Operating revenue of Hepalink Pharmaceutical reached RMB1.57 billion in 2011H1, a decline of 13% YoY; meanwhile, its operating profit achieved RMB420 million, down 40.3% YoY. The main reason for the decline was price shrink of heparin APIs which was the main product of Hepalink.
China is abundant with resources of heparin raw material, and is the largest heparin APIs producing country in the world. Hepalink is one of the most important manufacturers and exporters of heparin APIs in China. Its export proportion reached 99.4%, 97.2%, 96.5% and 87.7% in 2008, 2009, 2010, and 2011H1 respectively. During Jan. to Jul. 2011, market demand of heparin maintained steadily while the supply was relatively abundant in China, which caused export competition intensifying. The export average price fell to USD9, 061/kg, down 11.5% YoY, which further influenced Hepalink’s performance in 2011H1. However, supply and demand gap of swine is increasingly huge, and price of swine small intestine for heparin API is expected to be recovered, which further drives price rose of heparin sodium API, thus operating revenue of Hepalink is hoped to increase in 2011H2.
Export Price Trend of Heparin Products in China, 2008-Jul. 2011 (USD/kg)
Source: China Customs; ResearchInChina