Qianyuan Pharmaceutical Appoints Two New Vice Presidents to Drive Strategic Development and Innovation

　　【Pharmaceutical Network Corporate NewsOn March 19, Shanxi C&Y Pharmaceutical Co Ltd released multiple announcements consecutively, covering the 2023 annual report summary, the appointment of the company's vice president and directors, external investment in establishing a joint venture, and the management methods for senior executives' remuneration.
 

The company is welcoming new personnel changes. According to the announcement, the company held the 14th meeting of the 5th Board of Directors on March 16, 2024, and reviewed and approved the "Proposal on the Appointment of the Company's Vice Presidents." Based on the actual situation and operational development needs of the company, and after being reviewed and approved by the Nomination Committee of the Board of Directors, the Board agreed to appoint Mr. Luo Kairui and Ms. Yin Han as the company’s vice presidents. Their term will start from the date of approval by this Board of Directors and will last until the expiration of the 5th Board of Directors.
 

Mr. Kai Rui Luo does not hold any shares in the company and has no related-party relationships with other directors, supervisors, senior management personnel, or shareholders holding more than 5% of the company’s shares. According to his resume, he served as the General Manager of Shanxi Qianhui Pharmaceutical Co., Ltd. from 2013 to 2017; has been serving as the General Manager of Jiayi Pharmaceutical since January 2018; and has been serving as the Vice General Manager of Marketing at Qianyuan Pharmaceutical since January 2020.
 

Ms. Yin Han does not hold any shares in the company. She is the spouse of Mr. Zhao Qun, a director, president, and shareholder holding more than 5% of the company's shares. According to her resume, from June 2008 to March 2015, Ms. Yin Han successively served as the regional manager for C&Y Pharmaceutical's business development, product manager in the marketing department, and deputy manager of the investment department. From April 2015 to December 2019, she served as the vice president of Panthera C&Y. Since January 2020, she has been serving as the assistant to the president of C&Y Pharmaceutical.
 

Public information shows that Shanxi C&Y Pharmaceutical Co Ltd is a listed pharmaceutical group enterprise integrating research and development, production, and marketing. The company's business covers chemically synthesized drugs, biologics, natural medicines,Active Pharmaceutical IngredientsIntermediate, traditional Chinese medicine, Chinese herbal pieces, nutritional health products, pharmaceutical distribution and other fields, committed to building a large-scale pharmaceutical health industry group with a complete industrial chain in the pharmaceutical industry.
 

The 2023 annual performance report shows that the company achieved operating revenue of approximately 799 million yuan, a year-on-year decrease of 3.58%; net profit attributable to shareholders of the listed company was approximately 25.2 million yuan, compared to a loss of approximately 119 million yuan for the same period in 2022; basic earnings per share were 0.1043 yuan.
 

Notably, on the same day, the company announced that Shanxi C&Y Pharmaceutical Co Ltd and GigaCeuticals (Beijing) signed the "Joint Venture Contract". In the future, both parties will focus on cooperation in the research and development, industrialization, and commercialization of innovative drugs based on AI pharmaceutical technology. The registered capital of the joint venture is proposed to be RMB 120 million. The company will contribute RMB 72 million, of which RMB 36 million will be in cash, and RMB 36 million will be in non-monetary forms such as equipment and technology. The company will hold 60% of the equity in the joint venture; GigaCeuticals will contribute RMB 48 million in non-monetary forms related to the two pipelines selected by Shanxi C&Y Pharmaceutical Co Ltd, and GigaCeuticals will hold 40% of the equity in the joint venture.
 

Regarding the establishment of the joint venture this time, Shanxi C&Y Pharmaceutical Co Ltd stated that it is an important step for the company to lay out innovative drug research and development. The company will effectively integrate the advantageous resources of all investors, develop innovative drugs with independent intellectual property rights, promote the company's strategic transformation from generic drugs to innovative drugs, achieve industrial upgrading, and enhance the company’s core competitiveness and sustainable development capabilities.
 

Industry experts point out that, compared with traditional pharmaceutical methods, drug research and development driven by artificial intelligence is more efficient and the cost is expected to be significantly reduced. At present, AI pharmaceuticals are ushering in a new wave of opportunities. According to a Global Market Insights report, the compound annual growth rate of the "AI + healthcare" market size is expected to exceed 29%, reaching 70 billion US dollars by 2032. Among this, the market size for AI-driven drug research and development is projected to surpass 20.5 billion US dollars by 2032.
 

Disclaimer: In no event shall the information or opinions expressed in this article constitute investment advice to any person.