Jiudian Pharmaceutical's Q3 report shows revenue growth without profit growth, but bulk procurement orders have been finalized. Is the reversal script half written?

Has the "Invisible Champion" in the chemical adhesive patch track slowed down?

Recently, Jiudian Pharmaceutical's third-quarter report showed that in the first three quarters of 2025, the company achieved operating revenue of 2.268 billion yuan, a year-on-year increase of 5.69%; net profit attributable to shareholders of the listed company was 406 million yuan, a year-on-year decrease of 9.64%.

This inevitably raises concerns about whether the company can maintain its full-year performance growth momentum. It is worth noting that in 2024, the company's operating revenue reached 2.931 billion yuan, a year-on-year increase of 8.85%; net profit attributable to the parent company was 512 million yuan, a year-on-year increase of 39.13%. Among them, the operating revenue in the first three quarters reached 2.146 billion yuan, a year-on-year increase of 13.36%; net profit attributable to the parent company reached 450 million yuan, a year-on-year increase of 45.08%.

Now, with revenue growth slowing and profits beginning to shrink, what challenges is Jiudian Pharmaceutical facing? What is the future development outlook?

Focusing on the Chemical Adhesive Patch Track, One Product Takes the Lead

From a business layout perspective, Jiudian Pharmaceutical also has the potential to be a "hexagonal warrior."

It is reported that the company integrates R&D, production, sales, and CXO services, achieving a comprehensive layout in fields such as chemical drug preparations, APIs, pharmaceutical excipients, traditional Chinese medicine, and health products, with continuously strengthening comprehensive development capabilities. As of the end of June this year, the company has 75 varieties and 90 product specifications included in the "National Medical Insurance Drug List."

However, in the multi-dimensional radar analysis model, the company's skill points are mainly concentrated in the chemical adhesive patch sector.

Jiudian Pharmaceutical's semi-annual report cited data from MoShang·Pharma showing that in China's urban public and county-level public hospitals, the company's two core products, Loxoprofen Sodium Gel Patch and Ketoprofen Gel Patch, ranked first in sales in both 2023 and 2024.

Among them, the Loxoprofen Sodium Gel Patch is Jiudian Pharmaceutical's first gel patch product, launched in 2017, winning the first domestic generic approval. It is mainly used for the treatment of musculoskeletal diseases such as osteoarthritis, muscle pain, and traumatic swelling pain. With its exclusive dosage form, it is the company's main revenue driver. In the first half of 2025, the product's sales revenue was 735 million yuan, accounting for 48.63% of the company's operating revenue during the same period. The market demand for this product is evidently very prominent.

The "China Pain Medicine Development Report" shows that there are over 300 million chronic pain patients in China, with 10-20 million new cases annually, and the prevalence increases with age. In terms of treatment methods, adhesive patches are widely used due to their speed, convenience, and efficiency. Products like the Loxoprofen Sodium Gel Patch, compared to traditional patches, offer outstanding advantages such as good breathability, strong penetration, rapid transdermal absorption, reusable without residue on the skin, less likely to stain clothing, and high safety, making their application prospects quite promising.

Data from Menet shows that in recent years, the sales of Loxoprofen patches (including gel patches and patches) in China's three major terminal markets have grown at double-digit rates, exceeding 2.4 billion yuan in 2024, a year-on-year increase of about 21%; in the first half of 2025, it exceeded 1.4 billion yuan, a year-on-year increase of about 18%.

As a major player in this track, Jiudian Pharmaceutical has enjoyed significant growth benefits. However, over time, the competitive environment in the relevant market has become more complex.

As the Track Becomes More Crowded, Does Centralized Procurement Bring a Turning Point?

Judging from the sales scale mentioned earlier, the Loxoprofen Sodium Gel Patch segment is not a large market, but it has now attracted many pharmaceutical companies, making the track increasingly crowded.

Menet data shows that currently, over 40 pharmaceutical companies have submitted applications for production/clinical trials of Loxoprofen Sodium Gel Patches/Loxoprofen Sodium Patches under the new registration classification. Among them, products from over 10 companies, including Beijing Tide Pharmaceutical, Jiangsu Wanbang Pharmaceutical, Leming Pharmaceutical, Nanjing Hainer Pharmaceutical, and Huarun Sanjiu, have been approved for production and deemed to have passed evaluation.

With increasing competition, Jiudian Pharmaceutical's sales pressure has become more apparent. The financial report shows that in the first three quarters of 2025, the company's period expenses were 1.229 billion yuan, with a period expense ratio of 54.20%. Among them, sales expenses increased by 11.89% year-on-year, management expenses increased by 46.61% year-on-year, and R&D expenses increased by 4.01% year-on-year. Correspondingly, profit margins have been significantly compressed.

However, with the continuous advancement of centralized procurement, Jiudian Pharmaceutical may still have significant growth opportunities.

Recently, the company announced that on October 27, 2025, it participated in the bidding for the 11th National Centralized Drug Procurement organized by the National Drug Centralized Procurement Office. The products Dapagliflozin Tablets, Nicorandil Tablets, and Loxoprofen Sodium Gel Patch were preliminarily selected for this centralized procurement.

Among them, the selected prices for the Loxoprofen Sodium Gel Patch in three specifications (4 patches/6 patches/8 patches) were 17.88 yuan, 26.82 yuan, and 35.76 yuan, respectively, with a procurement volume of 30.122605 million patches. The new diabetes drug Dapagliflozin Tablets was selected at a price of 10.99 yuan (30 tablets), with a selected quantity of 72.815806 million tablets. The commonly used cardiovascular drug Nicorandil Tablets was selected at a price of 3.28 yuan (60 tablets), with a selected quantity of 36.409198 million tablets.

Although centralized procurement may have a certain impact on the company's short-term profit performance, Jiudian Pharmaceutical currently may need to focus more on expanding scale and defending its position. With the help of centralized procurement, products can quickly enter the market, expand coverage, and continuously strengthen scale advantages, potentially balancing cost pressures.

It is worth mentioning that Jiudian Pharmaceutical's successful participation in centralized procurement also relies on certain production advantages. It is reported that the 11th National Centralized Procurement has added production experience requirements for manufacturers, stating that "the holder or entrusted manufacturer must have at least two years of actual production experience for the same type of preparation." This is a strength for Jiudian Pharmaceutical, as the company entered the core track early and its business covers multiple sectors such as APIs and pharmaceutical excipients, accumulating relatively rich R&D and production experience.

In addition, the financial report also mentioned that in 2025, Jiudian Pharmaceutical's subsidiary Pudao Pharmaceutical's Class 4 generic drug Loxoprofen Sodium Gel Patch was approved and passed evaluation. As a result, the company and its subsidiary Pudao Pharmaceutical have become the drug marketing authorization holders for self-produced Loxoprofen Sodium Gel Patches, the drug marketing authorization holders for commissioned production, and the commissioned drug manufacturers, further consolidating the position and moat of the core product.

Source: Pharmaceutical Research Society