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 — Chongqing Zhifei Biological Products Co. and Beijing Wantai Biological Pharmacy Enterprise Co. — 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 — down from peaks of around 150 yuan.
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