(Yicai Global) May 18 -- CanSino Biologics’ Shanghai unit has received a CNY1.1 billion (USD171.2 million) cash injection from its parent firm and another investor as the Chinese vaccine maker readies its recombinant Covid-19 vaccine for market.

SPH CanSino will become the production base for Convidecia, the Covid-19 vaccine Ad5-nCoV for inhalation that has been approved by Chinese regulators for use under certain conditions and has been sanctioned for emergency use in Mexico, Pakistan, Hungary and Chile, the Tianjin-based pharma giant said yesterday.

CanSino and Shanghai Sunway Biotech will invest CNY555 million (USD86.3 million) and CNY550 million respectively, it said. The money will be used to upgrade production facilities, purchase equipment and raw materials as well as hire technical and other skilled labor.

The SPH CanSino facility is expected to start trial production next month and be fully up and running by the end of the year when it will have an annual output of 200 million doses, the Shanghai Municipal Commission of Economy and Informatization said earlier.

CanSino’s nasal spray vaccine uses a special device for nebulized inhalation immunization, which is less painful than traditional intramuscular injections and more conducive to mass distribution.

SPH CanSino was set up in February by CanSino, Sunway Biotech and the Shanghai Biomedical Industry Fund with 45 percent, 40 percent and 15 percent equity respectively. After the new investment, CanSino’s stake will increase to 49.8 percent, that of Sunway Biotech to 49 percent while the Biomedical Industry Fund’s stake will fall to 1.2 percent.

CanSino’s Shanghai share price [SHA:688185] dropped 5.25 percent and was trading at CNY501.24 (USD78) at 2:45 p.m. China time today. Its Hong Kong stock [HKG:6185] was trading down 4.39 percent at HKD331 (USD42).

Editor: Kim Taylor