White horse stumbles! The listing of 8 innovative drugs still plummeted, what happened to Hengrui?

July 07, 2021

On July 2, 2021, the Center for Drug Evaluation (CDE) of the National Medical Products Administration issued the "Guiding Principles for Clinical Research and Development of Antitumor Drugs Oriented by Clinical Value" for soliciting comments. This opinion draft was completely fermented over the weekend. Affected by this policy, the CXO sector collectively fell.

Unexpectedly, Hengrui Medicine also experienced a plunge. On July 5, Hengrui's stock price fell close to 7%. As of the close, the company's decline narrowed to 5.92%, and the stock price was 62.95 yuan. On July 6, Hengrui Pharmaceuticals continued to fall, falling by more than 3% during the intraday session, closing at 61.38 yuan per share in early trading, with a total market value of 392.6 billion yuan, falling below the 400 billion yuan mark. What happened to Hengrui? What impact does this draft for comments have on pharmaceutical companies represented by Hengrui?

Is the release of heavy documents good or bad?

The "Guidelines for Clinical Value-Oriented Anti-tumor Drug Clinical Research and Development" has a 28-page draft for comments. The document proposes that new drug research and development should provide patients with better treatment options as the highest goal, and non-optimal treatments should be used as a control. At the time, even if the clinical trial achieves the preset research goal, it cannot show that the trial drug can meet the actual needs of patients in the clinic, or it cannot prove the value of the drug to patients. This means that new drugs have to beat the marketed and best-effect drugs in terms of efficacy. This new CDE regulation directly refers to new me-too drugs, and Hengrui Medicine is famous for fast follow. If it is said that me too is difficult to do in the future, Hengrui’s future development will also be affected to a certain extent. However, the document does not say that me too is not allowed, but it depends on the clinical value. Me better drugs will be more favored by review. The industry generally believes that if there is real strength and can achieve "me-better", there is still room for survival. If it is a speculative "me-worse" drug, it is basically impossible to go on the market. Therefore, for a powerful Pharma like Hengrui, it may not be bad news, it may even be good. The New Deal may push the leading companies represented by Hengrui to further stand out.

In the eyes of netizens, is Hengrui a generic or innovative pharmaceutical company

However, the continued decline in Hengrui's stock price is not only the impact of new policies, but also many other factors. In fact, since the beginning of this year, Hengrui Medicine's stock price has continued to fall. After the historical high of 97.22 yuan, the total market value has evaporated by more than 200 billion in half a year. The new policy that has caused heated discussion in the industry has not been “out of the circle” so quickly. More netizens still judge Hengrui in the fifth batch of national drug procurement. Although we have been saying that Hengrui is the leader of A-share innovative pharmaceutical companies, 80% of its revenue comes from generic drugs. Therefore, the impact of centralized procurement on Hengrui is so great. According to the big data monitoring system of Yaozhi Public Opinion, the topic of "Hengrui" showed high public opinion enthusiasm. In the past 7 days, the total amount of related data on this topic was 25030. The keyword cloud is as follows:

Keyword Cloud

The fifth batch of national drug collections, which opened on June 23, were Hengrui Oxaliplatin Injection, Cisatracurium Benzene Sulfonate Injection, Dutasteride Soft Capsules, Docetaxel Injection, Luo Hydrochloride Pivacaine injection and Palonosetron hydrochloride injection were planned to win the bid, but iodixanol injection and glycopyrrolate injection did not win the bid. Among them, the total sales of the six products that won the bid in 2020 were 2.557 billion yuan, accounting for 9.22% of the company's operating income in 2020, and the total sales of the two products that did not win the bid in 2020 were 1.873 billion yuan, accounting for 6.75 of the company's operating income for the year. %. Whether it won the bid or not, it will have an impact on revenue. In addition to the impact of new policies and centralized procurement, the decline in Hengrui's share price is also due to the capital market itself. In fact, many netizens don't understand this company. Seeing a sharp drop in the White Horse stocks, there are always people who want to get on the bus. But more people are waiting and watching, believing that although the pharmaceutical industry has experienced a sharp drop, its valuation is still relatively high. In the short term, Hengrui may still fall, but Hengrui has not only imitations and me too drugs, but also opens up a real path of innovation.

summary

Although Hengrui Medicine has a high degree of attention in the pharmaceutical industry and has many products, it is still relatively unfamiliar to the majority of netizens due to the high degree of professionalism in the industry. However, in the eyes of medical people, Hengrui is recognized as a leading pharmaceutical company and its comprehensive strength is recognized. In the context of centralized procurement, Hengrui takes "technological innovation" and "internationalization" as its future development strategy, which is a very good choice in the long run. In terms of R&D and innovation, Hengrui currently has irecoxib, apatinib, thiopefigrastim, pyrrotinib, carrelizumab, remazolam tosylate, fluzoparib 8 innovative drugs such as, Hytrobopar have been approved for marketing, and more than 40 innovative drugs are under clinical development. In terms of internationalization, Hengrui Medicine has been in overseas markets for many years. In 2020, Hengrui Pharmaceutical's foreign business income will increase by 19.96%, accounting for 3% of the main business income. There is a lot of room for internationalization in the future. At present, Hengrui has nearly 20 projects approved to carry out global multi-center or regional clinical research. Among them, karelizumab combined with apatinib, fluzoparib and other products have carried out phase III clinical trials in international multi-centers. It is hoped that Hengrui Pharmaceuticals will continue to target the cutting-edge technology of global medicine to overcome difficulties, develop more new drugs with real clinical value, and embark on its own path of innovation.

문의하기

Author:

Ms. Yi

Phone/WhatsApp:

+8618888297294