Chinese Epidemiologist’s Covid Endorsement Sparks Run on TCM; Maker Says Effect Is Unproven
Zhang Yushuo
DATE:  Oct 19 2020
/ SOURCE:  Yicai
Chinese Epidemiologist’s Covid Endorsement Sparks Run on TCM; Maker Says Effect Is Unproven Chinese Epidemiologist’s Covid Endorsement Sparks Run on TCM; Maker Says Effect Is Unproven

(Yicai Global) Oct. 19 -- Guangzhou Baiyunshan Pharmaceutical Holdings’ Ban Lan Gen traditional Chinese medicine has sold out online since the team of top epidemiologist Zhong Nanshan -- China’s Anthony Fauci -- said that “in vitro studies found the drug is effective against Covid-19.” Whether the compound is of use against Covid-19 is uncertain, but Baiyunshan will carry out further work, the company said in a statement yesterday.

Zhong’s research team and Baiyunshan conducted in vitro drug efficacy screening against the coronavirus on 16 listed Chinese patent medicines from 10 of its subsidiaries, and discovered that the company’s Ban Lan Gen has inhibitory effects in vitro, Zhong revealed at a seminar on Oct. 13.

People then scrambled to buy the drug made from the woad plant, which is a traditional blue dye, which went out of stock on online e-commerce platforms Tmall and JD.Com, and in offline pharmacies in many cities. The share price of Baiyunshan hit the 10 percent daily limit up on Oct. 16.

The team’s judgment is only the result of the in-vitro screening of the product against Covid-19, the statement said. A drug can be used in clinical treatments only after it undergoes in-vitro trials, animal tests and then human clinical trials, the Securities Times reported.

Ban Lan Gen granules are produced by a joint venture of which Baiyunshan owns 50 percent. They are excluded from Baiyunshan’s consolidated statements and are not expected to significantly impact the company's results, per the statement. A common medicine for multiple viral infections, the drug is not exclusive to Baiyunshan and has formed a fully competitive market structure. The number of corresponding products approved has reportedly reached 981.

As global pandemic prevention and control is still rigorous, the market is greatly concerned about the development of novel coronavirus therapeutic drugs, and the potentially huge future market demand for these is thus sky-high, The Securities Times quoted Zhou Maohua, an analyst at Everbright Bank’s Department of Financial Markets as saying, but investors need to be wary of market speculation risks, Zhou warned.

Ban Lan Gen, Latin name Radix Isatidis, is the root of Isatis Indigotica, which is commonly administered to treat several viral infections in TCM, including the common cold, fevers and upper respiratory infections. Other studies have borne out its efficacy in inhibiting virus proteins from binding.

Editor: Ben Armour

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Keywords:   TCM Herbs,Covid-19,Zhong Nanshan,Ban Lan Gen