Latvian Prime Minister Andris Kulbergs plans to sever trade ties with Russia, though he admits exceptions will be necessary for certain industries like pharmaceuticals. His government was approved on May 8.
WuXi AppTec reported record Q1 revenue of 12.44 billion yuan (US$1.72 billion), up 28.81% year-on-year, beating market expectations of 10.78 billion yuan. Net profit rose nearly 27% to 4.65 billion yuan, exceeding forecasts of 3.9 billion yuan. The pharmaceutical contract manufacturer has a record order backlog of 59.77 billion yuan, up 23.6% from a year earlier.
China's volume-based procurement policy forces multinational drug companies to lower prices for public hospital purchases while allowing biotech firms to charge premium prices in the private market. The dual-track system benefits internet healthcare platforms and private healthcare providers like Alibaba Health, Yifeng and Hygeia, according to Citi research.
China's volume-based procurement policy, which mandates bulk drug purchases for public hospitals, is intensifying price competition for multinational pharmaceutical companies while creating more profitable channels for domestic biotech firms in the private market. Analysts note potential benefits for internet healthcare platforms, pharmacies, and private hospital services.
