Viral dance challenge lifted Chinese ibuprofen maker’s shares – now they are languishing

AI Summary
In late 2022, Shandong Xinhua Pharmaceutical, a leading Chinese ibuprofen maker, experienced a surge in shares due to a viral dance challenge on Douyin inspired by its product packaging. The challenge coincided with China's shift away from its "zero-Covid" policy. However, the company's profits have since declined, with net profit falling 26% year-on-year in the first three quarters of 2025. This downturn follows a 5.3% profit decrease in 2024. Shandong Xinhua attributes the profit decline to price cuts implemented to maintain market share amidst oversupply and weakening demand for fever and pain medications. The company's experience reflects a broader trend affecting drug manufacturers in China.
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