(Yicai Global) May 12 -- Shares in Guangdong Zhongsheng Pharmaceutical surged by the exchange-imposed daily limit today after the Chinese drugmaker said it has successfully filed an application to regulators for its orally-taken Covid-19 treatment to start clinical trials.

Zhongsheng Pharma’s stock price [SHE:002317] was trading up 10 percent at CNY18.57 (USD2.76) apiece at close, giving it a market valuation of CNY15.1 billion (USD2.2 billion).

The National Medical Products Administration has accepted the application for the RAY1216 tablet, developed by unit Guangdong Raynovent Biotech, to enter the clinical trial stage and tests will begin once the green light is given, Zhongsheng Pharma said yesterday.

Pre-clinical studies have demonstrated that RAY1216 has high in-vitro inhibitory effects on different Covid-19 strains including Delta and Omicron and can subdue the 3CL protease of SARS-CoV-2, the Dongguan, southern Guangdong province-based firm said.

At present there is only one orally-taken Covid-19 medicine available in the country, and that is US biomedical giant Pfizer’s Paxlovid. China approved the import of the drug in February and it is now selling for CNY2,300 (USD351) a box.

Covid-19 pills are becoming a focus of the market amid a fresh wave of outbreaks driven by the highly contagious Omicron variant. Other such tablet-form medicines now at the clinical trial stage in China are Shanghai Junshi Biosciences’ VV116, Kintor Pharmaceutical’s Proxalutamide and Simcere Pharmaceutical’s SIM0417.

Zhongsheng Pharma logged an over two-and-a-half-fold surge in net profit last year from the year before to CNY278 million (USD41.2 million), according to its latest financial report. Revenue was up 28.1 percent to CNY2.4 billion (USD355.4 million).

Editor: Kim Taylor