Declining Demand for Erectile Dysfunction Medications in China...
Pharmaceutical Industry Faces Slumping Performance
"Intensifying Price Competition and Decreased Sexual Activity Among Young People Are Major Factors"
Sales of erectile dysfunction medications have plummeted in China, raising a sense of crisis among pharmaceutical companies. This decline is attributed to both intensifying price competition due to an increase in related companies, and a decrease in demand as more young Chinese people avoid intimate relationships.
On June 13, Yonhap News cited Hong Kong's Phoenix Net, reporting that "sales of erectile dysfunction medications have slowed, leading to deteriorating performance for related Chinese companies."
According to the report, Baiyunshan Pharmaceutical, which holds the largest market share for Viagra (Sildenafil) generics in China, disclosed in last year's financial report that sales of its Viagra generic "Jinge" reached 87.85 million tablets. This translates to an average of 247,000 tablets sold per day, a daily decrease of 36,000 tablets compared to the previous year. Inventory surged by about 50%, reaching 24,201,100 tablets, equivalent to one-quarter of last year's total sales volume.
Other Chinese pharmaceutical companies producing Sildenafil generics are facing similar circumstances. Kelun Pharmaceutical's sales in the first quarter of this year amounted to 4.39 billion yuan (approximately 835 billion won), a 29.42% decrease compared to the same period last year, and its net profit dropped by 43%. Taienkang Pharmaceutical also saw its net profit fall by 32% last year, with a further 31% decrease in the first quarter of this year. Inventory jumped by 25.41%.
This trend is interpreted as a result of a recent increase in Chinese people distancing themselves from emotions, sexual relationships, and intimate connections. In recent years, the term "sexual recession" (xingxiaotiao) has even emerged on the Chinese internet.
Phoenix Net pointed out that "the sharp increase in the number of competing products and intensifying price competition, combined with a decline in sexual activity among both middle-aged and younger generations, have had a significant impact." In fact, a survey by Peking University and Fudan University found that only 50% of those born after 1995 reported having sexual intercourse on a weekly basis.
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