Affected by the collection, a number of pharmaceutical companies in the first half of the results showed a decline

On August 28, China Biopharmaceutical Co., Ltd. released its semi-annual report showing that the company's first-half revenue was RMB12.65 billion, up 1% YoY, and its first-half net profit was RMB1.21 billion, down 16% YoY.
the reasons for the decline, the company said that during the reporting period, the negotiated national health insurance catalog prices began to fall into place and the national volume procurement had a significant impact on the Group's revenue and profits.
In addition, the number of non-emergency visits to hospitals has been significantly reduced, and even many departments have been temporarily closed, and isolation measures have completely disrupted almost all on-site forms of academic activity and doctor communication, with a significant negative impact on drug sales.
effects of intensive mining on the performance of pharmaceutical companies have begun to show.
addition to China Biopharmaceuticals, on August 24th Beijing-New Pharmaceuticals released its 2020H1 results report, showing first-half sales revenue of 1,641 million yuan, down 11.73 percent from a year earlier.
semi-annual report shows that beijing-new pharmaceutical industry's first-half results fell year-on-year main reasons include: the country's second batch of collection and promotion, related preparation products and API products have significantly decreased in market prices, sales revenue decreased year-on-year.
It is understood that Beijing New Pharmaceuticals' finished products in the first half of the year achieved sales revenue of 1.002 billion yuan, down 8% YoY, of which the spiritual nerve sector achieved sales revenue of 194 million yuan, up 55% YoY, continue to maintain a rapid growth trend;
's 2020 half-year report released recently showed that the company achieved operating income of RMB51.916 million in the first half of the year, a decrease of 29.48 percent yoY, and a net profit attributable to shareholders of listed companies of RMB4.1448 million, a decrease of 38.09 percent yoY.
the decrease in revenue during the reporting period was the decrease in revenue as a result of the outbreak and the implementation of some products.
The evening of August 27th, East China Pharmaceuticals also announced its first half 2020 results, during which it achieved operating income of RMB16,661 million, down 8.70% YoY, and net profit attributable to shareholders of listed companies of RMB1,731 million, up 8.45% YoY.
it is learned that on January 20 this year, East China Pharmaceuticals announced that the wholly-owned subsidiary of China East China's products Akapo sugar tablets (commodity name: Cabopin) in the second batch of collection due to price factors failed to win the bid.
2019, the company's Acapo sugar chip sales revenue reached more than 3 billion yuan, annual sales revenue growth of more than 30%.
semi-annual report shows that, affected by the loss of Acapo sugar tablets, China and Eastern China's second-quarter revenue of 2.465 billion yuan, year-on-year growth slowed to 2.74 percent, down 31.9 percent month-on-month;
the first half of this year, China and the United States achieved operating income of RMB6,084 million, up 6.69% YoY, and net profit of RMB1,378 million, up 5% YoY.
same period last year, china and the United States east China revenue and net profit growth reached 29.29 percent, 24.07 percent, respectively.
, the results of the third batch of harvests have been produced, involving a total of 56 varieties, 81 specifications, the average price reduction of more than 70%, to a high decline of 98.7%.
the second round of collection rules basically continued the second batch of collection scheme, the price decline gradually normalized.
in the industry's view, the third round of collection than the second batch of mining changes little, the market expectations are relatively sufficient, its impact is gradually desensited.
Looking to the future, the selection of generic drug varieties, after a significant price reduction to exchange volume, into low gross margin varieties to contribute a small amount of profits to enterprises will gradually become the norm, in addition to a few higher barriers, better competitive pattern of varieties, most generic drugs into the era of micro-profits.
long-term perspective, the trend of industrial upgrading remains unchanged, forcing pharmaceutical companies to transition towards innovative drugs.