The pharmaceutical industry has always been the birthplace of bull stocks, with super long-term bull stocks such as Hengrui Medicine and Changchun High-tech appearing.
However, since last year, under the influence of factors such as centralized drug procurement, the overall trend of the pharmaceutical industry has been significantly weaker. Hengrui
Pharmaceuticals and Changchun High-tech both plunged by more than 70% at one time, completely shattering the long-term value of fans of pharmaceutical stocks. Investment faith.
News spread on the Internet, causing the stock price of Xingqi Eye Drops to plummet
In addition to centralized purchasing, another impact faced by pharmaceutical stocks is the tightening of sales channels.
Recently, the State Food and Drug Administration issued a "Draft for Comments" on drug management, proposing that third-party platform providers shall not directly participate in online drug sales activities.
As a former eye medicine "big demon stock ", Xingqi eye medicine was also exposed some time ago that its main product, atropine, in-hospital preparations may be banned from sale on the Internet, causing its stock price to plummet.
Initially, this news appeared on June 24. In the afternoon of that day, the news caused the stock price of Xingqi Eye Medicine to plummet. It once fell by nearly 20% and closed down by nearly 17%.
Opcon, another former big bull stock of a listed ophthalmology company, also obtained the "Medical Institutional Preparation License" for atropine not long ago, and it also fell by nearly 5% that day. Rumors about the ban on the sale of
had a major impact on Xingqi eye medicine, and the company quickly denied the rumor. Xingqi Eye Medicine responded that the company's Internet sales model has not received a clear violation notice. At the same time, atropine eye drops are hospital preparations and have not received a notice of inclusion in medical insurance. The company's current production and operations are all normal.
However, saying "everything is normal" seems to have no effect. On June 27, Xingqi Eye Drops fell again by more than 4%.
Atropine eye drops, the "lifeblood" of Xingqi eye drops
The fundamental reason why this rumor is so lethal is that atropine eye drops are the "lifeblood" of Xingqi eye drops.
From the perspective of revenue composition, Xingqi Eye Medicine’s pharmaceutical manufacturing business revenue in 2021 was 707 million yuan, accounting for 68.75% of the total revenue; the medical service business revenue was 317 million yuan, accounting for 30.88% of the total revenue. Although the medical services business only accounts for about 30% of total revenue, the growth rate in 2021 is as high as 130.71%, which is much higher than the revenue growth rate of less than 30% of the pharmaceutical manufacturing services business.
Xingqi Eye Medicine’s medical service business mainly relies on Xingqi Eye Hospital, and about 80% of Xingqi Eye Hospital’s income comes from atropine eye drops.
When the sales of Atropine Eye Drops encountered rumors that "third-party platform providers are not allowed to directly participate in drug online sales activities", the market was obviously worried that it would not be sold online, so the stock price was greatly impacted.
Subsequently, Xingqi Eye Medicine made a positive announcement to protect the stock price. On June 28, the company announced that it planned to sign a "Project Investment Agreement" with the Shenyang Area Management Committee of the Free Trade Zone. The total investment in this project is 637 million yuan. Xingqi Eye Medicine plans to invest in batches within the policy period (5 years). The investment content includes but is not limited to the construction of Xingqi Eye Medicine R&D Center, drug research and development, etc.
This good news really briefly supported the stock price of Xingqi Eye Medicine. In the following days, its stock price rebounded by about 20%.
plunged 30% in two days, and shareholders accurately cleared their positions at high prices
However, in the past few days, the stock price of Xingqi Eye Medicine has started to fall again. html On July 5, its stock price hit the 20cm limit, and on the 6th, it fell again by more than 12%!
The sharp drop in Xingqi eye drops this time is again related to the news.
html On July 6, a screenshot was circulated on the Internet. The content was "Notice on matters related to low-concentration atropine sulfate ophthalmic preparations for medical institutions." The notice stated that in order to ensure the safety of public medication, relevant departments have organized experts to demonstrate the long-term use of low-concentration atropine sulfate medical institution preparations for myopia-related indications. Experts believe that no serious safety risks have been found in short-term use of this product. However, data on the safety and limitations of long-term use are insufficient and should continue to be paid attention to.
As soon as this news came out, it was obviously a major negative for atropine eye drops.
And please note that this is a notice specifically for atropine eye drops, which is very targeted. The "Third-party platform providers shall not directly participate in drug online sales activities" that was circulated online some time ago is a notice for all drugs and is not specific.
The decline in Xingqi Eye Medicine began on June 24. However, the author noticed that on June 21, the company’s second largest shareholder Tongshi Investment sold all its shares in Xingqi Eye Medicine and completely cleared its position. .
On the same day, Xingqi Eye Medicine announced that Tongshi Investment had reduced its holdings of 501,500 shares of the company through centralized bidding transactions, accounting for 0.5693% of the company’s total common stock. The average price of the reduction was 155.12 yuan/share. The amount is 77.8003 million yuan.
Since the stock price bottomed out at 78.1 yuan at the end of April, the stock price of Xingqi Eye Drugs basically rose unilaterally before June 20, reaching the highest level of 170 yuan on June 20.
Looking at it this way, the average price reduction of 155.12 yuan by the second shareholder Tongshi Investment can be called an extremely accurate high-level reduction, and has successfully escaped the top master!
Tongshi Investment accurately escaped from the top before the news came out on the Internet. Did it get the relevant news in advance? The majority of investors have great doubts.
Xingqi Eye Drops, which was launched at the end of 2016, had been unknown until April 2019. However, in April 2019, stimulated by the news that the main eye drops product had received approval, Xingqi Eye Drops sold out of 12 stocks in 13 trading days that month The daily limit trend has made it become a star stock.
The success of eye drops in recent years has also caused the price of Xingqi eye drops to increase more than 40 times!
After the stock price rose, the important shareholders of Xingqi Eye Medicine began the journey of reducing their holdings and cashing out. Tongshi Investment, which had recently liquidated its holdings, was not the first important shareholder to liquidate its holdings. LAV, which was still the third largest shareholder of Xingqi Eye Drugs in the second quarter of 2019, has already completed a liquidation and reduction of its holdings.
Xingqi Eye Hospital, built by Xingqi Eye Medicine, sells in-hospital preparations through Internet hospital channels. Regardless of the explanation given by Xingqi Eye Medicine Company, atropine eye drops, which are hospital preparations, are sold through the Internet. There is indeed doubt as to whether is sold beyond the prescribed scope.
In the context of regulatory expectations for drug sales channels, Xingqi Eye Medicine’s flagship product, low-concentration atropine eye drops, is no longer an exclusive product. Some companies that are much larger than Xingqi Eye Medicine, such as Hengrui Medicine and Aier Ophthalmology, They are all planning the business of atropine eye drops.
Therefore, from the perspective of valuation logic, Xingqi Eye Drops, which previously relied on atropine eye drops to "succeed all over the world", has obvious advantages and is expected to be overtaken and overtaken. In this way, the valuation logic of Xingqi Eye Medicine will be destroyed, resulting in the risk of a double decline in performance and stock price.
