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Fosun Pharma breaks through 100 billion market value, President and CEO Wu Yifang: The thickness of the industry determines the growth value of the company
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Add time:2017-12-22 16:52
Summary:In 2017, Fosun Pharma's good performance in the capital market attracted attention from all parties. Recently, a reporter from "Securities Daily" interviewed Fosun Pharma's President and CEO Wu Yifang to explore the underlying reasons behind the company's outstanding market value from Fosun Pharma's entire industry chain development model, international layout and progress, and global resource integration capabilities. Now share the original report with you.
In 2017, Fosun Pharma's good performance in the capital market attracted attention from all parties. Recently, a reporter from "Securities Daily" interviewed Fosun Pharma's President and CEO Wu Yifang to explore the underlying reasons behind the company's outstanding market value from Fosun Pharma's entire industry chain development model, international layout and progress, and global resource integration capabilities. Now share the original report with you.
As an important company in Fosun's major health sector, Fosun Pharma's performance in the secondary market has attracted attention. Since the beginning of this year, Fosun Pharma has become a "star stock" in the A-share pharmaceutical and biological industry.
Data show that as of December 20, 2017, in the A-share pharmaceutical and biological industry, excluding the factor of new shares, five listed companies have increased by more than 80% this year. Fosun Pharma ranked first, with an annual increase of 89%. The company’s total market value increased from 55.1 billion yuan at the beginning of the year to 106.6 billion yuan. It became one of the four 100 billion yuan market value clubs in the pharmaceutical industry. Star speed".
In this regard, Wu Yifang, President and CEO of Fosun Pharma, said that the thickness of the industry determines the height of the company's growth value. The good performance of the stock price is the market's best feedback on the company's value. I am very grateful for the trust of investors and the market.
Our unchanging philosophy is to do a good job in the sustainable development of the company and the value of shareholders. In the future, we will continue to work hard to let investors see the continuous improvement of the value of Fosun Pharma in the future.
From the perspective of industry insiders, behind Fosun Pharma's high market value growth is the company's accumulation of years, and its value has gradually been recognized by the market. The research report released by Ping An Securities believes that the integration of Fosun's pharmaceutical industry has entered a harvest period. Relying on the biopharmaceutical platform Fuhong Henlius has become the leader in monoclonal antibody research and development; the acquisition of Indian pharmaceutical company GlandPharm will further promote the internationalization of R&D innovation and generic drug export; the world's leading laser medical beauty equipment supplier SISRAMMED successfully listed in Hong Kong Build an overseas financing and M&A platform for medical devices; establish Fosun Kite with CAR-T giant Kite to start the industrialization of CAR-T products in China. In addition, Fosun Pharma has continued to deploy medical institutions and become a leader in the field of medical services...
Build a development model for the entire industry chain
In a research report released by Zhongtai Securities in March this year, Fosun Pharma was compared to "China's Johnson & Johnson". Johnson & Johnson is the most comprehensive and widely distributed manufacturer of health care products and health service providers in the world. After more than 20 years of development, Fosun Pharma’s business covers pharmaceutical manufacturing and R&D, medical services, medical diagnosis and medical equipment, pharmaceutical distribution and retail, and has strategically covered important links in the entire medical and health industry chain, forming one of the few in China The development model of the whole industry chain.
Wu Yifang introduced that the company’s current main businesses are mainly two. One is innovation-driven R&D and manufacturing, mainly focusing on pharmaceuticals, medical devices and medical diagnosis; the other is to build a more efficient supply chain of medical and pharmaceutical services. It also includes the services of hospitals and pharmacies.
Innovation is the driving force of an enterprise. Fosun Pharma continues to increase its R&D investment. Data shows that in the first half of the year, Fosun Pharma’s R&D investment (including capitalization) increased by more than 28% over the same period in 2016. In the first three quarters of 2017, Fosun Pharma increased its investment in R&D and consistency evaluation of monoclonal antibody bio-innovative drugs, biosimilar drugs, and small-molecule innovative drugs. R&D expenses totaled RMB 700 million, a year-on-year increase of 45.9%. "The overall growth rate is still very fast." Wu Yifang said.
Driven by research and development, the scale of Fosun Pharma's products under development continues to grow. As of June 30, 2017, Fosun Pharma has approved 6 monoclonal antibody products for clinical trials in China, of which 2 products have entered clinical phase III; 4 innovative small molecule drugs of category 1.1 have received clinical approval; new drugs under development, There are 173 projects including generic drugs, biosimilar drugs and vaccines (including: 11 small molecule innovative drugs, 9 bio-innovative drugs, and 12 biosimilar drugs), 8 projects are applying for clinical trials, and 25 projects are undergoing clinical trials Trials and 33 projects are waiting for approval and listing; these products under research are expected to lay a good foundation for the company's subsequent sustainable development of operating performance.
In addition, Fosun Pharma's layout in the medical sector is also remarkable. Fosun Pharma's medical service business layout direction is: first-tier cities cooperate with overseas to operate high-end medical services, and at the same time deploy prefecture-level medical services in the five major economic belts, form a medical consortium, deeply deploy precision medical care, and actively explore Internet medical and medical care services Wait for the new model to form a big healthy closed loop. At present, Fosun Pharma’s high-end medical services are represented by United Family, and prefecture-level city medical services include the National Tertiary A General Hospital Foshan Chancheng Central Hospital. As of June 30, 2017, it has 3,018 approved beds. Zhang.
From the outside, the scale of investment in innovative R&D and investment in medical institutions by enterprises is large and the return period is long. How to balance investment and income is a great challenge for enterprises.
Wu Yifang, President and CEO of Fosun Pharma said:
At present, the company’s cash flow is good. We emphasize sustainable development. Therefore, we emphasize rational investment during the entire stage of innovative R&D and cutting-edge layout. Growth must also be scientific and rational, matching the company’s entire strength and development stage. of.
Internationalization is accelerating
my country is making every effort to promote the "One Belt, One Road" initiative. With the continuous advancement of this policy in the future, the export of medical and medical equipment will become inevitable. It is worth mentioning that my country has more than 4,000 pharmaceutical companies, but only 100 products of less than 80 companies have been approved or registered in the United States, Europe, and Japan. The internationalization of my country's medical and medical equipment is imminent.
In this context, the Fosun Pharma model has attracted the attention of the market. Wu Yifang introduced that Fosun Pharma is continuing its efforts to expand overseas in the field of pharmaceuticals and R&D, hoping to introduce cost-effective generic drugs suitable for China into the Chinese market; in the future, the company will also actively promote the delivery of excellent domestic preparation products to overseas marketing platforms international market.
In accordance with the above development strategy, Fosun Pharma actively promotes the internationalization of pharmaceutical companies and the certification of international quality systems (US, EU, WHO, etc.). According to reports, Fosun Pharmaceutical Group has 13 APIs that have passed the GMP certification of the US FDA, the European Union, the Ministry of Health and Welfare of Japan, and the German Health Bureau. Guilin Pharmaceutical has 3 injection products, 8 oral products and 5 products. The raw materials have passed the World Health Organization (WHO) Pharmaceutical PQ certification, and Yaoyou Pharmaceutical has one oral solid preparation production line that has passed the certification of Health Canada and the US FDA.
At the same time, Fosun Pharma has also stepped up the pace of international mergers and acquisitions, bringing internationally advanced pharmaceutical and medical device companies under its command, realizing the dual connection of domestic products, markets and the world.
On October 3, 2017, Fosun Pharma completed the acquisition and settlement of GlandPharma in India for US$1.09 billion, holding a 74% stake in GlandPharma. This is the largest overseas M&A by Fosun Pharma so far, and it is also the largest overseas M&A by a Chinese pharmaceutical company so far. With the help of this acquisition, the internationalization process of Fosun Pharma's pharmaceutical manufacturing business will be further accelerated, and the market share of injections and other pharmaceutical products will further increase.
In terms of medical devices, Fosun Pharma’s main overseas assets are SISRAMMED, an Israeli medical beauty device R&D and production company, and Breas, a Swedish ventilator device company. According to Fosun Pharma, SISRAMMED is a medical beauty equipment manufacturer headquartered in Israel, and its product technology and sales rank among the world's leaders. Breas is a respiratory equipment company headquartered in Sweden. Its iSleep series and Vivo series ventilators have a leading market share in Europe.
In addition, Fosun Pharma is actively deploying in the field of cell therapy. In April 2017, Fosun Pharma USA kite Co., Ltd. jointly established a joint venture company, Fosun Kite. Kite's CAR-T product Yescarta was officially approved by the US FDA in October this year. This is the first CAR-T therapy approved by the US FDA for specific types of large B-cell lymphoma. In December, Fosun Kate built an ultra-clean laboratory for advanced cell preparation. At present, Fosun Kate is fully advancing Yescarta's technology transfer and preparation verification work, and is committed to bringing the world's leading treatment methods to domestic lymphoma patients as soon as possible. Yescarta will likely become the first cell therapy product to achieve transformation and approval in China, which is of great significance to the standardization and industrialization of domestic CAR-T cell therapy. This has once again let the outside world see the "Fosun Speed".
Compared with other overseas companies, Fosun Pharma also attaches great importance to the construction of overseas sales networks. Fosun Pharma has started to build its own marketing team in Africa since 2009 and deploy its sales network. At present, Fosun Pharma has a professional medical product sales promotion team of nearly 150 people in Africa. The company's products are registered and sold in many countries around the world, and have established business relationships with many international antimalarial drug procurement organizations and large drug distributors in many countries. At the same time, Fosun Pharma continued to expand the international markets in Europe and Africa, and acquired TridemPharma, a French pharmaceutical distribution company.
The internationalization of enterprises cannot do without the support of the state. Wu Yifang, President of Fosun Pharma, said in an interview with a reporter from Securities Daily:
China's national strength is the fundamental support for Chinese companies' overseas development. The company always believes that the Chinese government's attitude towards real and compliant overseas investment has never changed, and we really feel the government's support for our projects.
Integrate global resources to create value
The complex and frequent big moves of Fosun Pharma dazzled the outside world. The layman looks at the excitement, the insider looks at the doorway. What kind of chess is Fosun Pharma playing? What is the logic of its own development?
Wu Fang believes that Fosun Pharmaceutical adhering to the Chinese momentum with global resources, innovation and internationalization-oriented, relying on the industrial base, marketing network and mergers and acquisitions experience has been formed to actively seek opportunities to industry merger and integration on a global scale, by The development strategy of "endogenous growth, extensional expansion, and integrated development" realizes internationalization in all aspects of R&D and production, market and operation, talents and capital.
By making full use of the innovative capabilities of Europe, America and Israel, and combining with China, the entire industrial chain can be enriched and form a true international competitiveness. The company considers to concentrate its manufacturing bases in China and India in the future, aiming at mainstream European and American markets, and realizing the value of corporate innovation from Europe and the United States. In addition, Fosun Pharma will also actively promote the delivery of excellent domestic preparation products to the international market through overseas marketing platforms, so as to serve global customers in a true sense and create commodity value on a global scale.
For enterprises, mergers and acquisitions are easy to integrate and difficult to integrate. How to deepen the industrial chain is the key to the development of enterprises after mergers and acquisitions. In response, Wu Yifang responded:
The big health industry chain is linked up one point at a time. Only when each point is strong can the entire industry chain remain unbroken and become competitive. We now require strengthening of every point. Only when the ability of every point is strengthened, the coordination and resonance of the entire industrial chain will naturally form. The fundamental basis of mergers and acquisitions in the industry in depth, should yield great health to achieve the ultimate depth of the industry, market position and to reflect the value of Chinese enterprises in the global health field, medical field, medical field.
(Note: This article is from <listed company headlines>, slightly modified)
