Yangtze River Business Daily reporter Huang Cong
The number of invention patents is a hard requirement for the IPO of the Science and Technology Innovation Board, and Changfeng Pharmaceutical Co., Ltd. (hereinafter referred to as "Changfeng Pharmaceutical") has put a lot of thought into completing the target.
Recently, Changfeng Pharmaceutical's IPO on the Science and Technology Innovation Board has been suspended (financial report update).
According to the prospectus, Changfeng Pharmaceutical has been authorized 9 invention patents. However, the Yangtze River Business Daily reporter found that two of the company's invention patents were obtained, including the transfer price of the invention patent of "quantitative atomization drug delivery device" of 45,000 yuan, and the transfer price of the invention patent of "an inhibitor of bacterial type I topoisomerase and its application" was 200,000 yuan.
In other words, Changfeng Pharmaceutical invested hundreds of millions of R&D funds while spending 245,000 yuan to buy back two invention patents to "support the façade".
According to the prospectus, Changfeng Pharmaceutical listed the "hospital visit" fee in the marketing expenses, and in 2021 and 2022, the expenses will be 166,000 yuan and 23.8576 million yuan respectively, and it can be seen that the cost has increased sharply by about 143 times in 2022.
However, Changfeng Pharmaceutical's explanation of "hospital visits" is not very clear, and it only claims that it is mainly for daily visits to relevant departments of terminal hospitals.
An asset management analyst told the Yangtze River Business Daily reporter that behind the high marketing fees of pharmaceutical companies, there is often a phantom of "sales with gold", and Changfeng Pharmaceutical's so-called "hospital visit" fees will become the focus of inquiries by regulatory authorities, which is likely to hinder its IPO process.
Revenue is heavily dependent on a single product
Changfeng Pharmaceutical focuses on the R&D, production and sales of drugs in the field of respiratory diseases. This is also the second time that the company has broken through the science and technology innovation board, and the company withdrew its listing application at the end of 2021, and then the IPO application was accepted again in June 2023.
According to the prospectus, Changfeng Pharmaceutical has 3 listed products, 12 main products under development, and 19 other products under development. Among them, the company's self-developed budesonide suspension for inhalation was approved for marketing in May 2021, and in June 2021, it was selected for the fifth batch of national centralized drug procurement, which has covered more than 8,000 terminal medical institutions since its listing.
According to Changfeng Pharmaceutical, budesonide will have a sales scale of 7.4 billion yuan in the Chinese market in 2021, which is the largest inhalation preparation in China.
According to the data, from 2020 to 2022, Changfeng Pharmaceutical's operating income will be 4.8588 million yuan, 41.9857 million yuan and 349 million yuan respectively, mainly from the company's technical service income and sales revenue of budesonide suspension products for inhalation.
According to the prospectus, from 2021 to 2022, the revenue generated by Changfeng Pharmaceutical's budesonide suspension for inhalation will be 29.8318 million yuan and 336 million yuan respectively, accounting for 71.05% and 96.22% of the main revenue in the current period, respectively.
It can be seen that the current operating income of Changfeng Pharmaceutical is seriously dependent on a single product.
In the same period, Changfeng Pharmaceutical's R&D expenses were 202 million yuan, 98.7803 million yuan and 107 million yuan respectively, accounting for 4523.32%, 291.54% and 35.32% of operating income respectively.
Changfeng Pharmaceutical introduced that based on core technology, the company has developed new compounds, new devices and new compounds in the field of inhalation preparations. At present, the company has been authorized 9 invention patents and 17 utility model patents.
If, according to the "Decision", the number of "invention patents applied to the company's main business" is adjusted from "more than 5" to "more than 7", Changfeng Pharmaceutical has reached the standard.
However, the Yangtze River Business Daily reporter found that two of Changfeng Pharmaceutical's 9 invention patents were obtained by transfer, including the transfer price of the invention patent of "quantitative atomization drug delivery device" of 45,000 yuan, and the transfer price of the invention patent of "an inhibitor of bacterial type I topoisomerase and its application" of 200,000 yuan.
In other words, Changfeng Pharmaceutical invested hundreds of millions of R&D funds while spending 245,000 yuan to buy back two invention patents to "support the façade".
It cost 23.85 million to visit the hospital department
As an innovative pharmaceutical company, Changfeng Pharmaceutical's sales expenses are not low.
From 2020 to 2022, Changfeng Pharmaceutical's sales expenses were 26.5176 million yuan, 51.8152 million yuan and 136 million yuan respectively, most of which were marketing expenses and employee salaries. The marketing expenses of Changfeng Pharmaceutical were 8.1195 million yuan, 18.7667 million yuan and 93.5881 million yuan respectively.
In this part of the cost, Changfeng Pharmaceutical's "market information analysis and collection" and "hospital visit" expenses occupy the main part.
In 2021 and 2022, Changfeng Pharmaceutical's "market information analysis and collection" expenses will be 528,500 yuan and 49.909 million yuan, respectively.
According to Changfeng Pharmaceutical, the company's marketing expenses in 2020 and 2021 are mainly conference fees, brand promotion expenses, etc.; with the approval of the company's product budesonide suspension for inhalation in May 2021 and large-scale sales in September 2021, the company's market information analysis and collection, hospital visits and other marketing activities have gradually increased, and the proportion of related promotion activities has increased significantly.
Changfeng Pharmaceutical further explained that the cost of "market information analysis and collection" includes case collection, competitive product analysis, product data analysis and hospital information collection.
Specifically, in 2021 and 2022, Changfeng Pharmaceutical's "hospital visit" expenses will be 166,000 yuan and 23.8576 million yuan respectively, a sharp increase of 142.6 times in 2022. In the prospectus, Changfeng Pharmaceutical's explanation of "hospital visits" is not very clear, and the company describes that it is mainly for daily visits to relevant departments of terminal hospitals.
An asset management analyst told the Yangtze River Business Daily reporter that behind the high marketing fees of pharmaceutical companies, there is often a phantom of "sales with gold", and Changfeng Pharmaceutical's so-called "hospital visit" fees will become the focus of inquiries by regulatory authorities, which is likely to hinder its IPO process.
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