After the release of the "4+7" volume procurement policy and new pharmaceutical regulations, it has had an unprecedented impact on many pharmaceutical listed companies. Cheng Yi Pharmaceutical relies on the exclusive drug business route, quality first business model, and refined production management methods, but is weakly affected by the policy and has achieved growth against the trend.
On May 22nd, Cheng Yi Pharmaceutical held an investor reception day event on the Opportunity Treasure platform, providing a comprehensive introduction to the company's business status and future plans, and answering investors' questions. Vice Chairman Ren Bingjun, General Manager Zhao Chunjian, Dong Mi Ke Zehui, Financial Director Lv Sun Zhan and other company executives attended the meeting.
Cheng Yi Pharmaceutical focuses on pharmaceutical and health products, and is a national high-tech enterprise specializing in the research and development, production, and sales of formulations and raw materials. Since its establishment in 1966, it has a development history of 53 years and has rich experience in drug research and development, production, and sales. It is also one of the earliest pharmaceutical companies in China to go global. After obtaining TGA certification from the Australian Food and Drug Administration in 1998, it has successively obtained national GMP certification, certification from multiple countries and regions such as the US FDA, the EU EMEA, the UK MHRA, and Mexico COFEPRIS, and has been highly recognized in both domestic and foreign markets.
1. High performance growth and stable business development
According to the company's 2018 annual report, the company's operating revenue reached 546 million yuan in 2018, a year-on-year increase of 60.10%; The net profit attributable to the parent company reached 97 million yuan, a year-on-year increase of 39.97%. Under the adjustment of strengthening the sales and marketing models of key pharmaceutical products, the sales growth of joint, diuretic, and vitamin pharmaceutical products has led to revenue growth, effectively achieving an increase in net profit margin.
Since the company went public in March 2017, its performance has continued to grow, and its financial data is impressive, reflecting the company's good growth potential. In 2018, Cheng Yi Pharmaceutical's output value exceeded the 500 million yuan mark for the first time. At this exchange meeting, Vice General Manager Li Shisheng also clearly stated that the "13th Five Year Plan" is expected to be realized ahead of schedule.
2. The joint efforts of "commercial channels+retail terminals" have further increased market share
The company attaches great importance to the expansion of marketing channels, selects regional distributors at all levels, continuously promotes in-depth and refined products and corporate brands, increases the sales of high value-added pharmaceutical products, and achieves a simultaneous increase in the quantity and price of key products.
In terms of the sales direction of the main product - ammonia sugar, on the one hand, strengthen cooperation with hospitals, formulate different prices based on the bidding policies of various provinces and regions across the country, and form a more reasonable price system; On the other hand, we will expand our cooperation with retail terminals. Currently, we have collaborated with large chain retail terminals such as Gaoji Medical, Guoda Pharmacy, and Yifeng Pharmacy. In June, we will sign cooperation agreements with other large chain pharmacies to further promote volume expansion and expand sales.
3. Leading market in multi product segmentation, weakly influenced by policies
Cheng Yi Pharmaceutical and its subsidiaries have a total of 67 drug production approval numbers, of which 39 are listed in the national medical insurance catalog and 16 are listed in the national essential drug catalog. Among them, the proportion of "ammonia sugar" products in the domestic raw material preparation field reaches 65%, and other types of products have a leading market share in the segmented fields.
After the introduction of the "4+7 centralized procurement with volume" policy, it has had a significant impact on the pharmaceutical market. Cheng Yi Pharmaceutical, with its competitive advantages such as product structure and exclusive varieties, has a high market share and low substitutability, and is generally not affected by the policy.
Vice Chairman Ren Bingjun stated at the meeting that he will continue to do a good job in consistency evaluation and research and development of generic drugs in the future, and invest considerable energy in the development of innovative drugs.
At present, Cheng Yi Pharmaceutical has a consistency evaluation plan for 4 national new drug varieties, over 20 new products under development with different product specifications, and 4 types of multi specification products. With the dual efforts of continuously increasing product research and development and extensive acquisition, it is expected to continuously enrich its reserve products and expand its production line, and achieve the goal of 1 billion revenue as soon as possible.
(Article source: Ji Hui Bao)