Tonghua Dongbao revises down 2024 profit forecast

Tonghua Dongbao Pharmaceutical (SSE:600867) has issued a revised forecast for its 2024 annual results, now anticipating a net profit attributable to shareholders of approximately RMB 11.64 million, a steep 99% decline compared to the RMB 116.78 million reported in 2023. The company attributed the revision primarily to a recent final judgment in a lawsuit regarding trademark infringement related to its "Changshulin" insulin product. The court ordered the company to pay RMB 61.31 million in damages and related expenses to Gan & Lee Pharmaceuticals. While production of the "Changshulin" product has ceased, the company has launched a replacement, "Pingshulin," and aims to minimize any impact to its insulin business. The company cautioned investors regarding the risks.