 billion, a year-on-year increase of 6%; The corresponding adjusted EPS is CHF 19.81. Covid-19 detection and basic diagnosis have driven the rapid development of the diagnosis business sector, and the newly listed innovative drug products have performed well. The company as a whole has achieved high single digit performance growth on a large base.
Merck: the indications of drug K continued to expand, and the performance in China increased rapidly. In 2021fy, the company realized a revenue of 48.704 billion US dollars, a year-on-year increase of 16%; The adjusted net profit was US $15.282 billion, a year-on-year increase of 31%, corresponding to EPS of US $602. 2021q4 single quarter revenue of US $13.521 billion, a year-on-year increase of 23%; The adjusted net profit was $4.575 billion, an increase of 81% year-on-year, corresponding to EPS of $1.80. In the pharmaceutical business, keytruda (pembrolizumab, PD-1) supported 52% of the sales revenue, with a year-on-year increase of 18%; The scope of application has been continuously expanded, and the approved indications have reached more than 30. In the vaccine business, HPV vaccine products gardasil9 / Gardasil were sold rapidly in Q4, with a year-on-year increase of 50%. Heavyweight products recovered from the impact of covid-19 epidemic, and the proportion of performance in China increased year by year.
Market review of innovative medicine stocks in the pharmaceutical sector:
This week Shenzhen Salubris Pharmaceuticals Co.Ltd(002294) , Guangdong Zhongsheng Pharmaceutical Co.Ltd(002317) , Jiangsu Jibeier Pharmaceutical Co.Ltd(688566) , Shanghai Allist Pharmaceuticals Co.Ltd(688578) - u, Sichuan Kelun Pharmaceutical Co.Ltd(002422) ranked the top 5 in the rise and fall of Shanghai and Shenzhen pharmaceutical innovative drugs sector. The last five are Shanghai Junshi Biosciences Co.Ltd(688180) - u, Hunan Nucien Pharmaceutical Co.Ltd(688189) , Beijing Kawin Technology Share-Holding Co.Ltd(688687) , Jiangsu Aidea Pharmaceutical Co.Ltd(688488) , Frontier Biotechnologies Inc(688221) - U.
The top 5 gainers and losers in the pharmaceutical innovation sector of Hong Kong stocks this week were Peijia medical-b, Xiansheng pharmaceutical, Sansheng pharmaceutical, Geli pharmaceutical-b and Yaoming junuo-b. The last five are Yunding xinyao-b, heplatinum medicine-b, Baiji Shenzhou, Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) , and Yasheng medicine-b.
IPO this week: Lepu biology -- the scarcity innovation leader of intensive cultivation ADC drugs
Medium and long term perspective of innovative pharmaceutical industry:
In recent years, with the influx of capital stimulated by policies, China has ushered in a gale of innovation. China's innovation market has strong policy attributes. On October 8, 2017, the two offices jointly issued the opinions on deepening the reform of the review and approval system and encouraging the innovation of drugs and medical devices, which opened the first wave of innovation. With the revision of the administrative measures for drug registration, drug negotiation and the introduction of the dynamic adjustment mechanism of medical insurance, the top-level design of the policy has completely solved the problem of insufficient innovation power caused by Limited R & D resources, non-standard Review & slow progress, low bidding efficiency, high difficulty in admission and difficult connection of medical insurance in history. Under the stimulation of Programmatic Policies, combined with the promotion of the science and innovation board and the registration system in recent years, the capital of innovative medicine racetrack swarmed, and the financing of innovative medicine enterprises accelerated, which also led China's innovative medicine investment into the era of gale mouth. Driven by a good policy environment and capital, China's innovation rise has accelerated. Domestic innovative drugs have entered the harvest period one after another, and more heavy innovative products will be approved and listed in China in the next few years.
What cannot be ignored is that the time window for "general innovation" given by the policy is becoming shorter and shorter, the cost control of medical insurance is becoming stricter, and the track is becoming more and more crowded. We have slowly entered the moment of "selected high-quality innovation". At present, the homogenization of innovative drug research and development in China is more serious, and the homogenization of targeted drugs is the most serious. The era that innovative drugs are listed as blockbusters is slowly passing, and the time window period of "general innovation" given by the policy is becoming shorter and shorter. We believe that China's innovative drug market has slowly entered the moment of "selected high-quality innovation" from "general innovation". In the future, the homogenization competition of McAb popular targets will continue to be intense, and the homogenized products will gradually lose their competitiveness. New technologies, scarce technology platforms, differentiated treatment fields and innovative drug delivery methods may bring a better competitive pattern to enterprises, and companies with technology precipitation are expected to stand out.
Risk tips: 1) negative policies continue to exceed expectations; 2) The growth rate of the industry was lower than expected.
