Shenzhen Hepalink Pharmaceutical Group Co., Ltd (SHE: 002399), a leading pharmaceutical company based in China, has released its financial report for 2023. The company reported revenues of RMB 5.431 billion (USD 751 million), marking a decline of 24.1% year-on-year (YOY). Profits for the year reached RMB 802 million (USD 110.9 million), an increase from the RMB 715 million recorded in 2022. The company’s preparation business, active pharmaceutical ingredients (APIs) business, and CDMO business contributed revenues of RMB 2.979 billion (-7.21%), RMB 1.307 billion (-51.12%), and RMB 967 million (-10.80%) respectively.
Hepalink highlighted a decrease in demand across several business sectors. Novonox (enoxaparin sodium) experienced a significant drop in demand due to overseas customers adjusting their inventory strategies. In the fourth quarter of 2023, the export price of heparin faced a substantial decline, leading to increased market operating pressures. Regarding the CDMO business, orders for key enzymes related to mRNA COVID-19 vaccines concluded in the first half of 2023, and new contracts have not yet generated revenue. However, the company’s CDMO business began to recover in the fourth quarter of 2023, mitigating the impact of the earlier period. On a positive note, Novonox was included in the 8th round of China’s national volume-based procurement program, and as a result, sales volumes increased by 30% YOY.- Flcube.com
