What are the legal and moral risks of "marketing promoters" and "academic promoters"?
author | Ching-Wen
edit Shuliyiming
source | Mustang Finance
epidemic affecting people how long people expect to look forward to the vaccine how long.
Smallpox, plague, chickenpox, the successful development of vaccines have cured many diseases that once harmed humans on a large scale. The demand also contains unlimited business opportunities, attracting many companies to dig money out of it. Recently, Aimei Vaccine Co., Ltd. (hereinafter referred to as "Aimei Vaccine"), known as the largest private vaccine group in the whole industry chain in China, submitted a "Prospectus" to Hong Kong Stock Exchange .
In fact, this is the second time that Immera Vaccine has submitted the Prospectus. As early as June this year, Amy Vaccine submitted materials to the Hong Kong Stock Exchange for the first time, but on July 15, the listing application was sent back by the Hong Kong Stock Exchange. According to the regulations,After being sent back to the company, no further applications were allowed within eight weeks. Just after eight weeks, Eimé Vaccine submitted the materials again. Urgent heart can be glimpsed.
"Aimer Vaccine is listed on the Hong Kong stock market, and its main operating body and business are mainly in the mainland. Hong Kong’s fund management is relatively loose, and the mainland’s capital management is relatively strict. Some international capital is optimistic about the mainland market and starts from Hong Kong stocks. Participate in the investment and operation of vaccine companies in mainland China. Amy Vaccine moves to Hong Kong stocks, and can make full use of international capital and enjoy a better capital premium. "Independent economist Wang Chikun analyzed Amy. Vaccines choose the benefits of listing in Hong Kong stocks.
"Pioneering and enterprising" is one of the key descriptors of Amy Vaccine's business model. Open the "Prospectus", you can see that Amy Vaccine is also determined to forge ahead in the exploration of the business model, adopting the two legs of "marketing business" and "academic promotion". The advantages of these two models are obvious, but the disadvantages are It is easy to hide some unspoken rules.
Vaccines are in good business, with a gross profit margin of 80%.
, many industries have been interrupted by the pandemic, and many industries have been suspended by the pan5span epidemic. So it has been developed, such as the vaccine industry. Vaccines are called a "never noticed before there is no problem,I regret not being able to hit the product as soon as I have a problem.
In China, vaccines are divided into first type vaccine and second type vaccine8span free of charge. Provide citizens with vaccines that citizens receive in accordance with regulations; Class II refers to other vaccines that citizens pay and receive voluntarily. In China, most vaccines enter the market as Class II vaccines. According to the prospectus, is calculated based on sales revenue. In 2020, the sales of Class II vaccines will account for 93% of China's vaccine sales, and it is expected to reach 98.6% in 2030.
is often used in reality. The hepatitis B vaccine discussed is , a type of vaccine, and all newborns in China must be vaccinated within 24 hours after birth. In 2020, about 81% of domestic newborns are vaccinated with hepatitis B vaccine from AIDS American Vaccine. In 2020, calculated by batches issued, Eimed Vaccine is the world’s and China’s largest hepatitis B vaccine supplier, with a domestic market share of 59.4%.
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：Official website
hepatitis B vaccine,Coupled with another vaccine, the human rabies vaccine, constitutes the "two pillars" of Le Méridien Vaccine's revenue. "Prospectus" shows that from 2018 to 2020 and the first six months of 2021 (hereinafter referred to as "2018 to the first half of 2021"), the proportion of hepatitis B vaccine sales to the company's revenue reached 18% and 37.3 respectively. %, 24.7%, 32.5%; human rabies vaccine sales accounted for 65.6%, 46.9%, 59.5% and 60.1% of the company’s revenue, respectively.
"As a second-category vaccine, human rabies vaccine has greater pricing flexibility and higher profit margins. We sell this product to 31 provinces, municipalities and autonomous regions, covering More than 2,000 county-level disease control centers." Amy Vaccine said.
According to the prospectus, Amy Vaccine is the second largest supplier of rabies vaccine for humans in the world and China in terms of sales volume and sales revenue in 2020. The domestic market shares were 24.7% and 21.6% respectively.
Emei vaccine is not only the leader of hepatitis B vaccine and rabies vaccine . According to the "Prospectus", 2020,Aimé Vaccine has obtained a batch of about 60 million doses, second only to China Biotech in terms of domestic vaccine manufacturing. At present, Amy Vaccine has a total of eight commercialized vaccine products for six disease areas, as well as 23 vaccines under development for 13 disease areas. Among them, many vaccine products have achieved the forefront of the world.
However, it is worth noting that the Emei vaccine is not born to be the leader.
In the summer of 2018, Changchun Changsheng a "rabies vaccine fraud" was found to be freeze-dried after the rabies vaccine was released by the National Bureau of Physicians There are serious violations of the "Pharmaceutical Production Quality Management Regulations" such as falsified production records. Since the Changchun Changsheng vaccine is sold all over the country, as soon as this announcement came out, more than 20 provinces collectively voiced out. Many disease control departments said that the Changchun Changsheng rabies vaccine would be stopped and sealed.
The original “second” Changchun Changsheng in the industry plummeted. In November 2019, issued an announcement stating that Changchun Changsheng was unable to pay off its debts.And there is no possibility of reorganization or reconciliation. According to regulations, Changchun Changsheng was declared bankrupt.
Taking advantage of this opportunity, Amy Vaccine has expanded its market vigorously. According to the Prospectus, the sales and distribution expenses of Amy Vaccine will be 475 million yuan and 3.3 million respectively from 2018 to 2020. 100 million yuan and 533 million yuan, accounting for 42.7%, 34.7% and 32.6% of total revenue respectively. eventually replaced Changchun Changsheng’s original "second" position in the industry.
Source: Official website
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suddenly turned from profit to loss before listing,Half a year has lost all the profits of the previous three years. Is it because the vaccine can't be sold? Amy Vaccine explained that the loss of 863 million yuan was mainly due to two major parts, one part was "one-time share-based compensation expenses of RMB 897 million" ; the other part was due to the substantial increase in R&D costs from 46.2 million yuan to 140 million yuan, "to develop a rich pipeline of 23 vaccines under development."
Looking at it this way, the main reason for the huge loss in the first half of 2021 is still the "one-off share-based compensation expense" of 897 million yuan. Who gave such a huge sum of money?
"Prospectus" gave the answer, it is the founder Zhou Yan. On June 2, 2021, 28 days before the first "Prospectus" was submitted, shareholders approved the adoption of the share award plan and issued 4000 to Tibet Zhongtu, which is 99.99% controlled by the company founder Zhou Yan, at a consideration of 40 million yuan. Ten thousand shares , "In order to reward Mr. Zhou Yan for leading the management team to exceed the performance of the company and make outstanding contributions to the rapid development of the company in the past few years. All rewarded shares have been vested and settled, and nothing else Conditions."
Zhou Yan was born in 1965 and has been in business since 1992 ,He founded Shanghai World Asset Management Co., Ltd., Tsinghua University MBA, Arizona State University Senior Doctor of Business Administration. In addition to serving as the executive director, chairman of the board and chief executive officer of Le Meridien Vaccines, is currently the honorary director of West Lake University of .
Zhou Yan once shared his entrepreneurial experience at the alumni meeting. He said that he started from 300 yuan, worked in many industries, and experienced 80 million or even 1 billion losses. Develop in the vaccine industry.
has been in business for many years, and finally got to the door of listing, the founder of the company will make a profit. After the listing and fundraising, the investor's money will be used for business operations and development.
The fund-raising for the listing of Immera vaccines is mainly used for three aspects: research and development, sales and marketing activities of vaccines under research, and general corporate purposes.
"Marketing promoters" prop up half the revenue
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spanIt was established in China on November 9, 2011, and it has not been 10 years since. By 2020, the company's annual profit has reached 400 million yuan. How did you make so much money?
Amy Vaccine said, “We have established an inclusive and pioneering business model and corporate culture to obtain the best industry resources. Through ten years of organic growth and external resource integration, we have become An important leading enterprise in China's vaccine industry."
So, what exactly is the "killer" of Amy Vaccines?
Studying the "Prospectus" reveals that there have been many acquisitions during the development of Emmy Vaccine. From 2015 to 2017 alone, Amy Vaccine has successively acquired 4 companies including Rongan Biotech, Amy Hanxin, Amy Kanghuai and Amy Weixin, together with 4 companies for human rabies, B Vaccine products for hepatitis B, hepatitis A, mumps and hemorrhagic fever with renal syndrome.
The vaccine is available, how can I sell it? In the history of vaccine companies, a famous node is the introduction of the "one-vote system". In March 2016, after the illegal operation of vaccines in Shandong, the revised " Vaccine Circulation and Vaccination Management Regulations " already stipulated that,Second-class vaccine wholesale companies can no longer operate vaccines, and require vaccination units to have the same "vouchers, accounts, goods, and payments" (that is, the "one-vote system" in the industry). implemented the "one-vote system" model to increase the transparency of the entire sales process of the second-class vaccine, and also announced the end of the "vaccine distributor" agency system.
But we found from the "Prospectus" of Immera Vaccines that the agent of disappeared, but a "marketing company" was added. How important are they to the Eimeria vaccine? Amy Vaccine claims to adopt a "two-wheel drive" approach in marketing and promotion. Which double wheel? One is a self-employed team, and the other is a "marketing promoter".
What is the responsibility of the self-employed team? Amy Vaccine said, "As far as all or some of our products are concerned, our global sales and marketing self-support team covers a few municipalities and regions in populated provinces."
What about "marketers"? " We hire to a large extent third-party marketers who have local resources, mature industry experience and marketing expertise to help us sell in areas where our own team has not established specific sales coverage. ” Ai The United States Vaccine also believes that "this move is the most cost-effective way to increase our market reach and penetration."And said, “We closely monitor the performance of market promoters and pay attention to improving their stickiness and our sales efficiency.”
In the past few years, the number of "marketing promoters" has increased. Compression, reduced from more than 110 to less than 40. But "the concentrate is the essence", the average contribution of "marketers" increased from 9.1 million yuan in 2018 to 36.5 million yuan in 2020. As of the end of the first half of 2021, the average contribution of "market promoters" was 15.3 million yuan.
You should know that in the first half of 2021, the total revenue of Amy Vaccine was only 673 million yuan, and the contribution of "market promoters" was not small.
How much can the maintenance of these "marketers" spend on Lemmy vaccine? Amy Vaccine revealed in the "Prospectus" that ’s sales and distribution expenses as a percentage of revenue dropped from 42.7% in 2018 to 34.7% in 2019, and further to 32.6 in 2020. %. As of the end of the first half of 2021, sales and distribution expenses accounted for 34% of revenue , which was basically the same as the same period last year (33.3% in the same period last year).
In other words,After the "one-vote system", "marketers" assisted the sales of Amy Vaccines, which seems to be close to the past agency model. Moreover, the cost of Eimeria vaccine to the marketer is about 30% of the sales revenue, which means that a considerable part of the profit is shared.
Source: official website
vaccines can be promoted from Aikang Pharmaceutical Co., Ltd. at present. A dispute has arisen and a lawsuit is in progress.
Source: Aiqicha
signed a contract to support the sales and support of Vaccine to both parties in 2019. The company provides freeze-dried human rabies vaccine , . Kangsheng provides promotion services to Amy Vaccine. In return, Amy Vaccine pays various medical promotion service fees to Kangsheng at a total of 30% of sales revenue. , Data information service fee, adverse reaction information service fee.
According to the referee document network, Kangsheng said, " has been over 2 years,Amy Vaccine refused to pay the remuneration of more than 12 million yuan for various reasons. " therefore took Amy Vaccine to court.
Amy Vaccine responded in the "Prospectus", "We are facing a number of service contract disputes with marketers and marketers. The amount involved is approximately RMB 12.5 million, and as of June 30, 2021, we have recorded a liability of 4.5 million yuan. According to the opinions of external legal counsel, we have a reasonable basis to make a defense and will not have any material adverse effects on the financial situation. ”
From the Emy vaccine to the entire industry, after the "one-vote system", the main body that played the role of distributor in the circulation of the second-class vaccine has not completely disappeared in 2018. After the Changchun Changsheng "rabies vaccine fraud" incident has attracted widespread attention, NetEase "Qingliu Studio" once published an article titled "Vaccine Circulation Link Interest Track: Dealers Change Promoters for Profit", stating that "one vote" After the establishment, the previous distributors did not really disappear, but changed to become a "promotion service provider" in the industry. Changchun Changsheng, starting from the 2016 annual report, will also "self-operate with distributors." The expression “combined” has been changed to “combination of self-employment and promotion service providers.” Recently, the successful meeting last month, the main sales model of Hualan vaccine, which is to be listed on the GEM, is also to be promoted through a third party. Service providers to promote.
"academic promotion" how much does it cost?
has an important role in the marketing of . The US Vaccine’s "Prospectus" noted thatAimee Vaccines stated that " , through our own team and with the support of market promoters, through academic activities, regular visits, on-site training, and post-injection follow-up People maintain frequent communication. ”
"For many years, we have worked hard through these interactions to get the recognition of CDCs and related health professionals at all levels. We believe that the relevant recognition is also recognized. It will enable us to effectively promote and sell the new vaccines that will be launched in our R&D pipeline," said Amy Vaccine.
Amy Vaccine also said, " Our sales and marketing efforts attach great importance to academic promotion ".
In other words, about 30% of the remuneration paid to the "marketing promoter" of the sales amount, part of it is also used for "academic promotion."
What is the expenditure for "academic promotion"? Amy Vaccine did not specifically disclose. But items that include this cost appear in two places.
first is the sales and distribution expenses,As of the end of the first half of 2021, it accounted for 34% of revenue. The most important part of this is actually spent on marketing and promotion expenses. In the first half of 2021, 's marketing and promotion expenses accounted for 25.1% of revenue, and the amount was 415 million yuan. accounted for 73.87% of sales and distribution expenses.
Source: "Prospectus"
said in the prospectus vaccine. The so-called "marketing and promotion expenses" refers to the costs and expenses paid to market promoters, as well as the costs and expenses of various marketing and academic promotion activities, industry research and after-sales customer service.
In addition to "marketing promoters", Amy Vaccine is also doing academic promotion. In the "sales and distribution expenses", there is a part of the "market development expenses", Amy Vaccines said, this part of the expenses, including "The self-employed team organizes academic conferences, training and other academic marketing activities generated marketing Related expenses". Taking the first half of 2021 as an example, it spent 9.095 million yuan, accounting for 1.4% of revenue.
Why doesn't Emmy Vaccine directly disclose the cost of "academic promotion"?
About a year ago,Medical leader Hengrui Pharmaceuticals once encountered media doubts about bribery in disguised form because of the disclosure of excessively high "academic promotion" costs.
Hengrui Medicine has repeatedly clarified but the effect is not good.
The pharmaceutical industry has always had the tradition of holding professional academic conferences. However, in recent years, this kind of "food, shelter, and gift" conferences sponsored by enterprises is gradually changing. "For a long time, our country The problem of falsely high drug prices is serious. The prices of commonly used drugs are as high as 2-3 times the average price of major international countries. The sales expenses of mainstream pharmaceutical companies account for nearly 40% of sales revenue, which is significantly higher than other consumer goods industries, which has increased the public and The burden of the medical insurance fund has contributed to unhealthy trends in the industry and restricted the high-quality development of the medical and health industry. ,” said Ma Jinghao, an expert in finance and taxation.
This is the reason why Hengrui Medicine disclosed the specific "academic promotion expenses" and the number of meetings held, which triggered disguised bribery questions.
The problem of bribery can be said to be the worst unspoken rule in the pharmaceutical industry. Amy Vaccine also stated in the "Prospectus"," Although company policy prohibits employees from making improper payments to the CDC, participating in other improper activities to influence CDC’s procurement decisions, or making other bribery arrangements related to our business, we may not be able to completely avoid Activities related to employee bribery or kickback arrangements. ”
In fact, there is a certain degree of commonality across the industry. The Hualan vaccine, which is planned to be listed on the GEM in the near future and has successfully passed the meeting, has spent 1.5 billion yuan in sales expenses in three years. The sales expenses accounted for 42.02%, 29.18% and 35.66 of revenue from 2018 to 2020. %. Among these sales expenses, the "advanced promotion service fee" has become the most important component, accounting for more than 90% of the sales expenses in each period. This directly led to the Shenzhen Stock Exchange’s inquiries about “whether there is commercial bribery or other benefits transmission”, and Hualan Vaccine stated that “the promotion service fee of each period matches the operating income”.
After analyzing the "killer" of Emmy Vaccine's money, you will find that "marketing vendor" and "academic promotion" are like two sides of the same coin, bringing Emmie vaccines While making huge profits, there are also some legal and moral hazards.
After ten years of entrepreneurship, Amy Vaccine became the leader of the private vaccine group across the entire industry chain in the country with determination; once profitable, 897 million yuan can be awarded to core managers, and now Sprint Hong Kong Stock Exchange,When trying to enter the international capital market, the company will usher in new rapid development opportunities after financing. It also needs to pay more attention to the stable and sustainable development of its own business model, and needs to adjust the business model with potential risks in a timely manner. Otherwise, it is very likely that tuition fees will be paid on these issues.
What vaccine have you been given? Have you noticed which company produced the vaccine you were given? Welcome to leave a message below to discuss.
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