Price cuts by state to trim drug firm's earnings
By Xiaowei Li (Shanghai Daily)Updated: 2007-02-05 11:44 Harbin Pharmaceutical Group Co Ltd, 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.
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In the most recent move, the NDRC cut prices on 354 types of drugs and medicine, by 20 percent 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, Bloomberg News reported.
The company said it plans to raise US$150 million in a share sale this year,
the South China Morning Post said on January 19, citing unidentified people. The
shares will be traded in Hong
Kong.
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