"Drugs" become "luxuries", performance growth depends on price increases, is Pien Tze Huang still fragrant?
July 01, 2021
Recently, the national first-class confidential Chinese medicine Pill Zihuang's value has skyrocketed, with an ex-factory price of 590 yuan. E-commerce platforms generally cost more than 1,000 yuan per tablet. The black market price has reached 1,600 yuan per tablet, and it can be shipped as much as possible. After being followed by public opinion for many days, Pien Tze Huang made a sound on June 25, stating that in response to the recent speculation of Pien Tze Huang tablets in the market, it has reported to relevant departments to further strengthen supervision and investigation, and through stabilizing supply, expanding sales channels, and increasing the number of tablets with Pien Tze Huang. Pien Tze Huang capsules with the same quality and same effect are supplied in three ways to firmly maintain market order. However, Pien Tze Huang is still hard to find a single medicine, and the company's stock price continues to rise. The closing price of 451.45 yuan per share on June 28 hit a record high. At the beginning of 2020, Pien Tze Huang's stock price is still around 100 yuan.
What is Pien Tze Huang's "magic medicine"
In 1999, Zhangzhou Pien Tze Huang was restructured and founded by the original Zhangzhou Pharmaceutical Factory. It landed on the A-share market in June 2003. Its main business is the production and sales of proprietary Chinese medicines based on Pien Tze Huang. At present, Pien Tze Huang is a national top-secret formula and a national top-secret production process. The confidentiality period is permanent. According to public information, Pien Tze Huang is made of 3% musk, 5% bezoar, 85% panax notoginseng, and 7% snake gall. Among them, both musk and bezoar are rare animal resources. The use of musk is subject to unified approval and distribution by the state. Function indications and indications: clearing away heat and detoxification, cooling blood to remove blood stasis, reducing swelling and relieving pain. It is used for acute and chronic viral hepatitis caused by heat toxin and blood stasis, carbuncle furuncle, unnamed swelling toxin, bruises and various inflammations. According to Minnan people, "Huang" refers to all "heat, poison, swelling and pain", and "Pien Tze Huang" is a medicine that can repel all "Huang" with a little bit. The scarcity of raw materials and the strong endorsement from the country give Pien Tze Huang an advantage that other pharmaceutical companies cannot match. Although, Pien Tze Huang is special in its medicinal value. But with the gradual packaging of the market, Pien Tze Huang has become a special antibacterial drug, even an "anti-cancer drug." But the subtle thing is that even though it is regarded as a "magic medicine", Pien Tze Huang has never been included in the National Medical Insurance List, and has not been included in the National Essential Drug List. According to the big data monitoring system of Yaozhi Public Opinion, the topic of "Pien Tze Huang" showed a high degree of public enthusiasm. In the past 7 days, there were a total of 291,905 pieces of related data on this topic. The information sources were mainly clients and Weibo, accounting for 47.57%, respectively. 28.92%. The keyword cloud is as follows:
Keyword Cloud
Netizens have different opinions about the efficacy of Pien Tze Huang. Some people think that it has a miraculous effect on anti-inflammatory, and give examples to illustrate the therapeutic effect. But it is more about the crusade against the "magic medicine" of Chinese medicine, thinking that it is not in line with the scientific basis to cure all diseases and rejuvenate."The main function is to have investment value. The longer the time, the more expensive." "Use Moutai to deliver the clothes, and you will live forever and live forever." "I heard from the pharmacy that the hemostatic effect is better than Yunnan Baiyao'" In the form of traditional culture, Remnant of the brain, leeks. "So who is consuming the 590 yuan tablet of Pien Tze Huang? It may be true that patients who are in urgent need of treatment will not choose such expensive anti-inflammatory drugs. After all, there are a large number of alternatives on the market. Of course, at present Among the consumers of Pien Tze Huang, there are many people who regard it as a high-end liver health care product. There are also some people who directly give Pien Tze Huang as a gift. In this wave of hype, more people who participate are treating Pien Tze Huang as a financial product. This is why Everyone is eager for tablets with a longer shelf life, but not for capsules with the same formula. "These people buy medicines for the purpose of not treating diseases, but to make a profit in the price difference. "They bought it for profit, and sold it in the future." "Compared with other magical medicines, Pien Tze Huang has a secret formula as a powerful moat. Even if there are doubters, it is difficult to find sufficient evidence to refute. But we should realize that Pien Tze Huang is not a health product, but a genuine medicine. The double-cross varieties of drugs, that is, both prescription drugs and Class A over-the-counter drugs, should be taken under the guidance of a doctor or licensed pharmacist in accordance with regulations. There are many restrictions on the use of drugs, unreasonable use of drugs, ranging from no efficacy, delaying the condition, and serious Produce toxic side effects and cause harm to the body.
Performance growth depends on price increases, a time-honored traditional Chinese medicine brand with difficult transformation
According to the data of Pien Tze Huang's 2020 annual report, Pien Tze Huang realized revenue of 6.511 billion yuan, an increase of 13.78% year-on-year; realized net profit of 1.672 billion yuan, an increase of 21.62% year-on-year. Pien Tze Huang is able to maintain sustained profit growth because it has been raising prices. Since the company went public in 2003, Pien Tze Huang has adjusted prices 17 times, an increase of nearly 5 times. However, the company's revenue growth rate is still slowing down year by year. From 2017 to 2020, Pien Tze Huang's revenue growth rate was 60.85%, 28.33%, 20.06%, and 13.78%, respectively. The core product of Pien Tze Huang is the Pien Tze Huang series of products, which is heavily dependent on a single product. In recent years, both revenue and net profit growth have slowed down, which has forced Pien Tze Huang to continue to seek new growth points in other fields, even cosmetics, daily chemicals and other fields.
According to public information, Zhangzhou Pien Tze Huang Company currently has 6 research and development projects, the details are as follows:
Data source: Yaozhi data, company announcement
Among them, PZH2111 tablets are currently in clinical phase I/II. In August 2020, PZH2111 tablets were approved for clinical use. The new drug is mainly used to treat advanced solid tumors such as intrahepatic cholangiocarcinoma and urothelial cell carcinoma. Similar drugs with the same indications have been conditionally approved by the FDA in recent years, and no similar drugs with the same indications have been approved for marketing in China. PZH2108 tablets are indicated for the treatment of cancer pain. The new drug was approved for clinical use in December 2020 and is currently in clinical phase I. There is no drug with the same target for the same indication at home and abroad that has been approved for marketing. PZH2109 capsules are mainly used for the treatment of non-alcoholic steatohepatitis. On November 12, 2020, Pien Tze Huang Pharmaceuticals voluntarily withdrew the application. The company claimed to further improve the relevant preclinical research materials and applied to the State Food and Drug Administration for voluntarily withdrawing the clinical trial. Application. But in 2020, Pien Tze Huang's research and development expenses are only 97.55 million yuan, less than one-sixth of sales expenses, and only 1.5% of operating income, a year-on-year decrease of 18.32%. In order to spread the risk, Pien Tze Huang also used health food and daily chemical products as the two wings, supplemented by the circulation of medicines. Pien Tze Huang wants to transform through diversified businesses, but it still has a long way to go.
to sum up
Pien Tze Huang is a leading Chinese medicine company with outstanding brand advantages and a strong brand moat. It can easily pass on the cost pressure. Moreover, in the Chinese medicine industry, consumers recognize the brand and have a century-old store, and there is almost no possibility of reinvention. The company's revenue comes from the sale of the "Pien Tze Huang series of products". On the other hand, other pharmaceutical companies that have suffered from centralized procurement have limited output, cannot be copied, and have strong product pricing power, which can be described as a super invincible cash cow. Therefore, Pien Tze Huang is still a good business, and time-honored brands are not so easy to decline. A thing that has existed for hundreds of years is unlikely to be suddenly abandoned by consumers. However, the speed of change will not be so fast, which does not mean that there will be no change. If only relying on price increases and hype, it will be difficult to sustainably develop, and the market will eventually return to rationality.
