The company reported that the operating income of Lianhua Qingwen Capsules in the first three quarters of 2021 was CNY 3.37 billion, accounting for 41.6% of the total operating income.
Yiling Pharmaceutical (002603:SZ) plunged by the daily limit to CNY 32.39 (USD 5.08) apiece on April 18, and its market value evaporated by more than CNY 6 billion.
Wang Sicong, Dalian Wanda Group Chairman Wang Jianlin's son, questioned the efficacy of Yili Pharma's core product Lianhua Qingwen, which was recognized by the China authorities as a COVID-19 standard therapy for mild symptoms on April 14. He denoted that "the China Securities Regulatory Commission should strictly investigate Yiling Pharmaceutical" on Weibo, Chinese equivalent of Twitter.
Affected by his post, Yiling Pharmaceutical closed 10% limit lower at CNY 35.99 apiece on April 15, and its market value evaporated by more than CNY 6.7 billion, and the turnover exceeded CNY 5.4 billion.
We-media platform DX Doctor published an article about the function of Lianhua Qingwen Capsules on April 17, saying that it can't prevent Covid-19. As a result, this Chinese herb drug producer’s stocks continued to dip 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 respiratory system diseases. 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 Scheme for Diagnosis and Treatment of 2019 Novel Coronavirus Pneumonia in 2020. Its recorded a sales revenue in 2020 of CNY 4.256 billion (up 149.89% YoY), and an operating income of CNY3.37 billion in the first three quarters of 2021.
Yiling Pharmaceutical official responded that the company has never stated on any occasion that WHO recommends Lianhua Qingwen. The company also denoted that WHO had recognized the efficacy of TCM 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.