NuoSiLande's Star Drug Approved Amid Stock Plunge: Company Files Prospectus

(Source: Beijing Business Today)

NorthlandInvestors in Northland (920047) are somewhat bewildered. The company’s highly anticipated star product, Sedomingji Injection, a Class 1 innovative drug, recently received approval for market launch, yet the company’s stock suffered a “sell-on-news” downturn. On the day the positive news was announced, the stock unexpectedly opened high and then plunged, with its cumulative decline exceeding 40% over the past five trading days. What should have been major good news instead triggered investors to vote with their feet. What exactly is going on with Northland?

"Innovative Drugs: A Decade in the Making"

On the evening of May 28, Northland disclosed a major announcement.

The Company announced that it has received the Drug Registration Certificate approved and issued by the National Medical Products Administration (NMPA) for Sedomingji Injection, granting market approval for this Class 1 therapeutic biological product (gene therapy drug) developed by the Company, Sedomingji Injection (brand name: Huasuoling; development code: NL003). The approved indication is for the treatment of limb ulcers caused by severe lower limb ischemia (including arteriosclerosis obliterans of the lower extremities, thromboangiitis obliterans, and diabetic lower limb ischemia, among others) in patients who are not suitable for revascularization surgery or who have had poor outcomes from such procedures.

Saidominqi Injection is a Class 1 innovative drug featuring a novel target, new mechanism, and new molecular structure. As a naked plasmid gene therapy product with independent intellectual property rights, it is Northland’s flagship product.

Looking back, from the approval by the NMPA in September 2017 of the Phase III clinical trial application for Sedomingji Injection (brand name: Huasuoling) for the indication of treating lower limb arterial ischemic diseases, to the company’s receipt of the “Notice of Acceptance” approved and issued by the NMPA in July 2024, and finally to its recent market approval, Sedomingji Injection can truly be described as “a decade in the making.”

For Northland, Sedomingji Injection is the company’s first gene therapy drug approved for market launch, with no similar products currently available in China. As such, Northland explicitly stated in its announcement that the approval holds significant importance for the company’s operational development.

Institutional Enthusiasm vs. Stock Price Coldness

Northland’s Star Product Approved for Market Launch, Prompting Swift Action from Keen Institutional Investors

From June 1 to 2, more than 20 institutional investors, including Jinxin Fund and Shenwan Lingxin Fund, participated in an online exchange and due diligence session with Northland. During the session, institutional investors focused primarily on the approved indications for Sedomingji Injection, its product value, clinical positioning, target patient population and market size, reimbursement strategy, and commercialization preparations.

Northland also provided detailed responses to relevant questions. For instance, in response to the question, “What is the recent national medical insurance strategy for Sedomingji Injection?” Northland stated, “In accordance with the latest detailed rules of the 2026 National Medical Insurance Negotiation, Sedomingji Injection, as an original innovative drug approved in China, meets the eligibility criteria for inclusion in the medical insurance negotiation. Accordingly, the company has actively initiated preparations for the 2026 medical insurance negotiation.”

However, in sharp contrast to the high enthusiasm of institutional investors flocking to conduct due diligence, Northland’s stock price has been in relentless decline.

Trading data shows that on May 29, Northland opened 1.57% higher in early trading. After a brief surge at the open, the stock price plunged rapidly, dropping to as low as RMB 24.15 during the session before closing at RMB 24.22, representing a single-day decline of 25.22%. On June 1, Northland continued its sharp decline, falling 10.40% to close at RMB 21.70. On June 2, the stock dropped another 4.79%, closing at RMB 20.66. On June 3, the share price fell further by 7.45%, closing at RMB 19.12. On June 4, Northland extended its losing streak to five consecutive days, closing at RMB 18.76, down 1.88%. Statistics indicate that Northland’s cumulative decline over the past five trading days reached 42.08%, compared to a 4.31% drop in the broader market over the same period.

Data from the “Dragon and Tiger List” showed that on May 29, the first trading day after Northland announced the approval of its Cedomine Injection for market launch, several brokerage branches executed significant sell-offs. The top five buying and selling branches on the list recorded a combined turnover of RMB 173 million, with buy-side transactions totaling RMB 51.3669 million and sell-side transactions amounting to RMB 122 million, resulting in a net sell-off of RMB 70.5142 million.

Specifically, the sales amounts exceeding 20 million yuan are as follows:Zhongtai SecuritiesShandong Rizhao Securities Branch of Co., Ltd. and Chengmai Zhanqian Road Securities Branch of Jinyuan Securities Co., Ltd. recorded sales amounts of RMB 43.1922 million and RMB 24.3949 million, respectively;Guosen SecuritiesShenzhen Internet Branch of Beijing Northland Biotechnology Co., Ltd.,Shenwan HongyuanSecurities Co., Ltd. Beijing Anding Road Securities Branch,China Securities Co., Ltd.Securities Co., Ltd. Xi'an Nandajie Securities Branch also sold RMB 16.0093 million, RMB 15.0034 million, and RMB 14.6496 million, respectively. On the buy side, onlyChina Merchants SecuritiesBeijing Chegongzhuang West Road Securities Branch of the Joint-Stock Company recorded a buy-in amount exceeding RMB 10 million, totaling RMB 10.6391 million.

Lin Xianping, an associate professor at Zhejiang University City College and Executive Deputy Secretary-General of the China Urban Expert Think Tank Committee, believes that this new drug, after years of research and development, was heavily hyped in the market before its launch, with speculative capital already positioned to reap profits. Furthermore, factors such as the absence of pricing for the new drug and uncertainties regarding its inclusion in the national medical insurance scheme may further trigger concentrated sell-offs by investors.

Zhang Yue, Chairman of Aoyou International, stated that the key to whether the company’s stock price can stabilize and recover in the future lies in product pricing and hospital access progress, terminal sales volume data, and the effectiveness of subsequent indication expansions.

The Company's Net Profit Continues to Post Losses

Northland is an innovative biopharmaceutical company specializing in the research and development, manufacturing, and sales of gene therapy drugs, recombinant protein drugs, and ophthalmic drugs.

Northland’s 2025 annual report shows that the company’s main business covers the research and development, production, and sales of ophthalmic drugs, with products including brimonidine eye drops, sodium hyaluronate eye drops, and olopatadine hydrochloride eye drops; as well as the research and development of bioengineering innovative drugs. Currently, there are 11 bioengineering new drug projects in the R&D pipeline, with core product projects including Cedomigin injection, among others. However, Northland stated in its 2025 annual report that the company’s bioengineering new drug projects are still in the drug development stage and have not yet achieved product launch and sales. Therefore, the company’s main business revenue primarily comes from the production and sales of eye drop products, contract manufacturing, and technical services.

In terms of financial performance, Northland has consistently reported net losses since its listing on the Beijing Stock Exchange in November 2021. From 2021 to 2025, Northland achieved operating revenues of approximately RMB 56.8559 million, RMB 64.6546 million, RMB 59.6751 million, RMB 72.1109 million, and RMB 66.4495 million, respectively; during the same period, the net profit attributable to shareholders of the parent company was approximately RMB -51.5667 million, RMB -67.6168 million, RMB -48.1348 million, RMB -45.1807 million, and RMB -53.7226 million, respectively. In the first quarter of 2026, Northland recorded an operating revenue of RMB 15.5405 million, a year-on-year decrease of 5.36%, with a net profit attributable to shareholders of the parent company of RMB -11.8839 million.

Zhang Yue stated that Sedomingji Injection is the company’s first commercially launched gene therapy product. Leveraging its exclusive domestic market position, a successful scale-up in sales volume would positively impact the company’s financial performance; however, an immediate turnaround from losses may be difficult to achieve in the short term.

Regarding the company-related issues, a reporter from Beijing Business Today sent an interview request to Northland, but as of press time, no response had been received.

Beijing Business Today Reporter Dong Liang