Zhejiang News, March 7(Shi Zinan)- In October 1966, the first military pharmaceutical factory in Zhejiang Province - Tongshan Pharmaceutical Factory(Formerly known as Zhejiang Cheng Yi Pharmaceutical Co.,Ltd.) - was born on Dongtou Island, which was the front line of coastal defense at that time. A series of institutional and institutional reforms have been initiated on remote islands with a shortage of funds, talent, information, and transportation.
From the original workshop style military family small factory, we have become "third" and then "first" in Wenzhou. On March 15, 2017, Cheng Yi Pharmaceutical was listed on the main board of the Shanghai Stock Exchange, becoming the first listed pharmaceutical company in Wenzhou and the first listed marine biopharmaceutical company in Zhejiang.
Over the past 50 years, Cheng Yi Pharmaceutical has achieved a perfect leap from the "sea" (Dongtou) to Shanghai, initially completing its industrialization and internationalization, and charting a path for the development of local pharmaceutical enterprises with island characteristics, Wenzhou characteristics, and Chinese characteristics.
Zhao Chunjian (right), General Manager of Cheng Yi Pharmaceutical, accompanied relevant leaders to visit the company's intelligent workshop. Photographed by Chen Danyi
Innovation oriented: Climbing the peak of investment in new drug research and development
If you carefully observe, you can find that on the economic map of Wenzhou, Cheng Yi Pharmaceutical, which has walked all the way from the "two big tanks" military small factory, has no guide or almost no companions, and is simply a "lone ranger".
However, since its listing, its performance has maintained an annual growth rate of 20-30% and a R&D investment of over 4%. When it comes to excellent financial data, Cheng Yi, a person in charge of the pharmaceutical industry, bluntly stated, "This is the result of persisting in research and development assistance for a long time
In recent years, the cost of developing new drugs has become increasingly high. Facing the trend of industry restructuring, as an established pharmaceutical company, Cheng Yi Pharmaceutical is committed to using technological innovation as the driving force for sustainable development of the enterprise.
Since 2019, it has increased its research and development efforts and won the initiative in the game of cost and benefit.
Marine biopharmaceuticals belong to the national strategic emerging industry. Currently, there are about 1000 species of medicinal marine organisms known in China, but only 10 types of marine drugs have been approved for listing by the state, and there are dozens of marine health products that have obtained the 'health' brand. The development potential of the marine biopharmaceutical industry is enormous, "said Cheng Yi, a person in charge of the pharmaceutical industry.
Relying on the advantages of Dongtou as a demonstration zone for marine economic development, Cheng Yi Pharmaceutical has been deeply involved in marine biopharmaceuticals for many years. Currently, there are three main types of marine pharmaceuticals: glucosamine hydrochloride capsules, super fish oil EPA, and sargassum fusiforme extract drugs.
Among them, the production capacity and capsule sales of glucosamine hydrochloride as a raw material for treating osteoarthritis have reached the largest in China. In 2020, it entered the national centralized procurement and won the largest share of 41% in the national medical market; The emerging Super Fish Oil EPA has a terminal market sales scale of over 10 billion yuan.
At the same time, Cheng Yi Pharmaceutical increased its efforts to climb the peak of national innovative drug research and development, cooperated with scientific research institutions of scientific research institutions such as Wenzhou Medical University to establish a "new drug research institute", and signed a contract with the team of academicians Ding Jian of the Chinese Academy of Engineering to establish the first "academician expert workstation" in Dongtou
With the nationwide promotion of mass procurement and the linkage of bid winning prices, ordinary generic drugs without technical barriers will gradually return to the level of manufacturing profits in the future, and the era of "high gross profit" for generic drugs has come to an end.
The future of Cheng Yi Pharmaceutical, which has been focused on innovation and research and development since its inception, is even more promising.
Building a Foundation for Manufacturing: Creating a Model for the Life and Health Industry
Wenzhou City's demonstration enterprise for the integration of industrialization and industrialization, Zhejiang Province's benchmark enterprise for cloud technology, and Zhejiang Province's pilot demonstration enterprise for the integration of new generation information technology and manufacturing industry... When asked about the secret of victory, Cheng Yi, the relevant person in charge of the pharmaceutical industry, answered simply and clearly: "Focus on the main business, pharmaceutical
Taking the lead in integrating into the "Yangtze River Delta" has become the first step in its transformation. In order to achieve the goal of "swapping cages for birds", in June 2018, Cheng Yi Pharmaceutical relocated its marketing center, technology development center, and securities affairs center to the Hongqiao Business District of Shanghai, actively integrating into the Yangtze River Delta and connecting with the forefront of international innovative drugs.
From "sea" to Shanghai, Cheng Yi Pharmaceutical has made a crucial leap in platform development. The results brought about by this are also "immediate": in the first half of 2019, Cheng Yi Pharmaceutical's net revenue and profit increased double, achieving a revenue of 339 million yuan, a year-on-year increase of 34.77%; The net profit attributable to the parent company was 68.2722 million yuan, a year-on-year increase of 51.68%.
In recent years, Cheng Yi Pharmaceutical has accelerated its transformation and upgrading, striving to become the "vanguard" of Wenzhou's advanced manufacturing industry. At present, a development model centered around Shanghai, with "front store and back factory" and "headquarters leading", is being formed by Cheng Yi Pharmaceutical.
Entering 2020, Cheng Yi Pharmaceutical has planned an "ambitious five-year plan with a scale of over 1 billion yuan", which has been drafted.
The first phase of the "Health Industry Park" that the enterprise has built is a major provincial industrial project in Zhejiang. Currently, the second phase of the "Health Industry Park" is being constructed, actively planning a high-purity fish oil EPA project that is leading in China and preventing cardiovascular and cerebrovascular diseases.
Taking the integration of strengthening pharmaceutical industrialization and informatization as an important breakthrough point, Cheng Yi Pharmaceutical has built a garden style health industrial park with a total asset value of 1.2 billion yuan, with 9 workshops that meet GMP standards and the most advanced automated, information-based, intelligent, standardized and comprehensive preparation "intelligent factory" that can be visited throughout the entire process in China.
The company has a clear development plan for the 14th Five Year Plan, focusing on the three major development directions of marine medicine, traditional Chinese medicine, and biopharmaceuticals. We will accelerate the construction of 'innovation highlands',' manufacturing highlands', and 'development highlands', and strive to create a' Wenzhou model 'for the life and health industry, "said the relevant person in charge of Cheng Yi Pharmaceutical.
The path of transformation for Cheng Yi Pharmaceutical is becoming increasingly broad.
Industrial empowerment: leading the development of the marine pharmaceutical industry
Currently, there are common problems in the traditional manufacturing industry in China, such as low quality, slow growth, and being large but not strong. In the past two decades, the operating revenue of Cheng Yi Pharmaceutical has also been hovering between 100 to 200 million yuan, with few breakthroughs.
At a time when innovative pharmaceutical companies in the field of research and development are emerging, enterprises with integrated development of raw materials and formulations will be at the forefront of the price war. Its cost advantage and market competitiveness will assist in the rapid expansion of related products. And Cheng Yi Pharmaceutical is one of the enterprises with both research and development capabilities and integration of raw materials and formulations.
Located in Dongtou District, which is rich in marine resources, Cheng Yi Pharmaceutical is keenly aware of the business opportunities of "growing towards the sea". By leveraging its advantages in raw materials, it vigorously develops "marine green drugs" and "medication for major diseases", breaking a successful demonstration path for domestic enterprises in the "new blue ocean" of the marine economy.
Nowadays, the main product of the enterprise, the arthritis medication glucosamine hydrochloride, occupies an important position in the domestic and international markets.
After its launch, Cheng Yi Pharmaceutical extended the raw material of glucosamine hydrochloride to the upstream "chitin", greatly enhancing the comprehensive competitiveness of the glucosamine industry; The fish oil project has also been purified from a crude oil EPA content of about 20% to over 97%, implementing a full process, full category, and full industry chain layout from food to health products to drugs.
For over half a century, the fate between Cheng Yi Pharmaceutical and the ocean may have been destined, from the workshop style military family small factory with "two big vats" to becoming a leading enterprise in marine medicine in China.
During the 14th Five Year Plan period (2021-2025), Cheng Yi Pharmaceutical will focus on planning "two strong and one large" projects: strengthening the ammonia sugar and super fish oil industries, and focusing on the big health industry.
On the basis of achieving the largest domestic sales volume, we will plan to layout the largest annual production of 2000 tons of ammonia sugar 'chitin' and raw material drug projects in Asia, and carry out construction, research and development, and production of the fish oil industry, in order to quickly establish the entire industry chain of fish oil raw material drugs, food, and health products, "said the relevant person in charge of Cheng Yi Pharmaceutical.
In recent years, Cheng Yi Pharmaceutical has also vigorously promoted the digitalization, informatization, intelligence, and standardization transformation of the group's ERP, digital workshop, and smart energy, providing a "Cheng Yi sample" for Zhejiang industrial enterprises to achieve intelligent management, intelligent production, green manufacturing, and digital marketing.
The transformation and transformation path of Cheng Yi Pharmaceutical is a microcosm of Zhejiang's development of the marine economy and the "strengthening" of Chinese private enterprises.
Standing at a new historical starting point, Sincere Pharmaceutical will once again embark on the legendary path of "a century old enterprise with a market value of tens of billions".
Article source: China News Network Zhejiang