Recently, the fund sentiment in the short-term market has significantly warmed up, and the sub IPO sector with less firm market in the early stage has performed well.
Among them, the trend of Chengda pharmaceutical is the most prominent. This week, the share price closed three “20cm” limits. Today, it rose 7.11% again in early trading, and the cumulative increase in just four days has reached 85%.
2 million volume business
leveraging 5 billion market value expansion
Market participants believe that the recent sharp rise in Chengda pharmaceutical’s share price is related to the company’s recent reply on the interactive platform about “Pfizer API”.
On February 11, Chengda pharmaceutical said in response to investors’ questions on the interactive platform: entrusted by Pfizer API factory, the company customized the research and development of pharmaceutical intermediates, including pf-07304814 intermediates. For indications of pf-07304814, please refer to relevant public reports.
Chengda pharmaceutical responded to investors’ questions about Pfizer
The reporter consulted Pfizer’s website and found some public reports on pf-07304814. Pfizer said that pf-07304814 is an intravenous protease inhibitor for covid-19.
First, in Pfizer’s third quarter performance report for 2021 released last November, Pfizer mentioned that as part of the National Institutes of Health (NIH) accelerated covid-19 treatment intervention and vaccine (activ) – 3 program, the National Institute of allergy and infectious diseases is conducting a clinical trial to evaluate the efficacy of pf-07304814 in covid-19 hospitalized adults. The trial began in September 2021, and the first participants in the clinical trial are now taking pf-07304814 or placebo.
However, in Pfizer’s subsequent disclosure of the fourth quarter and full year performance report of 2021, the company updated the research progress of pf-07304814.
Pfizer said that in February 2022, Pfizer terminated the global clinical development plan of pf-07304814. The decision was based on full information, including a careful review of early data and a comprehensive assessment of the candidate’s potential to successfully meet the needs of patients. The administration of pf-07304814 has been stopped in the ongoing activ-3 study of the National Institutes of Health (NIH).
From Pfizer’s fourth quarter and full year performance report in 2021
Regardless of Pfizer’s development progress on pf-07304814, Chengda pharmaceutical’s reply on the interactive platform gives the market imagination. Boosted by the news, Chengda pharmaceutical’s share price rose by 20% in the first three trading days of this week. In early trading today, the share price continued to rise by 7.11%, with a cumulative increase of 85.09% this week, and the market value expanded by about 5.2 billion yuan.
Chengda pharmaceutical further explained the business volume of the company pf-07304814 in the announcement on abnormal fluctuation of stock trading disclosed on February 15.
Chengda pharmaceutical said: the company is mainly committed to providing cdmo services for key pharmaceutical intermediates for multinational pharmaceutical enterprises and pharmaceutical R & D institutions. Entrusted by Pfizer API factory, the company customized the research and development of pharmaceutical intermediates pf-07304814. The corresponding sales revenue accounted for 0.61% and 1.16% of operating revenue from January to June in 2020 and 2021 respectively, This part of the sales revenue accounts for a small proportion of the company’s operating revenue, which has not had a significant impact on the company’s performance.
From Chengda pharmaceutical’s announcement on abnormal fluctuation of stock trading on February 15
Statistics show that the annual operating revenue of Chengda pharmaceutical in 2020 was 373 million yuan. Calculated at the proportion of 0.61%, the sales revenue generated by pf-07304814 in that year was about 2.28 million yuan.
covid-19 treatment concept heat does not decrease
The sharp rise in the share price of Chengda pharmaceutical shows the great popularity of covid-19 treatment concept in the A-share market. Prior to this, Aba Chemicals Corporation(300261) also promoted the company’s share price to rise by more than 200% in a month because of the carlon anhydride product with a volume of 27 million yuan.
Aba Chemicals Corporation(300261) publicly stated in early January 2022 that according to the research results published in science magazine and the contents of the report published by a securities firm, carbonic anhydride and its derivatives can be used to synthesize Pfizer covid-19 oral drug palovide from the process flow.
But Aba Chemicals Corporation(300261) also admitted in the subsequent announcement that the company’s sales revenue of carbonic anhydride and its derivatives in 2021 was 27.073 million yuan, accounting for about 1% – 2% of the company’s total operating revenue in 2021. As of the announcement date, the company has no business contact and cooperation with Pfizer, has not signed a cooperation agreement with Pfizer, and has not supplied Pfizer with carbonic anhydride products. Pfizer has not provided the company with any quality standards for the procurement of covid-19 oral front-end raw materials. The company cannot determine whether the produced carbonic anhydride products meet the needs of Pfizer products.
Zhongtai Securities Co.Ltd(600918) analyst Zhu Jiaqi said that since the outbreak of covid-19, seeking effective drug treatment has always been a priority. Compared with macromolecular drugs (such as neutralizing antibody drugs), small molecular oral drugs have the advantages of direct antiviral effect, low production cost and medication cost, easy storage and transportation conditions, convenient administration and good patient adaptability. Oral covid-19 drugs are expected to become a more convenient choice for the treatment of covid-19 pneumonia in the future. It is suggested to pay attention to companies with covid-19 therapeutic drug R & D potential and enterprises with other advanced therapies and drugs, and pay attention to the cdmo industrial chain of relevant drugs.
