Focus this week: sorting out the key points of Pfizer and Novartis 2021 annual reports
Multinational pharmaceutical companies Pfizer and Novartis 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.
Pfizer: covid-19 vaccine was honored as the “king of medicine”, with ultra-high performance growth. In 2021, the total revenue was USD 81.288 billion (+ 95%), and the adjusted net profit was USD 25.236 billion (+ 98%), corresponding to EPS 4.5% $42; In 2021q4, the revenue was USD 23.838 billion (+ 105%), and the adjusted net profit was USD 6.239 billion (+ 156%), corresponding to eps1.5% $08. The revenue of vaccines, tumor drugs and rare disease drugs increased significantly, and the revenue of inflammatory and immune diseases drugs decreased. Covid-19 vaccine comirnity and paxlovid were the main revenue growth points, with sales of US $36.781 billion and US $76 million respectively (starting from Q4); Excluding the influence of the two, the annual operating revenue will increase by 6% in 2021.
Novartis: Novartis and Keshan are very large-scale and rapid, and the performance in China is brilliant. In 2021fy, the company achieved revenue of 51.626 billion US dollars, an increase of 6% year-on-year; The adjusted net profit was US $14.094 billion, a year-on-year increase of 7%, corresponding to EPS of US $6.29. In 2021q4, the single quarter revenue was US $13.229 billion, with a year-on-year increase of 4%; The adjusted net profit was US $3.135 billion, a year-on-year increase of 3%, corresponding to EPS of US $1.40. China has the fastest growth, accounting for 6% of the global total revenue; The total sales revenue was US $3.052 billion, with a year-on-year increase of 18% and a fixed exchange rate growth rate of 11%. Among them, the revenue of innovative pharmaceutical business in 2021 was US $42 billion, a year-on-year increase of 8%. Cosentyx and entresto, a new drug for heart failure, contributed a total of US $8.266 billion, becoming the most key drugs driving Novartis’s performance growth.
Market review of innovative medicine stocks in the pharmaceutical sector:
This week Shanghai Junshi Biosciences Co.Ltd(688180) – u, Chengdu Easton Bio Pharmaceuticals Co.Ltd(688513) , Staidson(Beijing) Biopharmaceuticals Co.Ltd(300204) , Livzon Pharmaceutical Group Inc(000513) , Frontier Biotechnologies Inc(688221) – U ranked the top 5 in the rise and fall of Shanghai and Shenzhen pharmaceutical innovative drugs sector. The last five are Beijing Kawin Technology Share-Holding Co.Ltd(688687) , Suzhou Zelgen Biopharmaceuticals Co.Ltd(688266) – u, Jiangsu Aidea Pharmaceutical Co.Ltd(688488) , Luoxin Pharmaceuticals Group Stock Co.Ltd(002793) , Sichuan Kelun Pharmaceutical Co.Ltd(002422) .
The top 5 gainers and losers in the pharmaceutical innovative drugs sector of Hong Kong stocks this week are Kingsley biotechnology, Shanghai Junshi Biosciences Co.Ltd(688180) , conoya-b, Xiansheng pharmaceutical and Rongchang biology-b. The last five are Baiji Shenzhou, Corning Jerry pharmaceutical-b, Guangdonghectechnologyholdingco.Ltd(600673) medicine, platinum medicine-b and Sansheng pharmaceutical.
IPO this week: Haichuang pharmaceutical, a pioneer in the field of protac
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.
