(Yicai Global) May 29 -- Shares of Staidson Beijing Biopharmaceuticals surged this morning after its Covid-19 treatment was approved to begin the second clinical trial phase in Spain.

Staidson's stock price [SHE:300204] jumped by the daily limit of 10 percent to CNY10.98 (USD1.54), the highest in nearly three weeks.

The company has been given the green light to start a randomized human trial of its BDB-001 injection in Spain to treat people with severe diseases caused by Covid-19, the Beijing-based firm said in a statement. This should prove the drug's effectiveness and safety, it added.

The medicine was earlier supposed to treat other types of inflammatory diseases but the developer got the go-ahead from Chinese regulators in early February to test it on Covid-19 patients. Those results are not out yet.

Editor: Emmi Laine