(Yicai Global) Jan. 14 -- Andon Health and Zhejiang Orient Gene Biotech led a strong rally in the stocks of Chinese Covid-19 test kit makers today, both surging by the exchange-imposed limit, after the US President said yesterday that the US government will buy another 500 million at-home Covid-19 detection sets to distribute to the public for free to curb the spread of the Omicron variant.
Andon’s share price [SHE:002432] soared 10 percent to a new high of CNY75.28 (USD11.84). Just yesterday it received an USD1.3 billion order from the US army for its coronavirus test kits and in the past six weeks has signed USD333 million worth of deals with two US states. The stock has risen more than 10-fold since last November when the US Food and Drug Administration approved its at-home Covid-19 detection kit for emergency use.
Shares in Orient Gene, which also has FDA approval, [SHA:688298] vaulted 20 percent to close at CNY411.62 (USD65). The Shanghai stock exchange’s Nasdaq-style Star Market has a higher daily trading limit of 20 percent compared to the main boards, which is set at 10 percent.
The US government will buy an additional 500 million test kits to deal with the spread of the Omicron variant and offer high-protection N95 masks to the public for free, Joe Biden said.
Other Covid-19 test kit makers who are in the process of applying for FDA certification also did well. Hangzhou Biotest Biotech’s share price [SHA:688767] jumped 13.96 percent to end the day at CNY145 (USD23) and Guangzhou Wondfo Biotech soared 18.59 percent to finish at CNY59.90 (USD9.50).
Orient Gene is preparing to expand capacity, a company insider recently told Yicai Global. The Huzhou, Zhejiang province-based firm will stay open over the upcoming week-long Chinese New Year public holiday to keep up with orders, the person added.
Editor: Kim Taylor