(Yicai Global) Nov. 23 -- Andon Health’s stock jumped after the Chinese maker of home-use medical devices and supplies secured a new Covid-19 test kit order worth as much as USD191 million from a US military agency, an amount equal to more than half of its main business revenue last year.

Andon Health [SHE:002432] closed up 6.5 percent at CNY57.13 (USD7.99) in Shenzhen today, after earlier surging by as much as 9 percent.

The Tianjin-based company signed a deal yesterday to sell its coronavirus antigen rapid test kits to the United States Defense Logistics Agency, it said in a statement this morning.

Andon has seen its fortunes change since the US Food and Drug Administration authorized the emergency use of its Covid-19 test kits a year ago. The company subsequently received orders worth USD1.78 billion from the US government in January, driving its share price to a record high of CNY90.11 (USD12.60) in April.

The shares pulled back after the US stopped offering free test kits in September, falling to a low of CNY40.92 on Oct. 11.

Andon Health has warned several times that in the long run, the pandemic’s changing situation in the US will be a significant factor affecting its test kit sales.

The firm pointed out today that the latest deal gives the buyer the right to terminate the contract after 20 percent of it is fulfilled, which would reduce its value to USD38.2 million.

Editor: Tom Litting