Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

China's CanSinoBIO H1 revenue drops on weaker COVID shot demand

Published 08/28/2022, 09:04 PM
Updated 08/28/2022, 09:11 PM
© Reuters. FILE PHOTO: A logo of China's vaccine specialist CanSino Biologics Inc is pictured on the company's headquarters in Tianjin, following an outbreak of the coronavirus disease (COVID-19), China August 17, 2020. REUTERS/Thomas Peter//File Photo
USD/CNY
-
NVAX
-
AZN
-

BEIJING (Reuters) - China's CanSino Biologics reported a 69.5% drop in revenue for the first six months versus a year ago, joining global and domestic COVID-19 vaccine makers affected by waning demand for their shots.

The decline from 2.06 billion yuan ($299.8 million) to 629.8 million yuan was mainly driven by weaker COVID vaccine demand as growth in global uptake slowed and price changes of CanSinoBIO's products, the firm said in a company filing published on Sunday.

CanSinoBIO, which sells a one-dose shot in countries including China and Mexico and is seeking approval for an inhaled version of the vaccine, said half-year net profit dropped by 98.7% year-on-year.

Earlier this month, Novavax (NASDAQ:NVAX) halved its full-year revenue forecast as it does not expect further sales of its COVID shot this year in the United States amid a global supply glut and soft demand. BioNTech reported about a 40% drop in second-quarter revenue and net profit but said its upgraded shots to be used in booster campaigns would increase demand in autumn.

Sino Biopharmaceutical, which holds 15.03% stake in CoronaVac-developer Sinovac Life Sciences, said earlier this month it logged 503.16 million yuan in profits from associates and a joint venture in the first half this year, down over 90% from the same period in 2021.

© Reuters. FILE PHOTO: A logo of China's vaccine specialist CanSino Biologics Inc is pictured on the company's headquarters in Tianjin, following an outbreak of the coronavirus disease (COVID-19), China August 17, 2020. REUTERS/Thomas Peter//File Photo

Shenzhen Kangtai Biological Products, which produces a COVID vaccine similar to Sinovac's and has obtained approval from Indonesia to sell its version of AstraZeneca (NASDAQ:AZN)'s shot, set aside provisions for asset impairment totalling 470.4 million yuan, citing "a rapid decrease" of its COVID vaccine sales since the second quarter.

($1 = 6.8715 Chinese yuan renminbi)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.