Has the industry downturn passed? Kelun Pharmaceutical states that over 60% of provincial regions have completed centralized procurement for infusions, and the share of leading hospitals is expected to increase.

Ask AI · Canglian Pharmaceutical’s net profit drops sharply—why are we still optimistic about leading hospital market share gaining?

This article is sourced from: Times Finance

On April 7, when asked about the IV infusion sector, Canglian Pharmaceutical, in the disclosed minutes of an investor relations activity, stated that in 2025 the large-infusion market is in an industry trough. At present, the industry has also begun to show some changes. As of now, among 31 provinces, autonomous regions, and municipalities nationwide, more than 60% have already completed infusion volume-based price linkage or volume-based procurement. The market landscape for leading enterprises is tending to stabilize. In 2026, on the pricing front, through coordinated empowerment between innovative drugs and infusion products in the hospital market, it is expected that the share of leading hospitals will rise. In the circulation market, for products represented by basic IV plastic bottles, after the incentive-driven competitive environment last year in the non-standard market, this year the expected price recovery is gradual. In addition, Canglian Pharmaceutical said that the total R&D expenses are expected to increase slightly in 2026: R&D spending for innovative drugs will continue to grow, while R&D spending for generic drugs will continue to decline.

Recently, Canglian Pharmaceutical released the first annual results showing both revenue and net profit declining in nearly five years. The 2025 annual report shows that in 2025, the company achieved operating revenue of 18.51B yuan, a year-on-year decline of 15.13%; and attributable net profit of 1.7B yuan, a year-on-year decline of 42.03%.

Regarding the reasons for the performance decline, the company explained that terminal market demand decreased for both infusion and non-infusion pharmaceutical preparation products, leading to fewer units sold; and that the impact of volume-based procurement caused the net profit to decline year over year. In addition, the profits of two subsidiaries, Chuan-Ning Bio and Canglian Botai Bio, both fell year over year. (Times Finance Du Su min)