The insulin giant's stock price has been falling all the way!

[Pharmaceutical Network Pharmaceutical Stock Market] Not long ago, the sixth batch of special insulin collection boots landed
.

A total of 11 companies participated in the bidding.
Among them, the domestic insulin giant Gan & Lee Pharmaceutical Co.
, Ltd.
was regarded as the big winner.
All 6 bidding products of the company won the bid, and 3 products won the bid at the lowest price, including insulin glargine injection (Chang Xiulin) , Insulin Aspart Injection (Rui Xiulin), Protamine Human Insulin Mixture Injection (30R) (Pu Xiulin 30)
.

Behind such a large drop, it has also attracted the attention of the industry
.

In the capital market, Gan & Lee Pharmaceuticals was once a "darling" and was supported by large funds such as Hillhouse Capital, Qiming Venture Capital and Goldman Sachs Capital
.

On June 29, 2020, Gan & Lee Pharmaceutical was listed, and then 13 daily limit plates were pulled out.
The stock price also rose from 91.
18 yuan/share on the day of listing to 286.
18 yuan/share on July 15 this year, and the market value also exceeded 100 billion.

.

 　　However, since July 15, the share price of Gan & Lee Pharmaceuticals has fallen all the way, and the total market value has evaporated by more than half
.

As of the close on December 22, 2021, Gan & Lee Pharmaceuticals quoted a price of 71.
27 yuan, an increase of more than 1%.
The current total market value is only 39.
487 billion yuan
.

 　　So, why did Gan & Lee's share price fall all the way? Some analysts believe that centralized procurement is a major factor.
In the sixth batch of centralized procurement, although Gan & Lee Pharmaceutical won the bid for all 6 products, most of the products faced strong opponents
.

 　　For example, Gan & Lee's insulin aspart won the bid in the A1 sequence, but it needs to face the competition from Eli Lilly.
It is still uncertain whether Gan & Lee can obtain the expected purchase volume in the future.
From pre-mixed insulin analogs Judging from the bidding price of Eli Lilly's protamine zinc recombinant insulin lispro mixed injection (25R), the price is 18.
89 yuan per bottle, which exceeds the price of Gan and Li Pharmaceutical's insulin aspart 30 injection
.

In addition, the market demand for Lilly's insulin lispro is already higher, and it is unknown how much Gan Li Pharmaceutical can share in this product market
.

And Gan & Lee Pharmaceuticals won the bid for insulin glargine at the lowest price, and it also needs to face Sanofi, a giant company that won the bid in Class A, and there are certain challenges in rushing to eat
.

 Furthermore, in addition to importing rivals, Gan & Lee also faces domestic rivals, such as Tonghua Dongbao
.

It can be said that the competitive impact of Gan & Lee Pharmaceuticals in the insulin market is still relatively large
.

 　　In addition, from the perspective of product structure, the sales revenue of insulin preparations is the main source of revenue for Gan & Lee Pharmaceuticals, with revenue accounting for 98.
35%, 95.
10% and 98.
07% in 2018, 2019 and 2020, respectively
.

Among them, Insulin Glargine Injection (Chang Xiulin) is the flagship product of Gan & Lee Pharmaceuticals, whose sales revenue accounts for more than 90% of the total revenue every year, and the product structure is single
.

 　　Previously, due to the first-mover advantage, Chang Xiulin brought a large revenue contribution to Gan & Lee Pharmaceuticals.
In 2015, the sales successfully exceeded 1 billion yuan, but in recent years, it has slowed down
.

In 2017, 2028 and 2019, Chang Xiulin achieved sales revenue of 2.
169 billion yuan, 2.
262 billion yuan and 2.
545 billion yuan respectively in China, and the growth rate has slowed down significantly
.

 　　Since Changxiulin is the flagship product of Gan & Lee Pharmaceuticals, the company's performance has also been significantly affected when the sales growth of this product has slowed down
.

Financial data shows that from 2014 to 2017, the growth rate of Gan & Lee's net profit was over 40%, and the revenue growth rate was also over 30%.
However, since 2018, the growth rate of Gan & Lee's performance began to drop sharply
.

From 2018 to 2020, the net profit growth rate of Gan & Lee Pharmaceuticals was -13.
52%, 24.
98% and 5.
43% respectively; the revenue growth rate was 0.
71%, 21.
26% and 16.
12% respectively
.

In addition, the report for the first three quarters of 2021 shows that the company's net profit growth rate is 54.
39%, 21.
17% and 26.
99%, respectively; the revenue growth rate is 16.
75%, 22.
20% and 14.
21% respectively
.

 　　The industry believes that the impact of centralized procurement, the unsteady high-speed growth of performance or the reason for the decline in stock prices, and in the insulin market, with the successive listing of domestic generic drugs in recent years, the market competition has become increasingly fierce
.

In this context, whether Gan & Lee Pharmaceutical can maintain its competitive advantage and achieve sustainable growth requires continuous attention
.