Renhe Pharmaceutical industry: Heavy advertising light research and development profit or substantial decline

If a company contracts to have Jay Chou, Zhao Benshan, Chen, Lin Xin such as, song and many other star celebrities, many people may think this is an entertainment company. However, this kind of thing happened in benevolence and medicine industry, it is quite surprising. What is even more surprising is that the company's "gourd" often sell "problem medicine", from the Rickettsia, shiny eye dew to the excellent Dan, endless. January 24, January 28, Renhe pharmaceutical industry has released a statement on the quality of the issue of the clarification of the announcement, however, this clarification notice is clear and unclear, while the company to evade the responsibility of the side leap. Some people in the industry said that benevolence and pharmaceutical industry has been exposed to quality problems, is its fundamental neglect of research and development and quality control, blindly rely on the performance of celebrities to play advertising, and pharmaceutical enterprises in the mainstream model. Notice and not clear benevolence and pharmaceutical industry on the quality of the issue of the clarification Bulletin said, in May 2012, 24 issued a clarification bulletin on the revision of the child paracetamol and amantadine granules, and revised the specification of the over-the-counter drug containing amantadine hydrochloride for children only, the ammonia-Golden granule, the child Paracetamol and Amantadine granule , pediatric compound paracetamol and amantadine amine tablets, delete [notes] "children under 1 years of age should be used under the guidance of", in the [taboo] item, "Increase the number of newborns and infants under 1 years of age who are disabled for the safety and efficacy of newborns and infants under 1 years of age." "But in Shenzhen, a Sea King star Pharmacy can easily buy unmodified instructions for the use of drugs (production batch number is 120513, production date is May 8, 2012). It is understood that the state Food and Drug Administration on May 16 issued a revised version of Amantadine hydrochloride over-the-counter drug specifications, against the two date, the company did not really care about the health and safety of the patients, and did not recall the drugs that had not yet been fully marketed, and the practice was vastly different from that of internationally renowned pharmaceutical companies. In addition, the company also stressed that the children of ammonia-phenol-amine granules containing amantadine hydrochloride will not be harmful to the liver and kidney of the child, the company's quality standards are in line with the relevant regulations, and the National Bureau's view is "lack of data on the safety and efficacy of newborns and infants under 1 years of age", which is why the National Bureau recommends that babies under 1 years of age be disabled. So is this a national bureau that is overly conservative and cautious, or is the company behaving too recklessly bold? Heng Tai Securities analyst Huang Yi said, "The State Council last year to amend the instructions must be a reason, the original compliance with the standard does not mean that the children of the liver and kidney is not toxic, or the previous detection means is not developed, of course, the State Bureau has not determined that the amantadine hydrochloride must have problems, but the consumer is responsible. "It is understood that, according to the experience of western developed countries, to determine whether a drug is harmful to the human body, need to carry out a wide range of clinical trials and follow-up for several years." By contrast, the company's judgment is obviously premature. Research and development input too low after tracking is not difficult to find, in the company's development history, Jay Chou, Zhao Benshan, Chen, Liu Qian, Lin Xin, small Shenyang, song and many other stars areAs a spokesperson, this is unmatched in the pharmaceutical industry. This approach will help companies to increase sales in a specific period of time, but need to pay a lot of endorsement fees, and the marginal effect is diminishing. Compared with the company's net profit every year, the company's advertising and endorsement fees are equivalent to the net profit of 117.75%, 58.3%, 44.33%, accounted for a very high. At the same time, the company's investment in research and development is surprisingly stingy. Data show that 2009-2011 years, the company's technology development costs are 2.0173 million yuan, 4.6438 million yuan, 1.7353 million yuan, accounting for the current period of business income of 0.21%, 0.34%, 0.08%, far lower than the average level of investment in research and development of domestic pharmaceutical enterprises. As you sow, you reap. Some insiders believe that this emphasis on advertising, do not focus on research and development of the model naturally can not create quality, competitive products. Accounting for the decline in the company's regular reports show that from 2008-2011 years, the company's operating income growth rate of 12.56%, 11.43%, 39.07% and 61.53%, respectively, the parent company's shareholders of the net profit growth rate of 79.12%, 29.67%, 30.12% With the 36.82%. If only from these two indicators, Renhe pharmaceutical industry in line with the standards of excellent companies. However, the analysis found that the growth of the company's operating income masked the fact that the company's sales gross profit margin declined year after year. Data show that the company since 2009, sales gross profit margin year after year decline, has been halved, this more real reflects the company's profitability decline in reality. 2012 chromium exceeded the capsule incident, the eye dew containing preservatives, excellent card incident played a role in the catalyst, and quickly tore up the fake fine medicine and the veil. It is understood that Uniqlo is the company's star products, 2011 Sales revenue of 308 million yuan, accounting for the annual total operating income of 13.95%, so, once you are affected by the sales, the company's net profit will be significantly reduced. "Although the National Bureau issued a Notice of children under 1 years of age banned containing ' Amantadine hydrochloride drugs, but because of the consumer of the drug quality and safety of serious lack of trust, for other age groups of children, parents in the purchase of drugs, may take into account the child's health problems and avoid these several brands of drugs, the sales of these brands also have a certain impact. "A pharmaceutical industry analyst said. At the same time, since the company did not prepare for the depreciation of inventories in the year 2011, the 2012.5 Annual report showed that only 492,000 yuan in inventory price depreciation was prepared, so it is possible to cause "complications" in 2012, further affecting performance.