Recently, listed pharmaceutical company Apichope Pharmaceutical Group Co.,Ltd. announced it has been sued by Huiyou International Limited for intellectual property disputes, with a claimed compensation of 528 million yuan—the highest known patent infringement claim in China for 2025. This dispute not only reveals a decade-old collaboration but also reflects multiple risks pharmaceutical companies face in policy adjustments, product selection, and IP management.
1. **Decade-Long Partnership Collapses as Product Loses Favor** In 2014, when alprostadil sales peaked in China, Apichope's subsidiary and Huiyou International jointly established Pinrui Pharmaceutical to develop and commercialize the drug. Under their agreement, Huiyou contributed patents and trade secrets, while Apichope handled R&D and production, with staged payments.
However, after China's National Health Commission listed alprostadil as a key monitored drug in 2019, its market value plummeted from 4.5 billion yuan in 2018 to 600 million yuan in 2019. With bleak prospects, the collaboration stalled. Apichope paid only the initial 15 million yuan, defaulted on subsequent 30 million yuan payments, and failed to disclose progress in annual reports—triggering the lawsuit.
*Risk Alert: Over-reliance on "blockbuster drugs" without anticipating policy risks leaves pharma firms vulnerable.*
2. **Persistent Losses Compound Apichope's Struggles** Apichope has reported consecutive annual losses. In 2024, revenue fell 42.07% year-on-year, with net losses hitting 540 million yuan. By Q3 2025, revenue dropped another 34.35%, with 136 million yuan in losses.
Further compounding its woes, the company was disqualified from the seventh national bulk-buy program for bid-rigging on bromhexine hydrochloride injections, resulting in a 266 million yuan medical insurance refund. A potential 528 million yuan lawsuit loss would intensify financial strain.
*Risk Alert: Weak compliance and poor policy adaptation risk dual blows to earnings and reputation.*
3. **Industry Lessons: Product Missteps and IP Management Gaps** Huiyou International claims its IP contribution was originally valued at 88 million yuan but now seeks sixfold compensation, signaling reassessed technology value. Apichope counters that the patents were transferred to the joint venture and its usage complied with agreements.
Regardless of the verdict, the case exposes pharma firms' vulnerabilities in partnership structures, IP ownership, and contract execution—especially in an industry where policy shifts drastically impact product lifecycles. Poor product choices can render early investments worthless.
The case remains pending, but Apichope already battles internal and external crises. This high-stakes patent lawsuit not only tests corporate survival but also serves as a wake-up call for the entire pharmaceutical sector.
*This article incorporates AI-generated content.*
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