Taking the express train approved by Pfizer covid-19 oral drug paxlovid in China, Chengda Pharmaceutical (301201, SZ; yesterday's closing price of 107.10 yuan) has had an eye-catching recent stock price performance.
Due to the recent reply on the interactive easy platform that the company has a cooperative relationship with Pfizer, some investors believe that Chengda pharmaceutical may also become a supplier of paxlovid related intermediates. Therefore, in the pursuit of funds, the share price of this gem new stock that has not been listed for more than a month has changed, and it has closed three limit boards in a row in the last five trading days.
However, on the evening of February 20, the company announced that it had not carried out cooperation with Pfizer on paxlovid related intermediates at present.
Imagination was broken. On February 21, Chengda pharmaceutical opened sharply lower and opened at 107 yuan / share. As of the close of the day, its share price fell 8.85% to 107.10 yuan.
Pfizer's order revenue accounts for 1%
According to the prospectus, Chengda pharmaceutical is mainly committed to providing cdmo services for key pharmaceutical intermediates for multinational pharmaceutical enterprises and pharmaceutical R & D institutions, and is engaged in the R & D, production and sales of L-carnitine series products. Terminal customization customers served by the company include multinational pharmaceutical enterprises such as Incyte, Helsin, Lilly / Evonik, Gilead and GSK.
Investors speculated about this. On the interactive exchange of Shenzhen Stock Exchange, from the end of January 2022, investors often asked whether Chengda pharmaceutical provided intermediates of covid-19 drugs for Pfizer and other large international pharmaceutical companies, and asked about orders. Chengda pharmaceutical once replied that "Pfizer is the end customer of the company's products" and "the company is entrusted by Pfizer API factory to customize and develop pharmaceutical intermediates, including pf-07304814 intermediates". However, Chengda pharmaceutical did not specifically answer the relevant orders. Since then, many of the company's replies are also related to covid-19 specific drugs, and there are replies such as "the company provides pharmaceutical intermediates to GlaxoSmithKline, and there is no cooperation with covid-19 drugs at present".
On February 12, the State Food and Drug Administration conditionally approved the import registration of Pfizer's covid-19 virus treatment drug nimatovir tablets / ritonavir tablets combination package (i.e. paxlovid) for the treatment of adults with mild to moderate covid-19 pneumonia with severe high-risk factors.
Stimulated by this positive stimulus, Chengda pharmaceutical's share price rose rapidly, and the deviation from the closing price for two consecutive trading days on February 14 and February 15 was more than 30%, The company also disclosed the specific orders in the announcement of abnormal fluctuations in stock trading: "Entrusted by Pfizer API factory, Pfizer customized and developed pharmaceutical intermediate pf-07304814. The corresponding sales revenue accounted for 0.61% and 1.16% of the operating revenue from January to June in 2020 and 2021 respectively. This part of the sales revenue accounted for a small proportion of the company's operating revenue, which has not had a significant impact on the company's performance."
why is the clinical termination not disclosed?
The "20cm" limit of share price for three consecutive trading days also attracted the attention of Shenzhen Stock Exchange.
On February 17, Shenzhen Stock Exchange questioned Chengda pharmaceutical's supplier identity, product information, market competition pattern and company operation on covid-19 specific drug intermediates, and asked "whether there is any situation of actively catering to market hot spots, hyping the company's stock price and cooperating with shareholders to reduce their holdings".
On February 20, in the reply to the letter of concern from Shenzhen Stock Exchange, Chengda pharmaceutical again stressed that it had not carried out cooperation with Pfizer on paxlovid related intermediates at present, and further disclosed the orders of pf-07304814 intermediate np1105 products supplied by the company to Pfizer. The sales revenue of this product was 2.2643 million yuan and 2.258 million yuan from January to June 2020 and 2021, The proportion in operating revenue was 0.61% and 1.16% respectively. After July 2021, Chengda pharmaceutical has not received any new orders from Pfizer for this product.
In addition, another question in the attention letter of Shenzhen stock exchange is that Pfizer has terminated the global clinical development of pf-07304814 in February this year, but this important information has not been replied and disclosed by Chengda pharmaceutical in time.
Chengda pharmaceutical explained that in January 2022, the company communicated with Pfizer authorized API through the clinical progress of pf-07304814, but it did not update and feed back relevant information to the company. Until February 17, media reports showed that "in February 2022, Pfizer terminated the global clinical development plan of pf-07304814 (from Pfizer's fourth quarter and annual performance report of 2021)." The company inquired about the relevant clinical progress of Pfizer pf-07304814 through public channels, and learned that when Pfizer updated the clinical progress of the product on its official website on February 8, 2022, the status of the product was terminated.
Since the orders of Chengda pharmaceutical and Pfizer API factory have been delivered, there have been no new orders or orders in hand since July 2021, and the order contracts between the company and customers have not met the disclosure standards of major contracts specified in the rules for listing stocks on the gem of Shenzhen Stock Exchange, Therefore, the company is unable to make information disclosure obligations on Pfizer's termination of the global clinical development plan of pf-07304814.
