On August 28, Baihua Pharmaceuticals hit a halt in the market. According to Wind data, as of the close of August 28, the company's stock price was 15.44 yuan/share, a closing decrease of 7.43%. However, since August, the company's cumulative increase has reached 119.63%. Regarding the sharp drop in Baihua Pharmaceutical's stock price, Baihua Pharmaceutical responded to the reporter that the stock price was affected by multiple factors. The company mainly makes generic drug CRO, and innovative drug CRO accounts for a very small proportion. Compared to generic drugs, there is also a big risk of investing in innovative drugs and falling short of expectations in return. The company belongs to the upstream part of the pharmaceutical factory, and the CRO business connects with the pharmaceutical factory. Depending on how difficult it is to replicate, the total price of the order also varies. The order is generally not less than 1 year, usually 2 to 3 years. Competition in the generic drug CRO industry has intensified. It is a buyer's market. Companies need to take the initiative to find business, and the order unit price is not as high as in previous years.

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