4:41 PM
 | 
Sep 12, 2018
 |  BC Extra  |  Politics & Policy

China biopharma stocks fall after centralized tendering talks

Stocks of Chinese biopharma companies slid on Wednesday, possibly in response to a meeting Tuesday of China's National Medical Insurance Bureau on the centralized procurement of generics. Under centralized procurement, a single generic manufacturer would gain a 70% market share in 11 Chinese cities, according to a Chinese government news source.

Price cuts for generic versions of 33 listed drugs could range between 10-40% under the process, the source said.

The reported list includes top drugs from pharma companies that are off patent in China. Among those are Lipitor atorvastatin and Amlodin amlodipine besilate from Pfizer Inc. (NYSE:PFE), and Aprovel irbesartan from Sanofi (Euronext:SAN; NYSE:SNY).

Multiple Chinese pharmaceutical and generics manufacturers fell following the meeting. Sino Biopharmaceutical Ltd. (HKEX:1177) lost HK$1.26 (14%) to HK$7.50; CSPC Pharmaceutical Group Ltd. (HKEX:1093) dropped HK$1.80 (10%) to HK$16.70; 3SBio Inc. (HKEX:1530) shed HK$1.02 to HK$13.30; Luye Pharma Group Ltd. (HKEX:2186) lost HK$0.45 to HK$6.33; Jiangsu Hengrui Medicine Co. Ltd. (Shanghai:600276) was down RMB3.33 to RMB61.40; Shanghai Fosun Pharmaceutical Group Co. Ltd. (Shanghai:600196; HKEX:2196) lost RMB1.09 to RMB28 in Shanghai and HK$2.30 to HK$27.55 in Hong Kong; Yichang HEC Changjiang Pharmaceutical Co. Ltd. (HKEX:1558) lost HK$2.40 to HK$31.90; and The United Laboratories International Holdings Ltd. (HKEX:3933) was down HK$0.29 to HK$6.76.

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