As one of the three carriages of Lepu Medical, the importance of medicine is unquestionable. The previous post has already talked about Lepu Medical's drug procurement in the past five or six years. Of course, there are still a lot of professional terms, and it is not friendly to ordinary investors. So this one is as simple as possible.
1. The centralized procurement that was opened in 18 years is still relatively friendly to Lepu. After all, chemical generics are directly imitated after the patent of the original drug expires.
It basically takes 8-10 years for the original drug, and 2-3 years for the generic drug. This also means that generic drugs actually have no moat. Anyone who can get a certificate can do it, and in the end, the gross profit margin has gone down. Lepu's gross profit margin can still maintain 73%, which actually shows that centralized procurement is not to kill the enterprise, but the original intermediate links are too much, and the increase is too high. Lepu reduced by 50%** in exchange for more than 1 times the increase in sales volume, and sales were basically flat. In the later stage, the centralized procurement will continue to advance, and Lepu will continue to develop new drugs and continue to deal with centralized procurement, in a sense, this is just a relatively hard business.
2. Lepu's layout in drugs is still relatively complete. One of the two super products is clopidogrel for thrombosis, because it basically needs to be taken for more than a year after coronary artery surgery, and it is a supporting medicine. A calcium atovastatine is a treatment for hyperlipidemia and is a supporting drug. In the early stage, it is mainly done in the hospital, because supporting drugs are required after stent surgery. In the later period, centralized procurement coupled with the outflow of prescriptions, out-of-hospital pharmacies became the mainstream. At present, there are 1,200 people doing sales in the pharmacy channel, covering 200,000 pharmacies, and the output of a single store is about 10,000-12,000 years. There are also hypoglycemic drugs in the future, as well as insulin glargine. The overall cardiovascular layout in hypertension, hyperglycemia, hyperlipidemia, diabetes, hypertension and so on.
3. Lepu's generic drugs have some basic disks, but there are still some problems with growth. One of the generic drugs is fiercely competitive, and the gross profit margin is difficult to guarantee, and the other is that new drugs will continue to be introduced, and as a result, the old drugs are constantly being replaced, which greatly increases the certainty of the enterprise.
Summary: Generic drugs are just an ordinary business, and it is difficult for Lepu to build a very good moat here. If we want to build a moat, we can only expand to biopharmaceuticals, traditional Chinese medicine, and innovative drugs. Lepu's current core competence in drugs is the sales of generic drugs, and it is the ** of centralized procurement that determines its profits, and this is not something that Lepu can grasp. So don't have too many growth expectations for pharmaceuticals, this is a very competitive red ocean. Products that are launched later will increase sales, mainly depending on the speed of advancement.