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Universe Pharmaceuticals Inc (NASDAQ: UPC) is a pharmaceutical producer and distributor headquartered in Ji’an, Jiangxi, China. Since its founding in 2013, the company has specialized in traditional Chinese medicine derivatives aimed at addressing age-related health conditions. Its product portfolio also includes biomedical drugs, medical instruments, Chinese medicine pieces, and dietary supplements manufactured by third parties. Universe Pharmaceuticals’ offerings reach patients in 30 provinces across China.
Corporate Structure
With a workforce of 11–50 employees, Universe Pharmaceuticals operates as a small organization. The company emphasizes precision manufacturing and collaborative research and development. Its management team combines expertise in pharmaceutical production, traditional Chinese medicine, and distribution logistics to support both innovation and market expansion.
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Recent Developments
On March 20, 2025, Universe Pharmaceuticals announced a share consolidation plan to combine every 40 ordinary shares (par value US$0.28125) into one ordinary share (par value US$11.25). The consolidation will take effect at the opening of trading on March 24, 2025, on the Nasdaq Capital Market under the same ticker “UPC” but with a new CUSIP number. No fractional shares will be issued; fractional interests will be rounded up to whole shares.
On that day, UPC shares closed at US$6.34—up 52.77%—on a volume of 505,792 shares, compared with a 10-day average of approximately 150,000. The stock’s 52-week trading range spans US$2.51 (April 3, 2025) to US$600.00 (October 16, 2024).
Financial and Strategic Analysis
As of mid-March 2025, Universe Pharmaceuticals reported:
- Market capitalization: US$3.57 million
- Shares outstanding: 563,300
- Trailing twelve-month revenue: US$19.29 million
- Gross margin (TTM): 30.41%
- Net margin (TTM): 5.65%
- Return on equity (TTM): 2.66%
- Debt-to-equity (most recent quarter): 14.01%
- EBITDA (TTM): –US$8.10 million
- Year-to-date share price change: –77.09%
The share consolidation is intended to reduce the number of shares outstanding, potentially improving liquidity and aligning with Nasdaq minimum bid-price requirements. Post-consolidation, the company’s authorized capital will be US$140.625 million, divided into 11.25 million ordinary shares and 1.25 million preferred shares (both par value US$11.25).
Market Position and Industry Context
Universe Pharmaceuticals operates within China’s large and growing market for age-focused healthcare products. Its specialization in traditional Chinese medicine derivatives distinguishes it from firms primarily focused on Western-style pharmaceuticals. By distributing both in-house products and third-party biomedical offerings, the company leverages a broad network spanning 30 provinces. As China's population continues to age, the demand for targeted therapies and wellness supplements is expected to grow, positioning Universe Pharmaceuticals to address emerging market needs.
tl;dr
On March 20, 2025, Universe Pharmaceuticals announced a 40-for-1 share consolidation effective March 24, 2025, intended to improve liquidity and satisfy Nasdaq listing criteria. Shares increased by 52.77% to US$6.34 on significant volume. Post-consolidation, authorized capital will total US$140.625 million, trading under the existing “UPC” symbol with a new CUSIP number. This adjustment aims to streamline the share structure ahead of anticipated investor interest in the company’s age-related product offerings.
