Source: Yaozh.com
According to the list of the top 10 "disappointing drugs" selected by the Health Weekly of The Beijing News by the market performance of pharmaceutical enterprises in 2017, we can see the down side thereof to the development of the pharmaceutical industry, however, we hope that those painful lessons can lead pharmaceutical enterprises towards a brighter future in 2018.
Unpopular: Shapuaisi
Reason for listing: Dxy.com criticized Shapuaisi Eye Drops (Bendazac Lysine Eye Drops) in the article titled Please Leave the Chinese Old People alone, the Brainwashing Drug with Annual Sales of Crazy RMB 750 Million on December 2, 2017, directly pointing out that it was ineffective to cataract and suspected of false publicity. Then this "miracle cure" that was a TOP10 product on the chemical drug market of physical pharmacies in China and number one in OTC drug sales was collectively condemned by ophthalmologists, and the regulators rapidly intervened: China Food and Drug Administration and Zhejiang Food and Drug Administration successively issued notices urging the enterprise to start the clinical effectiveness test ASAP; on December 7, Shapuaisi made an application for urgent suspension of trading of its shares after "three consecutive slumps" in stock; on December 8, Shanghai Stock Exchange and Zhejiang Securities Regulatory Bureau gave the Letter of Inquiry and Letter of Attention to the enterprise.
In the evening of December 15, 2017, Shapuaisi made an announcement with 43 pages to respond, disclosing details of the Phase II and Phase III clinical trials separately conducted on Shapuaisi Eye Drops in 1995 and 1998. Shapuaisi’s shares fell by over 30% in one week after resuming trading on December 18, 2017 as affected by the event.
Disappointing degree: ★★★★★
Continual bribery: Squibb
Reason for listing: Shanghai Administration for Industry & Commerce punished Sino-American Shanghai Squibb Pharmaceuticals Ltd. for its bribery in 2015, confiscated the over RMB 770 thousand illegal gains, and fined it RMB 100 thousand at the end of 2017.
During the sales of pharmaceutical products, Squibb paid the round-trip business level fares of RMB 57,095 for the director of Cardiovascular Medicine Department of Xin Hua Hospital Affiliated to Shanghai Jiao Tong University School of Medicine to London, UK to attend the meeting of the European Society of Cardiology, and during the period, the said department purchased RMB 772,536.25 of 6 pharmaceutical products including Fosinopril Sodium Tablets/Monopril, etc. from Squibb. In fact, also in 2015, Squibb was accused by the U.S. Securities and Exchange Commission that its sales representatives bribed doctors in forms of cash, travel, and meeting sponsorship, etc., to obtain more than USD 11 million profits from sales of prescription drugs to the relevant hospitals. Squibb eventually agreed to pay more than USD 14 million to settle the accusation concerning the company’s suspicion of bribery in China.
Disappointing degree: ★★★★
In need of "tonifying kidney" most: Huiren Pharmaceutical
Reason for listing: The continual rise of its revenue could not save Jiangxi Huiren Pharmaceutical’s embarrassing situation of high gross margin but low net profit. The more than 80% gross margin of its Huiren Shenbao Tablets sparked much furor.
According to the prospectus, the cost of every tablet of Huiren Shenbao Tablets is RMB 0.18, and the gross profit amount reaches RMB 1.12, namely, the gross margin is 86.48%. However, the advertising and business publicity expenses account for half of the gross margin. The large amount of marketing input has sufficiently validated the "existence" of Huiren Shenbao Tablets.
However, one undisputed fact is that according to incomplete statistics, Huiren Pharmaceuticals has been punished by the food and drug administrations for more than 8 times due to production or sales of drugs not meeting provisions since 2013, and was also required to limit pr...
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