Conba Pharma Advances on Approval for New Drug Technology: Shanghai Mover
Zhejiang Conba Pharmaceutical Co. (600572) shares rose the most in more than eight months after the Chinese government approved its extraction technology used in making drugs for cardiovascular disease.
The stock jumped 7.2 percent to 8.79 yuan at the close in Shanghai, the biggest advance since May 31. The benchmark Shanghai Composite Index (SHCOMP) decreased 0.3 percent.
Conba, based in the eastern Chinese province of Zhejiang, received government approval for the technology used in producing a brand of ginkgo leaf capsules, according to a statement to Shanghai’s stock exchange. The company will also receive a 1.96 million yuan ($311,000) subsidy for the project from the government, the statement showed.
“This is good news to the company and will surely help improve its competitiveness and boost its herbal medicine sales,” Liu Yaming, an analyst at Founder Securities Co., said in a phone interview in Shanghai. Liu has a “buy” rating on the stock.
Conba, which competes with Kunming Pharmaceutical Corp. (600422), probably sold 50 percent more ginkgo leaf tablets with sales of 100 million yuan in 2011 from a year earlier, Founder Securities’ Liu said.
Kunming Pharmaceutical fell for the first time in five days, losing 1.5 percent to 13.95 yuan in Shanghai. The shares have dropped 6.1 percent this year, compared with a 24 percent rally in Conba.
--Jiang Jianguo. Editor: Bloomberg News, Linus Chua
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