Global 500 pharmaceutical companies released

The latest global top 500 rankings were announced. This year, a total of 21 pharmaceutical companies are on the list, of which 4 have made their debut for the first time, namely Takeda Pharmaceuticals, Shanghai Pharmaceuticals, BMS and Thermo Fisher Scientific.

The Fortune Global 500 is the most famous list of large global companies and is known as the "ultimate list." The list is mainly based on operating income. This year's total revenue of the companies on the list reached 33 trillion U.S. dollars, a record high, close to the combined GDP of China and the United States. The threshold (minimum sales revenue) to enter the rankings has also increased from 24.8 billion US dollars to 25.4 billion US dollars.

The most eye-catching change this year is undoubtedly the historic leapfrogging of mainland Chinese companies: the number of mainland Chinese (including Hong Kong) companies reached 124, surpassing the United States (121) for the first time in history. With the addition of Taiwanese companies, China has 133 companies on the list.

Among them, there are 8 new domestic companies on the list, namely Shanghai Construction Engineering, Shenzhen Investment Holdings, Shenghong, Shandong Iron and Steel, Shanghai Pharmaceuticals, Guangxi Investment, China Nuclear Industry and China Coal Energy. As an outstanding representative in the pharmaceutical industry, Shanghai Pharmaceuticals has finally been no longer alone. The ranking of Sinopharm has also been moving forward, rising from 24 to 145th compared with last year and ranking among TOP150.


The first "dark horse" to break through the top 500

Three years ago, Zhou Jun, chairman of Shanghai Pharmaceuticals, predicted to E-pharmaceutical managers that several Fortune 500 companies in the Chinese pharmaceutical industry will be born. The establishment of Shanghai Pharmaceuticals into a Fortune 500 company within five years is one of the strategic goals set by the Shanghai Pharmaceuticals senior management team for the board of directors.

In 2020, two years before the goal is reached, Shanghai Pharmaceuticals has taken the lead in breaking through and realizing its dream of being a global top 500. China is the world's second largest pharmaceutical market, but it has always lacked products and companies that match its market size. For many years, Sinopharm has only one "single seedling" among the global top 500 companies.

In an interview three years ago, Zhou Jun believed that leading companies in the Chinese pharmaceutical industry can achieve their vision of becoming bigger and stronger through innovation, mergers and acquisitions, and industrial integration. In fact, most of the world's well-known pharmaceutical companies have achieved scale expansion through mergers and acquisitions. For example, in 2019, BMS entered the TOP5 global pharmaceutical scale through the merger with Xinji, and Takeda Pharmaceutical entered the TOP10 through the merger of Shire.

Similarly, Shanghai Pharmaceuticals can emulate these well-known MNCs and represent Chinese pharmaceutical companies to enter the world's top 500 through mergers and acquisitions. What's more, Shanghai Pharmaceuticals actually has M&A genes. In 2010, three "Shanghai Industrial Group (Shanghai Industrial Group)" companies, including Shanghai Pharmaceuticals, achieved overall listings using "New Shanghai Pharmaceuticals" as the carrier. In 2011, Shanghai Pharmaceuticals was listed on the Hong Kong Stock Exchange, becoming the first "A+H" listed pharmaceutical company in the Mainland, including the subsequent acquisitions of 6 companies including Kangdele and Tianpu Biochemical in 2018. In the past 11 years, Shanghai Pharmaceuticals has achieved a seven-fold increase in business scale, four-fold increase in net profit, and three-fold increase in market value through these external mergers and acquisitions and organic growth. It can be said that step by step is a step for Shanghai Pharmaceuticals to become the top 500.

However, the next step for Shanghai Pharmaceuticals is not mergers and acquisitions. In recent years, the innovation and transformation of Shanghai Pharmaceuticals is gradually exerting its strength. Both the pharmaceutical business and the pharmaceutical industry are catching up and surpassing them at different paces.

In terms of pharmaceutical commerce, Shanghai Pharmaceuticals has seized the dividends of innovative drugs and expanded the agency of imported drugs. In 2018, it obtained the qualifications of 15 new drug import agents including K drugs and O drugs. In 2019, it continued to win including dacomitinib tablets and persecril. The exclusive domestic agency rights for 17 blockbuster new drugs such as Beizumab and Alixizumab. In terms of vaccine agents, Shanghai Pharmaceuticals has become the only domestic vaccine import distributor company outside of Zhifei Bio, covering 2,000+ districts and counties of disease control centers in 31 provinces across the country, with an estimated market share of about 10%.

In the pharmaceutical industry, Shanghai Pharmaceuticals has adopted a two-wheel-drive model of “independent research and development + external introduction” to transform to innovation. On the one hand, it has increased its R&D investment. Last year, the R&D of 1.35 billion yuan was the absolute value of the domestic lead. Unique equity incentives; on the other hand, through license in to supplement the research and development pipeline, such as in 2019, the joint venture with Russia's largest biomedical company BIOCAD to jointly seek the development, production and sales of innovative drugs.

On August 7, Shanghai Pharmaceuticals intends to invest no more than 1.15 billion yuan to introduce the global innovative oncolytic virus product T3011, and obtain its development, production, registration and sales in the Greater China region (including mainland China, Hong Kong, Macau, and Taiwan). Exclusive rights. At the same time, CDE issued a notice on publicly soliciting opinions on the "Guiding Principles for Oncolytic Virus Clinical Trial Design (Draft for Comment)". This is the first time in China and there is no precedent in Europe and the United States.

In fact, this is not the first time Shanghai Pharmaceuticals has invested in oncolytic viruses. Previously, Shanghai Pharmaceuticals obtained the world's first and China's only oncolytic virus product Encore through the acquisition of its holding subsidiary, Shanghai Sanwei Bio. In recent years, Shanghai Pharmaceuticals has continued to invest in Encore, and has been approved to cooperate with 8 Shanghai tertiary hospitals to carry out post-marketing clinical re-evaluation research work on Encore, and actively expand new indications and combine therapies with PD-1 Clinical research is also underway.

At the same time, Tianpu Biologics, a subsidiary of Shanghai Pharmaceuticals, has also restarted Encore's remarketing plan. Shanghai Pharmaceuticals believes that oncolytic virus products have broad prospects and room for joint use, and may become the next PD-1 level product.


"Newborn" through mergers and acquisitions

Of the four new pharmaceutical companies that entered this year, Shanghai Pharmaceuticals was an unexpected surprise. Takeda (No. 414) and BMS (No. 487) are foreshadowing, and major mergers and acquisitions have taken place, including Takeda’s M&A Shire and BMS’s M&A. Ji's huge mergers and acquisitions.

Thermo Fisher (No. 498), as the company with the highest market value in the life sciences field, is also inseparable from large and small industry mergers and acquisitions. On March 3 this year, the company acquired QIAGEN for $11.5 billion in its history. The second largest acquisition.

In January 2019, Takeda announced the completion of the acquisition of Shire, the “one brother” in the rare disease pharmaceutical field. US$62 billion has added rare diseases and blood products to Takeda’s core areas, making Takeda Pharmaceutical one of the top ten global pharmaceutical companies. On June 24, Takeda Pharmaceutical released the company's 2020 fiscal year annual report, of which operating income was 3.29 trillion yen (approximately RMB 216.2 billion), a year-on-year increase of 56.93%; net profit attributable to ordinary shareholders of the parent company was 44.241 billion The Japanese yen fell 59.46% year-on-year.

Identity change is the first level of "benefits" brought to Takeda by mergers and acquisitions, and products are a deeper level of benefit. Shan Guohong, President of Takeda China, said in an interview that in fiscal year 2020, Takeda expects to launch 5-7 new drugs in China. In the next 3-5 years, more than 15 innovative drugs will be listed in China. It is worth noting that among the seven new drugs to be launched in fiscal year 2020, four are new drugs for rare diseases. At present, vedelizumab and vebutuximab for injection have been approved.

The same is true for BMS. In the first half of 2020, the company's global revenue was US$20.91 billion, a year-on-year increase of 71%, mainly due to the acquisition of Xinji. At the beginning of 2019, BMS's largest acquisition plan in the history of biopharmaceuticals was to acquire Xinji Pharmaceuticals for US$74 billion. After the two companies were merged, BMS took advantage of the 11th place in the TOP50 list of global pharmaceutical prescription drug sales by the US Pharmaceutical Manager. Became a TOP5 member, squeezing out Johnson & Johnson and ranked fifth.

Judging from the current pharmaceutical development trend, BMS is promising: the company's pipeline is more focused, and there are fewer patent expired products. In 2019, more than 90% of BMS products covered 3 areas, of which the tumor segment accounted for 50% of the revenue, cardiovascular and cerebrovascular and autoimmune drugs accounted for 30% and 11% respectively.

On the other hand, the contribution of BMS patent expired products is only 9%, which is better than most MNCs such as Pfizer and Merck. However, the biggest question facing BMS after mergers and acquisitions is how to do a good job in the integration after acquisitions. Judging from the existing products, most of BMS's products have not achieved high volume, and the growth rate of large varieties like O drugs is not good. As the first PD-1 to be marketed, sales in 2019 were 7.2 billion US dollars, and the growth rate was only It was 7%. By the first half of this year, O drugs began to decline, with revenue of 3.419 billion US dollars, a year-on-year decrease of 6%. Compared with Merck’s K drugs, the gap is getting wider. The cumulative revenue of K drugs in the first half of the year was US$6.672 billion, a year-on-year increase of 38%.