Gonggong Financial Bureau Huadong Medicine was under multiple pressures, and its market value shrank by 20 billion per month
It is said that the new year is new, but Huadong Medicine has suffered a blow in the first month of 2024. As of January 30, 2023**, the market value of Huadong Medicine has shrunk by more than 20 billion in the month, and the stock price has accumulated **2839%, although there is the impact of the overall sluggishness, but the ** range of the A-share chemical and pharmaceutical sector in the same period is 1762%, Huadong Medicine underperformed the plate by more than 10 points, and the reason is not simple.
At the beginning of January, Huadong Medicine announced that Zhongmei Huadong, a wholly-owned subsidiary of Huadong Medicine, filed a lawsuit with the Zhejiang Provincial High People's Court for infringement of the invention patent of Qinghai Zhufeng Cordyceps sinensis raw material *** Qinghai Everest Cordyceps Herbal Medicine Co., Ltd. *** Hangzhou Huadong Wulin Pharmacy. Huadong Medicine demanded that the defendant immediately stop using fermented Cordyceps sinensis powder to manufacture Bailing tablets, as well as immediately stop selling or promising to sell the Bailing tablets, and at the same time, destroy its inventory of fermented Cordyceps sinensis powder and Bailing tablets; It also requires Everest Raw Materials Company and Everest Pharmaceutical to bear joint and several liability for compensation and jointly compensate for their economic losses1100 million yuan, and 115 million yuan in joint compensation for the plaintiff's expenses incurred in stopping the infringement50,000 yuan. According to the enterprise investigation, Hangzhou Huadong Wulin Pharmacy, one of the defendants, is a wholly-owned subsidiary of Huadong Medicine.
The reason why Huadong Medicine doesn't even let go of its subsidiaries is because of a drug called Bailing Capsule. The drug is the exclusive variety of Huadong Medicine's 2 billion yuan, and it is also the champion of Chinese patent medicine sales in Chinese hospitals in 2022. According to the official website of the State Food and Drug Administration, there are only 3 batch numbers of Bailing products, which are owned by Sino-US Huadong, Zhufeng Pharmaceutical, and Yantai Huarui, Yantai Huarui is a subsidiary of Huadong Pharmaceutical, and the controlling party of Everest Pharmaceutical is Zuoli Pharmaceutical. Although Zuoli Pharmaceutical currently only produces Bailing tablets, with annual sales of only more than 200 million, Zuoli Pharmaceutical suddenly announced on January 11 that the Bailing capsule with the same name and square was approved, which is undoubtedly to compete head-on with Huadong Medicine's Bailing capsule. At the investor relations event on January 14, Zuoli Pharmaceutical said that it hopes to build its Bailing series into a 1 billion yuan scale through a series of measures under the condition that it now has Bailing tablets and Bailing capsules. From less than 300 million to 1 billion, it is self-evident whose share will be squeezed out.
In the face of competitors, Huadong Medicine decisively took up the law**, but in the face of investors, Huadong Medicine said something else. In the recent investor exchange activities, Huadong Medicine said that at present, there are many companies participating in the fermented Cordyceps preparation market, and adding one company will not have a significant impact on the market competition pattern. The company's Bailing Capsule has been deeply involved in the chronic kidney disease and chronic respiratory system market for more than 20 years, and has a good reputation and brand advantage in the market, and the sales in the out-of-hospital (including grassroots) market and online market are also increasing year by year, and the proportion of customers who purchase drugs at their own expense is also steadily increasing, which is the basis for the long-term stable growth of Bailing Capsule, and will not change significantly due to the addition of individual competing products.
In addition to Bailing capsules, Huadong Medicine's medical aesthetic strategic transformation product Yiyanshi Maiden Needle has also been pursued by peers recently. On January 22, Jiangsu Wuzhong officially announced that the third-generation aesthefill was approved, and it is expected to be officially launched for sale in the first half of 2024. It is reported that the market share of this product in Taiwan, China has ranked first in the industry, surpassing Eyanshi. According to the IPSOS research report, 60% of the users of the Ellanse girl needle brand account for 60% of China's recycled filling products. The industry expects that AestheFill is expected to replicate the successful experience in mainland China and change the existing pattern of the mainland medical aesthetic recycled materials market.
In the latest investor exchange activities, Huadong Medicine said that the new generation of "girl's needle" Ellansé M has successfully completed the enrollment of all subjects in China's clinical trial, and is undergoing follow-up, and is expected to complete the collection of the main efficacy indicators of all subjects in Q2 2024.
Coincidentally, Huadong Medicine's exclusive "** needle" liraglutide injection has also encountered a lot of trouble recently. First of all, Hangzhou Chengze Pharmaceutical violated the agreement and carried out marketing and product promotion activities in the name of "Huadong Medicine" in Suzhou, Hangzhou and other places without permission. Although Huadong Medicine cleared up the relationship in the announcement, it is an indisputable fact that Li Bangliang, former chairman and chairman of Huadong Medicine, and Fu Hang, chairman and general manager of Hangzhou Jiuyuan Gene, the R&D party of "Lilupin", also attended the event. It is worth noting that Jiuyuan Gene is currently sprinting for an IPO, although there is no actual controller, but its single largest shareholder is Huadong Medicine.
Immediately after January 26, the State Food and Drug Administration announced that Novo Nordisk's semaglutide tablets have been approved for marketing for **type 2 diabetes. This is the first oral GLP-1 (glucagon-like peptide-1) receptor agonist approved for marketing in China. According to the public information of the Drug Approval Center of the National Medical Products Administration, semaglutide injection and semaglutide tablets are actively carrying out clinical trials with ** as the indication in China. According to Huadong Medicine, its self-developed semaglutide injection is still in the clinical stage of testing for diabetes indications.
The three core varieties of Chinese patent medicine, medical beauty, and ** East China medicine were besieged at the same time, and it is no wonder that investors panicked and took the first step.
On January 31, 2024, the reporter of the Gonggong ** Social Union and the Gonggong Finance Bureau will continue to pay attention to the follow-up situation of "East China Medicine is under multiple pressures, and its market value has shrunk by 20 billion per month".
url: *in: Huabo Jingwei.
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