Hengrui Medicine (600276) Interim Review: The research continues to increase the size of the innovation layout gradually clear

Hengrui Medicine (600276) Interim Review: The research continues to increase the size of the innovation layout gradually clear

Event: Hengrui Pharmaceutical released the semi-annual report for 2019, and achieved sales revenue of 100 in the first half of 2019.

2.6 billion (+29.

19%), achieving net profit attributable to mothers24.

1.2 billion (+26.

32%), realizing net profit deducted from non-mothers22.

8.9 billion (+25.

21%), the company achieved 50 in Q2.

5.9 billion yuan (+29.

61%), achieving net profit attributable to mother 12.

2 billion yuan (+27.

03%), and realized the net profit of non-returned mothers 11.

3.4 billion (+22.

72%).

Performance growth was in line with expectations.

The R & D expense ratio has increased significantly, and R & D investment has continued to increase. R & D expansion in the first half of 2019 has further increased, with a total expenditure of 14.

8.4 billion, an annual increase of 49.

13%, R & D expense ratio reached 14.

80%, up nearly 2 mergers from the previous.

The sales expense ratio and management expense ratio increased slightly in the first half of the year, of which sales expenses increased for ten years.

36%, which is used for academic promotion, the construction of specialized platforms for innovative drugs, and the market cost growth rate has reached 40.

39%, significantly higher than the increase in total sales expenses, indicating that the company has further increased its investment in academic promotion.

In the first half of the year, due to the increase in sales expenses and research and development expenses, the company’s net profit margin shifted slightly.

The R & D innovation gradually deepened from point to surface, and the multi-layer product line layout gradually became clear. The company’s R & D projects steadily advanced in the first half of the year. In addition to the blockbuster product PD-1 monoclonal antibody Erica approved for listing, a number of innovative varieties have been successfully advanced in Phase III.
Taking PD-1 monoclonal antibody Erica as a starting point, the company’s huge R & D pipeline layout gradually became clear. From the single point R & D of the first innovative drug Apatinib, to the point-to-face, the breadth of R & D andDeep synchronous grabbing to create a comprehensive combination treatment plan for Chinese patients.

The internationalization of generic drugs has steadily advanced, and the internationalization of innovative drugs has opened a new chapter. In the first half of 2019, the company continued to expand the implementation of its internationalization strategy and actively expanded overseas markets.

With regard to the internationalization of generic drugs, ivabradine hydrogen sulfate tablets have been approved in the United Kingdom, Germany and the Netherlands, and the heavy-duty daptomycin has been approved in the United States. It is expected to be officially launched in the United States in October this year.

In addition, the reporting group company delivered one API application to the US FDA; and one API application to emerging markets such as New Zealand.

At present, the company has 18 injection products including injections, oral preparations and absorbent anesthetics approved in Europe, America and Japan.

In terms of internationalization 杭州夜生活网 of innovative drugs, PD-1 monoclonal antibody Erica combined with apatinib for first-line clinical trials of hepatocellular carcinoma has launched a global multi-center phase III clinical trial, which is currently underway in an orderly manner.

Summary: Through the approval of multiple innovative drugs, we believe that the company has begun to enter the critical period of structural adjustment of the variety, the company has gradually expanded its share in academic promotion, and the company’s internal division of the sales team by disease areas also beginsEnter the professional sales model of academic promotion.

Driven by innovation and transformation in R & D and sales, the company continues to be optimistic about the company’s future development.