Lying gun Sapu Aisstorm Puhua Pharmaceuticals re-opens IPO is not easy

Pharmaceutical Network January 4, 2017 debuted by the NoHowever, just at the critical moment of the company's second shock to A-shares, the Sapu Ais event continued to ferment, And Price Pharma was affected by the company's important revenue product, the caritasine eye drops were asked to initiate clinical effectiveness testsIn addition, in order to enrich the company's product range, the company has taken control of Jiangsu Pwc Sheng Pharmaceutical Co., Ltd(hereinafter referred to as "Kesheng Pharmaceutical")," however, the subsidiary was recently exposed to non-conformity of products, and in 2015 and 2016 results showed a lossrecently, the State FoodAdministration issued a notice, requiring the production of caritasine eye drops, including Pricewaterpharmaceuticals, sevento start clinical trialsIt should be noted that this product is the second largest revenue source for Pricepharmait is understood that Pricewatercoa is mainly engaged in traditional Chinese medicine, chemical research and development, production and sales, to ophthalmology drug-based, dermatology drugs, musculoskeletal systems and other areas of drug use co-developmentComplex bear bile drop eye fluid and caritasine eye drops are the company's two main productsThe combined sales revenue of the Company's compound bear bile drops and caritasine eye drops in 2014-2016 and the first half of 2017 was RMB52.8693 million, RMB64.9266 million, RMB82.3385 million and RMB44.858 million, respectively, accounting for 48.64%, 41.69%, 49.44% and 49.44% of the Company's current operating income, respectivelyat the same time, the combined sales margin of the two products during the reporting period was RMB46.655 million, RMB57.1659 million, RMB 73.522million and RMB40,062.9 million, respectively, accounting for 55.61%, 53%, 61.56% and 57.79% of the company's total sales gross profit for the current periodPricepharma said the production and sales of the complex bear bile drops and the production and sales of the daretynine eye drops largely determine the company's profitabilityit is worth mentioning that the recent sapu aisys wave caused a big test of the efficacy of the eye drops of thaisainOn December 28, 2017, the State Administration of Food and Drug Administration issued a Notice on matters relating to eye drops of the darenithinIn the notice, the State General Administration of Food and Drug Administration said that in view of the medical profession some doctors have questioned the efficacy of the eye drops of the caritasine, in accordance with the relevant provisions, require seventy-alessininininine eye drops production enterprises to start clinical effectiveness tests as soon as possible, and within three years the evaluation results reported to the State Drug Administration Drug Review Center, the list of enterprises, the name of Puhua Pharmaceutical is listedXu Xiaoheng, founder of the China's New Three BoardInvestors Alliance, said this also means that the eye drops of the caritasine can only be verified by a large amount of clinical data to reach the conclusion of "efficacy", putting forward higher and clearer requirements for the safety and efficacy of the product Song Qinghui, a well-known economist at , said the company's products to launch clinical effectiveness tests means that the company will be through the test to rigorously verify the efficacy of the drug, this move will undoubtedly bring a huge test for the company's products Because clinical effectiveness trials require a high time cost from design to sample collection, statistics, and final results The State Administration of Food and Drug Administration asked PricewaterhouseCoopers, including seven companies, including the dareniline eye drops, to launch an effectiveness test, to a certain extent, on the consumer to the product labeled "quality defects." Whether it is the company's future performance, or to the consumer group, have a negative impact This impact is reflected in capital markets and will also adversely affect corporate IPOs The commission will also focus on reviewing the company's problems in this regard in order to prevent "sick listing" an industry insider, who did not want to be named, told the Beijing Business Daily that the company's product sits at a policy risk that will have a negative impact on the performance of PricewatercoA Pricepharma faces more than just policy risks Kesheng Pharmaceuticals, a subsidiary of PricewaterhouseD that gained control through capital increases in 2015, made consecutive losses in 2015 and 2016 and was recently inspected for non-conformity the official website of the CSRC, in October 2014, PricewatercoA first disclosed the prospectus At the beginning of 2015, Debangshi, a subsidiary of Puhua Pharmaceutical Holdings, increased its capital to Kesheng Pharmaceuticals by 40 million yuan, and after the capital increase was completed, Debangshi held a 69.99 percent stake in Kesheng Pharmaceuticals to achieve control over Kesheng Pharmaceuticals It is reported that Kesheng Pharmaceutical's main product compound sulphate chondroitin tablets are used to treat rheumatism, rheumatoid arthritis, shoulder inflammation, rib cartilage and vascular neurotic migraine In early 2015, after PricewatercoA PharmaceuticalS Co.' merged with Kesheng Pharmaceuticals, Kesheng Pharmaceuticals' compound sulphate chondroitin tablets became the company's main product due to higher sales revenue in fact, before the company took control of Kesheng Pharmaceuticals, Kesheng Pharmaceuticals was not large Data show that Kesheng Pharmaceuticals achieved operating income of 33.8991 million yuan in 2014, accounting for 31.19 percent of PricewatercoA's operating income The total profit realized during the same period was RMB2.1169 million, which is 5.11% of the total profit of Pricewaterspharmaceutical stake in the current period in response, Pricepharma said that in the year before the merger and restructuring, Kesheng Pharmaceuticals' assets were smaller and profitable compared to Pricewatercous But in the medium and long term, Kesheng Pharmaceutical's main products are expected to become a stable source of income and profit growth point, the potential advantage of eye drugs are conducive to the company's existing products to form a cluster effect, this merger is conducive to the company to enhance core competitiveness and sustainable development capabilities Song Qinghui, a , said in an interview with the Beijing Business Daily that, considering the timing of the first disclosure of the prospectus on the official website of the CSRC, the company's goal in increasing capital to pay for Kesheng Pharmaceuticals is to increase the company's profitability and thus lay the foundation for a successful listing PricewatercoA said in the prospectus that Kesheng Pharmaceuticals has 39 drug production approval numbers, and that the acquisition of Kesheng Pharmaceuticals can enrich the company's product range in the short term and further enhance the company's market competitiveness , data show that in 2015 and 2016, Kesheng Pharmaceuticals achieved a loss of net profit, respectively, -642.57 million yuan and -2.892 million yuan Revenue from Kesheng Pharmaceuticals' compound sulphate chondroitin tablets declined in 2015 and 2016, at 13 million yuan and 8.7225 million yuan, respectively not only, recently, Kesheng pharmaceutical products have also been exposed to non-conformity In the notice on 39 batches of non-conformity issued on the website of the State Administration of Food and Drug Administration on November 17, 2017, the libavirin eye drops with batch number 161004 produced by Jiangsu Pwc Sheng Pharmaceutical Co., Ltd were tested as unqualified, and the non-conforming item was "inspection" (load) The circular shows that for non-conforming drugs, the relevant provincial food and drug regulatory departments have taken control measures such as seizure and seizure, requiring enterprises to suspend the sale of products, recall products, and carry out rectification In Song Qinghui's view, the subsidiary product severance recall and other events, for Pricepharma will have a certain negative impact, but also to the company's IPO process cast a shadow it should be noted that dealer problems are also plaguing PricewatercoUs When the initial public offering was rejected in February 2017, the SFC Development and Audit Committee raised questions about the company's dealers Data show that the company dealers have frequent changes, in the industry's view that this is to a certain extent not conducive to the company's financial norms according to the prospectus, the sales model of PricewatercoA mainly includes direct and indirect sales Indirect sales customers can be divided into dealers and occasional customers From the proportion of sales revenue, the company's sales model to indirect sales mainly, indirect sales to dealers mainly In 2014-2016 and the first half of 2017, The share of Pricepharma's revenue to distributors was more than 75% In 2014-2016, dealer revenue as a percentage of indirect customer revenue was 94.88 percent, 93.22 percent and 94.38 percent, respectively Distribution model to achieve a relatively high proportion of revenue is worth mentioning that, mainly to distributor sales model-based Pricewateru, there is a more dispersed distribution scale, the number of small dealers more Specifically, in 2014 and 2015, the number of Pharmaceutical Distributors was 867, 998, and by 2016 there were more than 1,000 to 1022 Dealers in the distribution scale of less than 100,000 yuan, the majority In 2014-2016, the number of distributors with a distribution scale of less than 100,000 yuan was 702, 786 and 768, respectively, accounting for about 80.97 percent, 78.76 percent and 75.15 percent of the total, respectively in addition to this, the number of distributors of price increases and decreases in each year is also larger In 2015, 245 new ones were added and 124 were discontinued In 2016, 164 new companies were added and 159 were discontinued In its prospectus, PricewaterhouseP explained that in 2015, the number of dealers increased by the acquisition of Kesheng Pharmaceuticals, and that in addition, the overall dealer movement was relatively stable however, in February 2017 when the initial public offering was no, the SFC Development and Audit Committee has said that the company "in the reporting period to achieve the distribution model of operating income is relatively high, and the cooperative dealer part of the distribution amount is low, cooperation time is not long, each year increase or decrease of the dealer has three or four hundred", while a part of the sales through the entrustment of sales To this end, Pricepharma is required to further explain the choice of the internal control process of the dealer, the annual dealer changes the reasons for the larger referred to frequent changes in dealers, Xu Xiaoheng said that this will cause changes in the dealer structure and operating performance during the reporting period, there is significant uncertainty about the continuity and stability of profitability Song Qinghui believes that the frequent changes in distributors for Puhua Pharmaceuticals or will bring accounts receivable recovery difficult, unstable performance and other hidden dangers, which is also one of the key points of the audit committee in the prospectus, PricewatercoA also said that the company mainly uses dealer buy-out sales If the company dealers to the end customer development efforts are insufficient or major dealers have major adverse changes, will have a certain negative impact on the company's normal operation on related issues, Beijing Business Journal reporter to Puhua Pharmaceuticalsent sent an interview letter, as of the press release, the other side did not give a reply.