(Yicai Global) March 10 -- China Meheco Group’s stock price soared by the exchange-imposed limit after the pharmaceutical firm confirmed it had signed a deal with Pfizer to market the US drugmaker’s Covid-19 oral antiviral treatment in China.

Meheco [SHA: 600056] rose 10 percent to close at CNY19.03 (USD3.01) today. The stock has gained 73 percent so far this month, pushed higher by rumors of the agreement with Pfizer.

The deal covers the supply of Paxlovid in the Chinese mainland this year, Beijing-based Meheco said in a statement late yesterday. Paxlovid is a combination of nirmatrelvir and ritonavir for the treatment of mild-to-moderate Covid-19 cases at high risk of progressing to severe symptoms.

The marketing of Paxlovid will account for only a small part of Meheco’s total business and will not have a major bearing on its financial performance, the firm said, adding that the product’s use and sales conditions are uncertain due to the impact of Covid-19 prevention and control measures.

Net profit at Meheco, a unit of state-owned China General Technology Group Holding, likely plunged by 47 percent to 77 percent to between CNY700 million and CNY300 million (USD110.8 million and USD47.5 million) last year, as its coronavirus-related export business shrank due to the pandemic situation overseas, according to figures the company released on Jan. 29.

Paxlovid cuts the risk of hospitalization or death by 89 percent for adults with mild and moderate symptoms within three days of symptom onset, according to data from Pfizer. The drug generated income of USD76 million within a week of hitting the US market, with expected revenue of USD22 billion this year, Pfizer said in its 2021 annual results.

China’s National Medical Products Administration conditionally approved Paxlovid's import on Feb. 11, less than two months after it won emergency use authorization in the United States. Paxlovid is the first Covid-19 drug developed by a foreign firm to be approved by the Chinese regulator.

Editor: Futura Costaglione