Youcare Pharmaceutical (SH:688658) Zhong Guo Jing Ji Wang·2024-12-31 08:01Core Viewpoint - The company is facing scrutiny from the National Medical Insurance Administration regarding pricing practices related to its product, Ginkgo Biloba Extract Injection, which has raised concerns about potential illegal activities in pricing and sales practices [2][7]. Group 1: Company Response - The company asserts its commitment to legal compliance and ethical business practices, denying any involvement in price inflation or improper marketing through distributors [3]. - In response to the inquiry, the company has communicated with the local medical insurance bureau to request an adjustment of the product's price, proposing to unify the price to 11.2 yuan per unit from previous prices of 24.1 yuan and 18.14 yuan [8][10]. - The company plans to enhance its management and pricing mechanisms to ensure compliance with fair pricing principles [6]. Group 2: Market Impact - The company anticipates potential risks including declines in revenue and gross margin due to the pricing adjustments [4]. - The impact of the price changes on sales volume remains uncertain, with the final effects to be reflected in future financial reports [5]. - Since December 23, the company's stock price has dropped by 23.68%, indicating market reaction to the ongoing situation [13]. Group 3: Regulatory Environment - The National Medical Insurance Administration has expressed strong opposition to practices such as "dual pricing" and "kickbacks," urging local insurance bureaus to investigate similar issues with the Ginkgo Biloba Extract Injection [9]. - From a long-term perspective, the price reduction is expected to enhance drug accessibility, potentially increasing market demand for the product [11]. - The company intends to actively participate in national drug procurement initiatives moving forward [12].