(Yicai Global) May 10 -- Shares of Fosun Pharmaceutical Group jumped after the Chinese drugmaker said it will each year produce up to one billion doses of the mRNA coronavirus vaccine developed together with Germany’s BioNTech.

Fosun Pharma’s stock price [SHA:600196] opened up 10 percent at CNY60.12 (USD9.30), surging by the daily upper limit. The shares are 13 percent up this year.

Fosun Pharma Industry and BioNTech will form a joint venture to make the product in China's mainland, the Shanghai-based company said in a statement yesterday. The vaccine hasn’t yet been approved to be used in the mainland but Fosun Pharma has already been distributing it in Hong Kong.

The Chinese company inked a deal with BioNTech in March 2020 for the exclusive rights to develop and market the German biotech company’s Covid-19 vaccines in China.

The Covid-19 pandemic has made the new technology famous. The Mainz-based firm's messenger ribonucleic acid platform for vaccine development is also used by Pfizer. The technology is fast as it instructs the body's immune system to produce antibodies instead of letting weakened viruses run their course.

The new JV will be owned 50:50 by the two partners. Fosun Pharma will invest up to USD100 million in cash and assets such as production facilities. BioNTech will provide an equal sum through its intangible assets such as licensing.

The Chinese company's affiliate will serve as a contract sales organization to sell the final product in China, excluding the Hong Kong Special Administrative Region, Macau SAR, and Taiwan province.

During the 15-year lifespan of the JV, the pair will discuss further cooperation opportunities involving other contagious diseases or treatments based on mRNA technologies.

The vaccines must be stored under minus 75 degrees Celsius, which is challenging for transportation.

Editor: Emmi Laine, Xiao Yi