Many pharmaceutical giants fell for profit in the first quarter

According to the data, 10 pharmaceutical giants such as Johnson & Johnson have not increased their profits in the first quarter of this year, and their total revenue and total net profit have reached US$114.3 billion and US$21.6 billion respectively, up by 0.79% and -14.96% year-on-year, but they are still A shares for the same period. The total revenue of domestic pharmaceutical companies (including pharmaceutical distribution and medical devices, etc.) is 5 times and 13 times.

Among the world's leading pharmaceutical giants, Johnson & Johnson topped the list with US$17.505 billion in revenues, and ranked No.5 with Novartis, Pfizer, Bayer, and Roche, while Merck, Sanofi, GSK, and Astrakhan’s revenues. Both net profit fell.

At the same time, there were several companies that did not increase their revenues. For example, Johnson & Johnson revenue increased by 8.5% in the first quarter, but its net profit declined by 1.6% year-on-year. Johnson and Johnson attributed this to litigation fees, cost increases, and the acquisition of Synthes. Affected; other companies' net profit fell sharply, such as Sanofi and GlaxoSmithKline's revenue fell 5.3%, 2.6%, respectively, but the net profit fell sharply by about 30%. In recent years, GlaxoSmithKline has fallen into the whirlpool of selling counterfeit drugs in the United States, and has paid a huge amount of settlement money to the US Food and Drug Administration. This act has caused GlaxoSmithKline, a British multinational pharmaceutical company, to suffer from serious injuries. In the recent past, GlaxoSmithKline has also been reported to peel off the grapes, Libina and other beverage businesses to concentrate on "doing drugs."

In the first quarter of this year, mergers and acquisitions in China, Merck, Roche, and Bayer have not been easy. In particular, Merck's revenue fell by 10% to nearly 10 billion US dollars, and net profit is less than half of Johnson's. Last year, Merck & Co., Ltd. merged with Xian Xian Pharmaceutical Co., Ltd., which is preparing to withdraw from the market, and it also signed a series of cooperation agreements with listed pharmaceutical companies such as Zhifei Bio-[-0.03%], trying to find new profit growth points in the Chinese market. . Roche and Bayer experienced sluggish growth in revenue in the first quarter, including Roche's decline in performance due to anti-cancer drugs. The company is associated with a number of pharmaceutical companies in the A-share market, such as Rheinland Biotechnology (0.00%), Renfu Pharmaceutical [- 0.89% of the financial report], and so on, once aroused the concept of A shares of drug companies hype.

Overall, although the 10 pharmaceutical giants represented by Johnson & Johnson have shown signs of stagflation, their size, profitability, and internationalization level are not comparable to those of A-share pharmaceutical companies.

According to statistics, the total revenue and total net profit of 10 pharmaceutical giants such as Johnson & Johnson reached 11.43 billion U.S. dollars and 21.6 billion U.S. dollars in the first quarter of this year, an increase of 0.79% and -14.96% over the same period last year, which was approximately 179 pharmaceutical companies (including pharmaceuticals) in the same period. 5 times and 13 times the total revenue of circulation and medical equipment. In terms of net profit, the top 10 giants such as Johnson & Johnson are about 19%, while the A-share pharmaceutical companies are only 7.52%, even if they are the top-ranking Shanghai Pharmaceuticals [-0.66% fund research report], Kyushu link [-0.10% fund research Report], Harbin Pharmaceutical Co., Ltd. [0.00% fund research report], Nanjing Pharmaceutical [-0.22% fund research report] net profit rate does not exceed 5%, Yunnan Baiyao [-0.57% Fund Research Report], Kangmei Pharmaceutical [-0.39% The net interest rate of Funds Research Reports and Fosun Pharma (-0.64% Funds Research Report) is about 15%.

From a single company perspective, Johnson & Johnson's revenue and net profit were 5 times and 34 times that of Shanghai Pharmaceuticals respectively. Lilly, which has far less revenue than Johnson & Johnson, also achieved $5.6 billion in revenue and $1.55 billion in net profit in the first quarter. So far, there is no domestic listed pharmaceutical company that can compete with Johnson & Johnson, Eli Lilly and other companies. Only individual pharmaceutical companies with numerous listed platforms can compete with each other, but the degree of internationalization is far inferior to that of foreign pharmaceutical companies.

However, the weak performance of foreign drug companies and the low degree of internationalization of Chinese pharmaceutical companies have just given rise to the cooperation between the two. According to current cases, foreign pharmaceutical companies often cooperate with Chinese pharmaceutical companies through mergers and acquisitions. Companies such as Bayer have also set up a separate factory. At the same time, domestic pharmaceutical companies represented by Sinopharm and Guangpah Pharmaceuticals are also focusing their efforts on integrating the Group's resources with a view to becoming bigger and stronger. Of course, it will take a long time to narrow the gap with the international pharmaceutical giants in terms of scale.