4 Degrees 17 Years Pharmaceutical Refused Foci Difficult To Knock Door To The Capital Market – Foci

In Lanzhou local, Foci Pharmaceutical quite proud people. As Foci Pharmaceutical is the largest shareholder of Lanzhou Foci Pharmaceutical Factory (hereinafter referred to as laboratories) has had a glorious past, today is still the only Chinese medicine industry in Northwest national secondary enterprise, is also a traditional Chinese medicine industry 50 companies.

HC pharmaceutical industry network 5 March, the SFC issuance examination committee held its 36th meeting in 2010, Lanzhou Foci Pharmaceutical Co., Ltd. (hereinafter referred to as Foci Pharmaceutical) on the Council. This is Foci in the last 17 years the pharmaceutical 4th door trying to wake the capital market. But this time, the door is still being mercilessly Yan Shang.

“Daily Economic News” reporter trying to dig Foci 4 degrees frustrated pharmaceutical experience behind the IPO, and clarify the company’s main business and related transactions on the soft underbelly of the two listed.

Difficult market was highly competitive product advantages

In Lanzhou local, Foci Pharmaceutical quite proud people. As Foci Pharmaceutical is the largest shareholder of Lanzhou Foci Pharmaceutical Factory (hereinafter referred to as laboratories) has had a glorious past, today is still the only company in Northwest Traditional Chinese medicine Industry national secondary enterprise, is also 50 Chinese industrial enterprises.

It Foci Pharmaceutical prospectus shows that the company 2009,2008,2007, respectively, net profit 36,146,800 yuan, 21,609,200 yuan and 23.3126 million yuan; three years, total profits were 40,605,100, 26,206,800 and 27,306,100 yuan . But in 2009, Foci Pharmaceutical High-tech Development Zone Yantan disposed in a land use right transfer receipts generated 12.2916 million yuan. Deduction of amount transfer receipts, corporate profits in 2009 amounted to 28.3135 million yuan shall be no significant growth.

Prospectus also revealed that, in 2007 and 2009, the company flagship product Liuweidihuangwan revenue in the ratio of operating income was 41.13%, 32.74% and 32.25%, the proportion of revenue decreased year by year. At the same time, there were more than one hundred manufacturers LDB, including major competitors Foci Beijing Tong Ren Tang Pharmaceutical and Hunan 9 Chi-tang. Tong Ren Tang’s inspection, nine Shido data revealed that the two companies in 2009 net profit was 286 million yuan and 1.48 billion, while net profit pharmaceutical Foci only 36.1468 million yuan.

Adverse competitive factors have emerged. Main pill’s Foci pharmaceutical, with the expansion of production capacity, pill sales rate decreased year by year. 2007 to 2009, the pill and capacity from 5.335 billion to upgrade to 6.5 billion, production and marketing rate of 102.21 percent from 2007 down to 2008 101.96%, 98.83% in 2009. Meanwhile, from 2007, although the pill products Sell Revenue increases every year, accounting for the proportion of main business revenue has decreased year by year, from 98.33% in 2007, gradually declined to 84.67% in 2009.

However Foci still plans to continue to enhance the pill pharmacy’s total capacity, the Foci raise funds only invest in the pharmaceutical, is “to expand the production scale technical transformation of a pill and projects.” Foci Pharmaceutical expected completion of the project, the pill will increase total production capacity to 12 billion, with production capacity 5.5 billion. Product price or decline

Competition will bring another directly affects the Foci pharmaceutical products may have to lower prices.

“With the Medicine Product market competition further intensified in the future the company exists the risk of price decline. “The company mentioned in the prospectus. In Foci of proprietary Chinese medicine in the field of pharmaceuticals, the price of government pricing and enterprise pricing autonomy in two ways, and since 2006 for treatment to hold down prices, reduce the cost of public health, National Development and Reform Commission has been lowered 3 times the maximum retail price of related drugs, which are involved in Foci Pharmaceutical Tianwangbuxin balls, eight kinds of products. In addition, the Foci pharmaceutical production of drugs, there are 176 species have been included Medical Insurance Directory These products will be the State Price Bureau of Gansu Province Development and Reform Commission and the market to determine the maximum retail price.