Dizhe Pharma (also known as Dizhe Pharmaceutical) saw its share price tumble more than 5% on Thursday, September 4th, following a disclosure that four senior executives plan to reduce their holdings in the company.

The announcement came after market close on September 3rd, revealing that Chairman and CEO Dr. Zhang Xiaolin, Deputy General Manager and Chief Medical Officer Dr. Yang Zhenfan, Deputy General Manager and Chief Business Officer Wu Qingyi, and Deputy General Manager Zhang Zhiwei intend to sell shares between September 29th and December 28th, 2026. The combined reduction would not exceed 0.78% of the company's total share capital, with individual plans capping at approximately 2.2585 million, 925,500, 426,100, and 10,000 shares, respectively.

All four executives took home annual pre-tax compensation of no less than 2 million yuan in 2025, according to the company's annual report. Their respective salaries were 7.9283 million yuan for Zhang Xiaolin, 4.861 million yuan for Yang Zhenfan, 5.9469 million yuan for Wu Qingyi, and 2.0237 million yuan for Zhang Zhiwei.

Notably, three of these executives had already executed a similar sell-down in 2025. Zhang Xiaolin disposed of 1.827 million shares, Yang Zhenfan sold 1.154 million shares, and Wu Qingyi offloaded 302,054 shares, collectively cashing out at least 91.35 million yuan, 75.55 million yuan, and 17.82 million yuan, respectively.

On the first trading day after the plan was published, Dizhe Pharma's stock fell 5.01% to close at 57.01 yuan, with an intraday drop of over 6% at one point. The company's market capitalization now stands at approximately 26.55 billion yuan. If all four executives were to sell their maximum allowable shares at the current price, combined proceeds would exceed 200 million yuan.

The share price decline comes despite a series of positive voluntary disclosures made by the company since August. These included the presentation of new clinical data for its lung cancer drug Sunvozertinib at the 2026 World Conference on Lung Cancer in Seoul, the acceptance of a supplemental new drug application for the drug by the U.S. Food and Drug Administration, and the formal effectiveness of a licensing agreement with AstraZeneca on August 31st.

The AstraZeneca deal is particularly significant. Under the agreement, Dizhe Pharma will receive a one-time, non-refundable upfront payment of $600 million, plus up to $400 million in clinical development milestones and up to $500 million in sales milestones. Additionally, the company will earn tiered royalties on global sales of Sunvozertinib ranging from high single digits to low double digits.

In response to market concerns, Dizhe Pharma stated, "The company understands market and investor concerns. This reduction plan is an independent arrangement by certain directors and senior executives based on personal funding needs. The reduction amount and disclosure strictly comply with relevant laws and regulations."

The company further emphasized, "This reduction does not involve strategic adjustments at the company level, nor does it represent management's assessment of the company's operating conditions, intrinsic value, or future development prospects. We firmly believe that the long-term trend of listed company share prices fundamentally depends on fundamentals and operating performance."

Dizhe Pharma highlighted its ongoing progress, noting that the global clinical development and commercialization of Sunvozertinib is accelerating. The company pointed to the effective AstraZeneca agreement, regulatory acceptance of the supplemental application in both China and the U.S., and the smooth advancement of its pipeline candidates Birutinib and DZD6008 for hematological tumors and lung cancer indications.

Addressing concerns about management stability, the company confirmed that all executives involved in the reduction plan will continue in their current roles. "The recent board and management transition has been completed, and the management team remains stable. This reduction plan will not affect day-to-day operations or strategic implementation."

Dizhe Pharma, which listed on Shanghai's STAR Market in December 2021, is an innovative biopharmaceutical company focused on developing and commercializing novel therapies for oncology and hematological diseases. The company remains loss-making, with reported deficits of roughly 670 million yuan, 736 million yuan, 1.108 billion yuan, 846 million yuan, and 764 million yuan from 2021 to 2025.

In the first half of 2026, revenue grew 47.24% year-on-year to 523 million yuan, driven by expanding market share for its two products Shuwuzhe and Gaoruizhe under favorable national medical insurance policies. However, the company still posted a net loss of approximately 210 million yuan for the period.

The company recently re-filed its application with the Hong Kong Stock Exchange on August 27th to issue H shares and list on the main board, a move aimed at broadening its capital base.