Hepu Pharma Reports 75.87% Net Profit Decline Amid Industry-Wide De-stocking Pressure in Heparin Market

　　【Pharmaceutical Network Enterprise News】According to HeparinActive Pharmaceutical IngredientsHeparin Market Faces Severe Challenges in 2023: Haier Bio's Mid-Year Report Shows Significant Decline in API Business
 

Affected by the decline in performance, the company's stock price has also fluctuated. As of September 4, the new closing price of Hepalink was only HK$4.09 per share, having fallen more than 77% from the issue price of HK$18.40 per share.
 

Public information shows that Hepalink mainly covers the heparin industry chain, biologics CDMO, and the investment, development, and commercialization of innovative drugs. Its main products and services include enoxaparin sodium preparations, heparin sodium and enoxaparin sodium APIs, as well as biologics CDMO services.
 

Heparin is a commonly used anticoagulant for the prevention and treatment of thrombotic diseases. Heparin active pharmaceutical ingredients (API) are used to produce standard heparin preparations and low molecular weight heparin APIs, which are then used to produce low molecular weight heparin preparations.
 

Regarding the reasons for the decline in performance in the first half of the year, Hepalink stated in its semi-annual report that during the more than three-year-long global public health event, healthcare systems in various countries increased procurement and stockpiling to meet sudden demands. As a result, reserves of certain drugs became excessively high. However, with healthcare systems and medication usage returning to normal, the heparin market continued to face severe challenges from end-user inventory reduction during the reporting period.
 

Meanwhile, the sales volume and market share of the Company's enoxaparin sodium preparation have grown rapidly in the past five years. Facing the pressure of end-user inventory and changes in the market landscape, major global heparin pharmaceutical companies have successively re-evaluated their operational strategies, postponed raw material procurement, leading to a significant decline in order demand for heparin active pharmaceutical ingredients (API), which has caused a huge impact on China's heparin API industry. The year-on-year decline in China's heparin API export data in the first half of the year far exceeded industry expectations, and the Company's API business was also significantly affected. At the same time, due to the impact of destocking, the Company's preparation business in non-European and non-American overseas markets also showed varying degrees of decline.

 

Facing the dilemma of destocking in the heparin market, industry experts believe that measures may need to be taken to address market challenges. For instance, companies can strengthen cooperation with suppliers and distributors, improve product quality and service levels to attract more customers. Additionally, companies can also increase marketing and promotional efforts, enhance brand influence, and expand market share.
 

Some researchers pointed out that Hepalink holds an important position in the heparin industry chain, but it also needs to face competition and challenges from other enterprises in the market. In addition, the company's operation management, market strategy, and other aspects need continuous optimization and improvement. Overall, the market's assessment of a company’s investment value is based on multiple factors, and Hepalink may need to improve and enhance itself in various aspects to gain market recognition and favor.
 

The industry believes that despite fierce market competition, the heparin market still has enormous development potential. In the future, with the aggravation of population aging, the increasing incidence of thrombotic diseases, and the widespread application of heparin in fields such as cardiovascular diseases, surgeries, and hemodialysis, the demand for heparin and heparin active pharmaceutical ingredients (API) may increase.
 

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