Since 2022, 28 pharmaceutical companies have launched buybacks

Wind data shows that from the beginning of 2022 to February 16, more than 200 listed companies in the A-share market have implemented repurchases, with a total repurchase amount exceeding 10 billion yuan
.
From an industry perspective, listed companies that implement repurchase are mostly concentrated in electronics, medicine, machinery and equipment, and chemical industries
.
The analysis believes that the performance of these companies in 2021 is not bad, but after a significant adjustment this year, the stock price deviates from the company's value, making the company choose to buy back
.
In the pharmaceutical industry, at least 28 listed companies have implemented buybacks this year, including Hengrui Medicine, Changchun High-tech, Mindray Medical, and Haier Biology
.
Judging from the repurchase amount, pharmaceutical companies with relatively high repurchase amounts during the year, such as Hengrui Medicine and Changchun High-tech, had repurchase amounts of 702 million yuan and over 500 million yuan respectively
.
In addition, Mindray Medical, Haier Bio and other companies have also repurchased more than 100 million yuan
.
From the point of view of the purpose, pharmaceutical companies repurchase more for equity incentives, such as Haier Bio, CanSino, Dirui Medical, etc.
, all said that the repurchase will be used for equity incentives and employee stock ownership plans
.
Among them, Haier Biology stated in the announcement that the share repurchase is based on confidence in the company's future development and recognition of the company's value, and promotes the company's stable, healthy and sustainable development, and agrees that the company will use its own funds to conduct share repurchase through centralized bidding transactions
.
All repurchased shares will be used for employee stock ownership plans or equity incentives at appropriate times in the future
.
CanSino said that the repurchase is based on confidence in the company's future development prospects and high recognition of the company's value.
In order to safeguard the interests of the majority of investors, enhance investor confidence, improve the company's long-term incentive mechanism, and fully mobilize the company's management personnel , the enthusiasm of the core backbone, improve team cohesion and competitiveness, and effectively promote the long-term development of the company.
The company plans to repurchase the company's A shares through centralized bidding transactions.
The repurchased shares will be used in the future at appropriate times.
Equity incentive
.
Dirui Medical also stated in the "Announcement on the Repurchase of the Company's Shares" issued on the evening of January 19 that the company intends to use its own funds of not less than 50 million yuan (inclusive) and not more than 100 million yuan (inclusive).
, and repurchase shares in a centralized bidding transaction, and the shares to be repurchased will be used to implement employee stock ownership plans or equity incentives
.
The analysis believes that the repurchase of companies that are used for equity incentives is conducive to improving the enthusiasm of employees.
It also shows that the company is optimistic about the future and enhances investor confidence
.
In addition to being used for equity incentives, there are also pharmaceutical companies that repurchase shares for cancellation to reduce registered capital, and repurchase and cancel some shares for restricted stocks in incentive plans
.
It is worth mentioning that the industry also pointed out that the share repurchase for the purpose of stabilizing the stock price cannot effectively achieve the purpose, and is not conducive to the company's medium and long-term development and expansion
.
On January 7, the China Securities Regulatory Commission issued the Rules for Share Repurchase of Listed Companies
.
The new regulations add three types of "use of shares for employee stock ownership plans or equity incentives", "use of shares for conversion of corporate bonds issued by listed companies that can be converted into shares", and "necessary for listed companies to maintain company value and shareholders' rights and interests".
The applicable circumstances of repurchase have further optimized the guidance and supervision of corporate repurchase activities
.
The industry believes that the release of the new regulations further regulates the order of the A-share market, which is conducive to the reasonable and legal repurchase of shares by enterprises, and further protects the interests of investors
.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice to anyone
.