(Yicai) Feb. 20 -- Shares in Boji Medical Technology surged 20 percent today after the Chinese contract research organization said it will provide clinical research services to Sinopep-Allsino Biopharmaceutical which is developing a weight-loss generic drug that uses the same active ingredient as the highly popular Wegovy.

Boji’s share price [SHE: 300404] soared by the exchange-imposed limit to hit CNY7.43 (USD1). Sinopep-Allsino’s stock [SHA: 688076] was trading up at 4.2 percent at CNY47.95 (USD6.66) s of 1 pm today. Earlier in the day it surged 10 percent to hit CNY50.88.

Boji will conduct clinical efficacy and safety studies on the Semaglutide injection developed by Sinopep-Allsino for the treatment of type 2 diabetes and obesity, the Guangzhou-based company said yesterday, citing the agreement signed by the two parties that day.

The deal is expected to generate revenue of CNY107.7 million (USD15 million) for Boji, but there might not be a significant impact on its performance this year as Lianyungang-based Sinopep-Allsino will pay in stages over the course of the project, Boji said.

The tie-up is expected to boost Boji’s research and development capabilities in endocrine disease therapeutic drugs, it said. Boji will complete the clinical studies of the new drug in accordance with the timelines and quality standards laid out in the contract, it added, without going into further details.

Semaglutide, developed by Denmark’s Novo Nordisk, is an antidiabetic medication used for the treatment of type 2 diabetes in adults but has since become popular as a weight-loss medication. Sales of the drug’s weight-loss version, Wegovy, surged five-fold last year from the year before to USD4.5 billion, accounting for 21 percent of the Bagsvaerd-based firm’s Semaglutide sales.

Last month, Chinese regulators greenlit Semaglutide to go to market in China but only for the treatment of type 2 diabetes in adults, not as a slimming drug.

Editor: Kim Taylor