Which are China's most valuable healthcare cos?
DRUG COMPANY HENGRUI MEDICINE HEADS UP HURUN CHINA 100 MOST VALUABLE NON-STATE-CONTROLLED HEALTHCARE COMPANIES 2020 WITH US$53.1BN VALUATION
SHENZHEN-BASED LIFE SUPPORT DEVICE PROVIDER MINDRAY 2ND WITH US$41.6BN
R&D SERVICE PROVIDER WUXI APPTEC 3RD WITH US$25BN AND INTEGRATED HEALTH SYSTEM PROVIDER ALIHEALTH 4TH WITH US$23.1BN
14 COMPANIES WORTH US$10BN OR MORE
DRUG COS LED THE WAY WITH 62, FOLLOWED BY PRODUCERS OF MEDICAL DEVICES AND MEDICAL SERVICES
CORONAVIRUS IMPACT. DISPOSABLE MEDICAL SUPPLIES COMPANY ALLMED DOUBLED IN VALUE IN FEB; VENTILATOR DEVICE PROVIDER YUYUE ROSE 62%.
SHANGHAI AND BEIJING LED, WITH 14 AND 12, FOLLOWED BY HANGZHOU, SHENZHEN, GUANGZHOU AND CHENGDU. OTHERS IN THE TOP 10 INCLUDED NANJING, SUZHOU, TIANJIN, SHIJIAZHUANG AND ZHUHAI. THE TOP 10 CITIES ACCOUNTED FOR 60% OF THE COMPANIES ON THE LIST.
WORLD’S MOST VALUABLE HEALTHCARE CO IS JOHNSON & JOHNSON AT US$350BN
HURUN RESEARCH INSTITUTE TODAY RELEASED THE HURUN CHINA 100 MOST VALUABLE NON-STATE-CONTROLLED HEALTHCARE COMPANIES 2020
(18 March 2020, Shanghai, China and Oxford, UK) The Hurun Research Institute today released the Hurun China 100 Most Valuable Non-State-Controlled Healthcare Companies 2020, a list of the 100 Chinese privately-controlled enterprises from the healthcare sector, ranked by their market value. ‘Chinese private enterprises’ here refers to non-state-controlled enterprises with headquarters in mainland China. The market value of listed companies is calculated based on the closing price of 28 February 2020. The valuation of non-listed companies is estimated with reference to listed companies from the same industry. This is the first time Hurun Research has released this list.
The average value of the Top 100 was US$6.5bn, with the cut-off to make the list US$2.1bn.
Rupert Hoogewerf, chairman and chief researcher of Hurun Report, said: “Coronavirus has thrown the spotlight onto China’s top healthcare companies. Six companies from the Hurun Top 100 saw their share price up by half between January 20 and February 28, led by medical product business Allmed, which doubled in value, and followed by respiration equipment provider Yuyue, which rose 62%. Expect to see some of these companies continue to grow as the virus spreads around the world.”
“Healthcare in China has surged over the past decade, driven in large part by increased R&D investments. China’s top healthcare companies are now worth five times that of five years ago. Interestingly, no companies doing traditional Chinese medicine made the Top 10 this year.”
“China's privately-controlled healthcare companies are much more valuable than their state-controlled counterparts. The largest state-controlled healthcare business, TCM investment platform Changchun High & New Technology Industries, currently valued at US$13.8bn, would not have made the Top 10,” said Hoogewerf.
“Quality companies should focus on value creation, not just sales figures. Hengrui Medicine, for example, had revenues of US$3bn last year, but a market value of close to US$60bn. Retail pharmacy stores business Shanghai Pharmaceuticals by contrast had revenues of almost US$30bn but a market cap of ‘only’ US$7bn."
Healthcare is the third largest industry for non-state controlled companies in China, after manufacturing and real estate. 66 companies made it to the Hurun China 500 Most Valuable Private Companies 2019, released in early January.
This is a brief English language summary of the full Chinese press release which can be found at www.hurun.net. For media enquiries please contact our public relations team.
Top Ten – Hurun China 100 Most Valuable Non-State-Controlled Healthcare Companies 2020
In the Top 10, Lianyungang, Shanghai and Beijing has the most companies with 2. The cut-off to make the Top 10 was US$14.3bn.
Hengrui Medicine is the most valuable private healthcare enterprise with a market value of US$53.1bn. They have applied for 650 domestic patents, possess 140 domestically-authorized patents, and 200 patents in Europe, America and Japan. Hengrui Medicine's operating income in the first three quarters of last year was US$2.4bn, an increase of 36% year-on-year with net profit US$563mn, up 28%.
Mindray Bio-Medical Electronics was second with a market value of US$41.6bn. Set-up in 1991, Mindray has become China's largest supplier of medical devices, sold today across most of the world. Its main products include patient monitoring & life support products, including ventilators, defibrillators, ECG machines, pulse oxymeters and hospital beds.
WuXi AppTec ranked 3rd with a market value of US$25bn. Established in December 2000, WuXi AppTec provides a broad portfolio of R&D and manufacturing services that enable companies in the pharmaceutical, biotech and medical device industries worldwide to advance discoveries and deliver groundbreaking treatments to patients. 60% of its 23,000 employees have phd’s.
AliHealth ranked 4th with a market value of US$23.1bn. AliHealth is a comprehensive online medical platform. AliHealth is mainly engaged in medical e-commerce business, and is also actively exploring Internet medical and smart medical related business, using information technology, AI and big data technology to help offline institutions improve operational efficiency and service experience.
Yangtze River Pharmaceutical Group ranked 5th with a market value of US$20.7bn. Founded in 1971 Yangtze River Pharmaceutical Group's main products include both Chinese and Western medicines, and both prescription and non-prescription medicines. It has formed more than 10 series including cardio-cerebral vascular drugs, antimicrobial drugs, digestive system drugs, antitumor drugs, antipyretic and analgesics, etc., covering more than 20 dosage forms and more than 200 product specifications.
Hansoh Pharmaceutical ranked 6th with a market value of US$20.1bn. The company has established a leading position in some of China's largest and fastest-growing therapeutic areas with significant unmet clinical needs, including central nervous system disease, antitumor, anti-infection and diabetes.
WuXi Biologics ranked 7th with a market value of US$19bn. The company was founded in 2010 and initially provided customers with cell line incubation and protein analysis services. After several years of development, the company's business has expanded to new biological drug discovery, new biological drug development, biological testing and GMP production. With high-standard production bases around the world and a strong scientific research team, WuXi Biologics has grown into an open biopharmaceutical technology platform company providing one-stop services from concept to commercial. In 2017, WuXi Biologics was listed on the Hong Kong Stock Exchange.
Sino Biopharmaceutical ranked 8th with a market value of US$18.3bn. The group's business covers the entire industrial chain of various pharmaceutical R&D platforms, intelligent production and a strong sales system. Its products include a variety of biological drugs and chemical drugs, and it is in an advantageous position in many promising therapeutic fields such as tumors, liver diseases, respiratory drugs, analgesics, cardiovascular and cerebrovascular diseases, orthopedic diseases.
Aier Eye Hospital Group ranked 9th with a market value of US$17.7bn. Aier was listed in 2009, when it had a market value of only US$1bn.
CSPC Pharmaceutical Group ranked 10th with a market value of US$14.3bn. CSPC originally produced APIs. In 1999, they obtained a national patent for a new class of drugs, butylphthalide. Butylphthalide was put on the market in 2005. CSPC has gradually evolved from an API manufacturer to an innovative drug manufacturer. The main products include vitamins, antibiotics, innovative drugs, brand drugs and generic drugs.
Compared with 5yrs and 10yrs ago
Five and ten years ago, there were traditional Chinese medicine companies in the Top 10 such as Guilin Sanjin Pharmaceutical and Jointown Pharmaceutical Group. Today there are no TCM companies in the Top 10.
Top Ten Most Valuable Healthcare
Companies in the World 2020
Six of the Top 10 most valuable healthcare businesses in the world are from the USA, followed by Switzerland with 2 and one from each of Ireland and Denmark.
Top Five Most Valuable Non-State-Controlled Insurance Companies in China
Hoogewerf said, “Insurance companies have been playing a key role in the development of China’s healthcare sector, led by the likes of Ping An and Taikang.”
Investment into R&D
The Top 10 spent approximately 10% on R&D investment, led by Hengrui Medicine with 15%.
Geographic Distribution
By city, Shanghai and Beijing led the way with 14 and 12, followed by Hangzhou and Shenzhen. By province, Guangdong was top with 16 companies on the list, followed by Zhejiang and Shanghai ranked 2nd. Beijing ranked 4th with 12 and Jiangsu ranked 5th with 11.
Which industries did best?
Drug cos led the way with 62, followed by producers of medical devices and medical services.
Coronavirus impact on valuations
Between 20 January, when the coronavirus hit the markets in China and 28 February, the cut-off date for the Hurun China 100 Most Valuable Non-State-Controlled Healthcare Companies 2020, the market value of some healthcare companies grew significantly.
Medical product business Allmed saw its share price double in this period, as demand for its products shot through the roof. Respiration equipment provider Yuyue rose 62%.
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Hurun China 100 Most Valuable
Non-State-Controlled Healthcare Companies 2020
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