(Yicai) June 5 -- Hualan Biological Bacterin, the biggest Chinese maker of influenza vaccines, has lowered the prices of its quadrivalent flu jabs in response to stiff competition, and said it will step up sales and cost controls to help offset the resulting drop in income.

Hualan cut the cost of the jabs that protect against four types of flu viruses to about CNY85 (USD11.70) each from over CNY100 (USD13.80), the Xinxiang-based firm said today, adding that the move will hurt vaccine revenues. Hualan will enhance internal cost controls and increase sales to compensate, it said.

Hualan had a net profit of CNY860 million (USD118.7 million) last year, a 66 percent increase on the prior 12 months, while revenue rose 32 percent to CNY2.4 billion (USD331.2 million).

In the long run, lower prices will help boost influenza vaccination rates, expand the market, and bring the opportunity to trade price for sales, Hualan noted. Its quadrivalent flu shot has been the biggest seller in China for six straight years, the company pointed out.

The move comes after rival China National Pharmaceutical Group said late last month that it would slash the price of its quadrivalent flu vaccine by more than 30 percent to CNY88 a unit.

Shares of Hualan [SHE: 301207] closed down 0.3 percent at CNY18.47 (USD2.55) apiece in today. The broader Shenzhen market fell 0.8 percent.

Hualan aims to stabilize its industry-leading position and increase domestic flu vaccination rates through the price cuts, a company insider told Yicai.

China’s influenza inoculation rate is about 3 percent, much lower than in Europe, the United States, and East Asia, according to Hualan's 2023 financial report.

During the 2022-2023 influenza season, the rate among people aged 18 and above in the US was 47 percent, while that for children and the elderly was even higher, according to data from the Centers for Disease Control and Prevention.

Editor: Maritn Kadiev