In the morning trading on January 21, the Shanghai and Shenzhen stock indexes fluctuated and fell, and the covid-19 pneumonia detection sector once staged a falling limit tide.
As of midday closing, the pharmaceutical and biological index fell 2.92%, the “king of demon king” Andon Health Co.Ltd(002432) fell by the limit, and the “northeast medicine grass” Changchun High And New Technology Industries (Group) Inc(000661) fell by the limit for three consecutive days. On the other hand, Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) , Brightgene Bio-Medical Technology Co.Ltd(688166) performed strongly, boosted by the news that it was authorized to copy MSD covid-19 oral drug.
“king of demon king” and “northeast medicine grass” both fell by the limit
In early trading on January 21, the main A-share index fell. As of midday closing, the Shanghai index fell 0.84%, the Shenzhen Component Index fell 1.13% and the gem index fell 1.18%.
In terms of industry sector, among the Shenwan level industry indexes, only five indexes such as food and beverage, commerce and retail rose, while other indexes fell, with medicine and biology, national defense and military industry, agriculture, forestry, animal husbandry and fishery leading the decline.
The pharmaceutical and biological index fell 2.92%, ranking first in the decline list, and several closely watched pharmaceutical star stocks also showed weakness.
The Changchun High And New Technology Industries (Group) Inc(000661) known as “northeast medicine Mao” fell by the limit for the third consecutive trading day. As of noon closing, its share price was reported at 184.36 yuan, with the latest market value of 74.6 billion yuan.
Changchun High And New Technology Industries (Group) Inc(000661) it was announced at noon that based on the good trend of the company’s development and sufficient confidence in the future development, out of the rational judgment of the company’s valuation and in order to further strengthen the awareness of market value management, nine directors and supervisors, including Chairman Ma Ji and general manager Jiang Yuntao, increased their holdings of 84700 shares on January 21, with an average price of 184.36 yuan / share.
In addition, yesterday’s limit of Andon Health Co.Ltd(002432) fell this morning. As of noon closing, it was reported at 69.89 yuan, down 21.4% from the historical high of 88.88 yuan set on January 18, with the latest market value of 33.4 billion yuan. It is noteworthy that there are more than 17.8 million shares on the current limit seal, which means that about 1.2 billion yuan of funds are waiting to escape.
Andon Health Co.Ltd(002432) since the rising market started from 6.8 yuan on November 15, 2021 to the historical highest price of 88.88 yuan on January 18, 2022, it has increased 12 times in two months, which is jokingly called “the king of demon king” by investors.
Andon Health Co.Ltd(002432) according to the performance forecast disclosed on January 19, the net profit attributable to the parent company is expected to be RMB 900 million-1.2 billion in 2021, with a year-on-year increase of 271.4% – 395.19%. The company said that the sales performance of covid-19 household self-test kit products in the U.S. market increased significantly, which contributed to the significant growth of operating performance in 2021.
However, industry insiders pointed out that its performance prospects are also at risk. The first is the risk that the emergency use right will be revoked, which is a precedent. For example, in mid-2021, the FDA revoked the emergency use authorization of dozens of mask enterprises because the filter rate did not meet the standard. Secondly, if new peers squeeze into the U.S. market, they will inevitably take part of the market share of Andon Health Co.Ltd(002432) .
covid-19 oral specific drug really came?
Boosted by the news that it was authorized to copy MSD covid-19 oral drug, as of noon closing, Brightgene Bio-Medical Technology Co.Ltd(688166) rose by the limit, Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) rose by 7.58% and Jiangsu Aidea Pharmaceutical Co.Ltd(688488) rose by 13.43%.
On January 20, the Geneva pharmaceutical patent pool (MPP) announced that it had signed agreements with 27 generic pharmaceutical enterprises to produce molnupiravir, an oral covid-19 antiviral drug, and supply it to 105 low-income and middle-income countries.
Among them, 5 companies will focus on the production of APIs, 13 companies will produce APIs and preparations at the same time, and 9 companies will produce preparations. It is reported that a total of five Chinese pharmaceutical enterprises have been shortlisted in the agreement list, Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) , Brightgene Bio-Medical Technology Co.Ltd(688166) , Shijiazhuang Longze Pharmaceutical ( Jiangsu Aidea Pharmaceutical Co.Ltd(688488) shares) and Shanghai Desano have been licensed to produce molnupiravir APIs and finished products at the same time, and Langhua pharmaceutical, a subsidiary of Weiya biology, has been licensed to produce molnupiravir APIs.
According to public information, molnupiravir is an oral ribonucleoside analogue under development, which can inhibit the replication of sars-cov-2 (the pathogenic factor of covid-19 virus). It was jointly developed by mosadon and Ridgeback. The drug is the first approved oral anti-covid-19 virus drug in the world. It was first approved to market by the British drug and Health Products Administration (MHRA) in November 2021, and successively obtained the emergency use authorization of the U.S. Food and Drug Administration (FDA) and the emergency special approval of the Ministry of health, labor and welfare of Japan in December 2021.
After the announcement of the above news, Brightgene Bio-Medical Technology Co.Ltd(688166) said that the company was licensed to produce molnupiravir API and finished drug at the same time. As for the specific capacity planning, the company said that it has only obtained the authorization, and the specific information will be disclosed later.
However, can the above news really turn into a “profitable cow”? Industry insiders pointed out that there may be some variables.
First, the effectiveness of the drug itself. Some experts have said that molnupiravir’s test samples are too few, which may be too high as the previous redcivir, but the actual effect is limited. Zhu Guoguang, chief analyst of the pharmaceutical industry, said that molnupiravir, as a small molecule drug, is difficult to completely overcome covid-19 virus.
Second, MSD, Ridgeback and Emory University, which invented the drug, will not receive royalties for molnupiravir sales from the Sublicensees authorized by MPP.
Third, since MSD and Ridgeback jointly developed molnupiravir, the global supply of the drug has always been the key priority of the two companies. Recently, at the time of the surge of Omicron infection cases in the United States, the covid-19 oral drug was also reported to be in serious shortage.
