JLPC(SH:600513) Mei Ri Jing Ji Xin Wen·2025-06-10 15:58Core Viewpoint - The monopolistic fine imposed on Lianhuan Pharmaceutical due to price-fixing of a COVID-19 recommended drug ingredient has significantly impacted the company's net profit, accounting for over 72% of its profit from the previous year [2][3]. Group 1: Regulatory Actions and Financial Impact - Lianhuan Pharmaceutical received an administrative penalty of approximately 61.04 million yuan for violating antitrust laws by colluding with competitors to fix the price of dexamethasone phosphate sodium raw materials [2][3]. - The fine represents more than 72% of the company's net profit from the previous year, which indicates a substantial financial burden [2][3]. - The company's net profit reached its peak in 2022 but has since declined for two consecutive years, with changes in net profit of 18.96%, -4.50%, and -37.66% from 2022 to 2024 [5]. Group 2: Market Dynamics and Price Manipulation - Dexamethasone, a corticosteroid used for treating severe COVID-19 cases, saw its price surge from 0.35 yuan to 98.76 yuan per injection, a nearly 282-fold increase, due to supply shortages during the pandemic [3][4]. - A meeting among representatives from Lianhuan and other companies led to a verbal agreement to stop price competition and raise prices, resulting in significant price hikes for the raw material [4]. Group 3: Research and Development Progress - Lianhuan Pharmaceutical's revenue for 2024 was 2.16 billion yuan, a slight decrease of 0.63%, while its net profit dropped by 37.66% to 84.16 million yuan [6]. - The company has increased its R&D expenses from over 66 million yuan to 155 million yuan from 2021 to 2024, focusing on innovative drugs across various therapeutic areas [6][7]. - Currently, Lianhuan has six innovative drugs in development, with one in Phase III clinical trials and two in Phase I trials [6][7].