SHANGHAI - Zhongchao Inc. (NASDAQ: ZCMD), a technology company specializing in internet-based services for patients with cancer and other major diseases, has reported the provision of medication assistance to over 7,000 low-income patients affected by Systemic Lupus Erythematosus (SLE). The company's subsidiary, Shanghai Zhongxin Medical Technology Co., Ltd., has been instrumental in offering free Titazepam and Belimumab, drugs used in the treatment of SLE, to those qualified under its patient aid projects.
The initiative leverages Zhongxin's technical service platform to connect hospitals, pharmacies, corporations, and non-profit organizations. This collaboration has enabled the distribution of around 130,000 units of medication, easing the financial burden associated with the long-term treatment of SLE, a chronic inflammatory autoimmune disease that can damage multiple organs.
In China, where the estimated number of SLE patients reached 1 million in 2020, the disease represents a significant economic and social challenge.
A study published in the Medical Journal of Peking Union Medical College Hospital in March 2022 highlighted the high costs of healthcare for SLE patients, with monthly expenses ranging from RMB 1,000 to RMB 5,000, nearly 60% of which are for medications. Furthermore, about half of Chinese SLE patients are unemployed, and over 90% find their treatments financially burdensome.
Zhongchao's Chairman and CEO, Mr. Weiguang Yang, expressed pride in the company's medication assistance initiative, emphasizing their commitment to supporting patients with cancer and other major diseases. He stated the company's intention to continue innovating and enhancing their service platform to improve treatment efficiency and alleviate challenges for patients.
Zhongchao Inc., based in the Cayman Islands, consolidates the financial results of its variable interest entity in China and its subsidiaries through contractual arrangements. The company provides a range of online healthcare information, professional training, and patient management services under various platforms.
This article is based on a press release statement from Zhongchao Inc.
InvestingPro Insights
Zhongchao Inc. (NASDAQ: ZCMD), while extending a helping hand to thousands of SLE patients through its medication assistance program, also presents a mixed financial picture. The company holds a market capitalization of approximately $4.59 million USD, reflecting its small-cap status in the investment community. Despite challenging market conditions, Zhongchao has managed to maintain revenue growth, with a notable increase of 15.06% in the last twelve months as of Q2 2023. This growth is further underscored by an even more impressive quarterly revenue growth of 42.23% in Q2 2023.
From an investment standpoint, the company's stock has been trading at a low Price / Book multiple of 0.19 as of the last twelve months ending Q2 2023, potentially indicating an undervaluation relative to the company's assets. However, the stock has experienced significant price declines, with a one-month total return of -47.48% and a six-month total return of -83.48%, highlighting the high volatility and potential risk for investors.
An InvestingPro Tip worth noting is that Zhongchao has more cash than debt on its balance sheet, which can be a sign of financial stability in uncertain economic times. Additionally, the company's liquid assets exceed its short-term obligations, suggesting a strong short-term financial position. For those considering an investment in Zhongchao, it's important to weigh these aspects against the backdrop of the stock's recent performance and the company's negative earnings per share (EPS) of -2.98 USD.
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