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Harbin Pharmaceutical expects profit decrease
click rate:2862 issue time:2007-03-10 08:12


Feb. 5, 2007 (China Knowledge) – Harbin Pharmaceutical Group Co. Ltd. <600664>, China's second-biggest drug maker by market value, expects profit to fall this year, mainly because of drug prices cut imposed by China’s main economic planning body.


Harbin Pharmaceutical's sales declined, and market share was reduced after the National Development and Reform Commission (NDRC) cut drug prices three times since the start of 2006, the company said in a filing with the Shanghai Stock Exchange Sunday. It didn't specify how much it expects sales or profit to fall.


In the most recent move, the NDRC cut prices on 354 types of drugs and medicine, by 20% on average, the company said in the filing. The company also cited rising costs of raw materials and energy and increasing competition as reasons for its profit to decline.