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Shares of the Chinese pharmaceutical company hit the maximum daily trading limit following the announcement that it has entered into a long-term agreement to supply insulin injections and active pharmaceutical ingredients to a major Brazilian public health agency.
The company’s stock rose by 10 percent, reaching approximately CNY79.34 (USD11.15) during midday trading in Shanghai.
The firm finalized a deal with its Brazilian biotech partner and a prominent public health research organization funded by the Brazilian government. Over the next ten years, the agreement commits to supplying insulin glargine injections and insulin pens.
According to the terms, the company will sell at least CNY3 billion (USD420 million) worth of insulin products and active pharmaceutical ingredients to its partner, which will then directly supply these to the Brazilian health agency. The partner will also use the active pharmaceutical ingredients to produce insulin injections domestically after technology transfer from the Chinese firm, which includes production of insulin glargine and the filling process for insulin injectors. The final insulin products will be exclusively supplied to the Brazilian agency.
This initiative forms part of a broader government-supported program aimed at fostering local manufacturing capability within Brazil’s healthcare system. It involves securing procurement commitments to motivate multinational pharmaceutical companies to transfer state-of-the-art manufacturing technologies, thereby establishing a fully self-sufficient local production infrastructure for essential medications.
During the program’s evaluation phase, the collaboration between the Chinese company, its Brazilian partner, and the public health organization was the only project approved, highlighting its significance.
The Chinese company is a prominent supplier of insulin analog active pharmaceutical ingredients and injectable formulations. Last year, it produced more than 81 million units of insulin-based products, according to its latest financial report.
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