Core Viewpoint - Asia-Pacific Pharmaceutical (亚太药业) faced a setback as its application for the consistency evaluation of Diltiazem Hydrochloride Tablets was rejected by the National Medical Products Administration (NMPA) just a month after a significant change in its controlling shareholder and a capital increase plan [1][2][4]. Group 1: Company Overview - Asia-Pacific Pharmaceutical was established in 1989 and primarily produces chemical generic drugs, with over 60% of its products being antibiotics [3]. - The company has been experiencing a decline in performance for six consecutive years, with a cumulative loss exceeding 2.5 billion yuan in net profit excluding non-recurring items from 2019 to 2024 [3][4]. Group 2: Financial Performance - In the first half of 2025, the company reported revenue of 152 million yuan, a year-on-year decrease of 31.48%, while the net profit attributable to shareholders increased by 1820.97% due to the sale of a subsidiary [3]. - The third-quarter report for 2025 indicated a net profit of 97.2 million yuan, a year-on-year increase of 2909.49%, but the net profit excluding non-recurring items showed a loss of 56.6 million yuan, reflecting a 150.47% increase in loss [4]. Group 3: Market Challenges - The company’s product structure, heavily reliant on chemical generics, faces intense market competition and challenges due to delays in the consistency evaluation of generics, leading to weakened competitiveness [4]. - As of now, only 19 of the company's products have passed the consistency evaluation, and the ongoing pressures from normalized centralized procurement and slowing demand for antibiotics have resulted in declining sales and prices [4]. Group 4: Strategic Shift - In October 2023, Starry Holdings acquired 14.62% of Asia-Pacific Pharmaceutical for 900 million yuan, marking a 45.68% premium, and initiated a 700 million yuan capital increase plan aimed at transitioning the company from generic to innovative drug development [4]. - The recent failure of the consistency evaluation for Diltiazem Hydrochloride Tablets poses a significant challenge to this strategic shift towards innovation [4].