I. focus this week: performance review of 2021 annual report of Hong Kong stock innovative pharmaceutical enterprises
Hong Kong stock innovative drug companies have successively disclosed annual report information. The listed innovative drug companies in China’s capital market are mainly concentrated in Hong Kong stocks, especially the 18a sector, which is the epitome of high-quality biotech. This week, we combined 30 charts and took the target of 18a Hong Kong stock biotech as the main sample to check the financial data of Hong Kong stock innovative pharmaceutical enterprises and the construction of representative R & D platforms in 2021.
The annual report of innovative pharmaceutical enterprises in Hong Kong stocks has made brilliant achievements, and the innovation results have begun to be realized gradually.
Total operating revenue: Overall, compared with 2020, the total revenue of 18a in 2021 increased by more than 170%. With the commercialization of core products, biotech’s revenue has improved significantly. Baiji Shenzhou, Xinda biology, Cansino Biologics Inc(688185) biology and Shanghai Junshi Biosciences Co.Ltd(688180) biology are in the first echelon, with a total operating revenue of more than 4 billion yuan.
In terms of revenue growth, nuocheng Jianhua and Rongchang biology doubled their revenue in the first year of commercialization, and Rongchang biology and Cansino Biologics Inc(688185) biology successfully turned the net profit deducted from non parent company into positive.
The average growth rate of biotech R & D expenses reached 35.77%, and the innovation of Chinese pharmaceutical enterprises entered the accelerated stage. Based on the R & D expenses of 25 18a Hong Kong stock biotechs, the R & D expenses of 21 biotechs increased in 2021, the R & D expenses of Ping traditional pharmaceutical enterprises increased steadily by 30.49%, and the sales expense rate was stable.
The change of cash on account is differentiated. The cash on account of the first tier company has gradually improved in recent years, and the cash on account is enough to support the company’s operation, innovation and R & D. the cash on account of the second tier company remains stable; The cash flow capacity of the remaining enterprises is still weak.
The pace of innovative products going to sea is accelerated, and endogenous circular cooperation promotes innovation. In 2021, the products of innovative pharmaceutical enterprises in Hong Kong stocks went to sea and achieved good results. The internationalization of innovation is the general trend. Baiji Shenzhou has reached cooperation with Novartis twice (PD-1, tigit), with a total transaction volume of more than US $5 billion. While actively absorbing overseas research and development achievements, innovative pharmaceutical companies are also fully concerned about the R & D Progress of the local innovative drug industry.
Continuously promote the construction of pipeline innovation platform. Traditional pharmaceutical enterprises have extensive in new technology planning; Biopharma also has a rich and perfect layout of cutting-edge technologies; The construction of new biotech focused technology platform has formed a unique competitive advantage.
With the ups and downs of the capital market, high-quality targets will eventually find gold in the sand. The overall performance of the company’s share price in 2021 is not satisfactory. However, the explosive growth of product revenue, the realization of innovative products at sea and the continuous construction and expansion of R & D platform reflect the great potential of innovative enterprises with R & D as the core.
II. Market review of innovative medicine stocks in the pharmaceutical sector:
The top 5 gainers and losers in Shanghai and Shenzhen pharmaceutical innovative drug sector this week are Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) , Shenzhen Chipscreen Biosciences Co.Ltd(688321) , Baiji shenzhou-u, Sichuan Kelun Pharmaceutical Co.Ltd(002422) , Shan Dong Kexing Bioproducts Co.Ltd(688136) . The last five are Beijing Kawin Technology Share-Holding Co.Ltd(688687) , Staidson(Beijing) Biopharmaceuticals Co.Ltd(300204) , Jenkem Technology Co.Ltd(688356) , Hunan Nucien Pharmaceutical Co.Ltd(688189) , Sinocelltech Group Limited(688520) – U.
Kangnoah-b, tengshengbo pharmaceutical-b, Beihai kangcheng-b, Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) , and Yunding xinyao-b ranked among the top 5 in the rise and fall of pharmaceutical innovative drugs in Hong Kong stocks this week. The last five are Rongchang bio-b, Hansen pharmaceutical, kangfang bio-b, cornerstone pharmaceutical-b and heyu-b.
III. IPO this week: jijiyaokang – innovative model to help new drug research and development
IV. 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.
