Hansen Pharmaceutical(SZ:002412)2022-12-08 09:34Product Overview - The main product of Hunan Hansen Pharmaceutical Co., Ltd. is "Simotang," a traditional Chinese medicine aimed at improving gastrointestinal motility, primarily targeting newborns, postpartum women, and the elderly [3] - Other notable products include "Suquan Capsules" for treating urinary incontinence in the elderly and children, and "Ginkgo Leaf Capsules" for cardiovascular diseases, with the latter having a high content of active ingredients compared to competitors [3] Market and Sales - The sales distribution between hospital and OTC markets is approximately 30% and 70%, respectively [4] - Sales of Simotang have been adversely affected this year due to a challenging OTC environment, media events, and the suspension of the basic drug supplement directory in several provinces [4][5] - The company has entered 11 provinces for the basic drug supplement directory, but many have paused or rejected new entries, impacting sales growth in grassroots medical institutions [5] Research and Development - Currently, there are no new R&D products; the focus remains on enhancing existing products, particularly in gastrointestinal and cardiovascular medications [5] - The company has completed various stability tests and obtained patents for new formulations of Simotang, which will help protect intellectual property and improve market competitiveness [5] Financial Investments - The investment in Sanxiang Bank is part of a broader strategy to develop the pharmaceutical supply chain, including upstream herbal cultivation and downstream medical services [6] - The financial sector investment is expected to provide stable returns and support the company's overall growth strategy [6] Raw Material Costs - The prices of raw materials for the main products are stable, with no significant impact expected on profitability from rising prices of traditional Chinese medicine ingredients [6] Future Considerations - There is currently no clear direction from major shareholders regarding the future of Nanyue Pharmaceutical, which is undergoing GMP certification and has not resumed normal production [7]