Aug. 16 (Bloomberg) -- Chongqing Lummy Pharmaceutical Co. and Jiangsu Lianhuan Pharmaceutical Co. led gains among Chinese drugmakers in Shanghai and Shenzhen trading after a news website reported the companies make medicines that can combat a drug-resistant bacteria.
Chongqing Lummy rose by the 10 percent daily limit to close at 29.81 yuan in Shenzhen, the most since Dec. 3. Jiangsu Lianhuan Pharmaceutical Co. jumped by the 10 percent daily limit to 12.68 yuan in Shanghai.
“The report is driving up the share prices,” Peng Haizhu, an analyst for the pharmaceutical industry at Huatai Securities Co., said by phone. “Some investors are using this as an opportunity to speculate. The gains aren’t likely sustainable.”
The Securities Times posted a story on its website Aug. 14 saying that Chongqing Lummy, Jiangsu Lianhuan, Zhejiang Hisun Pharmaceutical Co. and North China Pharmaceutical Co. make antibiotics that are effective against a newly discovered strain of drug-resistant bacteria. Chongqing Lummy denied this in a statement to Shenzhen exchange today.
The “superbug” has been found in 37 patients in the U.K., most of whom had received treatment at hospitals in India and Pakistan, according to a study in the journal Lancet. The bacteria can only be treated with two drugs, colistin and Tygacil, which the media report said the Chinese companies produced.
Hisun Pharmaceutical added 1.8 percent to 33.10 yuan. North China Pharmaceutical shares rose 3.2 to 11.25 yuan.
To contact the reporter on this story: Bloomberg News in Shanghai at email@example.com
To contact the editor responsible for this story: Gregory Turk at firstname.lastname@example.org