Drug maker's profit drops before listing

Listing candidate Lijun International Pharmaceutical posted a 15.6 per cent decline in net profit in the six months to June on slower sales of its core antibiotics product Lijunsha.

The mainland pharmaceutical manufacturer's interim profit decreased to 37.55 million yuan from 44.49 million yuan in the first half of the year.

Gross profit margin narrowed to 49.5 per cent from 52.4 per cent, according to the listing documents.

Sales of Lijunsha, which accounted for 46.95 per cent of the company's sales, fell 22.48 per cent in the first half.

Chief executive Wang Xian-jun said the first-half decline was due to government regulations requiring prescriptions for sales of antibiotics.

Last year's rule change affected all antibiotics manufacturers in China, but Mr Wang said Lijun had been relatively less affected than its peers because it had started to promote its antibiotics to doctors and hospitals before the government notice was issued.