On June 26, Everest Medicines fell 5.48% in regular trading, trading at HKD 22.76/share with turnover of HKD 65.84 million, extending the prior session's decline.

The selloff stems from the company's June 24 announcement of a patent settlement with Hainan Herui Pharmaceutical regarding budesonide enteric capsules (branded as Nefecon). Under the agreement, Hainan Herui's generic version — approved by China's NMPA in December — will be permitted to launch in mainland China, with Everest Medicines responsible for its commercialization. Nefecon is the company's core revenue product, generating over RMB 1.4 billion in annual sales and accounting for more than 80% of total revenue. The shift from patent litigation — where the company had previously secured a preliminary injunction from the Guangzhou IP Court — to a cooperative settlement, combined with the May approval of CSPC Pharmaceutical's competing budesonide enteric capsule, has intensified market fears that Nefecon's exclusivity premium is being eroded, pressuring the stock for a second consecutive session.

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