28 million units sold in a year and $750 million in sales – if that’s the track record of an eye dropper, can you believe it?
The business world is supposed to be the place where miracles emerge. In 2016, an eye drop called Shap Aisle created this miracle, which is still unmatched.
“Cure cataracts, to choose the right medicine, choose the right medicine, choose Shap Aisi” …… mentions Shap Aisi, this brainwashing advertisement that has been repeatedly bombarded on major television stations is still fresh in your mind.
Cataract can be said to be a painful pain.
In China, the prevalence of cataracts among people over 60 years old is 65%. If left unchecked, the result could be blindness – cataracts top the list of causes of eye blindness in China, at 47%.
A little eye drop can cure cataracts, which attracts many cataract patients to pay for it. Professor Li Can, chief ophthalmologist at the First Affiliated Hospital of Chongqing Medical University, once said that 90% of the patients who come to his clinic have used SAPS.
But now, this miracle drug may have to be removed from the shelves.
In late October, it was announced that because a certain trial required by the FDA could not be completed on time, Sapience may be cancelled or not re-registered when it expires, which will result in the product not being able to continue to be manufactured and sold.
The request was reportedly made in late 2017. That is, the miracle drug, which sells 750 million dollars a year, has failed to complete this work for 3 years.
And before the news broke, Shapu Aisi founder Chen Dekang even through the transfer of shares and other forms, cashing out more than 1 billion from the company, and officially stepped down from the post of chairman in August.
The capital markets of the retail customers a blindfolded, how there is a choking leek smell?
Imitation of Italy, cataract miracle drug raised
In 1978, Chen Dekang, a young man from the countryside, was assigned to Pinghu Pharmaceutical Factory.
After burning the boiler in this small pharmaceutical factory for 3 months, the deputy director looked for him to go out to run supply and marketing, selling some of the metronidazole, chloramphenicol, glucose, etc. produced in the factory.
In 1985, Chen Dekang began to take charge of the operation of the factory, and in 1991, he was given the opportunity to go to China Medical University for further training.
During this time, he came across an eye drop from overseas called Bendalina from the Italian Angelini Group, the core ingredient of which is benzyl lysine, an adjunct to cataract treatment.
What would the market response be if such an eye drop were made in China?
In 2000, Pinghu Pharmaceutical Factory was restructured as a state-owned enterprise and changed its name to Pinghu Shapu Aisi Pharmaceutical Co. Subsequently, an eye drop named Shapu Aisi was introduced.
At that time, the entire eye drops many categories, antibiotic eye drops, Chinese medicine eye drops and so on often make ordinary people foolishly confused. This was the beginning of the chaos in the industry, and it became a key move for the brand to seize the consumers’ minds.
Since the main effect of all kinds of eye drops are anti-fatigue, in order to consumers to pay for their own bills, it is necessary to have a different brand appeal. The industry’s unanimous approach is to hire spokespeople, and stars such as Jay Chou, Wang Han, He Gui, Han Gung, Liu Qian, etc., have all endorsed several of the then-hot eye drops.
Sapphire Aisle was the first to differentiate the eye drops. When it appeared on the screen, it broke the norm of anti-fatigue homogeneity in the industry – because it works to treat cataracts.
Unfortunately, surrounded by big stars such as Jay Chou and others, the smaller Shap Ais didn’t have much money to advertise. At that time, Chen Dekang said: “The enterprise is relatively small, we must borrow from the capital market. “
In 2008, the company began share reform and went public. In 2012, it submitted a prospectus and finally landed on A shares in July 2014.
In the past few years, relying on the label of “cataract treatment”, annual sales have been growing year after year. By 2013, the revenue of Shapu Aisi was close to 650 million yuan.
After getting money from the capital market, SAPA made the familiar advertising, the Chinese women’s volleyball coach Lang Ping, that “cataract can’t see, SAPA drops eyes”.
The industry media “thumb medicine” has also reported, a drug enterprise chairman said a theory: drug advertising or use cartoon form of the best, because people see cartoon characters caution small, easy to accept.
To this end, Shapu Aisi has also launched a cartoon version of the ad, “fuzzy drops” “Heavy Shadow Drop” is broadcast on TV all day long. In the end, even children will sing along with the “drip drip drip”.
By 2016, Shapu Aisi peak, sold 28 million units, sales reached 754 million yuan.
A generation of miracle drug worthy of the title.
Debunking the truth, the originator of cutting middle-aged and elderly leeks
Looking back over the past 20 years, why did Sharp-Essy sell well?
Is it a Lang Ping endorsement? Or is it a cartoon form of brainwashing advertising? It is neither. The core competitiveness of SAPPHIRE is the claim that a small bottle of eye drops can “cure cataract”.
After all, authorities believe that no matter what kind of cataract, surgery is the most effective means of treatment. But if you can really buy some medicine to stop cataracts, why wouldn’t the elderly be eager to try it?
Ultimately the question comes down to whether or not Shapirox can treat cataracts.
In 2017, when Shaprox was particularly popular, Tinker released an article titled “A brainwashing miracle drug that sells 750 million a year, please leave the Chinese elderly alone”. The content showed that Saproxil had no efficacy at all.
According to the article, the active ingredient in Shapirox eye drops is called Bendazac Lysine, which has a certain effect on delaying cataracts in a few animal studies.
But when it comes to the human body, there is no drug in the world that has been proven to be effective in preventing or treating cataracts, not Salp-Es (Bendazac Lysine), nor any other drops, wipes or medications.
The only definite and effective treatment is surgery.
Even the Italian Angelini Group’s Bendalina eye drops, which are copied by SAPS, are only an adjunct to cataract treatment and have not been developed specifically for the purpose.
Obviously, this is close to a sickle that cuts leeks of middle-aged and elderly people.
It’s a big gray area on the Internet. Shakespeare’s “fake Jin Dong” and WeChat’s ” Little videos” and “fake insurance” in text messages in This leek circle is a mixed bag.
But few people know that the ancestor of cutting middle-aged and elderly leeks is supposed to be a miracle drug: Shapu Aisi eye drops.
Data show that in the year 2016, the best year for sales of Shapu Aisi eye drops, the company’s advertising costs reached 260 million yuan. But in the same year, it spent only $29 million on drug development and only $5.5 million on cataract-related drugs.
It is also worth mentioning that its gross profit reached 94.59%.
People say that the small pot of tea is an IQ tax, and compared to Shapu Aisi, the small pot of tea are too young.
What’s worse is that cataracts can actually be treated with simple surgery when they’re not serious. But after the advertising and marketing of products like Shap Aisle, many older people stubbornly believe everything, “fuzzy drops” “Shadow Drops.” “Heavy Shadow Drops. “Even if it hurts a little.” “Stick to the drops”.
Formally these induced demonstrations have caused many patients to drag their disease to the point of developing serious complications such as glaucoma and uveitis, and eventually they do go blind.
Falling off the pedestal, Shapirox can still cut a swath
Under the media public opinion represented by Tinkerbell, the efficacy of Shapirox triggered the voice of some doctors in the medical sector and even the whole population.
By the end of 2017, the General Administration of Food and Drug Administration (GAFDMA) issued a notice requesting Shapu Aisi to initiate clinical effectiveness trials as soon as possible and report the evaluation results to the Drug Review Center of the State Food and Drug Administration (SFDA) within three years.
In other words, whether the generic Bendalina eye drops of SAPS is consistent with the original drug in terms of management consistency, intermediate process consistency and quality standard consistency. “? This needs to be explained by the experiment.
It’s been a long three years.
From 2017 to 2019, the operating income of Sapience declined by 4.07%, 35.30%, and 15.06% year-on-year, respectively; the net profit withholding was 130 million yuan, -156 million yuan, and -38.7 million yuan, up by -35.68%, -220.55%, and 75.22% year-on-year, respectively.
Of this, 8,330,500 (-28.85%) eye drops were produced and 7,902,100 (-33.46%) were sold in 2019 by Sapience Drops. And even so, the “China Cataract Drops Market Research Report” also has data showing that the market share of Sapprox Eye Drops in China’s cataract medication reached 21.51% in 2019.
In the meantime, a new round of leek harvesting for Shapu Aisi has begun.
At the end of 2018, Chen Dekang sold his 9.66% stake in the company to Raise and Invest at a premium of about 20% by agreement, cashing out 260 million yuan.
In early 2020, Chen Dekang again sold 7.24% of his shares to Yiyihe Medical, a wholly-owned subsidiary of Yanghe Investment, and gave up the voting rights of the remaining 21.73% of the shares at the same time.
In May, the transaction was transferred, the actual controller of SAPS was changed from Chen Dekang to the brothers Lin Hongli and Lin Hongyuan of the Putian family; in September, Chen Dekang ceased to be the company’s legal representative.
Around, Chen Dekang cash 1 billion left the scene, cut a wave of Putian leeks.
But look at the Shapu Aisi eye drops or will be discontinued, “Putian family” Lin family why would willingly take over the premium? There are definitely more verdant leeks behind this.
As it happens, Lin’s brothers less than half a year into the ownership, Shapu Aisi released an announcement that: to pay cash to acquire a hospital 100% of the equity.
After the income method of assessment found that the latter all equity value of 502 million yuan, compared with the audited consolidated statements of equity attributable to the parent company’s book value of 132 million yuan, assessment of appreciation rate of 278.88%.
Sapphire Aisi value-added nearly 300% to buy a hospital. The hospital behind the actual controller, it is “Putian family” Lin family’s Lin Hongli, Lin Hongyuan brothers.
The capital market’s renminbi goes round and round, and finally returns to the wallets of Chen Dekang, Lin Hongli and Lin Hongyuan.
Where does the money from these expensive acquisitions come from? No longer are middle aged people relying on retail investors to buy Shapirox’s eye drops.
Compared to its peak price of $54.44 per share, the share price of Shapirox has fallen more than 85%.
From an operational level, the future of the Shapu Aisi eye drops is uncertain, loaded into the hospital assets may be considered a good thing. Just “Putian” capital calculations, the retail investors simply can not guess through.
A generation of miracle drug is confusing.
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