(Original title: Qiang Chong Rui Dexiwei, claimed to be completed in two weeks and mass production! The market value of this listed company soared by 7.7 billion, but it was ruthlessly debunked)
Every time reporter Zeng Jian Every time editor Li Jinghan
As one of the hopeful drugs for the treatment of new coronary pneumonia, the news of Remdesivir has attracted much attention.
On the evening of February 11, Borui Pharmaceuticals (688166, SH), a listed company on the Science and Technology Innovation Board, issued an announcement stating that the company has recently successfully imitated and developed the synthetic process technology and formulation technology of Radixivir API, and has mass-produced Radixivir. The mass production of the raw materials of Weiwei and Redcivir preparations is underway.
Image source: Photograph Network (not related to graphics and text)
Wang Zhengye, the secretary of the Board of Borui Pharmaceuticals, also told the media that the company had successfully imitated Redecive within a dozen days. Wang Zhengye also said, “As a Chinese pharmaceutical company, Borui Pharmaceuticals should have a sense of family and country and assume social responsibility. If Redecive is finally approved for marketing, it will be supplied to relevant patients mainly through donations during the epidemic. To make money on this, I hope to give people peace of mind.”
This move of Borui Medicine has also been sought after by the capital market, and the company’s share price reached a daily limit after the resumption of trading on February 12 (the sci-tech innovation board rose or fell 20%). As of February 28, the company’s total market value was 25.57 billion yuan, and the market value has increased by 7.7 billion yuan in this half a month!
Image source: Wind
However, a piece of news last night (March 1) will make it difficult for the shareholders of Borui Medicine to sleep. The Shanghai Stock Exchange’s regulatory documents on the same day pointed out that Borui Pharmaceuticals violated regulations regarding its remdesivir products. In the view of the Shanghai Stock Exchange, Borui Pharmaceuticals has not obtained relevant approvals and authorizations, but claims that it can mass-produce, and the relevant expressions are unclear and inaccurate. At the same time, Zhongda (600704, SH), a hot spot product of Chongrui Desiwei, was also notified and criticized by the Shanghai Stock Exchange for incomplete disclosure.
Borui Medicine’s letter phi accused of inaccuracy
According to the information on the official website of the Shanghai Stock Exchange, the Shanghai Stock Exchange has decided to criticize the board secretary Wang Zhengye of Borui Pharmaceuticals and pay attention to the supervision of Borui Pharmaceuticals.
Image source: Shanghai Stock Exchange website
The Shanghai Stock Exchange pointed out that on February 12, Wang Zhengye said in an interview with the media that the raw materials and preparations of Redcivir developed and produced by the company can be mass-produced. On the same day, the company issued an announcement stating that it had successfully developed the synthesis process and preparation technology of Radixivir API, and had mass-produced Radixivir API, and the mass production of Radixivir preparations is in progress.
However, as verified by the Shanghai Stock Exchange, the “mass production” mentioned in the announcement of Borui Pharmaceuticals actually refers to the experimental production of small-scale and pilot-scale batches of drug research and development. The company has not yet obtained the approval of the drug regulatory authority, nor has it obtained the authorization of the patentee, and does not have the necessary qualifications for the commercial mass production of drugs.
The Shanghai Stock Exchange believes that Borui Pharmaceuticals has failed to clearly distinguish between pilot production and commercial production of related drugs. The disclosed “mass production” actually belongs to the drug research and development stage, rather than having completed the approval and started the formal production and sales of Radixivir APIs and preparation. At the same time, Wang Zhengye’s statement in an interview with the media further confuses experimental production and commercial production, and the related statements are unclear and inaccurate.
In response to the skepticism of the Shanghai Stock Exchange, Wang Zhengye argued that the content of Borui Pharmaceutical’s letter is true, consistent with objective facts and sufficient risk warnings. The expressions related to “mass production” are terms in the field of drug R&D registration, and there is no inaccuracy; at the same time; , The information disclosed in the interview with the media is an objective description of the progress of the research and development project. The information disclosed does not exceed the content disclosed in the company’s announcement, and there is no situation of disclosing information in advance.
In this regard, the Shanghai Stock Exchange believes that “mass production” is not a term used exclusively in the pharmaceutical industry, but a term widely used in the production and business activities of enterprises, which is usually easily understood as large-scale and commercial production. Borui Pharmaceuticals should be aware that the meaning of related professional terms is quite different from the usual understanding, which is easy to cause confusion, but it did not explain the differences in the announcement.
Relevant information disclosure is unclear and inaccurate. Wang Zhengye’s statement in the interview further confuses experimental production and commercial production, and is widely reprinted and disseminated, which has expanded the possible market impact.
Remdesivir was developed by Gilead of the United States and is mainly used to prevent and treat Ebola virus infection. The company owns the compound patent rights of Remdesivir. During the diagnosis and treatment of the first confirmed case of new coronary pneumonia in the United States, Redcivir was used as a sympathetic medication, and the patient’s condition appeared to ease rapidly. Based on this, Remdesivir is also considered to be a potentially effective drug for the treatment of new coronary pneumonia. Currently, Gilead is using Redecivir in China for Phase III clinical trials of new coronavirus infection, but it has not yet unblinded.
Image source: Photograph Network (not related to graphics and text)
Based on the hot spot status of Radixivir, after announcing the successful imitation of Radixivir, Borui Pharmaceutical stock immediately became the darling of funds. On February 12, the company’s stock price reached a limit.
During the period, Borui Pharmaceuticals has repeatedly stated in the announcement of abnormal stock trading fluctuations issued on the evening of February 13 that there is a major uncertainty about whether remdesivir is effective for the new crown virus infection, and it is expected that the product will not affect the company’s operations in 2020. The performance has a major impact. However, on February 14, the share price of Borui Pharmaceuticals still rose sharply, and the company’s “clarification” failed to extinguish the enthusiasm for funds. From February 12th to 14th, the company’s stock price rose by 58.65%, and its market value rose by more than 11.8 billion yuan.
A large number of products are incomplete
On March 1, the Shanghai Stock Exchange also issued a regulatory document to another Radixivir concept stock Zhongda and its secretary of the board Chen Haibin, and gave them punishments for notification of criticism.
The Shanghai Stock Exchange pointed out that when CUHK responded on the interactive platform regarding the filing of the “anti-new coronavirus pneumonia specific drug Remdesivir” project of the holding subsidiary Keben Pharmaceutical, it did not clearly state whether the production and sales of the relevant products of the project are required. Obtained authorization from Gilead of the United States, did not clearly indicate that the assets and business scale of Keben Pharmaceuticals account for the small proportion of the company’s related business scale, and have no significant impact on the company’s operating performance, and did not specify the approval procedures to be followed for subsequent production .
At the same time, in the view of the Shanghai Stock Exchange, the risk warnings issued by China Resources University since then are too general, and there is no targeted risk warning, and the relevant information disclosure is incomplete.
The Daily Economic News (WeChat ID: nbdnews) reporter noticed that in mid-February, many investors used the interactive platform to inquire about the status of the Remdesivir project implemented by Keben Pharmaceutical. On the morning of February 13th, the Mainland China continued to reply that Keben Pharmaceutical’s “anti-new coronavirus pneumonia specific drug Remdesivir 10T/preparation 10 million pieces” project was awarded to Beixin Town, Qidong City, Jiangsu Province on February 6. The People’s Government passed the record. The project is only in the pre-construction stage after the government’s administrative approval and filing. At the same time, the company also stated that Redcivir, as a clinical trial drug, is affected by many unpredictable factors, and there are uncertainties and risks in whether it can be mass-produced and put on the market.
After the above response, the stock price of Zhongda Zhongda changed its previous volatile downward trend and began to rise, and quickly pulled up to the daily limit at the end of February 13th. However, from February 14th to 28th, the company’s stock price showed a downward trend, with a cumulative decline of 18.04%. The loss of investors who chased high purchases in the first place may not be small.
(This article is for reference only, it is not enough to be an investment suggestion, and the operation is at your own risk accordingly)