By Gina Lee
Investing.com – China Meheco Co. Ltd. (SS:600056) saw its shares jump over 9% on Tuesday, and more than 50% in the past week. Speculation is growing that the Beijing-based drug maker is Pfizer Inc.'s (NYSE:PFE) local partner to distribute its COVID-19 treatment Paxlovid.
The company’s shares jumped 9.35% to HK$17.77 ($x) by 12:24 AM ET (5:24 AM GMT), after rallying by the 10% daily limit for four consecutive days. This is a big turnaround for the shares, which fell to their lowest level since 2014 in February 2022.
The state-owned company warned of uncertainties of the deal with “a certain multinational drug maker” in a statement on Monday, which did not mention Pfizer by name. Contribution to earnings would be small, and even if the deal goes smoothly, “the usage and sales of the drug may depend on factors such as virus control situation,” the statement added.
China’s National Medical Products Administration conditionally approved Paxlovid in February, the first foreign pharmaceutical product endorsed for Covid-19 in the country. The drug is approved to treat adults who have mild to moderate COVID-19 with a high risk of progressing to a severe condition.
With China Meheco the sole drug company overseen by the central government, investors are increasing their bets that the company will be the local distributor.