Is the "Yin Weida" that triggered Changchun High-tech's stock price really that powerful?

A-share listed company Changchun High-tech has been in the spotlight recently. The company’s ongoing research drug for male childhood sexual development has become a hot topic.

On February 25, Changchun High-tech announced that its subsidiary Jinsai Pharmaceutical’s GenSci141 ointment was approved to conduct clinical trials. This progress is a routine part of drug development.

However, the research indication for GenSci141 ointment quickly sparked discussion—due to various reasons leading to childhood micropenis.

According to the announcement, the expected indications for GenSci141 ointment are: used to improve conditions caused by hypergonadotropic hypogonadism, 5α-reductase 2 deficiency, congenital adrenal hyperplasia with reduced androgen synthesis, and idiopathic childhood micropenis.

Changchun High-tech stated that drug therapy is the main treatment for childhood micropenis, primarily using exogenous androgens such as testosterone and its derivatives, including testosterone propionate, 11-deoxycortisol testosterone, and dihydrotestosterone. However, to date, no drug has been directly approved for this indication. GenSci141 ointment is a dihydrotestosterone (DHT) cream, classified as chemical drug categories 2.2 and 2.4.

The announcement also explained that DHT is an androgen produced by the action of testosterone and 5α-reductase in the human body; compared to testosterone, it has a higher affinity for androgen receptors and can promote rapid penile growth more effectively.

As of the close on February 27, Changchun High-tech’s stock price was 95.77 yuan per share, down 2.77%, with a market value of about 39.1 billion yuan. The company had previously experienced two consecutive days of gains on February 25 and 26, including a closing surge to the daily limit on February 25.

Additionally, on February 25 and 26, GenSci141 ointment created several trending topics, with some investors jokingly referring to the drug as “Yinweida.”

According to Caixin News, a Changchun High-tech securities department staff responded that all information should be based on official disclosures. The product has only been approved to conduct the clinical trials announced earlier, and indications must be strictly followed according to the approval document. GenSci141 is a Class 2.2 modified new drug, currently in the transition from preclinical to clinical stages. Even with smooth progress, it would take at least three years from clinical trials to final approval for market launch. The typical full cycle for new drugs is about 7-8 years. Although the review process for modified drugs is relatively mature, the overall R&D cycle is not significantly different from that of first-class innovative drugs.

In fact, GenSci141 ointment is not a first-class 1.1 new drug but belongs to chemical drug categories 2.2 and 2.4. This means it is an example of a reformulated drug for new use—developed by changing dosage forms, administration routes, or exploring entirely new indications based on known active ingredients.

In other words, from a business perspective, GenSci141 ointment does not have market exclusivity. It must demonstrate superior efficacy over existing treatments to potentially achieve exceptional commercial success.

It should also be noted that, according to corporate disclosures, GenSci141 ointment is intended for childhood micropenis caused by various etiologies—this condition is not a major disease and is relatively rare, with global prevalence rates estimated between 0.015% and 0.66%.

On the other hand, current treatments for childhood micropenis are priced within the standard chemical drug range. This means that if subsequent clinical data do not show unexpectedly strong results, even if the drug is approved, its pricing will be influenced by existing treatment costs, making it unlikely to become a “super blockbuster.”

Furthermore, since GenSci141 ointment has only been approved to start clinical trials, there is no additional human clinical data available yet, so how much it can promote penile growth remains unknown. Changchun High-tech also noted in the announcement that the subsequent progress of the clinical trial is uncertain. In other words, it is still too early to draw conclusions.

On the evening of February 26, Jinsai Pharmaceutical responded to Jiemian News regarding GenSci141 ointment, stating that the project is in the early stages and there is currently no information available for external communication.

Changchun High-tech is a topic company on the A-share market. It was listed on the Shenzhen Stock Exchange in December 1996 and was one of the earliest listed companies in Northeast China. The company’s market value once exceeded 200 billion yuan, earning it the nickname “Northeast Medicine Maotai.”

Behind this is Changchun High-tech’s flagship product—PEG recombinant human growth hormone injection (Jinsai Zeng), approved in 2014. It was once the only long-acting growth hormone product in China and held a dominant position in the domestic market for a long time.

However, with the approval of products from Teligent, Novo Nordisk, and Veeson Pharmaceuticals, Changchun High-tech’s advantage has diminished. Currently, the company is seeking new growth points. In terms of market value, it is only about 20% of its peak.

Additionally, Changchun High-tech does not only produce long-acting growth hormone but also offers powder injections and short-acting water injections. However, other products are heavily affected by centralized procurement policies.

According to a 2023 year-end research report from Cinda Securities, on August 26, 2022, the Guangdong Alliance announced centralized procurement results for drugs including diclofenac, marking the first collective procurement of recombinant human growth hormone (rhGH). The selected formulations were all powder injections, with Jinsai Pharmaceutical and United Searl winning bids, with maximum effective bid price reductions of 52.46% and 28.98%, respectively. A reduction of over 50% indicates significant concessions by the companies.

In addition to the Guangdong Alliance procurement, between 2022 and 2023, some provinces conducted their own local procurement of growth hormone, with Jinsai Pharmaceutical’s powder injections, water injections, and recombinant human growth hormone all winning bids. In the first three quarters of 2023, Changchun High-tech’s revenue growth slowed, with net profit growth remaining in single digits.

In 2024, the company’s performance declined for the first time in nearly two decades, with annual reports showing a decline in both revenue and net profit. In 2024, revenue was 13.466 billion yuan, and net profit attributable to shareholders was 2.583 billion yuan, down 7.55% and 43.01%, respectively.

Looking at the past year, Changchun High-tech remains deep in performance difficulties. Its earnings forecast indicates that in 2025, net profit attributable to shareholders is expected to be between 150 million and 220 million yuan, a drop of over 90% year-on-year. At its peak, the company’s net profit exceeded 4 billion yuan.

Additionally, in October 2025, Changchun High-tech announced plans to list in Hong Kong. Based on its fundraising purpose, the company aims to further develop its innovation pipeline and expand overseas.