Lepu's profit slump meets a wave of obesity-drug trial wins
Profit and sales fell as procurement squeezed prices First-half 2026 revenue slipped 4.6% and net profit dropped about 28% from a year earlier, with the second quarter also weaker. Management blames government bulk-buying (procurement) that forces down prices on its medical consumables and generic drugs. Falling profit and margins weigh on the share price.
The core earnings deterioration is the main drag on the stock and the backdrop for everything else.
Obesity and muscle-preserving drug pipeline advances Two experimental obesity shots from subsidiary Shanghai Minwei won Chinese clinical trial approval: MWN110, an antibody that cuts fat while preserving muscle, and MWN117, a longer-acting treatment. Neither has any approved rival worldwide yet. This optional new growth story supports the share price even though sales are years away.
The pipeline is the main positive force offsetting the weak core business.
US FDA clears both obesity drugs for trials The US drug regulator agreed to let Lepu test MWN110 and MWN117 in clinical trials, opening a path to the huge American market. Both already had Chinese approval. This global validation raises the pipeline's potential value, though trials are early and could still fail.
US clearance is a fresh, concrete step that lifts the value of the pipeline story.
Dividend and chairman buying signal confidence Lepu will pay a cash dividend of about 1.63 yuan per 10 shares, roughly 300 million yuan total, and the chairman bought more shares at about 11.71 yuan, promising not to sell for six months. These moves put cash in shareholders' hands and show insider belief in the company's value.
Payout and insider buying are tangible supports for investor sentiment amid the profit decline.