When an ibuprofen dance challenge went viral on the Chinese social media platform Douyin in late 2022 during the Covid-19 pandemic, shares of the country’s leading ibuprofen maker surged more than 200 per cent in two weeks.
Now profits at Shandong Xinhua Pharmaceutical are plunging, and it is not alone, as drug makers are hit by oversupply and weakening demand.
The net profit at Shandong Xinhua, a leading manufacturer and exporter of fever and pain medicines, including ibuprofen, fell 26 per cent year on year to 256.2 million yuan (US$37 million) in the first three quarters of 2025, according to its exchange filing.
The earlier spike in Shandong Xinhua’s shares came as social media influencers mimicked the poses of a red human-shaped figure on the ibuprofen packaging, cheering up social media users and offering a brief escape from pandemic anxiety in December 2022. That month, the mainland began moving away from its “zero-Covid” strategy, lifting lockdowns, ending mass testing and reopening public venues.
The trend soon inspired tens of thousands to replicate the influencers with spins, stretches and jump kicks.
Shandong Xinhua’s slump extends a downturn that began in 2024, when full-year net profit fell 5.3 per cent from a year earlier. The company attributed the profit decline to price cuts on key products to defend its market share.
