China Company Research--Jiangsu Hengrui Medicine Co., Ltd

China Company Research--Jiangsu Hengrui Medicine Co., Ltd

Jiangsu Hengrui Medicine is the largest production base of anticancer drugs, the state designated the production of narcotic drugs manufacturers. Company main products: anticancer drugs, cardiovascular drugs, narcotic analgesics, endocrine drugs, antibiotics. The company has set up three research centres in Lianyungang, Shanghai and the United States to do research and development of new drugs. Meanwhile, company has cooperated with Chinese Academy of Medical Sciences and Drug Research Institute, Chinese Academy of Medical Sciences Biotechnology Research Institute, Chinese Academy of Sciences Shanghai drugs, the China Pharmaceutical University, the United States fourth-largest biopharmaceutical companies CHIRON and Sweden Medivir (Europe's largest bio-pharmaceutical companies) to build innovative laboratories.

2007 Annual Report: operating income and net profit were RMB1.96 billion, and RMB412 million, an increase of 37.8% and 99.8% respectively. The Gross margin was still on the rise trend (83.14% in 2007, 80.55% in 2006), three items of expenses increased slightly (61.65% in 2007, 59.99% in 2006).

In 2007, the sales of anticancer product grew more than 45 per cent year on year, of the overall revenue of about 70 percent, was the main factor of revenue growth, and contribute to overall gross profit margin increased by 2.6 percentage points to 82.6%.

2008 major growth point: anticancer drugs will maintain the growth of 30-40 per cent, the new adaptation disease will be the main reason for growth. Other drugs are in the fast-growth period, the growth rate may exceed anticancer drugs. Pharmaceutical raw materials drugs will start gradually.

Hengrui medicine has always regarded innovation as a core element of the development of enterprises, through continuous accumulation; the company has established a complete research system. In recent years, companies have invested in research and development more than RMB100 million, which is more than 8% of total sales income. The company has invested RMB160 million on research in 2007, and plans to increase Research and Development investment to RMB200 million in 2008. The huge investment on research and development will lay a solid foundation to support company’s further sustainable development. Hengrui will insist specialize medicine direction, anticancer drugs will still the main production and will be gradually extended to the cardiovascular, nervous system, endocrine, and other fields.

The company will develop a smooth public relations platform, focusing on specialize medicine field and establishing a well-know brand, laying a foundation for long-term development, and actively promote internationalization.

1 Company introduction
2 Analysis of company performance in 2007
2.1 The data of operating performance
2.2 The main products
2.2.1 Anticancer products
2.2.2 Anti-infection and anesthesia products
2.2 Analysis of the financial data
2.3 Analysis of Sales
3 2008 company development strategy
4 Innovative products: imrecoxib
5 Company long-term development planning


Charts

the figure of income and net profit in quarter between 2004-2007
the figure of income and gross ratio in quarter between 2004-2007
the changes of main operation income between 1997-2007
the retail price of Docetaxel 20 mg (yuan)
the retail price of Oxaliplatin injection 50mg(yuan)

2007 income by products
the data of company finance between 2004 and 2007
Forecast of company operating performance for 2008-2009