Since July, a total of 30 listed pharmaceutical companies have announced plans to reduce their holdings.

Pharmaceutical Network Industry Dynamics: Since this year, the share prices of a number of biopharmaceutical companies have doubled, at the same time, there are also a number of pharmaceutical companies issued a reduction announcement.data show that from July 1 to 28, the pharmaceutical sector, a total of 30 listed companies issued a reduction plan, the cumulative high reduction of 409 million shares, the maximum size of the reduction of 12.842 billion yuan (based on the July 28 closing price).of these 30 listed companies, Shouxian Valley, Ogilvy Medical, Blue Fan Medical, Dean Diagnostics, Yiming Pharmaceuticals and other 8 proposed to reduce the ceiling of the total share capital of 3% or more., Shouxian Valley recently announced that on July 24, 2020, the company received the notice of the controlling shareholder Zhejiang Shouxian Valley Investment Management Co., Ltd., Shouxian Valley Investment through a large transaction to reduce its holding of the company's 2.87 million shares of unlimited shares of outstanding shares, accounting for 2.00% of the company's total share capital. On the same day, Shouxian Valley Investment signed the "Share Transfer Agreement" with Xu Meixuan, and Shouxian Valley Investment intends to transfer its 8.6 million shares of unlimited tradable shares of the company, accounting for 5.99% of the company's total share capital. On July 22,, Yiming Pharmaceuticals issued a pre-disclosure announcement of a reduction in its holdings, and the General Shareholder of Tibet Huajin Tianma Equity Investment Partnership (Limited Partnership), which holds more than 5% of the shares, was required for financial arrangements.the proposed reduction of no more than 11.561 million shares of the Company between August 12, 2020 and February 11, 2021, with the maximum reduction of the total share capital of the Company not exceeding 6.00%.Ogilvy Medical announced on the evening of July 5, due to personal capital needs, the company on July 3, 2020 received shareholders Chen Haohua, Cheng Hong, Du Xianzhang, Huang Wenjian issued by the "share reduction plan notice", the four shareholders cumulatively intend to reduce the company's shares of no more than 523.379 million shares, accounting for no more than 8.2647% of the company's total share capital.if the company's closing price of 29.21 yuan per share on July 3, the completion of the reduction plan, the above-mentioned shareholders will be a total of 1.529 billion yuan.note that Ogilvy's shares have risen 116.15 percent so far this year.company's half-yearly report shows that the first half of 2020 is expected to make a profit of 704 million yuan - 727 million yuan, an increase of 530%-550% over the same period last year.for the reasons for the increase, the company said sales of infectious protective products increased significantly during the reporting period, as well as a certain increase in sales of other products."Medical Glove King" Blue Fan Medical has risen 155.04 percent this year due to a surge in demand for related products.July 1, Blue Fan Medical announced that the actual controller intends to reduce the company's stake of not more than 4% of the company's total share capital.in order to repay external financing borrowings, ease the pressure on pledged debt, reduce their own capital risk and debt ratio, reasonable control of financing leverage, Dean Diagnostics recently announced that the controlling shareholder, the actual controller Chen Haibin and his co-controller Hangzhou Dean Holdings Co., Ltd. plan to concentrate bidding, bulk trading to reduce the number of shares of the company not more than 24.8183 million shares, accounting for no more than 4% of the company's total share capital.the reasons for the reduction of shareholders in the above-mentioned pharmaceutical companies are mainly the needs of the shareholders themselves, the satisfaction of their own business plans, the proposed reduction of the debt ratio of the controlling shareholders, the directors' intention to improve the liquidity of individuals, etc. so, in the pharmaceutical companies frequently reduce their holdings behind the pharmaceutical sector is still the wind? In the industry's view, there are many reasons for the reduction of pharmaceutical companies, so the frequent phenomenon of the industry's reduction does not mean that the pharmaceutical sector has passed the wind. from the current policy focus, the future industry differentiation will be more obvious, the investment direction of medicine mainly around epidemic prevention and innovation two main lines, it is recommended to pay attention to the leading enterprises in the subdivision of the track. .