(Yicai Global) March 22 -- Shanghai Pharmaceuticals Holding denied it is working with Japan’s Shionogi Pharmaceutical to develop a Covid-19 medicine after the leading Chinese drugmaker’s shares rose by the 10 percent exchange-imposed limit for three trading days in a row.

Shanghai Pharma is not cooperating with Shionogi on any Covid-19 drugs, the Chinese company said yesterday, noting that its production and operations are normal and it is not aware of any specific reasons for the rally in its stock price.

A rumor that Shanghai Pharma is working on Covid-19 medicines with Shionogi powered a three-day rally in its shares. Despite the denial, the stock [SHA: 601607] still rose today, closing almost 1 percent up at CNY24.94 (USD3.92) after touching a 52-week high of CNY26.58.

Last week a number of other Chinese drugmakers poured cold water on rumors that they were working with Osaka-based Shionogi on the development of special Covid-19 treatments.

PKU HealthCare said on March 13 that it had never carried out research and development on any Covid-19 drug. Two days later, the firm added that it had never held talks with Shionogi about potential cooperation on such a product.

Changjiang Runfa Health said on March 14 it had linked arms with Shionogi’s unit C&O Pharmaceutical Technology Holdings on a luliconazole-based cream named Lulit, but the pair have never worked on a Covid-19 drug.

Founded in 1878, Shionogi has a high reputation for anti-infection and central nervous system disease-related drugs. Its Covid-19 treatment S-217622 is a 3-chymotrypsin-like protease inhibitor of the same type as nirmatrelvir, one of the two drugs used in Pfizer’s new Covid-19 pill.

In March 2020, Ping An Life Insurance, a unit of China’s biggest insurer, announced a strategic partnership with Shionogi to set up a joint venture in Hong Kong to develop two of Shionogi’s new drugs in Asia, excluding Japan.

Ping An Life also said it will buy 6.4 million shares in Shionogi for JPY33.5 billion (USD278.5 million), becoming the firm’s seventh-largest shareholder with a 2 percent stake.

Editor: Futura Costaglione