(Yicai) June 5 -- Shares of Wantai Biological Pharmacy surged by their daily trading limit after its nine-valent human papillomavirus vaccine became China’s first domestically produced to win regulatory approval and only the second worldwide.

Wantai [SHA: 603392] closed 10 percent higher at CNY78.36 (USD10.92) a share in Shanghai today, taking its market capitalization to CNY99.1 billion (USD13.8 billion). The stock has gained 11.2 percent since the end of last year.

Cecolin 9 can cover seven high-risk and two low-risk HPV viruses, preventing cervical cancer and other diseases caused by the viruses, Beijing-based Wantai said late yesterday. The shot is available for women aged between nine and 45 years, with a two-dose course for those aged nine to 17 and a three-dose course for those 18 to 45, it added.

The only other nine-valent HPV vaccine available worldwide is Gardasil 9, which is made by US-based Merck, known internationally as Merck Sharp & Dohme. China approved the jab in 2018. 

There are several lower-valent HPV vaccines available in the Chinese market, including Wantai's bivalent shot, which became the first approved China-made HPV jab in December 2019. A bivalent vaccine developed by China's Walvax Biotechnology was also approved in 2022.

Following the launch of its bivalent jab, Wantai initially had strong revenue growth. But competition in its home market has become increasingly fiercer and prices have tumbled, dragging down the Beijing-based firm's earnings since 2023. 

Wantai's net profit plunged 91 percent to CNY106 million (USD14.8 million) last year, with revenue down 59 percent to CNY2.2 billion (USD306.2 million). For the first quarter of this year, it swung into the red by CNY52.8 million (USD7.3 million) on revenue of CNY401 million, down 47 percent from a year earlier.

Facing earnings pressure, Wantai is striving to find new growth drivers. While pushing for Cecolin 9’s launch, the company is also conducting clinical studies of this vaccine for men. In April, it enrolled the first participant in a phase three trial for men, according the latest update.

Editors: Dou Shicong, Martin Kadiev