(Yicai) Sept. 24 -- Shares of Gan & Lee Pharmaceuticals surged by the exchange-imposed daily trading limit after the Chinese drugmaker said it signed a long-term deal to supply insulin injections and active pharmaceutical ingredients to a Brazilian public health institution.

Gan & Lee [SHA: 603087] was trading up 10 percent at CNY79.34 (USD11.15) as of 1.10 p.m. in Shanghai today.

Gan & Lee signed an agreement with its Brazilian biotechnology partner Biomm and Fundação Oswaldo Cruz-Bio-Manguinhos, a public health research institution funded by the Brazilian government, for the supply of insulin glargine injections and insulin pens over 10 years, the Beijing-based firm announced yesterday.

The agreement stipulates that Gan & Lee will sell insulin glargine injections, insulin pens, and active pharmaceutical ingredients worth no less than CNY3 billion (USD420 million) to Biomm, which will then directly supply the insulin glargine injections and insulin pens to Fundação Oswaldo Cruz-Bio-Manguinhos.

Meanwhile, Biomm will use the API to produce insulin injections on its own once Gan & Lee transfers the technology to produce insulin glargine and fill insulin injectors to the two Brazilian partners. The final products will be exclusively supplied to Fundação Oswaldo Cruz-Bio-Manguinhos.

This project is part of the Parcerias para o Desenvolvimento Produtivo, a program that leverages procurement commitments from the Brazilian public healthcare system to encourage multinational pharmaceutical companies to transfer advanced manufacturing technologies to the South American country to establish a complete domestic production system for related products.

During the evaluation and selection process of the insulin glargine PDP program organized by the Brazilian government, the proposal submitted by Gan & Lee, Biomm, and Fundação Oswaldo Cruz-Bio-Manguinhos was selected as the sole approved project, according to the Chinese firm.

Gan & Lee is a leading Chinese supplier of insulin analog APIs and injectable products. Its production volume of insulin formulations exceeded 81 million units last year, according to the company's 2024 financial statement.

Editor: Futura Costaglione