China pharmaceutical maker CanSino rallies in Hong Kong and Shanghai trading after Covid-19 vaccine gets WHO approval
- The move opens a door for the company’s one-dose Convidecia vaccine to enter the global market
- CanSino shares slid at least 79 per cent over the past year amid increased competition and falling vaccine prices in China
Hong Kong-listed shares of CanSino surged nearly 10 per cent to HK$77.95 in trading Friday, the biggest gain since March, while its Shanghai-traded stocks rose 12 per cent to 164.40 yuan at Friday’s close, the best one-day performance since April last year.
CanSino shares have slid at least 79 per cent over the past year in Hong Kong and Shanghai as rising vaccination rates in China led to falling prices for Covid-19 vaccines. About 91 per cent of China’s population was vaccinated by the end of April, with 87 per cent fully vaccinated, according to official data.
The endorsement is a global acknowledgement of CanSino’s Covid-19 vaccine and will be conducive to its overseas expansion, according to Essence Securities.
“If overseas nations increase procurement and usage of the product, that will have a positive impact on the company’s earnings,” CanSino said in an exchange filing.
Unlike inactivated vaccines developed by Sinopharm and Sinovac, which use dead material from the virus to jump-start the immune system, CanSino’s product uses an adenoviral vector to deliver a virus antigen and trigger an immune response.
CanSino posted a profit of 120 million yuan (US$17.9 million) in the first quarter, swinging from a net loss for the same period last year.
Southwest Securities expects the company’s profit this year to fall 76 per cent from a year earlier because of heightened competition in the vaccine market. Revenue from Covid-19 vaccines will probably drop 55 per cent, the brokerage predicts.