Core Viewpoint - The article discusses the results of the 11th batch of national organized drug procurement in China, highlighting the inclusion of 55 commonly used drugs across various therapeutic areas, aiming to enhance drug accessibility and affordability for patients [1][2]. Group 1: Procurement Results - The 11th batch of drug procurement included 55 drugs, with participation from 4.6 million medical institutions and 445 companies submitting bids, resulting in 453 products from 272 companies being shortlisted [1]. - Notable shortlisted drugs include Dapagliflozin, Pravastatin, and Metformin combined with Ertugliflozin, which are expected to further improve accessibility due to their inclusion in the procurement [1]. Group 2: Market Dynamics - The procurement aims to stabilize clinical use, ensure quality, and prevent excessive competition among companies, which has been a concern in previous rounds [5][6]. - The introduction of price anchors and measures to prevent collusion among related companies has led to a more stable pricing environment, with overall pricing reported as normal and stable [6][8]. Group 3: Clinical and Quality Assurance - The procurement process has been optimized to respect clinical needs, allowing institutions to report quantities based on either generic names or specific brands, with 77% of institutions opting for brand reporting [8][9]. - Measures to ensure drug quality include mandatory consistency evaluations and stringent penalties for non-compliance, ensuring that low prices do not compromise quality [10]. Group 4: Industry Impact - The procurement process is seen as a way to balance profits from generic drugs while encouraging innovation, as companies are now more inclined to invest in research and development due to stable cash flows from guaranteed procurement [11][12]. - The introduction of a "revival mechanism" allows companies that do not win bids to still secure a portion of the market, promoting a more competitive environment [11].

Macro Dynamics - The 11th batch of national organized drug procurement has announced the selection results, including 55 types of drugs across various fields such as anti-infection, anti-allergy, anti-tumor, blood sugar reduction, blood pressure reduction, and blood lipid reduction. The procurement aims to stabilize clinical use, ensure quality, prevent internal competition, and avoid collusion in bidding. A total of 46,000 medical institutions participated, with 445 companies submitting bids, and 272 companies' products being shortlisted. Patients are expected to access these selected drugs by February 2026 [2] Financial Institutions - Bank of China reported a net profit of 177.66 billion yuan for the first three quarters of 2025, a year-on-year increase of 1.08%, with total operating income of 491.20 billion yuan, up 2.69% [6] - Huatai Securities announced a net profit of 1.88 billion yuan for the first three quarters of 2025, a year-on-year increase of 64.71%, with operating income of 44.23 billion yuan, up 67.32% [7] Market Data - On October 28, the A-share market saw all three major indices decline, with the ChiNext index dropping 0.15%. The total trading volume in the Shanghai and Shenzhen markets was 2.15 trillion yuan, a decrease of 192.3 billion yuan from the previous trading day [8][9] - The financing balance of the two markets increased by 24.57 billion yuan, with the Shanghai Stock Exchange reporting a balance of 1.25 trillion yuan and the Shenzhen Stock Exchange reporting 1.21 trillion yuan [10] Company Dynamics - *ST Zhengping announced a stock trading suspension for verification due to a cumulative increase of 152.42% in stock price from September 1 to October 28, indicating potential market overheating and irrational speculation. The company faces risks of delisting and ongoing financial losses [12] - Haowei Group reported a net profit of 3.21 billion yuan for the first three quarters of 2025, a year-on-year increase of 35.15%, driven by growth in the automotive intelligent driving sector [13] - Zhaoyi Innovation reported a net profit of 508 million yuan for the third quarter of 2025, a year-on-year increase of 61.13%, attributed to improvements in the DRAM industry supply chain [14] - China Film reported a third-quarter revenue of 1.21 billion yuan, a year-on-year increase of 35.61%, with a significant increase in net profit due to successful film releases [15] - Hongmeng Zhixing announced that the total delivery of the AITO M9 has surpassed 250,000 units [16] - Suli Co. reported a net profit of 59.42 million yuan for the third quarter of 2025, a year-on-year increase of 2750.24%, driven by growth in agricultural chemical sales [17]

Core Points - The recent 11th batch of national centralized drug procurement successfully awarded contracts for 55 drugs, contributing to a total of 490 quality and affordable essential and life-saving drugs entering the market over the past seven years [1] - The drug procurement policy aims to reduce prices through volume-based purchasing while ensuring drug quality remains a priority, emphasizing the need for stringent quality control throughout the procurement process [1][2] - New procurement rules require participating companies to have relevant production experience and compliance with quality management standards, ensuring that only qualified manufacturers can bid [1] Group 1 - The centralized drug procurement has successfully introduced 490 essential drugs into the market, benefiting public health [1] - The procurement process focuses on quality assurance, tightening controls on drug quality and ensuring that only established, low-risk drugs are included [1][2] - Strict quality thresholds have been established for bidding companies, requiring them to demonstrate production experience and compliance with regulatory standards [1] Group 2 - Continuous monitoring and regulation of selected drugs will be enforced, with penalties for companies that fail to maintain quality standards post-selection [2] - The emphasis on quality control throughout the drug lifecycle is crucial for ensuring public trust and safety in the procurement process [2] - A dual approach of strict process management and dynamic monitoring is necessary to uphold drug quality and realize the benefits of the procurement policy [2]

Policy Developments - The 11th batch of national drug centralized procurement opened for bidding on October 27, involving 55 varieties across fields such as anti-infection and anti-tumor drugs. The procurement rules have been optimized to ensure clinical stability, quality assurance, and to prevent price collusion [1] Drug and Device Approvals - China Medical's subsidiary, Keyi Pharmaceutical, received a drug registration certificate for Fusidic Acid Cream, which is used for skin infections caused by Staphylococcus and Streptococcus. The drug has a projected domestic sales of approximately 500 million yuan in 2023 and 524 million yuan in 2024 [2] - Watson Bio's mRNA vaccine for respiratory syncytial virus has received clinical trial approval from the National Medical Products Administration. This vaccine is developed to prevent lower respiratory tract diseases caused by the virus, with no similar products approved in China yet [3] Financial Reports - Heng Rui Medicine reported a 25% year-on-year increase in net profit for the first three quarters of 2025, with total revenue of 23.188 billion yuan, a 14.85% increase [4] - Yiling Pharmaceutical reported a significant 80.33% year-on-year increase in net profit for the first three quarters of 2025, despite a 7.82% decline in total revenue [5] Capital Market Activities - Novartis signed a strategic cooperation agreement with Kangzhe Pharmaceutical for the exclusive import and commercial promotion of two ophthalmic drugs in China, effective from November 1, 2025. This agreement aligns with Novartis's strategy to focus on four core therapeutic areas [6][7] Industry Developments - The first biomanufacturing industry fund in Shanghai has been established, aiming to integrate resources from enterprises, universities, and research institutions to promote technological breakthroughs and business growth [9] Regulatory Issues - The Hunan Provincial Commission for Discipline Inspection reported on 15 cases of local officials interfering in hospital engineering and drug procurement, highlighting ongoing issues of corruption and misconduct in the healthcare sector [10]

Summary of the Conference Call for Jichuan Pharmaceutical Company Overview - **Company**: Jichuan Pharmaceutical - **Date**: October 27, 2025 Key Points Financial Performance - **Revenue**: Q3 revenue decreased by 33% year-on-year, totaling 11.8 billion CNY, with a total revenue of 39.32 billion CNY for the first three quarters, also down 32% [2][3] - **Net Profit**: Net profit attributable to shareholders fell by 47% to 2.98 billion CNY in Q3, and 46% to 10.2 billion CNY for the first three quarters [2][3] - **Non-recurring Profit**: Non-recurring net profit decreased by 54% to 2.39 billion CNY in Q3, and 49% to 8.6 billion CNY for the first three quarters [2][3] - **Cost of Sales**: Operating costs decreased by 23% year-on-year, with Q3 costs at 2.6 billion CNY, down 30% [9] Product Performance - **Key Products**: - Sales of potassium sulfate increased by 25% year-on-year, reaching 1.1 billion CNY in Q3 [4] - Sales of phenylephrine hydrochloride reached 40 million CNY in Q3, totaling 80 million CNY for the first three quarters [5] - **Retail Sales**: Retail sales maintained a healthy inventory level, achieving a completion rate of 100% in September and October, with monthly sales around 2-3 billion CNY [6] New Product Developments - **Innovative Drugs**: - Adult indications for the flu product have been approved, with adolescent indications expected to be approved in H1 2026 [7] - Long-acting growth hormone expected to be commercialized by early 2028 [7] - NDA for post-operative intestinal recovery product LB1,148 expected in June 2026 [7] - Pediatric constipation granules NDA accepted, with several other products in various stages of clinical trials [7] Cost and Expense Management - **Gross Margin**: Gross margin decreased by 0.9 percentage points year-on-year but increased by 3.9 percentage points quarter-on-quarter [9] - **Expense Ratios**: - Sales expense ratio at 34%, down 3.7 percentage points year-on-year; management expense ratio at 8.2%, up 3 percentage points; R&D expense ratio at 6.9%, up 1.8 percentage points [9] Market Outlook - **Q4 and 2026 Projections**: - Q4 expected to see a market recovery with a narrowing decline; 2026 revenue growth target set at single digits, with higher profit growth anticipated [11] - **Essential Drug Directory**: The essential drug directory project is expected to be completed this year, potentially benefiting the company’s pediatric products [12] Competitive Landscape - **Market Share**: The company retained half of the market share for potassium sulfate after successful bidding in the centralized procurement [4][17] - **New Product Launches**: The company is focusing on innovative marketing strategies for flu drugs, with plans for significant sales during the flu season [13][14] Dividend Policy - **Dividend Expectations**: The company aims to maintain a stable dividend level despite a decline in performance this year, with efforts to ensure satisfactory returns for shareholders [10] Inventory Management - **Inventory Levels**: Retail inventory is estimated at 1-2 billion CNY, equivalent to about one month of sales, while hospital inventory remains stable at around 40 days [9] Future Strategies - **R&D Focus**: The company is building an innovative drug R&D team, focusing on small molecule drugs and exploring new technology directions [16] Conclusion - **Overall Sentiment**: Despite facing significant challenges in 2025, the company expresses confidence in future performance driven by new product launches and market recovery strategies [25]

Group 1 - Domestic oil prices will undergo their 21st adjustment of the year on October 27, with gasoline prices per ton decreasing by 480 yuan compared to the end of last year [2] - The People's Bank of China will issue a set of 2026 Panda gold and silver commemorative coins on October 31, consisting of 15 coins [3] - A nationwide 1% population sampling survey will start on November 1, targeting approximately 5 million households and 14 million individuals to gather basic demographic data [6] Group 2 - The 11th batch of national drug centralized procurement will open for bidding on October 27, introducing a "first report leniency" mechanism to address potential low-price competition [16] - The Federal Reserve is expected to lower interest rates by 25 basis points during its meeting on October 28-29 to support a weakening job market [17] Group 3 - The new Hainan duty-free shopping policy will take effect on November 1, expanding the range of duty-free goods from 45 to 47 categories, including domestic products [29] - The Inner Mongolia region will implement a tax refund policy for overseas travelers starting November 1, following similar initiatives in other provinces [30]

说明： 湖南方盛制药股份有限公司 HUNANFANGSHENG PHARMACEUTICAL CO., LTD. 证券代码：603998 证券简称：方盛制药 公告编号：2025-090 湖南方盛制药股份有限公司 2025年前三季度经营数据公告 本公司董事会及全体董事保证本公告内容不存在任何虚假记载、误导性陈述 或者重大遗漏，并对其内容的真实性、准确性和完整性承担法律责任。 根据《上市公司行业信息披露指引第六号——医药制造》的 相关规定，湖南方盛制药股份有限公司（以下简称"公司"）现 将 2025 年前三季度主要经营数据披露如下（单位：元，人民币）： | | | 主营业务分行业情况 | | | | | | --- | --- | --- | --- | --- | --- | --- | | 分行业 | 营业收入 | 营业成本 | 毛利 率% | 营业收 入比上 | 营业成 本比上 | 毛利率比上年增减 | | | | | | 年增减 | 年增减 | | | 工业小计 | 1,155,172,695.85 | 299,438,278.53 | 74.08 | -6.75% | 2.51% | 减少 2.34 个 ...

第十一批集采的反内卷规则，正是对这些问题的精准回应。此次集采，企业出现超低报价的，需提 供成本测算数据，并作出不低于成本报价的承诺，防止内卷和非理性报价。相关调整不是要抬高药价， 而是要在"降负担"与"保质量"之间找到平衡点。 第十一批国家组织药品集中采购将于近期开标。前不久，国家医保局明确，此次集采将遵循"稳临 床、保质量、防围标、反内卷"原则。其中，优化价差控制"锚点"的选择、不简单选用最低报价等新规 则，直指仿制药领域的内卷问题。 作为医疗保障领域改革中的重要一环，过去7年，国家组织药品集采已开展10批，累计成功采购435 种药品。集采通过压缩中间环节"挤水分"，有效降低药品虚高价格，改变"带金销售"行业生态，显著减 轻患者的用药负担。 也要看到，以往的集采开标中，少数企业为了抢占市场，不惜报出过低价格"卷"同行，这种非理性 竞争不仅扭曲市场秩序，更埋下质量与供应隐患。个别企业中标后甚至出现断供停产，不仅给集采制度 抹了黑，也影响了广大患者的用药安全和稳定。更值得关注的是，假如企业认为集采"唯低价"是取，可 能会抑制创新动力——虽然集采本身不涉及新药，但如果企业利润被压缩至极限，研发新药、提升工艺 的资 ...

国家组织药品集采不是简单的"团购"砍价，而是用公共购买力换取更公平、更高质量的健康服务 反内卷规则通过淘汰低效产能、优化资源配置，将倒逼企业转向创新药研发、工艺升级和质量提升 更重要的是，要让健康优先的理念贯穿政策始终。让集采红利惠及更多人，无论是规则设计，还是执行 细节，都应多倾听医生、患者的声音。例如，在确定采购量时，不仅要考虑药品降价幅度，更要评估临 床需求和患者依从性；在质量评价中，可引入临床等各类研究数据，让疗效说话。 作为医疗保障领域改革中的重要一环，过去7年，国家组织药品集采已开展10批，累计成功采购435种药 品。集采通过压缩中间环节"挤水分"，有效降低药品虚高价格，改变"带金销售"行业生态，显著减轻患 者的用药负担。 边实践、边探索、边完善，这是做好许多工作的一个有效方法。相信随着规则的不断健全，药品集采在 更好守护人民健康的同时，也将为相关产业发展持续注入强劲动力，促进全体人民享有更高效、更安 全、更可及的医药产品与服务。 也要看到，以往的集采开标中，少数企业为了抢占市场，不惜报出过低价格"卷"同行，这种非理性竞争 不仅扭曲市场秩序，更埋下质量与供应隐患。个别企业中标后甚至出现断供停产，不 ...

Core Points - The National Organization for Drug Procurement has canceled the procurement qualification of Ningbo Dahongying Pharmaceutical's fluorouracil injection due to quality issues, placing the company and its contract manufacturer on a violation list, prohibiting them from participating in national drug procurement from October 15, 2025, to April 14, 2027 [1][5] - This incident highlights ongoing quality control issues within the pharmaceutical industry, despite existing regulations and oversight mechanisms [2][8] - The cancellation of procurement qualifications serves as a warning to other companies about the importance of maintaining drug quality to avoid losing market share and damaging brand reputation [2][8] Industry Impact - The fluorouracil injection, a widely used chemotherapy drug, had a market size of approximately $30 million in the U.S. and about 550 million yuan in China in 2023 [4] - The competitive landscape for fluorouracil injection saw seven companies successfully bid in the tenth national procurement, with Ningbo Dahongying's bid price being 2.97 yuan for a 10ml:0.25g specification [4] - The cancellation of procurement qualifications for multiple products indicates a broader trend of quality issues affecting various pharmaceutical companies, including Jiangxi Jingrui and Shanxi Yanghe [5][6] Regulatory Environment - The regulatory framework for drug procurement has been evolving, with the upcoming eleventh batch of national drug procurement set to impose stricter quality control measures, including requiring companies to have at least two years of experience in producing similar formulations [8][9] - The emphasis on quality in the procurement process is expected to benefit companies with stable production processes and strict quality controls, potentially raising the overall quality standards in the industry [9][10] Strategic Recommendations - Companies are encouraged to balance quality and cost-effectiveness by optimizing production processes, increasing R&D investment, expanding market reach, and establishing stable supply chains [10] - Engaging in national drug procurement with a focus on quality assurance and reasonable pricing strategies can help companies gain market share and build patient trust [10]