Gan & Lee Pharmaceutical's recent performance has been very strong, with its share price going from $41** to $53 without any adjustment. This has aroused people's curiosity, what is the reason for the strength of Gan & Lee Pharmaceutical?
First of all, the performance reversal of Gan & Lee Pharmaceutical after centralized procurement has had a positive impact on its stock price. According to the results of the third quarter of this year, Gan & Lee Pharmaceutical's net profit growth rate reached about 164%, which indicates that the company's operating conditions have improved significantly.
Secondly, Gan & Lee Pharmaceutical has a very close cooperative relationship with foreign companies, is promoting the promotion of diabetes marketing authorization in the United States, and has begun to sell its products to foreign markets. This international cooperation has a positive impact on the popularity and sales of Gan & Lee Pharmaceutical.
In addition, Gan & Lee Pharmaceuticals is conducting clinical trials for diabetes. Although this move is very costly, it is precisely because of this forward-looking research work that Gan & Lee Pharmaceutical has more room for development. However, this also brings with it a challenge, which is the tight cash flow. Gan & Lee needs to earn enough profits every year to cover the funding needs of research and experiments. So, in the next 7In 6 years, the net profit growth rate may not be very high, and may not even meet the market's expectations.
In general, the reasons for Gan & Lee Pharmaceutical's strong performance can be attributed to performance reversal, international cooperation and forward-looking research work. Despite the financial pressure, Gan & Lee Pharmaceutical still has a lot of room for development in the future.
Huasen Pharmaceutical is a small company with a market value of about 7.4 billion yuan, with a price-to-earnings ratio of 105 times, and the third quarter report of this year shows that the net profit growth rate is -39%, and the fundamentals are relatively poor. However, on November 15, Lin Yuan, the majority shareholder of Huasen Pharmaceutical, attended the company's shareholders' meeting and communicated with the top management. This has led to the wonder why a major shareholder is interested in such a company with poor fundamentalsAfter further research and analysis of the relevant data of Huasen Pharmaceutical, I have come to some conclusions.
First of all, Huasen Pharmaceutical has certain advantages in the field of pharmaceuticals. Its main traditional Chinese medicine products, including sweet orange ice plum slices and Liuwei Anshen capsules, are relatively popular and can maintain the company's net profit. Although Huasen Pharmaceutical is still continuing to develop new drugs, this insistence on innovation makes the company competitive in the industry.
Secondly, Huasen Pharmaceutical uses the sales profits for R&D activities and vigorously develops innovative drugs. The company has put forward a three-three-three research plan, which studies three projects, establishes three projects, and submits three projects for approval every year. A number of projects have already borne fruit and are on the verge of yielding benefits. At the same time, Huasen Pharmaceutical also plans to launch the 666 research program to further expand its R&D space.
In addition, Huasen Pharmaceutical also has a certain layout in the field of special medical food. The company established its first special medical food production line in the Sichuan-Chongqing region in June 2022 and has started to do so in hospitals**. At present, Huasen Pharmaceutical's special medical food TY001 has been reported for reply and plans to be approved by the end of 2024. In addition, Huasen Pharmaceutical has other production lines of special medical foods put into operation in other regions. This gives Huasen Pharmaceutical a certain competitive advantage in the field of special medical food.
To sum up, although Huasen Pharmaceutical is not as good as Gan & Lee Pharmaceutical in terms of fundamentals, its focus on the research and development of innovative drugs and its layout in the field of special medical food make it have certain development potential. Therefore, although it is uncertain whether Huasen Pharmaceutical can become the best in the future, its development space is still worth paying attention to.
As a leading enterprise in the field of diabetes, Gan & Lee Pharmaceutical has performed very strongly recently, and its clear performance reversal after centralized procurement and close cooperative relations with foreign companies have made it have a large space for development. However, there are also challenges of financial pressure and long-term research investment.
As a small company with relatively poor fundamentals, Huasen Pharmaceutical's focus on innovative drug research and development and the layout of special medical food make it competitive and have great development potential in the industry. Although its share price performance may not be as good as that of Gan & Lee Pharmaceutical, its R&D efforts and special market layout are worth paying attention to.
In general, you need to be cautious when investing. Personal opinions are for informational purposes only. Gan & Lee Pharmaceuticals and Huasen Pharmaceutical have their own advantages and challenges, and investors should fully consider all aspects of their decision-making and conduct risk assessment.