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CSPC Pharmaceutical, CanSino Biologics Rise on Approval for Covid-19 Vaccine Trials in China

   By Justina Lee 
 

Shares of CSPC Pharmaceutical Group Ltd. and CanSino Biologics Inc. rose Monday after news that both companies have received approval to conduct clinical trials for their respective Covid-19 vaccines in China.

CSPC Pharmaceutical's shares rose by as much as 11% to 9.79 Hong Kong dollars (US$1.25), while shares of CanSino Biologics rose as much as 12% to HK$140.

The broader sector is trading higher as well, with Wuxi Biologics (Cayman) Inc. gaining 3.4% and BeiGene Ltd. adding 3.0%.

CanSino Biologics Inc said in a press release that studies before clinical trials had shown its vaccine candidate could elicit high-level neutralizing antibodies against Covid-19 variants, including Omicron.

CSPC Pharmaceutical also said its pre-clinical trials showed that its vaccine works against variants including Omicron and Delta.

Two advantages of CSPC's vaccine over other mRNA vaccines in the market are its long-term stability and the fact that can be stored at temperatures above freezing, Nomura says, as it maintains a buy rating and a HK$12.32 target price.

Approvals for clinical trials come amid China's continued efforts to stamp out a recent wave of Covid-19 outbreaks in the country as part of its zero-Covid policy.

So far, the Chinese government has spent over CNY120 billion to procure Covid-19 vaccines, according to the country's National Healthcare Security Administration, Citi notes.

Citi expects more approvals to be granted to other domestic mRNA vaccines over time, and that there may be further price regulations in the industry.

 

Write to Justina Lee at justina.lee@wsj.com

 

(END) Dow Jones Newswires

April 03, 2022 23:40 ET (03:40 GMT)

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