The market value of Lianhua Qingwen manufacturers evaporated by 6 billion in one day

Last Friday, Yiling Medicine, the manufacturer of Lianhua Qingwen, fell by the limit on the Shenzhen stock market, and its market value evaporated by 6 billion yuan. What happened?

Although every household in Hong Kong has a few boxes, you may not know much about the history and story of Lianhua Qingwen and its creators, Wu Yiling and Yiling Medicine.

More than 30 years ago, Wu Yiling from a family of traditional Chinese medicine graduated from Nanjing University of Traditional Chinese Medicine with a master's degree, and then entered Hebei Province to become a doctor. When treating a patient with a history of coronary heart disease for more than 20 years, Wu Yiling read ancient medical books and developed the secret recipe "Wulong Dan". The patient who had been incurable for a long time after eating, miraculously recovered.

"Wulong Dan" uses soil softshell insects, centipedes, cicada sloughs, leeches, and whole scorpions as medicine (is it a bit scary?)

These insects all have the characteristics of "drilling holes", so they are good medicines for dredging the meridians and blood vessels in the concept of traditional Chinese medicine.

In 1992, Wu Yiling founded Yiling Medicine. He improved "Wulong Dan" into "Tongxinluo Capsule" and promoted it nationwide. With the help of an excellent sales team, "Tongxinluo" quickly occupied a market.

In 2003, the SARS virus raged. As a member of the National Committee of the Chinese People's Political Consultative Conference and a representative of the pharmaceutical industry, Wu Yiling consciously has a heavy burden on his shoulders. He led the team to immediately invest in the prevention and treatment of SARS. After reading medical books day and night, he finally absorbed nutrients from a large number of ancient prescriptions and developed Lianhua Qingwen Capsules.

According to the "China Traditional Chinese Medicine News" report, the research and development process took only 15 days.

It is a pity that this drug specially researched for the SARS virus was not approved for marketing until 2004, when the haze of SARS had passed, and I missed participating in the fight against the epidemic.

In 2009, the H1N1 virus became popular, and Lianhua Qingwen finally ushered in a time of great power.

Research by Guangzhou State Key Laboratory of Respiratory Diseases and other scientific research institutes has confirmed that Lianhua Qingwen Capsules have inhibitory effects on H1N1, influenza B virus, coronavirus, respiratory syncytial virus, etc.

After this battle, Lianhua Qingwen became a best-selling drug in the mainland, equivalent to Hong Kong's essential pain, happiness and cold.

Yiling Pharmaceutical was also listed on the Shenzhen Stock Exchange in 2011, and Wu Yiling's worth has risen accordingly.

Since the outbreak of the epidemic in 2020, Lianhua Qingwen, as one of the "three medicines and three prescriptions", has been included in the fourth to ninth editions of the new crown diagnosis and treatment plan, and is recommended for observation period, mild and ordinary patients. Lianhua Qingwen's sales reached 4.2 billion yuan in 2020, a year-on-year increase of 150%. At a medical conference in Shanghai in August 2020, Wu Yiling announced that 80 million people used Lianhua Qingwen to prevent and control the new crown.

More than a year has passed since that meeting, and now this number will at least double.

In the recent Shanghai epidemic, a video has been widely circulated. An old man in Yongkang Street was sick and called community staff for help, while the guy working in the community asked if he needed to send some Lianhua Qingwen.

After the old man said that there was still Lianhua Qingwen at home, the young man could only say helplessly:

"The neighborhood committee only has the drug Lianhua Qingwen."

I asked a few friends in Shanghai, many of them could not buy food or eat, but Lianhua Qingwen capsules were the only one. The community manages enough. Sometimes when faced with an empty refrigerator, I heard that the community sent a material package and opened it with hope.

It was found to be a row of Lianhua Qingwen capsules.

Not to mention in Hong Kong, because the Hong Kong government sends two boxes per corpse in April. The author was diagnosed in February and received two boxes in the anti-epidemic package from the government. When I wanted to be diagnosed, my friends and family sent them There are a few boxes, and there are still eight boxes at home.

The reason why Lianhua Qingwen is so popular in the new crown epidemic is mainly because the National Health and Health Commission listed Lianhua Qingwen as a recommended drug during the medical observation period in the "New Coronavirus Pneumonia Diagnosis and Treatment Plan".

The patented traditional Chinese medicine Lianhua Qingwen Capsules produced by Yiling Pharmaceutical Co., Ltd. and the patented traditional Chinese medicine Lianhua Qingwen Granules produced by Beijing Yiling Pharmaceutical Co., Ltd., a wholly-owned subsidiary of the company, were jointly released by the National Health Commission of the Communist Party of China and the State Administration of Traditional Chinese Medicine. The "New Coronavirus Pneumonia Diagnosis and Treatment Program (Ninth Trial Version)" is listed as the recommended medicines for light and common types of TCM treatment during the medical observation period and clinical treatment period (confirmed cases).

Since the outbreak of the epidemic, Lianhua Qingwen Capsules (granules) have been listed as the recommended drugs for the observation period of traditional Chinese medicine treatment in the "New Coronary Virus Pneumonia Diagnosis and Treatment Plan (Trial Version 4/5/6/7/8)". In the "New Coronary Virus Pneumonia Diagnosis and Treatment Plan (Trial Version 9)" released this time, in addition to continuing to list Lianhua Qingwen Capsules (granules) as the recommended drug for the observation period of traditional Chinese medicine treatment, it will also be listed as the clinical treatment period. (Confirmed cases) Recommended medication for mild and common types.

In the first three quarters of 2021, the company's Lianhua Qingwen products achieved operating income of 3.37 billion yuan, accounting for 41.6% of the company's total operating income.

In fact, in the "Plan", the Chinese patent medicines that have also been recommended include Huoxiangzhengqi Water, Jinhua Qinggan Granules, Shufeng Jiedu Capsules, etc.

But obviously, none of them seized this opportunity, and only Lianhua Qingwen was the only one who really leapt forward.

Since the epidemic, Yiling Pharmaceutical's stock price has risen from about 7 yuan at the end of 2019 to a maximum of 43 yuan with this best-selling product, and now its market value has exceeded 60 billion. The 71-year-old Wu Yiling also became the richest man in Shijiazhuang.

Last Thursday, April 14, Wang Sicong, known as the "Disciplinary Committee of the Entertainment Industry" in the mainland, forwarded a video of well-known blogger Ma Dugong scolding Lianhua Qingwen with the text:

"The SFC should strictly investigate Yiling Pharmaceutical."

The incident quickly became a hot search on Weibo, and the Wang Discipline Inspection Commission immediately deleted the repost.

In Ma Dugong's video, a series of questions were raised about "the effectiveness of Lianhua Qingwen in preventing and treating the new coronavirus."

Among them, Jia Zhenhua, director of Hebei Yiling Hospital, concealed that he was Wu Yiling's son-in-law and that Yiling Pharmaceutical provided financial support for his project when he published the Lianhua Qingwen epidemic prevention paper in "Botanical Medicine".

In addition, Dugong Ma also delved into the recently circulated "WHO recommends Lianhua Qingwen to treat the new crown" in the video.

He found that in the WHO report, Lianhua Qingwen was not directly mentioned, let alone recommended.

It is only at the end of a document that the references section is cited, and the words "Lianhua Qingwen" appear twice. And "WHO supports Chinese medicine to treat the new crown" is only the recommendation of some Chinese experts in the WHO.

Affected by this news, Yiling Pharmaceutical fell by the limit at the end of the market last Friday (April 15).

Wang Sicong's Weibo account is worth more than 6 billion yuan.

The epidemic will always pass, but the story of Lianhua Qingwen continues.

It can be seen from the third quarter report of Yiling Pharmaceutical in 2021 that in the first three quarters, the company's research and development expenses were about 538 million, while the sales expenses reached 2.796 billion.

Research and development is important, but how to find a way to sell the drug is more important, so this pharmaceutical company is more like a pharmaceutical promotion company.

Where did the money go? There should be no promotion fee for the government's endorsement. If there is, I don't know how it should be accounted for.

However, if you go to Weibo to search for the content of the two topics of #CloseConnector uses Lianhuaqingwen to reduce the positive infection rate by 76%# and #Combination of prevention and treatment is the unique theory and advantage of traditional Chinese medicine#. similar text, similar images,

Many KOLs dance together.

These KOLs are not cheap.

However, it will not be smooth for Lianhua Qingwen to enter the international market.

On April 8, the Chinese embassy in New Zealand issued a message to remind Chinese citizens to take medicine into New Zealand with caution.

The reason is that the New Zealand Customs has seized many cases of Chinese citizens entering the country with illegal drugs since last November, most of which are Lianhua Qingwen capsules used to prevent and treat new coronavirus pneumonia. The drug is classified by the government as a prohibited drug because it contains a controlled substance that is expressly stated in New Zealand law.

Why did the famous anti-coronavirus drug in China become an illegal drug when it arrived in New Zealand?

I checked the Internet and found that in addition to New Zealand, the United States, Australia, Sweden and other countries also listed Lianhua Qingwen as contraband.

In Canada, although Lianhua Qingwen has obtained a sales license, a local Ministry of Health spokesperson warned that it is illegal to create false and misleading information that the drug can prevent, treat or cure the new crown.

Maybe, what happened to Lianhua Qingyun's funeral, it really has to be resolved next time.