Chinese vaccine makers are caught in a steep downturn as intensifying competition pushes prices lower and erodes profits, underscoring the far-reaching deflationary pressure across the world¡¯s second-largest economy.
Two of the country¡¯s biggest vaccine makers ¡ª Chongqing Zhifei Biological Products Co. and Beijing Wantai Biological Pharmacy Enterprise Co. ¡ª posted their first nine-month losses since going public in 2010 and 2021, respectively. Meanwhile, other vaccine producers reported their weakest quarterly earnings in years, with profits plunging by 36% or more.
Those poor results reflect how far prices have collapsed in the absence of demand. Companies have resorted to ¡°buy one, get one free¡± promotions to lure customers, while one firm in Beijing¡¯s latest citywide procurement round won a contract to supply 630,000 flu shots at just 5.5 yuan ($0.78) each ¡ª down from peaks of around 150 yuan.
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