2 1 Shi Ji Jing Ji Bao Dao·2025-12-17 01:05Core Viewpoint - The patent dispute between two listed pharmaceutical companies, Huadong Medicine and Zhaoli Pharmaceutical, centers on the ownership of the invention patent for fermented Cordyceps sinensis powder, which is a key ingredient in the Bailing capsule product line. The competition is intensifying as Zhaoli Pharmaceutical's Bailing capsule has been approved, breaking Huadong Medicine's previous monopoly in this market segment [3][5][10]. Group 1: Patent Dispute Details - Huadong Medicine's Bailing capsule previously generated annual sales exceeding 3 billion yuan, and the core ingredient is fermented Cordyceps sinensis powder [3][11]. - Huadong Medicine filed a lawsuit against Zhaoli Pharmaceutical and its subsidiaries, claiming patent infringement and seeking approximately 1.11 billion yuan in damages [5][6]. - The Zhejiang High Court ruled against Huadong Medicine in the first instance, dismissing all claims and ordering it to bear over 590,000 yuan in court fees [7][8]. Group 2: Market Impact and Financial Performance - The Bailing series, which includes Bailing capsules, Bailing granules, and Bailing tablets, is a significant market segment, with both companies nearly splitting the market [10][11]. - Huadong Medicine's Bailing capsule sales peaked at 3.486 billion yuan in 2019, but sales have since declined to around 1.8 billion yuan in 2022 due to price reductions [11][12]. - Zhaoli Pharmaceutical's Bailing tablet series generated 2.02 billion yuan in revenue in 2023, reflecting a 21.23% decline from the previous year due to competitive pressures [12][13]. Group 3: Future Prospects - Zhaoli Pharmaceutical aims to develop the Bailing series into a 1 billion yuan product line, indicating strong growth ambitions [15]. - The Bailing series, including both Bailing tablets and capsules, contributed 1.13 billion yuan in revenue in the first half of 2025, marking a 38.51% increase year-on-year [14]. - As of December 16, the market capitalization of Huadong Medicine was approximately 69.1 billion yuan, while Zhaoli Pharmaceutical's market cap was around 11.9 billion yuan [16].