Fosun Pharmaceutical’s business reputation is up to 8.9 billion, can the vaccine squeeze out the “water” of its performance

Recently, Pfizer and biontech( BNT.US )Bnt162b2 has been approved to be listed overseas, and Fosun Pharmaceutical (600196. SH), as the partner of the vaccine in China, has also attracted market attention. On December 20, Fosun medicine disclosed that as of December 19, the domestic phase II clinical trial of bnt162b2, a new mRNA coronase nucleic acid vaccine, had been completed ahead of schedule, and 960 subjects had been enrolled, and no serious adverse events had been reported.

has learned that Fosun has reached a supply agreement with BioNTech. Once the new BNT162 mRNA crown nucleic acid vaccine is approved by Chinese mainland, BioNTech expects to supply at least 100 million new crown nucleic acid vaccines to Chinese mainland in 2021. Novel coronavirus vaccine was developed by

in March this year. The Fosun Pharmaceutical Company, a subsidiary company of Fosun, was authorized by BioNTechSE in Germany for 135 million US dollars. It is the exclusive development and commercialization of the vaccine product based on its proprietary mRNA technology platform in the region (i.e. Chinese mainland and Hong Kong, Macao and Taiwan). < / P > < p > at that time, in addition to the new coronal vaccine, Fosun medicine also made frequent efforts in ventilator, ambulance, mobile CT and diagnostic reagents, and its performance was quite eye-catching. However, unlike other vaccine concept stocks, Fosun medicine has received little attention. Data show that the vaccine index (8841313. WI) rose 73% from February to June this year, while Fosun rose only 29% in the same period.

novel coronavirus novel coronavirus mRNA vaccine (BNT162b1) was used in the prevention of new coronavirus pneumonia in July 16th. The clinical trial was approved by the State Administration of drug administration. On August 5, Fosun medicine announced that after obtaining the approval of clinical trials from the State Food and drug administration, 72 subjects have been vaccinated so far. < p > < p > with the progress of vaccine research and development, the share price of Fosun Pharmaceutical also reached a new high. As of August 6, the A-share price of Fosun Pharmaceutical once reached 79.19 yuan / share (former right recovery, the same below), reaching a new high since its listing, and its market value also successfully broke through 200 billion yuan. In just 15 trading days from July 16 to August 7, the share price rose by 98.11%, far higher than the 5.49% increase of the market in the same period. < p > < p > in November, two new overseas mRNA vaccines announced that the effective rate reached more than 90%, including the biotech bnt162 vaccine. Since December, Europe and the United States have successively approved the emergency use right of the vaccine, and some countries have started mass vaccination. According to Fosun, the vaccine showed 95% protection before approval. < / P > < p > however, during this period, the company’s share price did not soar as before. By the close of December 23, Fosun Pharmaceutical’s share price had dropped about 27% compared with its peak value on August 6, and its market value had also dropped to 148.3 billion yuan. The market value of Hengrui pharmaceutical, a leading pharmaceutical company with similar revenue volume, has reached 565.2 billion yuan, nearly four times that of Fosun Pharmaceutical. < / P > < p > in response, asked Wu fan, an analyst of China Merchants Bank Research Institute, who said that to some extent, the two different strategic paths have caused the current situation. Hengrui pharmaceutical relies on innovation driven, while Fosun Pharmaceutical relies on M & A. Although it is a way to increase performance by M & A, it still needs core technology. < / P > < p > for a long time, M & A has been regarded as an important mode to promote Fosun Pharmaceutical Innovation. Since 2010, Fosun Pharmaceutical has invested in 11 hospitals by the end of 2019. Up to now, Fosun medicine has more than 50 holding or participating companies, which makes it the title of investment company. As a matter of fact, as early as 2010, Fosun medicine put forward its internationalization strategy, saying that it would accelerate the industrialization and globalization of biopharmaceuticals. In 2013, Fosun Pharma acquired 95.6% of the equity of Alma lasers in Israel with us $240 million. Since then, Fosun Pharma has begun its overseas M & a journey. < / P > < p > in 2016, Fosun acquired about 86.08% equity of India’s leading injection pharmaceutical company, Glen pharma. In 2017, its subsidiary acquired 100% equity of tridem Pharma, a French drug distribution company. As a result, Fosun medicine has successfully entered two important markets in India and Africa, laying a foundation for the production of new crown vaccine in cooperation with Pfizer and biotech. < / P > < p > however, along with it, the goodwill of Fosun medicine also soared. As of the third quarter of 2020, the company’s goodwill was 8.895 billion yuan, compared with 51 million yuan in 2009, an increase of 173 times in 11 years. According to choice data, in the biological vaccine sector, Buchang Pharmaceutical (603858. SH) and humanwell Pharmaceutical (600079. SH) with high reputation have all experienced explosive mine events. At the same time, the company’s debt also increased significantly. According to the data, from 2016 to 2019, the total amount of interest bearing liabilities of Fosun Pharmaceutical were 12.1 billion yuan, 21.1 billion yuan, 23.8 billion yuan and 21.7 billion yuan respectively; the monetary funds were 5.996 billion yuan, 7.249 billion yuan, 8.547 billion yuan and 9.533 billion yuan respectively. < / P > < p > from the data point of view, its monetary capital can only cover less than half of the interest bearing liabilities, and the capital chain is very tight. As for whether the company has debt repayment risk, “investor net” has sent an inquiry letter to Fosun medicine, but so far it has not received a reply. < p > < p > as a merger and acquisition company, Fosun Pharmaceutical can be divided into three parts: pharmaceutical manufacturing and R & D, medical services and medical diagnosis and medical device manufacturing / agency. In terms of performance, in the first three quarters of 2020, Fosun Pharmaceutical’s operating revenue was 22.103 billion yuan, an increase of 4.12% over the same period last year; its net profit was 2.479 billion yuan, an increase of 20.12% over the same period last year. < / P > < p > from 2017 to 2019, the company’s revenue growth was 26.69%, 34.45% and 14.72% respectively, and its net profit growth was 11.36%, – 13.33% and 22.66% respectively. It is not difficult to find that although Fosun Pharmaceutical’s revenue has achieved continuous high growth in recent years, the growth rate is gradually slowing down, and the net profit has been fluctuating. < / P > < p > in terms of profitability, the gross profit rate and net profit rate of Fosun Pharmaceutical are on the low side of the industry. In the first three quarters of 2020, the gross profit rate of the company is 55.87%, while that of Hengrui medicine is stable at about 87%; the net profit rate of the company is 12.44%, while that of Hengrui medicine is 21.86%. < / P > < p > what is more worrying is that the net profit of Fosun Pharmaceutical is not high. On the one hand, its performance depends on investment income. According to the financial report, from 2017 to 2019, the investment income of the company was 2.307 billion yuan, 1.815 billion yuan and 3.566 billion yuan respectively, accounting for 73.85%, 67.02% and 107.31% of the net profit. < / P > < p > on the other hand, the company’s R & D expenses are highly capitalized. According to the data, from 2017 to 2019, the capitalization amount of R & D investment of Fosun Pharmaceutical was 503 million yuan, 1027 million yuan and 1422 million yuan, respectively, with capitalization ratios of 32.87%, 40.98% and 41.05%, while that of Hengrui pharmaceutical was 0 in 2019. In fact, the sales expenses and R & D expenses of Fosun Pharmaceutical are much higher than the average level of the industry, in which the sales expenses increase from 5.791 billion yuan in 2017 to 9.847 billion yuan in 2019, and the R & D expenses increase from 1.529 billion yuan to 3.463 billion yuan, almost doubling. < / P > < p > in response, Wu fan of China Merchants Bank Research Institute was inquired by He said that R & D investment capitalization is a common phenomenon in the biomedical industry. The capitalization of R & D expenditure can reduce the impact of the current profit and loss on the current profit of enterprises. But in fact, in the long run, after capitalization, the expenses are transferred to intangible assets. In the future, the amortization cost of intangible assets will still have to be paid back sooner or later. < / P > < p > judging from the recent industrial layout of Fosun Pharmaceutical, Xinguan vaccine may be its main direction of attack. Prior to that, on November 26, Fosun Pharmaceutical also planned to issue no more than 128 million shares to specific targets in a non-public manner, and planned to raise 4.983 billion yuan, of which 325 million yuan was used for the new coronavirus mRNA vaccine. As for how much benefit this vaccine can bring, Wu Yifang, chairman of Fosun Pharmaceutical, once said that the gross profit of the Chinese market will be calculated according to the final price of the Chinese market and the cost of our production. As for the profit sharing, Fosun is 65% and biontech is 35%. In China, all sales related expenses are borne by Fosun. < / P > < p > however, in the view of industry insiders, in the context of global anti epidemic, the price of new crown vaccine will only be lower, close to the cost price, and it is almost impossible for manufacturers to make profits. What enterprises pay more attention to is the social effect of new crown vaccine and the feedback effect of relevant policies. < / P > < p > in addition, the huge profit margin created by the massive demand for vaccines also drives pharmaceutical companies to compete with each other, and the market competition may become increasingly fierce in the future. The mRNA nucleic acid vaccine needs to be refrigerated at – 70 ℃, which also poses a great challenge to its transportation and storage. < / P > < p > it is reported that at present, there are five technical routes of domestic new crown vaccine, and five vaccines have entered clinical trials. Among them, five vaccines are carrying out phase III clinical trials according to the procedures and standards, and the work of emergency use and production preparation has been carried out in an orderly manner. Not long ago, Sinopharm group’s new crown inactivated vaccine has been approved for marketing in the United Arab Emirates. The vaccine can be distributed without cold chain. < / P > < p > recently, academician Zhong Nanshan also made a public statement: our first batch of vaccines will be announced, and the first and second vaccines will soon be launched, and they will soon be vaccinated in China. In addition to strict prevention, we need to be vaccinated to solve the problem in two ways. < / P > < p > from the current situation, even if Fosun’s new mRNA crown vaccine, which Fosun has bet on, is finally successfully launched in China, it still faces various challenges in the follow-up production and marketing process, and the impact on the company’s performance remains to be tested in time. (produced by thinking Finance) < / P > < p > Disclaimer: the purpose of reprinting this article is to convey more information, and it does not represent the opinions and positions of our website. The content of this article is for reference only, and does not constitute an investment proposal. 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