BioCentury
ARTICLE | Company News

Chinese biopharma stocks plummet after centralized tendering report

December 7, 2018 7:00 PM UTC

Chinese biopharma stocks tumbled Dec. 6 in the wake of media and analyst reports suggesting that pricing discounts on generic drugs under China's centralized procurement program were greater than expected.

State-owned Shanghai Securities News reported significantly discounted prices for drugs in the program, including a 90% cut for antiviral entecavir and a 60% cut for hypertension drug irbesartan. In an analyst note, Morgan Stanley's Sean Wu called the overall price cut much steeper than the 30-40% expected by the market...