Original title: Jiu’an Medical received over 8 billion yuan in US kits, and the company responded to normal production in Tianjin
On January 14, Jiu’an Medical (002432.SZ) issued a major contract announcement for daily operations, saying that the US subsidiary iHealth Labs has cooperated with the US ACC on behalf of the US Department of Health and Human Services (HHS) on the iHealth new crown antigen home self-test OTC kit. The product purchase contract was signed and entered into force. The contract value is about 8.1 billion yuan, which has exceeded 50% (1 billion yuan) of the company’s main audit business revenue in 2020.
After the news was announced, the share price of Jiu’an Medical opened at the daily limit on Friday. Since November last year, the share price of Jiu’an Medical has soared from 6 yuan to the current 75.28 yuan, an increase of more than 10 times.
According to the contract, the American subsidiary of Jiu’an Medical will provide 250 million iHealth kits for people, and the buyer will inspect the kits after they arrive and pay after the delivery is completed. The seller delivered 25 million copies on the 10th day after the signing of the contract, 100 million copies on the 30th day, and completed all deliveries within 60 days.
However, the contract specifically reminds the risk of the epidemic, saying that the implementation of the contract is affected by factors such as local epidemic changes, policy changes, changes in the company’s supply chain capabilities, logistics and transportation risks, and unpredictable or force majeure. There may be risks that the contract cannot be performed as scheduled or in full .
Jiu’an Medical is a Tianjin company, and its production plant is also in Tianjin. At present, Tianjin has been severely affected by the epidemic, and two rounds of nucleic acid testing have been carried out for all employees. In the second round of nucleic acid testing, another 44 cases were screened positive for the new crown.
A reporter from China Business News called Jiu’an Medical, and a spokesperson of the company’s external department responded exclusively to a reporter from the First Financial and Economic Affairs: “The production of our factory has not been affected. After the nucleic acid test was negative, we continued to operate and everything was operating normally.”
She also said that the contract involves the US subsidiary of Jiu’an Medical, but the production is carried out in Tianjin. “At present, our company produces this kit product.” She told the First Financial reporter, “This product has been approved by the FDA for emergency authorization in the United States.”
The United States is dealing with the severe impact of the Omicron variant. The number of new cases in the past 24 hours has once again exceeded one million, and the supply of home kits is in short supply.
White House spokeswoman Jen Psaki said on Thursday that the Biden administration has procured the first batch of about 380 million test kits for the new crown, which it plans to provide to Americans. The White House also said it plans to double the total number of test kits distributed across the country to a total of 1 billion.
HHS has announced that starting Jan. 15, health insurers must pay for up to eight home COVID-19 tests per insured person per month. Most consumers with private health insurance can purchase home kits online or in stores and claim reimbursement from their insurance.
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