Core Insights - Bayer has officially signed an agreement to sell its antibiotic Avelox to Sequoia China, marking a strategic shift in the pharmaceutical giant's portfolio [1] - The transaction is valued between €160 million and €260 million, focusing on Avelox's intellectual property, global brand ownership, and commercial rights [1] - This sale is part of Bayer's broader strategy to streamline its global product line and concentrate on core areas of expertise [1][3] Sales Performance - Avelox achieved global sales of $122 million in 2000, peaking at $1.034 billion in 2007, but has seen a dramatic decline since the expiration of its patent around 2014 [2] - By 2021, Avelox's global sales dropped to $7.2 million, and by 2023, it fell below €100 million [2] - In China, Avelox's sales have also declined significantly due to the national drug procurement policy, which led to an average price drop of over 90% [2] Market Dynamics - Bayer's market share for Avelox has decreased, with original research drugs accounting for less than 10% of the market by 2022, while domestic generics dominate [3] - Avelox's contribution to Bayer's total revenue of approximately €48 billion in 2023 is negligible, accounting for less than 1% [3] - Bayer's overall revenue faced a decline of 2.2% in 2024, with challenges in the Chinese market contributing to the decision to divest Avelox [3] Industry Trends - Major pharmaceutical companies like Novartis, GSK, and Pfizer have previously divested mature product lines facing generic competition, indicating a trend in the industry [4] - The sale of mature products presents opportunities for Chinese capital and pharmaceutical companies to acquire established brands and accelerate international expansion [5] - As multinational pharmaceutical companies continue to adjust their strategies, more mature products like Avelox are expected to be divested, with Chinese firms likely to be key buyers [5]

Core Insights - The company reported a revenue of 2.704 billion yuan in 2024, a year-on-year decline of 13.84%, and a net profit attributable to shareholders of 438 million yuan, down 7.3% year-on-year, while the non-net profit increased significantly by 1365.5% to 403 million yuan due to increased revenue and profit from the pharmaceutical industrial sector and a decrease in overall expenses [1] Group 1: Pharmaceutical Industrial Sector - The company's core products include cardiovascular drugs and respiratory disease medications, with higher demand observed in the first and fourth quarters due to seasonal factors [2] - In Q1 2024, there was a significant increase in the demand for respiratory disease medications due to a surge in viral flu cases, alongside a rise in cardiovascular drug demand during the spring [2] Group 2: Pharmaceutical Commercial Sector - The pharmaceutical commercial sector faced revenue impacts due to the increasing number and amount of products subject to national centralized procurement, leading to price reductions [3] - Hospitals are actively reducing procurement scales and amounts in response to ongoing medical reforms, resulting in decreased delivery orders for the company [3] Group 3: Traditional Chinese Medicine Trade Sector - The company anticipates a significant price correction in traditional Chinese medicine after a period of price increases, leading to a strategic reduction in non-productive trade activities to mitigate high-level risks [3] - In Q2, the company increased revenue by strategically selling part of its inventory of traditional Chinese medicine in anticipation of a price decline in the latter half of the year [3]