According to news on November 23, Red Star Capital Bureau noticed that Lianhua Qingwen experienced a price increase after experiencing a "out of stock" incident. On November 23, Red Star Capital Bureau searched for "Lianhua Qingwen" on Meituan and found that some pharmacies had increased prices of Lianhua Qingwen capsules to varying degrees. Among them, the price of Lianhua Qingwen capsules in the specification of 0.35g*48 capsules/box has increased significantly. A staff member of a pharmacy in Jilin told Red Star Capital Bureau that the selling price of Lianhua Qingwen capsules in the above specifications before this round of price increases. The price is 30 yuan/box, which rose to 35 yuan/box after the "out of stock" incident in the middle of this month. Red Star Capital Bureau previously reported that Lianhua Qingwen granules and capsules sold in some pharmacies in Shijiazhuang were out of stock. Since then, due to the shortage of Lianhua Qingwen, in order to increase the horsepower of production, Yiling Pharmaceutical urgently recruited a large number of short-term workers for the selection of traditional Chinese medicine, medicine box packaging, etc.
Follow me to find out what happened after Lianhua Qingwen’s “out of stock” price increase.
According to news on November 23, Red Star Capital Bureau noticed that Lianhua Qingwen experienced a price increase after experiencing a "out of stock" incident.
On November 23, Red Star Capital Bureau searched for "Lianhua Qingwen" on Meituan and found that some pharmacies had raised prices of Lianhua Qingwen capsules to varying degrees. Among them, the price of Lianhua Qingwen capsules in the specification of 0.35g*48 capsules/box has increased significantly. A staff member of a pharmacy in Jilin told Red Star Capital Bureau that the selling price of Lianhua Qingwen capsules in the above specifications before this round of price increases. The price is 30 yuan/box, which rose to 35 yuan/box after the "out of stock" incident in the middle of this month.
Red Star Capital Bureau noticed that in a drugstore located in Heyuan City, Guangdong Province, Lianhua Qingwen capsules in the size of 0.35g*48 capsules/box are currently priced at 46 yuan/box. If calculated based on the previous general selling price of about 30 yuan/box, the price has increased by more than 50 yuan.
Screenshot from Meituan
As for the reason for the price increase, a pharmacy staff told Red Star Capital Bureau, “Lianhua Qingwen’s price has increased recently, and there have been a lot of people buying it recently. "The manufacturer's price has increased and the goods cannot be ordered, so the price must be adjusted." Some drugstore employees told the Red Star Capital Bureau, "The purchase price is too expensive."
Red Star Capital Bureau sent an interview outline to Yiling Pharmaceutical (002603.SZ), the manufacturer of Lianhua Qingwen, but there was no reply as of press time.
Red Star Capital Bureau previously reported that Lianhua Qingwen granules and capsules sold in some pharmacies in Shijiazhuang were out of stock. Since then, due to the shortage of Lianhua Qingwen, in order to increase the horsepower of production, Yiling Pharmaceutical urgently recruited a large number of short-term workers for the selection of traditional Chinese medicine, medicine box packaging, etc.
However, it is worth noting that Yiling Pharmaceutical has stated to the outside world that the company has been working on increasing production capacity in the past two years. Production is basically arranged according to sales, and it is doing its best to ensure market supply and continue to do so in the future. Hua Qingwen has no plans to increase prices.
Red Star News reporter Deng Lingyao
Editor Yu Dongmei Guo Yu
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Lian Huaqing Related reading: Price increase after Wen was "out of stock":
Is Lianhua Qingwen really that nervous? Yiling Pharmaceutical's stock price doubled, responding that the inventory was sufficient
Reporter | Editor Niu Qichang |
With the implementation of twenty measures to optimize epidemic prevention and control, Lianhua Qingwen Capsules once again became the The public’s first choice for “drug preparation.” For a time, the topic "Shijiazhuang Lianhua Qingwen capsules are sold out" became a hot search topic.
Not only in Shijiazhuang, Jiemian News reporters visited many pharmacies in Jinan, the capital of Shandong Province, and found that in the past two days, the sales of Lianhua Qingwen Capsules have increased significantly compared with before. Some pharmacies have There has been a stock-out. When searching the Meituan APP, it was found that Lianhua Qingwen capsules can only be purchased from other places by mail, and the delivery time is about 3-5 days, while local pharmacies indicate that they cannot be delivered.
As the only manufacturer of Lianhua Qingwen Capsules, Shijiazhuang-based Yiling Pharmaceutical (002603.SZ) has become the focus of market attention. From the perspective of the secondary market, the stock price has doubled since its launch at the end of September.
As of the close of trading on November 16, Yiling Pharmaceutical rose 5.03 points to close at 39.66 yuan/share, once hitting a new high of 41.47 yuan/share, with a cumulative increase of 26.08 yuan in three trading days. In this regard, Yiling Pharmaceutical issued a change announcement stating that no major undisclosed information has been discovered recently that may or has had a greater impact on the company's stock price, and that the company's operating conditions and internal and external operating environments have not undergone major changes.
In response to the "out of stock" rumors, Yiling Pharmaceutical responded that the company's production has basically not been affected, and the current sales situation is normal. In the past two years, the company has been doing a series of work to improve production capacity, and production capacity has been greatly improved. The company's production plan is "production based on sales", and the production plan can be adjusted in time according to market demand to ensure market supply.
According to a staff member of a local pharmacy in Shijiazhuang, the shortage of Lianhua Qingwen capsules is related to Yiling Pharmaceutical’s “Double 11” event. Currently, there are enough Lianhua Qingwen capsules in the pharmacy’s warehouse.
It is impossible to prevent the new crown
According to a salesperson at a pharmacy in Shandong, due to the need for drug preparation after the policy is "relaxed", Lianhua Qingwen and Huoxiang Zhengqi soft capsules have recently been used Sales of cold medicines, which are mainly cold medicines, have increased significantly. Even if consumers are not specifically here to buy cold medicine, the sales staff will proactively ask them if they need some cold medicine.
"Some consumers buy more than a dozen or twenty boxes at a time, mainly to stock up on goods rather than for immediate needs. It is estimated that this phenomenon of stocking up will not last long." Sales at the above-mentioned drug store Staff told Jiemian News that the Lianhua Qingwen products sold in pharmacies are still in stock and are expected to be available in stores tomorrow. At present, the channels for obtaining goods from manufacturers are smooth, and there is no shortage of goods for the time being.
Virology expert Chang Rongshan said in an interview with Jiemian News, "From the current point of view, the epidemic prevention and control situation this winter has a relatively large psychological impact on the public. In the face of sudden solutions, In emergencies such as lockdowns, people will choose to stock up on medicines out of panic."
"One misunderstanding is that people often buy Lianhua Qingwen drugs out of the mentality of preventing the new coronavirus, but in fact the drug cannot play a preventive role. On the contrary, some people who take Lianhua Qingwen Side effects such as gastrointestinal discomfort and diarrhea may also occur,” Chang Rongshan said.
Professor Zhao Su, chief physician of the Department of Respiratory and Critical Care Medicine at Wuhan Central Hospital, also said: "Lianhua Qingwen is a therapeutic drug, not a preventive drug. It must be used in strict compliance with the instructions. When citizens have no symptoms, do not use it. Recommended to take. ”
Annual revenue of 4 billion
Although it does not prevent COVID-19, it benefits from Lianhua Qingwen’s special products in treating COVID-19, influenza and colds. Attributes enable Yiling Pharmaceutical to stand out in the cold medicine market where thousands of pharmaceutical companies compete.
Judging from the share of medical terminal products, Minai.com data shows that Lianhua Qingwen products ranked first in the sales ranking of proprietary cold medicines in the public medical market in 2021, with its market share as high as 41.78, far behind It surpassed the second place Shuanghuanglian Oral Liquid’s score of 7.31. At the retail terminal, in the first half of 2022, Lianhua Qingwen Capsules also surpassed Ganmaoling Granules and ranked first in sales of cold medicine/heat-clearing products.
As an exclusive patented product of Yiling Pharmaceuticals, behind the popularity of Lianhua Qingwen drugs is the "endorsement" of the new coronavirus diagnosis and treatment plan. According to the newly released "Diagnosis and Treatment Plan for Novel Coronavirus Pneumonia (Trial Ninth Edition)" in March 2022, in addition to continuing to list Lianhua Qingwen Capsules (Granules) as a recommended drug during the observation period of traditional Chinese medicine treatment, it will also be listed as Recommended medication for mild and common types during the clinical treatment period (confirmed cases).
Yiling Pharmaceutical stated that Lianhua Qingwen has played an active role in the prevention and control of the new coronavirus epidemic in China and is widely used in designated hospitals, makeshift hospitals, isolation groups, close contact and sub-close contact groups in various provinces and cities.
In addition, 8 drugs of Yiling Pharmaceutical, including Lianhua Qingwen drugs, have also entered the 2021 "National Basic Medical Insurance, Work Injury Insurance and Maternity Insurance Drug Catalog".
Against this background, the surge in sales revenue of Lianhua Qingwen drugs has become the main driving force behind the performance of Yiling Pharmaceutical. Throughout 2017 to 2021, anti-cold drugs represented by Lianhua Qingwen drugs achieved sales revenue of 651 million yuan, 1.205 billion yuan, 1.703 billion yuan, 4.256 billion yuan, and 4.108 billion yuan respectively, accounting for 10% of the total revenue. The proportions are 15.96, 25.03, 29.24, 48.46, and 40.60 respectively.
It is worth mentioning that from 2013 to 2021, the company's net profit has successfully achieved "nine consecutive increases." Since the outbreak, Lianhua Qingwen's drug revenue has exceeded 4 billion yuan for two consecutive years, accounting for more than 40% of total revenue, and its gross profit margin is as high as about 70%.
Since the beginning of this year, Lianhua Qingwen Drugs has continued to make efforts. In the first three quarters, the company has achieved a net profit of 1.414 billion yuan, exceeding the 1.344 billion yuan for the whole of last year. On October 28, Wu Rui, secretary of the Board of Directors of Yiling Pharmaceutical, said at the performance briefing that in the first three quarters of this year, Lianhua Qingwen’s revenue will be on a higher base in 2021 due to its special product attributes for treating COVID-19, influenza and colds. Still achieved year-on-year growth. At the same time, Lianhua Qingwen’s overseas sales are in good shape, and it has been registered, obtained marketing licenses, and sold in 22 countries and Hong Kong and Macau.
Judging from the semi-annual report, although Yiling Pharmaceutical’s operating income of 5.566 billion yuan fell 5.59% year-on-year, the net profit attributable to shareholders of the listed company was 1.049 billion yuan, a year-on-year increase of 8.76%. Among them, Lianhua Qingwen and other anti-cold drugs achieved revenue of 2.553 billion yuan, an increase of 60.72 million yuan compared with the same period last year. The revenue share further increased from 42.27 last year to 45.87, becoming the largest business segment. In contrast, the revenue share of cardiovascular and cerebrovascular drugs dropped from 43.32 last year to 40.85.
Jiemian News noticed that since November, Yiling Pharmaceutical’s recruitment official account has posted three recruitment messages, saying that it is urgently recruiting a large number of short-term workers with a salary of 180 yuan/day, including operators and loaders. According to other media reports, starting from the 14th of this month, Yiling Pharmaceutical's Shijiazhuang factory began to recruit short-term workers for one to three months to increase production of Lianhua Qingwen drugs. It is expected to recruit more than 1,000 people in this round.
In the context of "unblocking and preparing drugs", will Yiling Pharmaceutical make adjustments to the production plan of Lianhua Qingwen? Jiemian News called Yiling Pharmaceutical's securities department, but received no response as of press time.
Data from the Dragon and Tiger List show that between November 14 and November 16, the total transaction volume of the sales department seats on the list was 3.83 billion yuan, of which the buying amount was 1.992 billion yuan and the selling amount was 1.838 billion yuan. yuan, with a total net purchase of 154 million yuan.
Specifically, one institution bought 152 million yuan and sold 129 million yuan, for a total net purchase of 23.1267 million yuan. Among them, the Shenzhen-Hong Kong Stock Connect Special Purpose and Stock Trading to Support the Family (Huaxin Securities Shanghai Wanping South Road Securities Sales Department) bought 1.241 billion yuan and 225 million yuan respectively; in terms of selling, the Shenzhen Stock Connect Special Purpose, Everbright Securities Shenzhen Shennan Avenue Securities Sales Department They were sold for 966 million yuan and 212 million yuan respectively.