The company said Lianhua Qingwen Capsules’ operating profit in the first three quarters of 2021 was 3.37 billion yuan, or 41.6 percent of total operating profit.
Yiling Pharmaceutical (002603:SZ) plunged by the daily limit to 32.39 CNY (5.08 USD) on April 18, and its market value evaporated by more than 6 billion CNY.
Wang Sicong, the son of Dalian Wanda Group Chairman Wang Jianlin, has questioned the efficacy of Yili Pharma’s flagship product, Lianhua Qingwen, which has been recognized by Chinese authorities as a standard COVID-19 therapy for the symptoms. light on April 14. He noted that “the China Securities Regulatory Commission should strictly investigate Yiling Pharmaceutical” on Weibo, China’s equivalent of Twitter.
Affected by his post, Yiling Pharmaceutical closed the 10% limit at CNY 35.99 on April 15, and its market value evaporated by more than CNY 6.7 billion, and the turnover exceeded 5 CNY.4 billion.
We-media platform DX Doctor published an article about the function of Lianhua Qingwen capsules on April 17, saying that they cannot prevent Covid-19. As a result, shares of this Chinese herbal medicine producer continued to decline for two consecutive trading days.
Yiling Pharmaceutical focuses on the research and development of Traditional Chinese Medicine (TCM). It occupies a leading position in the field of drugs for cardiovascular and cerebrovascular diseases and diseases of the respiratory system. Tongxinluo capsules, Shensong Yangxin capsules and Lianhua Qingwen capsules have become the basic drugs for the treatment of related diseases.
Lianhua Qingwen Capsule was included in the 2019 Novel Coronavirus Pneumonia Diagnosis and Treatment Program in 2020. It had sales in 2020 of CNY 4.256 billion (up 149.89% from the previous year). previous year) and an operating profit of CNY 3.37 billion in the first three quarters of 2021.
The head of Yiling Pharmaceutical replied that the company has never said on any occasion that the WHO recommends Lianhua Qingwen. The company also said that the WHO recognized the effectiveness of traditional Chinese medicine, including Lianhua Qingwen, on 2019 novel coronavirus pneumonia.
Yiling Pharmaceutical’s domestic competitors include CR Sanjiu Medical & Pharmaceutical (000999:SZ), Nin Jiom Medicine Manufactory, Yunnan Baiyao Group (000538.SZ), Li Shizhen Pharmaceutical Group and Tianhuang Medicinal.