Economic Observer Network reporter Zhang Xiaohui In just 13 trading days, the daily limit has reached 10. China Medical and Health Industry Co., Ltd. (600056.SH, hereinafter referred to as “China Medicine”) has become one of the listed companies with the highest increase in A-shares since March. The stock price rose from 11 yuan on March 1 to the close on March 18. 33.26 yuan, an increase of more than 200%, and the market value exceeded 35 billion yuan.
From the perspective of the market, all this is because Sinopharm has obtained the right to operate Pfizer’s new crown drug PAXLOVID™ in mainland China.
crazy rise
On the evening of March 18, 2022, Sinopharm issued the fifth “Announcement on Abnormal Fluctuations in Stock Transactions”, stating that from March 2, 2022 to March 18, 2022, the company’s stock has reached the daily limit 10 times in 13 trading days. , the stock price has risen by nearly 200%, and has touched the abnormal fluctuation of stock trading for the fifth time.
Sinopharm reminds investors to pay attention to transaction risks: the company’s price-earnings ratio (TTM) is 39.13, which is significantly higher than the price-earnings ratio of the same industry (median value is 15.32). The company’s recent stock price increase may have exceeded the impact of related matters on the company’s performance, and there may be irrational investment situations. Investors are advised to pay attention to investment risks, make rational decisions, and invest prudently.
On March 18, China Pharmaceutical achieved its 10th daily limit. The stock price rose by 9.99% on that day, and the daily limit was 33.26 yuan, which has become the highest share price in the history of Chinese medicine.
Chinese medicine is being sought after by various funds.
According to the data of the Dragon Tiger List, on March 15, the top five buying seats of Sinopharm were: Institution-only, Institution-only, Shanghai Stock Connect-only, Orient Fortune Securities Lhasa East Ring Road Second Business Department and First Business Department . The total purchase amount exceeded RMB 550 million.
On March 18, the most recent daily limit day, the top five buying seats were: CITIC Securities Xi’an Zhuque Street Sales Department, Guotai Junan Hangzhou Wuxing Road Sales Department, Shanghai Stock Connect Special, Orient Fortune Securities Lhasa East Ring Road No. 2 Sales Department and First Sales Department. The total purchase amount was RMB 1.06 billion.
Represented Pfizer’s new crown drug PAXLOVID™
On March 9, 2022, Sinopharm signed an agreement with Pfizer, and Sinopharm will be responsible for the commercial operation of Pfizer’s new coronavirus treatment drug PAXLOVID™ in the Chinese mainland market during the agreement period (2022).
On February 11, 2022, the State Drug Administration approved the import registration of this product with conditions. This product is a prescription drug. On the evening of March 15, the National Health and Health Commission released the “New Coronavirus Pneumonia Diagnosis and Treatment Program (Trial Version 9)”.
Sinopharm stated that if the product is included in the national medical insurance, the sales price may be affected, and the final use and sales of the product will be affected by factors such as epidemic prevention and control. The proportion of business volume is small and has no significant impact on the company’s recent operating performance.
On the evening of March 17, China National Medicines completed the first batch of import customs clearance procedures for this product, and is fully cooperating with the country to do a good job in the fight against the new crown epidemic.
In November 2020, Pfizer announced the final data of its new crown drug Phase III clinical trial, with an effective rate of 95% and a 94% effective rate for people over 65 years old. Pfizer’s new crown oral drug PAXLOVID™ compound antiviral drug consists of two parts, Nirmatrelvir (Nimatvir, PF-07321332) and Ritonavir (ritonavir), which can play a 1+1>2 effect.
According to public media reports, the real active ingredient of PAXLOVID™ is Nirmatrelvir, which is a 3CL protease inhibitor of the new coronavirus, and Ritonavir’s role here is to maintain the blood concentration of Nirmatrelvir. Each time the medicine is 2 tablets of 150mg Nirmatrelvir + 1 tablet of 100mg Ritonavir, twice a day for 5 days, this is a complete course of treatment.
Currently, the amount of PAXLOVID™ that Pfizer has supplied to Sinopharm is not known, and Sinopharm has not disclosed this information.
Investor discussion
Due to the skyrocketing share price, Chinese medicine has become the focus of the market.
On the SSE e-interaction, investors flocked to ask various questions:
“There are funds that have started to raise the stock price since March 2. On March 4, the company announced that it had contacted foreign companies. On March 10, it announced the signing of an agreement. How did the funds that entered the market on March 2 get the news?”
“Does the commercial operation mentioned in the cooperation agreement signed by your company and Pfizer include the overall commercial promotion and operation of the new crown drug and the commercial operation or related intentions of the later-stage generic drug product chain?”
“What is the scope of the operation rights of Pfizer’s new crown special medicine, and does it include China’s Hong Kong, Macao and Taiwan regions?”
Some investors suggested: “As a state-owned enterprise, the company hopes that the company will first consider its social responsibility, and on the premise of retaining a reasonable profit, try to reduce the price when the government collects it, so as to benefit the country and the society.”
As of the deadline of the reporter of Economic Observer.com, Sinopharm has not yet responded to the questions of these investors.
On the official website of China Medicines, the news of the signing of a cooperation agreement with Pfizer for the new coronavirus treatment drug PAXLOVID™ was placed on the homepage, and more details of the cooperation were also announced.
“We are very honored to cooperate with China Pharmaceuticals, support the Chinese government and people, and actively respond to this public health crisis.” Pfizer Biopharmaceutical Group President Peng Zhenke said, “Pfizer will firmly support China in responding to existing and future potential challenges. To meet the medical and health challenges, and help the realization of the grand vision of ‘Healthy China 2030’.”
Li Yadong, chairman of Sinopharm, said when signing the agreement that this time, “jointly fighting the epidemic” with Pfizer, both parties will rely on their respective resource advantages to fully promote the introduction of new crown oral treatment drugs in China, so that Chinese patients can share the original research results with the world. We also hope to take this cooperation as an opportunity to explore multi-field and multi-angle cooperation with excellent global pharmaceutical companies, and work together to protect the future of human health and a better future!
With China’s fight against the new crown pneumonia epidemic, Chinese medicine will continue to be the focus of market attention for some time to come.Return to Sohu, see more
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