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    Home > Medical News > Medicines Company News > Huahai Pharmaceutical: Q1 deduction of non-net profit pre-cut by 15%-25%, unable to judge the impact of the valsartan incident

    Huahai Pharmaceutical: Q1 deduction of non-net profit pre-cut by 15%-25%, unable to judge the impact of the valsartan incident

    • Last Update: 2021-05-02
    • Source: Internet
    • Author: User
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    The stock crashed and fell for two consecutive days.
    "The company valsartan claimed 800 million US patients, and the lawsuit failed.
    " Recently, Huahai Pharmaceutical has been on the cusp, so that it issued several announcements on April 8 to alleviate market anxiety.
    mood.

    The stock price continued to fall and the company responded urgently

    The stock price continued to fall and the company responded urgently

    After the stock price fell limit for two consecutive days on April 7th and 8th, Huahai Pharmaceuticals issued an announcement stating that its stock had a cumulative deviation of 20% in the three consecutive trading days on April 6th, 7th, and 8th.
    It belongs to abnormal fluctuations in stock trading.
    After self-examination, the company's current production and operation are normal, the market environment and industry policies have not undergone major changes, and the company has no major information that should be disclosed but has not been disclosed.

    In addition, the controlling shareholder and actual controller Chen Baohua stated in the reply to the inquiry that, except for the related matters that have been disclosed, there is no significant information that should be disclosed but not disclosed that may have a significant impact on the trading price of your company’s stock, including but not Limited to major asset restructuring, share issuance, acquisition, debt restructuring, business restructuring, asset divestiture, asset injection, share repurchase, equity incentives, bankruptcy reorganization, major business cooperation, and the introduction of strategic investors.

    However, today (April 9) Huahai Pharmaceutical's downward trend has not been reversed.
    As of the end of the afternoon, its share price was 19.
    76 yuan, a decrease of 2.
    27% from yesterday.

    News of the valsartan incident has occurred again, and many lawsuits are still in progress

    News of the valsartan incident has occurred again, and many lawsuits are still in progress

    Huahai Pharmaceutical also responded to the news that "the company valsartan US patients claimed 800 million yuan, and the lawsuit failed" in the stock bar, saying, "The company immediately carried out a serious verification after paying attention to this news.
    As of the disclosure date of this announcement, the company was due to valsartan.
    Many litigation issues and Sandoz arbitration issues caused by the incident in Tanzania are still in progress.
    The case has not yet opened, and the results of the litigation and arbitration are still uncertain.
    The company cannot accurately determine the litigation and arbitration incidents that may cause the company.
    influences.
    "

    The valsartan incident occurred on July 7, 2018.
    On the same day, Huahai Pharmaceutical issued an announcement stating that trace amounts of genotoxic impurities were found in the unknown impurities of its valsartan raw materials and decided to suspend the export of valsartan raw materials.

    Subsequently, EDQM (European Drug Quality Administration) suspended the CEP (European Pharmacopoeia Certificate of Adaptation) certificate of Huahai Pharmaceutical's valsartan API.

    On October 8, 2018, Huahai Pharmaceutical once again announced that some consumers in the US market had previously found extremely small amounts of genotoxic impurities (NDMA) in the unknown impurities of valsartan raw materials, and believed that Huahai Pharmaceuticals and its subordinates Subsidiaries, Huahai America, Plindstone Pharmaceuticals, and Shouke Health America, have committed fraudulent concealment, breach of contract, negligence, and unjust enrichment, and filed suits in the court.

    On December 18, 2019, Huahai Pharmaceutical issued an announcement regarding the restoration of the European Pharmacopoeia Adaptability (CEP) certificate for valsartan API, which marked the end of the suspension of the CEP certificate for valsartan API.

    On August 31, 2020, Huahai Pharmaceutical disclosed the progress of litigation in the United States and stated that most of the company's valsartan-related litigation cases have been consolidated into one case.
    According to the content of the lawyer’s letter, the defendant has formally filed a motion to dismiss the original complaint through summary judgment in the combined valsartan interstate litigation case.
    In this case, if the plaintiff is unable to provide the necessary scientific evidence to prove the existence of general causality, that is, trace amounts of NDMA impurities in valsartan are sufficient to cause cancer in the product user, the valsartan interstate litigation case may be in summary judgment It was rejected at the stage (that is, the defendant’s motion was supported by the court).
    However, if the court considers that the main facts of the case are in dispute, the defendant’s motion will be rejected by the court and the case will continue.

    The outcome of the case still needs to be waited.
    By then, I wonder if I will be frustrated again if I slowly walk out of the sea of ​​valsartan clouds.

    Affected by FDA bans and other factors, profits in the first quarter of 2021 will drop by 15%~25%

    Affected by FDA bans and other factors, profits in the first quarter of 2021 will drop by 15%~25%

    Huahai Pharmaceutical's performance in the first quarter of 2021 is not very optimistic.
    According to preliminary calculations, the net profit attributable to the parent is expected to be between 242 million yuan and 265 million yuan, a year-on-year increase of about 10% to 20%.
    However, in the first quarter of 2021, the net profit attributable to the parent after deduction is expected to be between 148 million yuan and 168 million yuan, a year-on-year decrease of about 15% to 25%.

    Regarding the main reasons for the changes in the performance of the current period, the announcement pointed out that in the first quarter of 2021, Huahai Pharmaceuticals sold 3.
    8597% of its shareholding company Hangzhou Duoxi Biotechnology Co.
    , Ltd.
    , and it is expected to increase the company's 2021 investment income by approximately RMB 90 million to 98 million.
    (Before tax).
    At the same time, in the first quarter of 2021, the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses has declined, mainly due to changes in the sales structure of API products, the continued impact of the FDA ban on the preparations business in the United States, and the company's continuous increase in R&D investment.
    To.

    Looking back at its 2020 performance, the company achieved revenue of 6.
    485 billion yuan in the current period, a year-on-year increase of 20.
    36%; net profit attributable to the parent was 930 million yuan, a year-on-year increase of 63.
    24%; net profit attributable to the parent after deduction was 816 million yuan, a year-on-year increase of 81.
    38%.

    According to the announcement, the main reasons for the pre-increasing performance in this period are: 1.
    The impact of the substantial increase in the sales of domestic preparations and APIs: 1) The domestic preparations are mainly due to the promotion of centralized procurement by the country.
    The company relies on the expansion of the alliance area to select opportunities and the product market The coverage rate has been increased rapidly, which has affected the sales of domestic preparations; 2) In terms of raw materials, the recovery of the CEP certificate of sartan products has driven the company's sales of raw materials to increase significantly; 3) The sales growth has driven the expansion of production scale, which is To a certain extent, the production cost is diluted, which affects the increase in profit.
    2.
    Due to the sharp drop in the US dollar exchange rate, the company's exchange loss in 2020 will be approximately RMB 145 million.

    As mentioned above, the successful bidding of centralized procurement has brought market growth to Huahai Pharmaceutical.
    In the first batch of centralized procurement, Huahai Pharmaceutical won the bid for 6 products.
    Affected by this, its net profit in 2019 increased to 569 million yuan, a year-on-year increase of 429.
    78%.
    Subsequently, 4+7 expansion, Huahai Pharmaceuticals irbesartan tablets, irbesartan hydrochlorothiazide tablets, lisinopril tablets, risperidone tablets, losartan potassium tablets, paroxetine hydrochloride tablets, fosinopril Seven varieties including sodium tablets were shortlisted, and the provinces with the most relative supply.

    At the end of December 2019, in the second round of national procurement, Huahai Pharmaceutical won the bid for Amrisentan tablets and Donepezil hydrochloride tablets.
    In August 2020, in the third batch of centralized procurement, Huahai Pharmaceuticals won the bid for three varieties of Valsartan Tablets, Olanzapine Orally Disintegrating Tablets and Sertraline Hydrochloride Tablets.
    Under the influence of this, in the third quarter of 2020, its revenue increased by 21.
    41% year-on-year to 4.
    87 billion yuan, and non-net profit increased by 109.
    55% year-on-year to 781 million yuan.
    Revenue and profits were both bumper.

    reference:

    reference:

    The Paper: Announcement after the plunge of Huahai Pharmaceutical: It is temporarily unable to accurately determine the impact of litigation incidents and arbitration incidents

    The Paper: Announcement after the plunge of Huahai Pharmaceutical: It is temporarily unable to accurately determine the impact of litigation incidents and arbitration incidents

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