Shanghai Fosun Pharmaceutical's H-Shares Head for Biggest Fall Since Listing
By Ronnie Harui
Shares of Shanghai Fosun Pharmaceutical (Group) Co. and other
Asia-based pharmaceutical companies tumbled Thursday after the U.S.
said it would support a temporary waiver of intellectual property
rights of Covid-19 vaccine makers, a move that could allow other
companies to produce versions of the vaccines.
The Hong Kong-listed shares of Fosun Pharma, which distributes
the vaccines developed by BioNTech SE in the Greater China region,
fell as much as 26% in morning trade. Shares were last down 18% at
46.10 Hong Kong dollars, on pace for their biggest one-day drop
since the company's initial public offering in 2012.
Shares of other Hong Kong-listed Covid-19 vaccine makers also
slumped, with CanSino Biologics Inc. falling 21% to HK$289.00 and
Sinopharm Group Co. dropping 10% to HK$23.15. In China, Fosun
Pharma's A-shares were down 10% at 54.22 yuan.
The plunges tracked declines in the Chinese companies' American
counterparts after the U.S. said it would support a proposal
working its way through the World Trade Organization. Such a policy
would waive the IP rights of vaccine makers to potentially enable
companies in developing countries and others to manufacture their
own versions of Covid-19 vaccines. The U.S. cited an urgent need to
stem the pandemic.
Fosun Pharma's decline also follows a 20% jump in the share
price Monday after the company posted a 47% rise in first-quarter
net profit, largely because of higher drug sales and a low base of
comparison due to the onset of the Covid-19 pandemic a year ago.
Shares touched a record intraday high of HK$62.50 Tuesday and are
up 24% this year and 62% over the past 12 months.
Write to Ronnie Harui at firstname.lastname@example.org
(END) Dow Jones Newswires
May 06, 2021 00:55 ET (04:55 GMT)
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