How is the first brand of pharmaceutical commercialization made?

On April 23, BAHEAL Pharmaceutical, a listed company on the A-share health brand commercialization platform, released its 2023 annual report. The company achieved operating income of 7.564 billion yuan, which was 8.585 billion yuan if the two-invoice system is restored, the net profit attributable to shareholders of listed companies was 656 million yuan, a year-on-year increase of 29.55%, and the net operating cash flow was 610 million yuan, an increase of 99.41% over the same period.

According to the first quarter report of 2024 disclosed on the same day, BAHEAL Pharmaceutical achieved operating income of 1.661 billion yuan in the first quarter of 2024 and net profit attributable to the parent company of 165 million yuan after deducting non-profits, a year-on-year increase of 30.71%.

Specifically, during the reporting period, BAHEAL Pharmaceutical further reduced its wholesale and distribution business, focused on brand operation, and maintained rapid growth in its core brands, with annual brand business revenue of RMB4.4 billion, a year-on-year increase of 18.91%, and a revenue of RMB5.420 billion after the two-invoice business, with profit contribution accounting for 83.78%, which was the main source of the company's profits. It is worth noting that BAHEAL Pharmaceutical's online business has grown significantly, with online sales revenue of 508 million yuan in 2023, a year-on-year increase of 52.16%, accurately grasping the changes in marketing channels.

As the first A-share health commercialization platform listed company, BAHEAL Pharmaceutical's operation has gradually released its brand effect and maintained sustained and rapid growth in profitability, making it a well-deserved No. 1 brand of pharmaceutical commercialization in A-shares.

You can copy the mode to create multiple popular models

Since the introduction of the concept of medical representation in China in the nineties of the last century, the promotion of medicine that can provide academic and professional support has gradually attracted attention in China. However, because most of the products are generic drugs, traditional domestic pharmaceutical companies basically adopt methods such as "sales first" and "crowd tactics" to promote drugs, ignoring the building of product brand power. Only a handful of companies recognize the importance of branding.

With the deep transformation and rapid development of the pharmaceutical industry, the professional division of labor is becoming increasingly refined. In the R&D and production links of the upstream and midstream of the industry, many CROs, CMOs/CDMOs and other companies that are familiar to the market have emerged. In the downstream commercialization link, traditional pharmaceutical wholesale and retail platforms have been unable to fully meet the commercialization needs of pharmaceutical products and bring value-added services to products.

It is in this context that BAHEAL Pharmaceutical, a third-party commercialization platform focusing on professional services for brand operation, has emerged and begun to show its unique value and scarcity. With in-depth insight into clinical scenarios and strong brand operation building capabilities, BAHEAL Pharma can provide strong support for the commercialization and promotion of pharmaceutical products. Therefore, the third-party commercialization platform with brand operation as the core has become an indispensable and important force in the pharmaceutical industry.

In fact, unlike traditional distribution enterprises and CSOs, BAHEAL Pharmaceutical has focused on brand building since its establishment, and has accumulated rich experience in brand building through the creation of successful products such as Diqiao, Mite, Fuzheng and Huayu.

In line with the medical reform policy, since 2018, BAHEAL Pharmaceutical has opened its capabilities to the whole industry and undertaken many original products of multinational MNC. Today, BAHEAL Pharma has successfully built a "brand highway" to provide omni-channel commercialization solutions for upstream industrial enterprises. Through this commercialization platform with professional promotion capabilities that can be replicated and used by various brands, BAHEAL Pharma can realize value mining and release for various products.

According to the financial report, BAHEAL Pharmaceutical has formed four major category matrices: OTC and big health products, OTX and other prescription drugs, oncology and other critical drugs, and high-end medical devices, and has key products in multiple subdivisions, and has maintained continuous growth for many years.

At present, Diqiao, the core brand of BAHEAL Pharmaceutical, which has been incubated for many years, has been "No. 1 in the domestic imported calcium supplement market for eight consecutive years", and has achieved revenue of 1.897 billion yuan, a year-on-year increase of 16.53%. The Haylou and Newt Shuma brands achieved revenue of 640 million yuan and 83 million yuan respectively, a year-on-year increase of 49.88% and 44.36%, and Anlize achieved revenue of 238 million yuan, and if the two-invoice business is restored, the revenue was 276 million yuan.

In terms of innovative products, BAHEAL currently operates the first domestically produced all-magnetic levitation artificial heart in mainland China that has been approved by the NMPA and has complete independent intellectual property rights, which has been implanted in more than 50 hospitals, benefiting more than 220 patients with heart failure. Medisys' electromagnetic positioning puncture guidance equipment for ultrasound and Wuweikang's cardioelectric electrocardiometer have also entered the commercialization stage and are being introduced in clinical trials.

In a market environment where centralized procurement leads to the compression of the industry's profit margins, only brands based on consumer trust can have sustainable profitability. Being able to operate blockbuster products in different tracks and maintain continuous revenue growth confirms that BAHEAL Pharmaceutical's development path over the years is forward-looking and correct.

The ability to innovate is emerging to ensure future vitality

After nearly two decades of successful construction of a commercialization platform, BAHEAL Pharmaceutical has also officially launched its innovation strategy, that is, relying on the innovation incubation results of its parent company, BAHEAL Pharmaceutical Group, to continuously deliver high-quality products to listed companies and enhance the hematopoietic capacity of listed companies, which is a unique advantage that other enterprises in the industry do not have.

According to public information, BAHEAL Pharmaceutical Group, as an "industrial investor", has worked with national scientific research institutions to explore valuable source innovation and make efforts to invest in innovation achievements by building a platform for the transformation of scientific research achievements. The most important thing in BAHEAL's innovative R&D model is that based on BAHEAL Pharmaceutical's strong commercialization capabilities, BAHEAL Pharma can gain insight into the needs of real clinical scenarios, and then guide the transformation and implementation of scientific research achievements that can truly optimize medical scenarios through a reasonable incubation mechanism.

In general, BAHEAL Pharmaceutical Group mainly focuses on three major areas: innovative drugs, high-end medical devices, and basic research platforms. At present, it has worked closely with many national scientific research institutions such as Peking University Health Science Center, Capital Medical University, Fuwai Hospital of Chinese Academy of Medical Sciences, etc., to promote the transformation and implementation of a number of medical innovation projects.

Among them, the aforementioned products such as the full magnetic levitation artificial heart, the electromagnetic navigation equipment for ultrasound, and the portable home electrocardiometer are in commercial operation. Last year, BAHEAL Pharmaceutical also obtained the commercialization rights and interests of FIC drugs (PDCs) and radionuclide conjugates (RDCs) incubated by the Group, which are the first self-developed Class 1 innovative drugs in the field of nuclear medicine in mainland China, and the products will soon be declared for marketing and will become the company's blockbuster products in the field of innovative drugs in the future.

In addition, BAHEAL Pharmaceutical Group also has a layout in the fields of innovative drugs and devices such as medical linear accelerators, nuclear medicine SPECT/CT, and anti-tumor immunotherapy, and a number of products have entered the clinical stage, which is expected to provide continuous impetus for the company's performance.

The commercialization environment of China's pharmaceuticals is now different from what it used to be, the market competition is becoming more and more fierce, and the requirements for commercialization capabilities are also getting higher and higher, which also makes platform companies with commercial brand operation capabilities like BAHEAL Pharmaceutical more and more favored. What is even more commendable is that the major shareholder, BAHEAL Pharmaceutical Group, has granted commercial rights and interests to listed companies through investment and incubation of innovative products. It not only reduces the company's over-dependence on external products, but also avoids the risks brought by innovative research and development, and ensures continuous growth in performance, while also continuously obtaining innovative products and maintaining high-quality development.

If BAHEAL Pharma has gradually built up its brand building capabilities and commercialization platform in the first 20 years, in the upcoming third decade, BAHEAL Pharma is expected to become a technology-driven innovative enterprise driven by a large number of innovative products, which can continue to optimize the brand operation structure, increase the proportion of innovative products, and achieve sustainable development of performance.