On the first trading day after the end of the long holiday on May 6, the three major indexes of the A-share market rose collectively due to the positive impact of the holiday, and the long-dormant pharmaceutical sector also saw a more obvious rise, among which the innovative drug sector strengthened across the board, and the innovative drug index (931152) gapped, opening high and forming a gap of nearly 7 points, which has not yet been filled by the close of trading this week. On the day of the market, Zhaoyan New Drug led the rise, Allist, CanSino followed suit, and the innovative drug ETF (159992) market was hot, with a net subscription of more than 80 million shares in the intraday.
The full name of the innovative drug ETF (159992) is Yinhua CSI Innovative Drug Industry Exchange-traded Open-ended Index Securities Investment Fund, with Wang Shuai and Ma Jun as fund managers and tracking the CSI Innovative Drug Industry Index (931152). The CSI Innovative Drug Industry Index selects listed companies whose main business involves the research and development of innovative drugs as the sample to be selected, and selects no more than 50 of the most representative companies as sample stocks according to market capitalization, reflecting the overall performance of listed companies in the innovative drug industry. At present, the overall PE of the index is 44.92, and the top ten weighted stocks are Hengrui Pharmaceutical (600276) 12.5%, WuXi AppTec (603259) 6.93%, Zhifei Biotechnology (300122) 5.35%, Kelun Pharmaceutical (002422) 5.25%, and Tigermed (300347); The remaining 6 are Tigermed (300347), Fuxing Pharmaceuticals (600196), Huadong Pharmaceuticals (000963), Wantai Biotechnology (603392), Humanwell Pharmaceuticals (600079) and Walvax Biosciences (300142), with a weight of 2.9%~3.9%. As the first and second largest constituents of the innovative drug index, the performance of Hengrui Pharmaceutical and WuXi AppTec is different, and the performance of the secondary market is also very different.
On the evening of April 17, Hengrui Pharmaceutical released its 2023 annual report, in 2023, Hengrui Pharmaceutical achieved operating income of 22.820 billion yuan, an increase of 7.26% year-on-year, net profit attributable to shareholders of listed companies of 4.302 billion yuan, an increase of 10.14% year-on-year, and non-net profit attributable to shareholders of listed companies of 4.141 billion yuan, an increase of 21.46% year-on-year. At the same time, the company also announced an annual dividend plan, distributing cash dividends of 2.00 yuan (tax included) to all shareholders for every 10 shares, plus a total dividend of more than 2.1 billion yuan plus repurchases.
In the first quarter, Hengrui Pharmaceutical achieved operating income of 5.998 billion yuan, net profit attributable to shareholders of listed companies of 1.369 billion yuan, and non-net profit attributable to shareholders of listed companies of 1.440 billion yuan, an increase of 9.20%, 10.48% and 18.06% respectively. In the first quarter, Hengrui Pharmaceutical's share price rose 2.76% as a whole.
In the two statements, the revenue of innovative drugs is the focus of market attention. According to the annual report, with the continuous approval of Hengrui Pharmaceutical's innovative achievements, the clinical value of innovative drugs has been highlighted, driving revenue growth. In 2023, the company's innovative drug revenue will reach 10.637 billion yuan (including tax, excluding external licensing revenue), and despite the impact of external environmental changes, product price reductions and access difficulties, it still achieved a year-on-year growth of 22.1%. In 2023, Hengrui Pharmaceutical has 12 clinical trials advanced to phase III., 35 clinical trials advanced to phase II, and 30 clinical trials advanced to phase I, the company has more than 90 independent innovative products in clinical development, and nearly 300 clinical trials at home and abroad. According to the report, Hengrui Pharmaceutical's cumulative R&D investment in 2023 will be 6.150 billion yuan, and the R&D expenses in the first quarter of 2024 will reach 1.220 billion yuan.
In 2023, a total of 14 marketing applications of Hengrui will be accepted by the NMPA, including new drug applications such as relcarcimab and emaxitinib, as well as new indications such as fluzoparib combined with apatinib. In the field of treatment, tumors, autoimmune diseases, metabolic diseases, cardiovascular diseases, infectious diseases, respiratory diseases, blood diseases, pain management, etc. are in full bloom, and in the form of drugs, small nucleic acids, PROTACs, nuclear drugs, etc. have entered the clinical stage.
As a representative company of innovative drugs, driven by the high prosperity and high growth of the industry, WuXi AppTec's share price hit a record high in July 2021, with a market value of more than 430 billion yuan, the largest increase of more than 14 times from the historical high since its listing, making it a rare pharmaceutical bull stock in the A-share market during the same period. However, after the peak stage in 2021, the CXO sector as a whole has been adjusted, and WuXi AppTec's secondary market performance has shown a downward trend.
On March 18, Wuxi AppTec New Drug Development Co., Ltd. (603259) released its 2023 results. According to the data, the operating income in 2023 will increase by 2.5% to 40.341 billion yuan, excluding the new crown commercialization project, the revenue will increase by 25.6% year-on-year; net profit attributable to shareholders of listed companies was 9.607 billion yuan, a year-on-year increase of 9%. The revenue growth rate fell to a new low since listing, and the net profit growth rate fell to a four-year low. In 2023, WuXi AppTec's revenue from customers in the United States will be RMB26.13 billion, up 42% year-on-year after excluding specific commercial manufacturing projects, accounting for 64.82% of total revenue, revenue from customers in Europe will be RMB4.70 billion, up 12% year-on-year, and revenue from customers in China will be RMB7.37 billion, up only 1% year-on-year. Revenue from customers in other regions was RMB2.14 billion, up 8% year-on-year. On April 29, WuXi AppTec released its results for the first quarter of 2024, with operating revenue of RMB7.982 billion in the reporting period, down 10.95% year-on-year, excluding new crown commercialization projects, and revenue down 1.8% year-on-year. the net profit attributable to the parent company was 1.942 billion yuan, a year-on-year decrease of 10.42%; The non-net profit attributable to the parent was 2.034 billion yuan, a year-on-year increase of 7.3%.
According to the data, at the end of January this year, WuXi AppTec was involved in the US biosecurity bill turmoil. WuXi AppTec has repeatedly emphasized that the company has not, is and will not pose a national security risk to the United States or any other country in the past. As can be seen from the first quarterly report, WuXi AppTec's revenue from U.S. customers was 4.9 billion yuan, a year-on-year increase of 0.4% after excluding specific commercial production projects; revenue from European customers was 1.07 billion yuan, a year-on-year increase of 3.9%; revenue from Chinese customers was 1.59 billion yuan, down 3.3% year-on-year; The revenue from customers in other regions was 420 million yuan, a year-on-year decrease of 26.6%, and the overall share price of WuXi AppTec fell by 36.53% in the first quarter.
According to the brokerage research report, after the rebound in the fourth quarter of 2023, the market allocation of pharmaceutical positions has declined sharply, and at the same time, the market value of Shenwan's pharmaceutical and biological industry has also declined sharply, and the wide base of the whole market has significantly reduced pharmaceutical positions in the first quarter of this year. From the perspective of the secondary industry of Shenwan Pharmaceutical, stock-biased funds have reduced their positions in medical services more, followed by biological products, medical devices, etc., and chemical pharmaceuticals and pharmaceutical businesses have changed less. Subdivided into the third-level industry index of Shenwan Pharmaceutical, the most reduced positions are medical R&D outsourcing, other biological products, vaccines, hospitals and other subdivisions, raw materials, blood products, offline pharmacies, etc.
Author: Zhang Shu
Editor: Zhang Tianyi
Producer: Wang Junji
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