Tibet Rhodiola Pharma Shares Peak on USD49.5 Million Spent on Covid-19 Jab
Tang Shihua
DATE:  Jun 16 2020
/ SOURCE:  Yicai
Tibet Rhodiola Pharma Shares Peak on USD49.5 Million Spent on Covid-19 Jab Tibet Rhodiola Pharma Shares Peak on USD49.5 Million Spent on Covid-19 Jab

(Yicai Global) June 16 -- Shares of Tibet Rhodiola Pharmaceutical Holding hit a new high today in a sustained price surge after the firm said it will spend CNY350 million (USD49.5 million) to secure the global exclusive right to commercialize a vaccine for the coronavirus a biotech startup in Shanghai is researching and developing.

The firm's stock [SHA:600211] soared to the daily 10 percent price ceiling in the early session to stop trading at CNY61.49 (USD8.70) in a 137 percent gain from its May 22 closing price after it announced this investment yesterday, extending its stock's recent surge since it topped a previous all-time high of CNY41.27 in May 2015.

Lhasa-based Rhodiola Pharma will pay vaccine developer Shanghai-based biotech firm Stemirna Therapeutics in tranches based on the progress of the vaccine’s development. It will disburse the last CNY150 million installment after Chinese regulators green light the inoculant's sales.

The listed firm will be the sole party authorized worldwide to commercialize the vaccine, including its market development, production and use, but will not own the other rights to it, per the statement.

Clinical trial of the SARS-CoV-2 vaccine, whose pharmacodynamics study has wrapped up, is expected to begin soon, per the statement.

The firm will pay another CNY1 million to Stemirna as advance payment for another two inoculants for tuberculosis and influenza the two parties co-developed, per the statement, which added the duo will also negotiate payments for reaching set milestones in this R&D project.

Stemirna Therapeutics, a China (Shanghai) Pilot Free-Trade Zone-registered new biological drug development startup formed by a team who returned to China after getting doctoral degrees in the US, owns the first mature production line for the messenger ribonucleic acid vaccine in China, the statement noted.

Editor: Ben Armour

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Keywords:   New Vaccine,R&D,Global Exclusive,Commercial Right,Epidemic Control,Stemirna Therapeutics,Tibet Rhodiola Pharmaceutical,Covid-19