As a number of antiviral drugs were written into the latest version of covid-19 diagnosis and treatment plan, the listed companies involved in the production and sales of these drugs received great attention from investors. As of the closing on March 16, relevant stocks rose.
It is worth noting that stocks involved in the production of covid-19 pharmaceutical raw materials are also popular with investors. Although some of the drugs involved have not yet been sold in the Chinese mainland market, they are still hard to resist investors’ enthusiasm. Industry insiders reminded that covid-19 drug marketization is related to epidemic prevention policies and measures, and the specific sales prospect has not been fully clear. We should be vigilant against blind follow-up speculation.
covid-19 drug concept stocks soared
Affected by the favorable factors of the diagnosis and treatment plan, the share prices of the relevant production and sales listed companies involved in the drugs included in the plan rose to varying degrees.
According to the official website of the National Drug Administration (nmpa), Pfizer covid-19 virus treatment drug paxlovid (palovid) has conducted emergency review and approval in accordance with the special drug approval procedures, and approved the import registration conditionally on February 11.
Pfizer said in China that PAXLOVID is a small molecule COVID-19 virus treatment for small to moderate New Coronavirus pneumonia (COVID-19) patients with severe risk factors, such as elderly, chronic kidney disease, diabetes, cardiovascular disease and chronic lung disease.
As an enterprise with the right to sell paxlovid in mainland China in 2022, China Meheco Group Co.Ltd(600056) ( China Meheco Group Co.Ltd(600056) . SH) rose again on March 16 to close at 27.49 yuan / share, approaching the historical high (27.82 yuan / share). Eight trading limits were recorded in the last 11 trading days, with a cumulative increase of 147.66%.
Ritonavir is one of the components of paxlovid. The original manufacturer of ritonavir is Alberta, the United States. Geley pharmaceutical-b (01672. HK), a Hong Kong listed company, claims that it uses high-end preparation technology to significantly improve the bioavailability of insoluble ritonavir in human body, so as to achieve bioequivalence with the original drug in human body. In September 2021, gelly pharmaceutical ritonavir was approved to be listed in China.
On January 3, 2022, gelly pharmaceutical announced that the annual production capacity of oral ritonavir tablets has been expanded to 100 million tablets, which can be further expanded rapidly according to the market demand in the future. On March 13, geley pharmaceutical continued to announce its production plan and further expanded the annual production capacity of ritonavir oral tablets to about 530 million tablets to meet the growing potential demand in China and the world. The company has taken a number of measures to expand the annual production capacity of ritonavir, including adding key equipment to the production base of its wholly-owned subsidiary Geli Pharmaceutical (Zhejiang) Co., Ltd.
Perhaps stimulated by the covid-19 treatment plan, it opened on March 16. As of 9:20, Geli pharmaceutical rose 10.03%, quoted HK $3.84, and the transaction volume was 721900. Since then, it has risen rapidly, with the largest increase of more than 26%. As of the close of the day, Geli pharmaceutical closed at HK $4.280, up HK $0.790, or 22.64%.
In addition, the ambacizumab / romisizumab combination therapy written into the diagnosis and treatment plan is the product of tengshengbo drug-b (02137. HK), which was approved by the State Drug Administration (nmpa) on December 8, 2021, Adults and adolescents (12-17 years of age, weight over 40kg) with New Coronavirus infection (COVID-19) were treated for light and general and with high risk factors (including hospitalization or death). Among them, adolescents (12-17 years old, weight ≥ 40kg) with indications are subject to conditional approval.
At the opening of trading on March 16, tengshengbo pharmaceutical also ushered in a rise. At the beginning of trading, it soared by 36% to HK $11.4. As of the close of the day, tengshengbo pharmaceutical closed at HK $10.140, up HK $1.760, or 21.00%.
Led by Geli pharmaceutical and tengshengbo pharmaceutical, covid-19 specific drug concept stocks in the Hong Kong stock market opened higher. As of the closing on March 16, kaifa-b (09939. HK) closed at HK $9.870, up HK $1.07 or 12.16% Shanghai Junshi Biosciences Co.Ltd(688180) (01877. HK) closed at HK $50.300, up HK $2 or 4.14%; Xiansheng Pharmaceutical (02096. HK) closed at HK $8.970, up HK $0.82, or 10.06%.
Prior to this, the performance of relevant stocks in the Hong Kong stock market was “unsatisfactory”, while Geli pharmaceutical and tengshengbo pharmaceutical-b continued to fluctuate and fall. In terms of tengshengbo pharmaceutical, since the company’s application for registration of neutralizing antibody combination therapy drugs was approved in an emergency on December 8, 2021, the company’s share price has halved, from the highest HK $48 to less than HK $23 in mid January 2022. From January to March this year, the share price of tengshengbo pharmaceutical continued to fluctuate and fall to about 8.3 yuan on March 15. Fortunately, it reversed on March 16.
covid-19 pharmaceutical raw materials stocks were hot fried
Recently, the epidemic situation in Guangdong, Shanghai, Jilin, Zhejiang and other places has suddenly risen. The “cold spring” of the epidemic situation is quite unexpected, while there have been changes in individual stocks involved in covid-19 pharmaceutical industry chain raw materials or pharmaceutical intermediates (some chemical raw materials or chemical products used in the process of pharmaceutical synthesis, the author’s note) in the capital market, There are also many investors who lack calmness.
Ningbo Menovo Pharmaceutical Co.Ltd(603538) ( Ningbo Menovo Pharmaceutical Co.Ltd(603538) . SH), which is also a manufacturer of characteristic APIs, has gained six price limits in nearly seven trading days. According to wind data, Ningbo Menovo Pharmaceutical Co.Ltd(603538) ‘s share price rose from 31.07 yuan on March 1 to 59.83 yuan on March 16.
From a fundamental point of view, Ningbo Menovo Pharmaceutical Co.Ltd(603538) is a pharmaceutical manufacturing enterprise specializing in the R & D, production and sales of characteristic APIs and finished drugs. According to the self-examination of the company, its current production and operation are normal, and there are no significant changes in its internal and external business environment and main business, and there are no other major information that should be disclosed but not disclosed.
The third quarter report of 2021 shows that from January to September 2021, the company achieved a revenue of 919 million yuan, a year-on-year decrease of 3.18%; The net profit attributable to the shareholders of the listed company was 135 million yuan, a year-on-year decrease of 4.04%.
Recently, the Ningbo Menovo Pharmaceutical Co.Ltd(603538) share price was piled up by market investors under the rumor of producing covid-19 pharmaceutical intermediate. Previously, Ningbo Menovo Pharmaceutical Co.Ltd(603538) announced that the company’s shares rose the limit for six consecutive trading days on March 4, March 7, March 8, March 9, March 10 and March 11, with the cumulative deviation of the closing price by more than 20%, and the short-term increase was higher than that of the same industry and the Shanghai stock index.
Earlier, on March 9, Ningbo Menovo Pharmaceutical Co.Ltd(603538) announcement responded to media reports, market rumors and hot concepts, saying that recently, investors were concerned about “whether the company involves SM1, SM2, T17 and pf-07321332 related intermediate products”. After verification, the company has realized commercial production of intermediate products SM1 and SM2, but the revenue accounts for a relatively small proportion, It does not have a significant impact on the company’s performance. “At present, the orders undertaken by the company do not involve T17 and pf-07321332. The company is promoting the application for international MPP authorization, but it has not obtained relevant authorization as of the submission date of the announcement, and there is still great uncertainty about whether it can obtain authorization in the future.”
Closing on March 10, Ningbo Menovo Pharmaceutical Co.Ltd(603538) closed at 44.07 yuan, up 10.01%, and has been trading for three consecutive days; On March 11, the limit continued to rise to close at 48.48 yuan; On March 14, Ningbo Menovo Pharmaceutical Co.Ltd(603538) intraday limit rose to 53.33 yuan.
It’s not over yet. On March 15, Ningbo Menovo Pharmaceutical Co.Ltd(603538) announced that the holding subsidiary Xuancheng Ningbo Menovo Pharmaceutical Co.Ltd(603538) Pharmaceutical Co., Ltd. received the filing form of “new project with an annual output of 60 tons of anti covid-19 drug nimatovir API and its key intermediates” issued by the Management Committee of Xuancheng high tech Zone.
Covid-19 drug nematevir is related to Pfizer. On February 11, 2022, the State Food and Drug Administration approved Pfizer’s covid-19 virus treatment drug nimatovir tablets / ritonavir tablets combination packaging (i.e. paxlovid) import registration with conditions. In the above announcement of Ningbo Menovo Pharmaceutical Co.Ltd(603538) , the words of Pfizer were not seen.
Ningbo Menovo Pharmaceutical Co.Ltd(603538) said that the company’s nematevir (API) is currently in the stage of laboratory research and development, and the subsequent production process verification on a pilot scale still needs to be carried out. There may be risks such as failure of process research and development and failure of registration and declaration, and there is uncertainty whether it can realize commercial production.
“The project has only completed the filing, but also needs to go through the approval procedures of planning, land, environmental protection, safety, energy assessment and fire protection according to law, and the construction can be started only after the relevant requirements are strictly implemented. There are risks such as not being approved by the relevant government departments, but taking a long time.” Ningbo Menovo Pharmaceutical Co.Ltd(603538) said that at present, it is still in the preparatory stage, and there is uncertainty risk in energy saving such as equipment installation, commissioning and trial production.
Even so, on March 16, Ningbo Menovo Pharmaceutical Co.Ltd(603538) share price continued to soar, rising by 4.83 yuan or 8.78% as of the closing, and the total market value of the company reached 7.237 billion yuan.
More than two years after the outbreak, the logic of covid-19 drug sector has been recognized by the market, but insiders remind that while the concept stocks are rising, we need to be vigilant against the speculation of “pseudo covid-19 drug” concept stocks.
share price rises but no orders
A covid-19 drug concept stock investor told reporters that China Meheco Group Co.Ltd(600056) may be the “biggest winner” in the current market, because the share price of this stock has doubled since early March, while covid-19 drug orders have disappeared.
This is not the first change in China Meheco Group Co.Ltd(600056) share price. From the news of cooperation with Pfizer spread in the market to the confirmation of China Meheco Group Co.Ltd(600056) announcement, the stock has walked out of a wave of curve rising path for half a month since the beginning of March.
In March, China Meheco Group Co.Ltd(600056) share price changed. The daily closing price of the stock deviated from the value by more than 20% in three consecutive trading days on March 1, 2 and 3, and the share price fluctuated greatly. According to the query of wind system, as of the closing on March 3, China Meheco Group Co.Ltd(600056) dynamic P / E ratio was 12.88 times.
On March 5, China Meheco Group Co.Ltd(600056) released the risk warning announcement of relevant rumors. The company was concerned about the recent rumors about the cooperation between the company and a multinational pharmaceutical company covid-19 virus treatment drugs in the market. At present, the relevant matters are under communication and negotiation, but there are still uncertainties about the specific terms of the agreement and whether it can be successfully signed. Although it is a risk warning, China Meheco Group Co.Ltd(600056) has admitted in the announcement that “communication and negotiation are under way.”
Even so, it still can’t stop the enthusiasm of investors China Meheco Group Co.Ltd(600056) said that the company’s shares had risen for four consecutive trading days from March 2 to March 7. In March 9th, China Meheco Group Co.Ltd(600056) announced that it would sign an agreement with Pfizer Inc on the same day and will be responsible for the commercial operation of Pfizer Inc COVID-19 virus treatment PAXLOVID in Chinese mainland market in the grandpa’s agreement (2022).
China Meheco Group Co.Ltd(600056) main businesses include pharmaceutical industry, pharmaceutical commerce and international trade. The performance of 2021 is expected to decrease. The latest performance forecast shows that the net profit attributable to shareholders of Listed Companies in 2021 is 300 million yuan to 700 million yuan, a decrease of 77% to 47% compared with the same period of last year; The deducted non net profit attributable to shareholders of listed companies was 250 million yuan to 650 million yuan, a decrease of 79% to 45% compared with the same period of last year.
Even so, on March 15, China Meheco Group Co.Ltd(600056) bucked the trend and rose 8.56% to close at 24.99 yuan, with a turnover rate of 25.24%. After hours data showed that today, the two institutions bought 282 million yuan in total, and the Shanghai Stock connect bought 102 million yuan and sold 60.87 million yuan.
“The final use and sales of products are affected by epidemic prevention and control and other factors, there is great uncertainty, and it is expected that the relevant business scale accounts for a small proportion of the company’s overall business volume, which has no significant impact on the company’s recent operating performance.” China Meheco Group Co.Ltd(600056) previously said.
Recently, however, China Meheco Group Co.Ltd(600056) seems to be a hot target in the capital market. After the announcement of the above cooperation agreement with Pfizer on March 9, the share price of China Meheco Group Co.Ltd(600056) continued to rise for several consecutive days. From the beginning of March to the present, the China Meheco Group Co.Ltd(600056) share price has increased significantly. On March 15, China Meheco Group Co.Ltd(600056) said that the company’s shares had risen by the limit seven times in the 10 trading days from March 2 to March 15, with a cumulative increase of 125.14%, and had touched the abnormal fluctuation of stock trading for the fourth time.
Although the distribution rights of Chinese mainland have been obtained in 2022, there is no further news about the listing of PAXLOVID in mainland China, but there is supply in Hongkong market. According to the communique of the government of the Hong Kong Special Administrative Region on March 15, the first batch of covid-19 oral antiviral drug paxlovid arrived in Hong Kong on March 14 and was sent to the hospital authority on March 15. However, this obviously has nothing to do with the agreed scope of supply of China Meheco Group Co.Ltd(600056) established. “We are only responsible for the mainland market, excluding Hong Kong, Macao and Taiwan.” China Meheco Group Co.Ltd(600056) board secretary office said that it is unclear whether there are specific sales orders in the mainland market.
First financial reporter tried to understand Pfizer China’s capacity and sales and price information in Chinese mainland. On March 16, Pfizer China responded to reporters that “there is no further information about this drug at present.”
