(Yicai Global) Dec. 24 -- Shares in Fujian Cosunter Pharmaceutical surged by the exchange-imposed daily limit today after the Chinese drugmaker said it is teaming up with biopharma giant WuXi AppTec to develop an oral medicine to treat Covid-19.

Cosunter Pharma’s share price [SHE:300436] soared 20 percent to end the day at CNY38.74 (USD6). The maximum daily fluctuation on the Nasdaq-style Star Market and ChiNext Board is 20 percent, whereas the main bourses have a ceiling of 10 percent.

Cosunter and Shanghai-based WuXi AppTec will link arms to develop a small molecule 3C-like protease inhibitor medicine to treat infections of the novel coronavirus, the Ningde, southeastern Fujian province-based company said today.

This drug can block the replication process of the coronavirus and has significant advantages in the treatment of Covid-19, the firm said. A similar medicine developed by US pharma giant Pfizer, Paxlovid, was approved by the US Food and Drug Administration for emergency use on Dec. 22, it added.

Both parties will participate in research and development and they will share the revenue, but the intellectual property rights will belong to Cosunter Pharma, the firm said. No details were given about the investment amount.

The plan is to file a new drug application to the National Medical Products Administration within one year of starting the partnership and to begin Phase One clinical trials soon after, Cosunter Pharma said.

WuXi AppTech’s share price was less affected. Its mainland stock [SHA:603259] closed down 2.55 percent at CNY112.30 (USD17) today, while its Hong Kong shares [HKG:2359] finished the day down 2.21 percent at HKD128.10 (USD16).

Editor: Kim Taylor