--- title: "\"Dumping\" by major shareholders triggers sharp drop! 22 billion yuan Zhaoyan New Drug, emergency adjustment" type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/39353963.md" description: "The "BD" (Business Development) momentum in innovative drugs has come to an end. Some leading innovative drug companies have seen a significant improvement in overall profits for 2025 due to revenue confirmed from BD deals. However, such income is a one-time gain. These companies still need to meet various milestone conditions to unlock more milestone-based revenue. Against this backdrop, the revenue levels of innovative drug companies will continue to be tested. Meanwhile, the CXO sector, as the upstream of the industry, is experiencing a broad recovery in demand, and its performance is gradually materializing. It's worth noting that, catalyzed by the BD momentum, the positive performance of leading CXO companies has already been reflected in their stock prices in advance. Taking Zhaoyan New Drug as an example..." datetime: "2026-03-19T01:10:42.000Z" locales: - [en](https://longbridge.com/en/topics/39353963.md) - [zh-CN](https://longbridge.com/zh-CN/topics/39353963.md) - [zh-HK](https://longbridge.com/zh-HK/topics/39353963.md) author: "[侃见财经](https://longbridge.com/en/profiles/3206955.md)" --- # "Dumping" by major shareholders triggers sharp drop! 22 billion yuan Zhaoyan New Drug, emergency adjustment The "BD" rally in innovative drugs has come to an end. Some leading innovative drug companies have seen a significant improvement in their overall profits for 2025 due to confirmed revenue from BD deals. However, this type of income is a one-time gain. Innovative drug companies still need to meet various milestone unlocking conditions to trigger more milestone-based revenue. Against this backdrop, the revenue levels of innovative drug companies will continue to be tested. As the upstream sector, the CXO segment is experiencing an overall recovery in demand, and its performance is gradually materializing. It is worth noting that, catalyzed by the BD rally, the positive performance of leading CXO companies has already been reflected in their stock prices in advance. Taking Zhaoyan New Drug as an example, its A-share price surged over 110% in 2025, while its H-share price rose over 121%. Faced with the substantial stock price increase, some shareholders chose to cash out and secure their gains. On March 16, Zhaoyan New Drug announced that Gu Xiaolei and his concert party Gu Meifang currently hold 20.4205 million and 10.322 million A shares, representing approximately 2.73% and 1.38% of the company's total shares, respectively. Shareholders Gu Xiaolei and his concert party Gu Meifang plan to reduce their holdings by 20.4205 million and 10.322 million shares, respectively, within three months after three trading days from the announcement date of the reduction plan, through centralized bidding on the Shanghai Stock Exchange. The total reduction amounts to 30.7425 million shares, accounting for 4.1% of the company's current total share capital. This is a complete sell-off, and the reason for the reduction is personal funding needs. The day after the announcement, Zhaoyan New Drug's stock price hit the daily limit down. It is worth noting that the controlling shareholder of Zhaoyan New Drug had just completed a reduction before this. According to the announcement, on December 29, 2025, Zhou Zhiwen, one of the company's actual controllers, plans to reduce his holdings by no more than 14.98 million shares, or no more than 1.99873% of the company's total share capital, within three months after 15 trading days from the announcement date of this reduction plan, through centralized bidding or block trades on the Shanghai Stock Exchange. According to the reduction results announcement disclosed by Zhaoyan New Drug, as of January 29, 2026, Zhou Zhiwen reduced his holdings of the company's A shares by 14.979 million shares through block trades and centralized bidding, and decided to terminate the reduction plan early. Based on the average price during the reduction period, Zhou Zhiwen cashed out approximately 610 million yuan in total. The successive reductions by major shareholders have put pressure on Zhaoyan New Drug's stock price. According to statistics, if calculated from mid-January 2026, Zhaoyan New Drug's A-share price has fallen over 30%, while its H-share price has dropped over 35%. **After the sharp stock price decline, Zhaoyan New Drug urgently issued a correction announcement, and the reduction ratios of the relevant shareholders were revised downward. After the correction, Gu Xiaolei and Gu Meifang plan to adjust the total reduction ratio from no more than 4.1026% of the company's total share capital to 3.00%. At the same time, the reduction method was changed from centralized bidding to a combination of centralized bidding and block trades.** A brokerage analyst told the media that the core motivation for the large-scale reduction by the two major shareholders is to cash out at a high level and lock in long-term gains. As early investors before the company's IPO, Gu Xiaolei and Gu Meifang chose to exit collectively at this point after experiencing significant fluctuations in the company's stock price and performance, which aligns with the typical behavior pattern of financial investors. In terms of performance, according to the previously disclosed earnings forecast by Zhaoyan New Drug, revenue for 2025 is expected to be between 1.573 billion yuan and 1.738 billion yuan, a year-on-year decrease of approximately 13.9% to 22.1%. Net profit is expected to be between 233 million yuan and 349 million yuan, a year-on-year increase of approximately 214% to 371%. In other words, although net profit turned positive year-on-year, revenue declined significantly, and the industry is still in a weak cycle. The main driver of its performance growth is not the linear growth of its main business, but rather the revaluation of biological assets' fair value due to rising prices of laboratory monkeys in the market. Zhaoyan New Drug also confirmed this in its announcement, stating that the main reason for the performance change is the increase in market prices of biological assets combined with their natural growth appreciation. This means it is primarily due to rising prices of the laboratory monkeys held by the company, rather than an improvement in the profitability of non-clinical drug research services. It is worth noting that the contracts fulfilled by Zhaoyan New Drug in 2025 were mostly "low-price orders" signed during the industry downturn in 2024 or even earlier. This explains why the industry's investment and financing data has recovered in 2025, but Zhaoyan New Drug's revenue still recorded negative growth. Therefore, from this perspective, the recovery of Zhaoyan New Drug's performance still requires a certain cycle. However, given the substantial increase in the company's stock price over the past year, shareholders would rather cash out their profits in a timely manner and secure their gains than continue to wait for the performance to materialize. Overall, from an industry perspective, the BD rally in the innovative drug industry will continue to drive the recovery of the CXO industry's performance. However, there remains significant uncertainty regarding the extent of this recovery. Kanjian Finance believes that investors still need to pay attention to changes in the company's performance and view the reduction behavior of company shareholders rationally. ### Related Stocks - [06127.HK](https://longbridge.com/en/quote/06127.HK.md) - [603127.CN](https://longbridge.com/en/quote/603127.CN.md)