(Yicai) March 23 -- Shares in Grand Pharma tumbled today despite the Chinese drugmaker being given the greenlight to take its first-in-class eye treatment for demodex blepharitis, a chronic eyelid inflammation caused by tiny mites, to go to market in China.

Grand Pharma’s stock price [HKG: 0512] closed down 5 percent today at HKD6.55 (USD0.84).

GPN01768, which is currently the only treatment in the world that specifically targets demodex blepharitis, sailed through the approval process without regulators asking for any additional data, the Wuhan-based firm said yesterday. The drug had already won regulatory approval to enter the US market in 2023.

Demodex blepharitis accounts for more than two-thirds of all cases of blepharitis, or inflammation of the eyelids. Common symptoms include itchy eyelids, a gritty feeling in the eye, dryness, flaky skin around the eyelids and crusty buildup at the base of eyelashes. In serious cases, it can lead to complications affecting the conjunctiva and cornea.

Until now, treatment options in China have been extremely limited and the arrival of GPN01768, which is also known as TP-03 or lotilaner eye drops, fills a long-standing gap.

More than 400 million people worldwide suffer from demodex blepharitis, and that number is expected to exceed 500 million by 2029, according to data from US market research firm Frost & Sullivan. In China alone, patient numbers have consistently stayed above 50 million, pointing to huge unmet demand and a sizable market opportunity.

Since launching in the US, the drug has performed strongly, with sales surging more than two-and-a-half-fold last year from the year before to USD450 million to become one of the fastest-growing products in the US prescription eye drops market.

Grand Pharma has high expectations for GPN01768 in the Chinese market. In recent years, the company has been expanding its ophthalmology pipeline by introducing new medicines from partners and developing its own new drugs. Its portfolio covers the treatment of conditions such as xerophthalmia, which is an eye condition caused by Vitamin A deficiency, pterygium, which is the growth of tissue across the cornea, and short-sightedness, as well as post-surgery inflammation and pain.

Editor: Kim Taylor