(Yicai Global) Feb. 1 -- BCHT Biotechnology’s shares fell for a third straight trading day despite the biomedicine firm’s herpes zoster jab, the first such vaccine developed in China, getting regulatory approval to go to market in the country.

After tumbling by as much as 7.4 percent at one point today, the shares [SHA: 688276] closed down 5 percent at CNY65.25 (USD9.67) apiece. The stock has lost almost 12 percent of its value since stock markets reopened in China on Jan. 30 following the lunar new year holiday.

When the vaccine will appear on the market is still uncertain, as some administrative procedures have still to be completed, Changchun-based BCHT Bio said yesterday.

Herpes zoster is an infectious skin disease caused by activated varicella zoster virus latent in the human body. The global market already has Shingrix, a recombinant subunit jab developed by GlaxoSmithKline, and Zostavax, a live attenuated shot from Merck.

Because Shingrix offers more than 90 percent protection, its sales soon surpassed Zostavax and it now dominates the market. Shingrix had global sales of USD2.7 billion in 2020, ranking it fourth among the world’s top 10 vaccines by sales.

BCHT Bio’s vaccine is also a live attenuated shot, but the company has not released any data on its efficacy.

The Chinese firm will need to price its jab lower than Shingrix if it wants to compete with GlaxoSmithKline, a source close to vaccine companies told Yicai Global. And the techniques used to produce the shot determine the costs are high, which together will narrow the profit margins of the BCHT Bio vaccine, the person said.

But BCHT Bio seeks to differentiate its vaccine from competitors. Shingrix is used for people aged 50 and above, while BCHT Bio’s jab is suitable for people aged 40 and over, including the 40 to 50-year-old group, which is considered to be more receptive to herpes zoster vaccines and has greater purchasing power.

Editors: Shi Yi, Peter Thomas