As listed companies begin unveiling their annual reports, the 2017 financial results of several vaccine manufacturers are gradually coming to light. Among them, Zhifei Biological, Changsheng Biological, and Kintor Pharmaceutical posted robust growth, with their combined net profits exceeding RMB 1 billion. Zhifei Biological’s net profit surged twelvefold, Changsheng Biological’s net profit surpassed RMB 500 million, and both Kintor Pharmaceutical’s revenue and net profit doubled.

　　Zhifei Biological: Net Profit Soars 12-Fold

　　According to the preliminary performance report, Zhifei Biological posted revenue of RMB 1.343 billion in 2017, up 201.06% year over year, and net profit of RMB 432 million, a year-on-year increase of 1,229.25%.

　　Regarding the substantial growth in its performance, Zhifei Biological stated that uncertainties stemming from the industry policy changes triggered by the “March 18 vaccine‑industry incident” in 2016 are gradually dissipating. New industry policies have been progressively implemented, leading to a more standardized and streamlined operating environment, and the promotion and sales of both its proprietary products and the Class II vaccines it distributes have resumed in stages. In addition, the company’s comprehensive efforts across vaccine production, tendering, marketing, and sales have also contributed to this growth.

　　Reports indicate that Zhifei Biological has secured exclusive domestic distribution rights for Merck’s quadrivalent HPV vaccine and pentavalent rotavirus vaccine. The quadrivalent HPV vaccine is the world’s first cervical cancer vaccine, while the pentavalent rotavirus vaccine prevents rotavirus‑induced gastroenteritis; the latter has already been placed on the priority review list and is expected to receive marketing approval this year.

　　In addition to its blockbuster products for which it holds exclusive domestic distribution rights, Zhifei Biological’s pipeline of investigational candidates also represents a new driver of growth. Its wholly owned subsidiary, Anhui Zhifei Longcom Biopharmaceutical Co., Ltd., has had both its BCG‑PPD and its lyophilized human rabies vaccine (Vero cell) approved for acceptance of their drug registration applications. Furthermore, several other products—including the 15‑valent pneumococcal conjugate vaccine and the lyophilized human rabies vaccine (MRC‑5)—have successively received approval to proceed to clinical trials.

　　Changsheng Bio: Net Profit Surpasses the RMB 500 Million Mark

　　Currently, Changsheng Bio markets six vaccine products: lyophilized live attenuated varicella vaccine, lyophilized human rabies vaccine (Vero cell), lyophilized live attenuated hepatitis A vaccine, inactivated influenza vaccine, adsorbed acellular pertussis–diphtheria–tetanus combined vaccine, and ACYW135 meningococcal polysaccharide vaccine.

　　According to the 2017 annual report, Changsheng Bio recorded revenue of RMB 1.553 billion, up 52.60% year over year, and net profit of RMB 566 million, an increase of 33.28% compared with the previous year. The company attributed this performance growth primarily to significant changes in its sales model and customer mix, which led to a substantial rise in average selling prices. At the same time, it intensified its marketing efforts, increasing investment in academic promotion conferences and related activities, thereby enhancing product awareness among customers and expanding both market coverage and market share. As a result, product sales also surged compared with the prior year, with particularly strong growth in rabies and varicella vaccines. In addition, the company utilized idle raised funds and surplus proprietary capital to purchase bank wealth management products and other financial institution‑issued investment products, resulting in a substantial year‑over‑year increase in investment income.

　　According to reports, Changsheng Bio has achieved significant progress in the development of multiple vaccine products. The shingles vaccine has entered Phase III clinical trials, while the split‑virion influenza vaccine—both the adult and pediatric formulations—have been submitted for manufacturing approval and are currently under review. The 23‑valent pneumococcal polysaccharide vaccine has received approval to proceed with clinical trials and is poised to begin; the live attenuated yellow fever vaccine has also received notification of acceptance of its drug registration application. Meanwhile, the company’s collaboration with Japan’s GTS Corporation on a biosimilar of adalimumab is progressing smoothly.

　　Kangtai Biological: Post-IPO Performance Doubled

　　Kangtai Biological went public in 2017. As a long-established manufacturer of hepatitis B vaccines, the company has steadily ramped up its R&D efforts in recent years, shifting its product portfolio from a heavy reliance on a single hepatitis B vaccine to a diversified lineup that now includes hepatitis B, Hib, a measles–rubella bivalent vaccine, and a tetravalent acellular pertussis–diphtheria–tetanus–Hib vaccine. According to its preliminary financial report, the company posted revenue of RMB 1.164 billion in 2017, up 110.95% year over year, with net profit reaching RMB 218 million, a year-on-year increase of 152.32%.

　　Kangtai Biological stated that the growth in both operating revenue and profit was primarily driven by enhanced sales and marketing efforts for its vaccine products, with increased sales of its hepatitis B vaccine, HIB vaccine, and quadrivalent vaccine. Additionally, following the implementation of the revised Regulations on the Circulation and Administration of Vaccines, product selling prices were raised.

　　According to reports, Kangtai Biological has several new products slated for launch in succession. The recombinant enterovirus 71 vaccine (produced in Hansenula yeast) and the lyophilized live attenuated varicella vaccine have both received approval for clinical trials, while the lyophilized human rabies vaccine (MRC‑5 cell line) has been submitted for an on-site inspection for drug manufacturing. In addition, securities analysts note that Kangtai Biological’s 13-valent pneumococcal conjugate vaccine is expected to hit the market in 2020, potentially contributing over RMB 1 billion in net profit to the company.

　　As the vaccine industry undergoes regulatory reforms and new policies are gradually implemented, the sector is poised for healthy development, with market consolidation favoring leading companies. Domestic vaccine manufacturers are steadily ramping up R&D efforts, and a number of blockbuster products are set to launch one after another, which should bolster their profitability going forward.