Shandong Xinhua Pharmaceutical, a prominent Chinese manufacturer of ibuprofen, experienced a dramatic surge in its stock prices in late 2022 when a viral dance challenge associated with their product took off on Douyin, China's equivalent of TikTok. This fleeting popularity saw the company's shares rise by over 200 percent in just two weeks, providing a temporary boost amid the ongoing Covid-19 pandemic. However, such gains proved to be short-lived as the pharmaceutical company now faces significant challenges with plummeting profits and stock prices.

As of December 2025, Shandong Xinhua's shares have dropped to approximately HK$7, down from HK$15.62 a year prior. The steep decline in profitability has been alarming, with a reported 26 percent decrease in net profit, plummeting to 256.2 million yuan (around US$37 million) for the first three quarters of 2025. Industry analysts attribute this decline to an oversupply of pharmaceuticals in the market combined with waning consumer demand for ibuprofen and other related products, painting a concerning picture for the pharmaceutical sector.

The story illustrates the volatility and uncertainty faced by companies in the pharmaceutical industry, especially those relying on fleeting social media trends to boost sales. While the initial success of the viral dance challenge generated excitement and substantial financial gains, the recent downturn serves as a reminder that such trends can be unpredictable and potentially detrimental to long-term business sustainability, highlighting the need for companies to adapt to changing market conditions.