Zhongsheng Pharmaceutical Co., Ltd. sells double-digit gains this year

Last year, the implementation of the pharmaceutical reform in the Mainland, including the requirement for generic drugs to pass the drug “consistency evaluation” with the original drug, and the introduction of a quantity procurement policy in 4+7 cities, the drug must be substantially reduced in price before the government can concentrate on procurement, market worries The volume procurement policy will be extended to the whole country, which will make the profitability of generic pharmaceutical companies under pressure. Xie Wei, vice president of Zhongsheng Pharmaceutical (01177), said that the 4+7 quantity procurement execution was slower than expected. The second batch list was originally expected to be implemented in April, but according to the current progress, the second batch is believed to be launched in the summer. Bottom execution.

Expected to push the second batch of purchases in summer

Zhongsheng Pharmaceutical passed six “consensus evaluations” last year. Xie Wei pointed out that the drugs listed in the second batch of 4+7 quantity purchase orders are less than the first batch. These drugs can complete the “consistency evaluation” before the list is executed. He believes that the second batch of quantity procurement is more favorable. The group won the bid and seized market share.

Zhongsheng Pharmaceutical’s net profit surged 3.17 times last year. Even after the acquisition and fair value changes, the basic net profit rose 37%. The annual R&D expenditure was 2.091 billion yuan, accounting for 10% of revenue. Xie Wei revealed that the Group’s research and development expenditure on innovative drugs has been more than that of generic drugs, and more than 20 innovative drugs are in clinical stage. This year’s sales revenue target can record a double-digit increase, and 10% to 11% of the sales revenue will be used for research and development. It is expected that the research and development expenditure will be more than RMB 2 billion this year.

Push 10 to 15 new products every year

Xie Wei continued that 10 to 15 new products are expected to be listed each year in the next five years, and the first three years will focus on generic drugs, and the fourth year will not start to introduce innovative drugs because the clinical testing process is quite long; the next three to five years There are 30 drugs sold for more than 100 million yuan, and 10 drugs sold for more than 1 billion yuan.

Zhongsheng Pharmaceutical’s share price closed at 7.32 yuan yesterday, up 2.24%, with a turnover of 487 million yuan.