Recently, it has been reported that Huiyu Pharmaceutical, with its core product "pemetrexed disodium for injection", has risen rapidly in the domestic market, but with the drastic changes in the drug market pattern and intensified competition, the company is facing a severe "hard landing". In 2023, Huiyu Pharmaceutical expects revenue and net profit to decline by more than 37% and 43% respectively, and behind the sharp drop in performance is the reality that the market share is seized by competitors, and it is difficult for subsidies and investment income to support profit margins for a long time.
The glory of "pemetrexed disodium has become a thing of the past, and as more pharmaceutical companies' products are approved and join the ranks of centralized procurement, the core advantages of Huiyu Pharmaceutical are gradually lost. In the face of fierce competition in the generic drug market, especially the reduction in sales unit price and sales volume caused by the first war, the company's profitability has been seriously impacted. At the same time, the performance in the secondary market is not optimistic, and the share price of Huiyu Pharmaceutical has reached a record low after listing, and its market value has shrunk significantly.
In order to cope with the huge capital investment required for the research and development of innovative drugs, Huiyu Pharmaceutical has adopted a strategy including the equity of ** subsidiaries to improve the cash flow level. However, this move is still stretched thin for the huge R&D investment. What is more noteworthy is that the company has significantly reduced and postponed the implementation of IPO fundraising projects, reflecting the company's difficult choices in strategic adjustment and resource allocation.
Despite the sharp decline in performance, Huiyu Pharmaceutical still insists on paying dividends, which has led to the outside world considering whether it is a rational use of capital and long-term development. The actual controller Ding Zhao and his concerted actors benefited significantly from the dividend, and the phenomenon of shareholders forming a group further deepened the market's doubts about its future prospects.
In summary, the current predicament faced by Huiyu Pharmaceutical highlights the cruelty of market competition in the pharmaceutical industry and the risk of relying on a single popular product. In such a situation, enterprises need to re-examine their own development strategies, accelerate the progress of diversified layout and research and development of innovative drugs, and optimize the allocation of internal resources, in order to find new growth points and sustainable development momentum in the fierce market competition. For investors, it is crucial to assess the resilience and long-term value of the company in the face of industry changes.