"You can drink while driving", "If you want to be upright, choose Tai Chi".
Huoxiang Zhengqi Oral Liquid is a well-known daily medicine. The Taiji Group (600129) behind it is also a well-known pharmaceutical brand in the country. However, recently its wholly-owned subsidiary Taiji Group Sichuan Nanchong Pharmaceutical Co., Ltd. (hereinafter referred to as " Some of the Huoxiang Zhengqi water produced by "Nanchong Pharmaceutical" has a problem.
html On the evening of August 30, Taiji Group issued an announcement to apologize, saying that the Huoxiang Zhengqi Water (batch number: 2021013, 2021046) produced by Nanchong Pharmaceutical did not meet the regulations in the methanol content test. Nanchong Pharmaceutical has issued 15,677 boxes of the unsold portion of the above batch number product. All recalled according to procedure.
Image source: Visual China
Huoxiang Zhengqi Water Methanol Quantity Unqualified
Taiji Group Apologizes
Taiji Group’s post-market announcement on August 30, National Medical Products Administration released the "Notice of the State Food and Drug Administration on 20 batches of drugs that do not meet the regulations (No. 39, 2022)" on August 29. Among them, Huoxiang Zhengqi Water produced by Taiji Group Sichuan Nanchong Pharmaceutical Co., Ltd., a wholly-owned subsidiary of the company, (Batch number: 2021013, 2021046, validity period is 24 months) The methanol amount test does not meet the regulations.
At present, Nanchong Pharmaceutical has recalled all 15,677 boxes of the unsold products of the above batch numbers according to procedures. The company sincerely apologizes for the negative impact caused by this incident.
After the Nanchong Pharmaceutical Huoxiang Zhengqi Water failed to pass the sampling inspection, the company attached great importance to it and has instructed the company to carefully check and make rectifications. It also conducted special research and discussions on ensuring product quality and improving quality management, and formulated a systematic quality work plan. At the same time, all subsidiaries are required to take this as a warning to strengthen the quality management of the entire pharmaceutical production process to ensure that product quality is qualified.
Regarding the impact of this incident, Taiji Group stated that among the company and its affiliated companies, only Nanchong Pharmaceutical produces and sells Huoxiang Zhengqi water. In 2021, the sales revenue of Huoxiang Zhengqi water produced by Nanchong Pharmaceutical was 6.65 million yuan, accounting for 2021 business year 0.05% of revenue; this announcement involves product sales revenue of approximately 220,000 yuan, which accounts for a very small proportion of the company's operating revenue and has no significant impact.
It is reported that the methanol amount reflects the content of methanol that may be brought by ethanol in ethanol-containing preparations such as wines or tinctures.
The above-mentioned notice of the State Food and Drug Administration shows that for the above-mentioned drugs that do not meet the regulations, the drug regulatory department has required relevant companies and units to take risk control measures such as suspending sales and use, recalling, etc., to investigate the reasons for non-compliance, and to implement rectifications.
In addition, the State Food and Drug Administration requires relevant provincial drug regulatory authorities to organize investigations into suspected illegal activities of the above-mentioned enterprises and units in accordance with the "Drug Administration Law of the People's Republic of China" and make the results public in accordance with regulations.
20 The list of batches of non-compliant drugs is as follows:
According to Sino-Singapore Jingwei, regarding the difference between Huoxiang Zhengqi oral liquid and Huoxiang Zhengqi water, Shenyang Hospital of Traditional Chinese Medicine Deputy Chief Physician of the Department of Traditional Chinese Medicine Sheng Xiaoqian wrote:
The difference between Huoxiang Zhengqi Liquid and Huoxiang Zhengqi Water is usually the difference in prescription, indications (referring to the range of diseases that a certain drug or treatment method can treat), functional characteristics, precautions, etc. Both prescriptions contain Chinese medicinal materials such as Angelica dahurica , tangerine peel, ginger of magnolia bark, Poria cocos, etc. However, Huoxiang Zhengqi water needs to be purified with alcohol, so Huoxiang Zhengqi water contains more alcohol than Huoxiang Zhengqi mixture. In addition, the efficacy of the two is roughly similar, but Huoxiang Zhengqi liquid is mainly used for colds caused by summer-dampness, while Huoxiang Zhengqi water is mainly used for colds caused by exogenous wind-cold, internal injury due to dampness, or summer-dampness , so the indications of the two are different.
Huoxiang Zhengqi is one of the common traditional Chinese patent medicines. It has the functions of relieving summer heat and removing dampness, harmonizing the stomach and relieving vomiting, and resolving turbidity with aroma. Data from Zhongkang CHIS system shows that Taiji Group has an absolute advantage in the Huoxiang Zhengqi market. In 2021, Taiji Group's Huoxiang Zhengqi market share will be more than 50%.
In addition, Taiji Group issued an announcement on August 1 that the penicillin V potassium tablets produced by its subsidiary failed to pass the test for related substances.
According to the announcement, the Guangdong Provincial Food and Drug Administration issued the "Notice of the Guangdong Provincial Food and Drug Administration on Drug Spot Inspection and Inspection Information (2022 Issue 4)" on July 29, 2022, in which Southwest Pharmaceutical, a subsidiary of Taiji Group, The penicillin V potassium tablets (batch number: 201103) produced by Southwest Pharmaceutical Co., Ltd. (hereinafter referred to as Southwest Pharmaceutical ) failed to pass the test for relevant substances.
Performance in the first half of the year hit a new high
html On the evening of August 25, Taiji Group released its 2022 semi-annual report. The company's revenue scale and profitability level have set new historical highs for the same period. From January to June this year, the company achieved operating income of 7.185 billion yuan, a year-on-year increase of 11.52%; Taiji Group achieved a net profit attributable to shareholders of the listed company of 124 million yuan, a year-on-year increase of 61.40%; after deducting non-recurring gains and losses , the net profit was attributed to the listed company. Shareholders' net profit was 179 million yuan, an increase of 112.48%, and 's basic earnings per share was 0.22 yuan.Taiji Group said that in the second quarter of this year, the rapid growth in profits was mainly due to the company's continuous increase in the sales of core varieties such as Huoxiang Zhengqi Oral Liquid, Emergency Syrup , etc. At the same time, large varieties also drove the sales growth of other products.
Image source: Taiji Group official website
Data show that in the first half of this year, Taiji Group’s anti-infective drugs (represented by Yibo Shiling), respiratory drugs (represented by Ji Zhi Zhi syrup), digestive system drugs (Huoxiang Zhengqi Oral Liquid) Representatives) and neurological drugs (represented by Sivipu and Mephicon) achieved revenue of 948 million yuan, 786 million yuan, 1.204 billion yuan respectively. billion and 606 million yuan, with year-on-year growth of 25.27%, 70.97%, 66.07%, and 37.77% respectively. The editor of
has noticed that its semi-annual report disclosed that Huoxiang Zhengqi Oral Liquid is a key product of Taiji Group, contributing more than 10% to operating income, achieving sales revenue of 998 million yuan, a year-on-year increase of 79%. Regarding the growth of sales revenue, Taiji Group stated in the investor Q&A form disclosed in May that the company has optimized the prices of some products, such as the factory price of Huoxiang Zhengqi Oral Liquid increased by approximately 12%. At the same time, Taiji Group also separately mentioned that emergency syrup achieved sales revenue of 212 million yuan, a year-on-year increase of 63%. The semi-annual report of
pointed out that Huoxiang Zhengqi Oral Liquid has been included in the "Diagnosis and Treatment Plan for Pneumonia Infected by Novel Coronavirus" issued by the National Health Commission for the trial version 4 to 9 of the recommended Chinese patent medicines for treatment during the medical observation period.
Huoxiang Zhengqi Liquid, a drug revenue, accounted for nearly 30% of the total revenue of the four core categories, accounting for nearly 14% of Taiji Group's total revenue in the first half of the year. It can be seen that is a major product that Taiji Group has achieved in improving profitability in the first half of this year.
Image source: Visual China
Public information shows that Taiji Group was formed by the merger of three listed companies, Taiji Group, Southwest Pharmaceutical, and Chongqing Tongjunge . It has been shortlisted among the top 500 Chinese companies for more than ten consecutive years. In 2019, It ranks 12th on the list of the top 100 traditional Chinese medicine companies in China's pharmaceutical industry, with 98 subsidiaries and 13 pharmaceutical companies. Chongqing Fuling Pharmaceutical Factory Co., Ltd., a subsidiary of Taiji Group, has the largest oral liquid and syrup production base in Asia. Its products such as Huoxiang Zhengqi Oral Liquid and Jizhiji Syrup are household names.
The number of shareholders of Taiji Group was 25,100 in the half-year report and 47,400 in the first-quarter report. The number of shareholders dropped by 47%.
As of the close of trading on August 30, Taiji Group’s share price fell 0.48% to 26.83 yuan per share, with a total market value of 14.94 billion yuan. This year’s cumulative increase is 19.46%.
Editor | Cheng Peng Du Hengfeng
Proofreading | Duan Lian
Cover image source: Visual China
Daily Economic News is synthesized from CCTV News, State Drug Administration, company announcements, Chongqing Commercial Daily, China-Singapore Jingwei
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