The big health industry is booming.

In the first half of this year, the industry continued the tumultuous times that have been ongoing since 2023.

After the valuation of pharmaceutical stocks in the capital market plummeted and the anti-corruption efforts continued to advance, each sub-sector had its own events.

Overall, the changes have come more fiercely.

The market's view on this fierceness is divided into two types: short-term adjustments and long-term reversals.

The adjustment is based on the rapid performance growth and overvaluation of some sectors in previous years, and it is believed that there is a need for short-term adjustments.

The reversal is based on the judgment of the overall trend, and it is believed that the era is undergoing fundamental changes.

Against this backdrop, the performance and layout of each listed company are worth watching.

Innovative drugs: In the big cycle of innovative drugs, many companies entered with passion in the previous years, but many left quietly.

After the big wave washed away the sand, the real gold gradually appeared.

In the first half of this year, the operating income and net profit attributable to shareholders of Hengrui Medicine were 13.601 billion yuan and 3.432 billion yuan, respectively, with year-on-year increases of 21.78% and 48.67%, respectively.

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The strong performance growth shows the company's steady development.

As the leader in innovative drugs, during the reporting period, Hengrui Medicine's innovative drug revenue (including tax) was 6.612 billion yuan, a year-on-year increase of 33%, and it obtained 160 million euros in licensing income.

The total of the two innovative incomes accounted for more than half of the total revenue.

The market can perceive that while the company continues to increase its investment in innovative drugs, it strictly manages sales expenses, deepens the innovative brand image, and explores a new engine for innovative drugs to go global.

During the reporting period, Hengrui Medicine invested 3.86 billion yuan in research and development, a year-on-year increase of 26.23%, with 13 independently developed innovative molecules entering the clinical stage, and established 14 R&D centers in Lianyungang, Shanghai, the United States, Europe, and other places, with a global R&D team of more than 5,000 people.

At the same time, the company's sales expense ratio dropped to 28.96%, and if the licensing income is excluded from the operating income, the sales expense ratio dropped to below 32%.

The innovative drug industry is still in a complete cycle from the rise of the wind and clouds to the piercing of the bubble.

At present, the first echelon of companies has formed a positive cycle of high R&D investment and high sales output, but this does not mean that the competition has ended.

In the first half of this year, BeiGene's operating income was 11.996 billion yuan, a year-on-year increase of 65.44%; the net profit attributable to shareholders of the listed company was -2.877 billion yuan, which was significantly narrowed compared with -5.22 billion yuan in the same period of 2023.

Among them, the innovative drug Bai Yue Ze was listed in the United States, Europe, China, and other regions, with a year-on-year increase of more than 30%.

The huge R&D expenses and sales expenses invested earlier, during the reporting period were 6.628 billion yuan and 4.17 billion yuan, respectively, with a year-on-year increase of 12.68% and 22.4%, respectively.

BeiGene is almost only one step away from turning a profit.

However, the ultimate competitiveness of innovative drugs cannot be simply summarized by the word "burning money."

In the context of the cold winter of innovative drug valuation, it is necessary to re-measure the expectation that strong funds can "make miracles with great strength."

Moreover, the financing of innovative drug companies is not smooth sailing.

In July, Rongchang Bio disclosed the revised plan for the additional issuance, and the upper limit of the proposed fundraising amount was reduced from 2.55 billion yuan to 1.953 billion yuan, which was used for the research and development projects of new drugs such as RC18 and RC48.

In the first half of this year, the company's operating income was 742 million yuan, a year-on-year increase of 75.59%; the net profit attributable to shareholders of the listed company was -780 million yuan, and the loss was expanded compared with -703 million yuan in the same period of 2023.

As of the same period, the company's cash and cash equivalents were 676 million yuan, and the total of the three major expenses exceeded 500 million yuan.

This point, Beida Pharmaceutical has also had similar experiences.

From 2021 to 2022, the company tried to go public on the Hong Kong Stock Exchange and additional issuance, but all were fruitless.

After successive setbacks, it could only seek another way, that is, to turn to bank loans and self-"blood-making."

In the first half of this year, Beida Pharmaceutical's operating income and net profit attributable to shareholders of the listed company were 1.501 billion yuan and 224 million yuan, respectively, with year-on-year increases of 14.22% and 51%, respectively.

At both ends of the performance growth, the net profit is the result of cost reduction and efficiency enhancement, and the income is the result of the efforts of core products and new products.

The road to solidifying funds for innovative drug companies is a bit thorny, but the iteration around product technology is still continuing.

Beida Pharmaceutical's core product EFRG-TKI, the peer company listed on the Science and Technology Innovation Board, Ailis has developed the third-generation product.

In the first half of this year, the company's operating income and net profit attributable to shareholders of the listed company were 1.576 billion yuan and 656 million yuan, respectively, with year-on-year increases of 110.57% and 214.82%, respectively.

However, there are also undercurrents in the good performance.

Previously, in July, Ailis disclosed an arbitration, and Fosun Pharmaceutical's subsidiary demanded compensation of 255 million yuan from it, on the grounds that the former believed that the latter's previous active termination of the contract violated the agreement, and currently "the case has not yet started trial."

The two parties had previously signed an agreement, and Fosun Pharmaceutical's subsidiary exclusively promoted the rights related to Ailis's Fulmetinib tablets.

All these beings have occurred in the ebb period of innovative drugs, full of capital operations, disputes, and other events.

In just half a year, everything is uncertain.

In 2023, Fosun Pharmaceutical's innovative drug subsidiary Fosun Hanlin achieved a net profit of 546 million yuan, and achieved annual profit for the first time.

Who would have thought that half a year later, the situation would reverse.

In June, Fosun Pharmaceutical announced that it would privatize the company and list the valuation as the main reason, believing that "due to the impact of global macroeconomic, medical industry, and overall trend of Hong Kong stocks, the H-share stock price level did not meet expectations and the trading volume was small.

Fosun Hanlin has not raised funds through equity financing since its listing, and the advantages of being a listed company have not been fully reflected."

A grain of sand in the transition to the era of big health and big consumption may be an opportunity to change the fate of any company.

The continuous advancement of centralized procurement and the fading of the COVID-19 dividend force listed companies to adapt to the new climate and reconsider business direction, product innovation, and strategic choices.

At present, it is a critical moment to calmly judge the market outlook, lay out new businesses in advance, and go through the cycle.

As the first echelon of medical devices, Lepu Medical has made changes in both internal and external dimensions.

Internally, the group has high hopes for the innovative drug subsidiary Lepu Bio, which is listed on the Hong Kong Stock Exchange; externally, it continues to operate and split the listing.

In the first half of this year, Lepu Bio's operating income was 133 million yuan.

Among them, the sales income of the anti-cancer drug Pu Yu Heng was 94.8 million yuan, a year-on-year increase of 115.4%.

As of the same period, the company's cash and cash equivalents balance was 514 million yuan.

The reason for becoming the group's hope comes from its IO+ADC combination therapy and IO+oncolytic virus combination therapy.

It is reported that Lepu Bio is one of the few domestic companies that can build a research and development platform with its own products.

Therefore, the Lepu series may bet on the possibility of the outbreak of hot spots in ADC.

In the first half of this year, Lepu Medical's operating income and net profit attributable to shareholders of the listed company were 3.384 billion yuan and 697 million yuan, respectively, with year-on-year decreases of 21.33% and 27.48%, respectively.

The decline in performance is related to the decline in the company's generic drug segment's revenue, but this does not affect its external capital operations.

Since 2023, Lepu Medical has injected assets into Bingkun Medical, introduced external institutional investments, and the overall valuation is 1.2 billion yuan, planning to go public on the Shenzhen Stock Exchange, and is currently in the listing guidance.

The big health market in the period of pain has declared the end of an old era.

At present, the entire market is gradually transitioning from professional, single products to a broad, broad big consumption.

Whoever can provide a successful transition model for the industry can lead the entire market through a new cycle.

In the first half of this year, Tonghua Dongbao, the first echelon of insulin, had an operating income of 740 million yuan, a year-on-year decrease of 45.84%, and a net profit attributable to shareholders of the listed company of -230 million yuan.

The decline in performance was mainly affected by the centralized procurement of the main products, commercial customers controlled and adjusted the inventory, affecting the company's delivery, and writing off or returning the difference between the original supply price and the centralized procurement implementation price in one go.

At the same time, Tonghua Dongbao terminated the research and development of a project and provided for the related losses.

The pain faced by Tonghua Dongbao is also a commonality in the industry.

In response, the signal released by the company is also very obvious, that is, to aim at the research and development of drugs for chronic diseases, including diabetes, gout/hyperuricemia, and has laid out indications such as blood sugar reduction, weight reduction, and non-alcoholic fatty liver disease.

Another domestic insulin manufacturer, Gan Li Pharmaceutical, had an operating income and net profit attributable to shareholders of the listed company of 1.315 billion yuan and 299 million yuan in the first half of this year, respectively, with year-on-year increases of 6.92% and 122.8%, respectively.

The company stated that the stable growth of domestic insulin preparation product sales and the increase in the income of financial assets held drove the performance.

In 2022, Gan Li Pharmaceutical also had a loss situation, mainly due to product price reduction and one-time price difference for inventory, etc.

During the reporting period, Gan Li Pharmaceutical's GZR18 completed the clinical trial of adult patients with type 2 diabetes.

The drug is the same as semaglutide and can be used for weight reduction and diabetes treatment.

Chronic disease drugs may be the common password for pharmaceutical companies to move towards the era of big health.

The old honey, the bad luck of the past year, the most restless since the beginning of the year belongs to the chain pharmacy sector.

The actual controller is detained, the medical insurance is taken, and the acquisition expansion, the situation of each listed company is connected together, as if it were a picture of the floating world, depicting the era mark from aggressive to emergency braking.

In March, Dashenlin announced that one of the actual controllers, Ke Jinlong, was criminally detained and prosecuted for the crime of unit bribery, and its wholly-owned subsidiary in Maoming was also investigated.

Previously, the company withdrew the additional issuance plan of 1.897 billion yuan.In June, Yixin Tang announced that it was summoned for talks by the National Healthcare Security Administration and initiated self-inspection and self-correction, submitting a report on the rectification to the administration.

Subsequently, the company successively disclosed several new initiatives, such as share buybacks and the acquisition of over 80 pharmacies and their inventory.

In July, Laobaixing announced that the