>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<
Chinese vaccine maker Cansino Biologics’ shares are tumbling more than 30% in Hong Kong, as of 2:03 pm local time on Thursday, and the company’s A-shares are sliding more than 11%.
The sell-off came after its shares soared 63% one day earlier driven by news that 13 cities in the Jiangsu province will use the company’s inhaled vaccine booster, after the financial hub of Shanghai became the first city in the country to use its. Read more …
After the rally, the company said that its inhaled vaccine will not bring substantial business growth.
Cansino’s Hong Kong-traded shares skyrocketed 117% over the past five trading days and Jefferies believes that the projected sales of the inhalable vaccine is not sufficient to justify the recent rapid upsurge of the stock.
Assume the average price of the vaccine is 40 yuan per short and the company gets 50% market share among eligible residents, with vaccine booster penetration rate of 75%, that means the company would make 8 billion yuan of sales from the vaccine, said the broker in the note .
Due to weak Covid vaccine demand, Cansino’s revenue tumbled more than 90% year over year in the third quarter and it also recorded 526 million yuan of inventory impairment.
