By Fineline Cube SPH CanSinoBio, a joint venture between Shanghai Pharmaceuticals Group (SHA: 601607, HKG: 2607) and CanSino Biologics (SHA: 688185, HKG: 6185), has reportedly decided to halt production of COVID-19 vaccines as of April 4 for a period of 180 days, citing changes in the external market environment. The company, which is focused on the manufacturing of Convidecia (recombinant novel coronavirus vaccine, adenovirus type 5 vector), has made this decision in response to the evolving dynamics of the vaccine market.
Convidecia: A Pioneering Vaccine with Dual Immune Protection
Convidecia was the first adenovirus-based COVID-19 vaccine in China, receiving conditional approval in February 2021. The vaccine is known for inducing both humoral and cellular immune responses with a single dose, providing dual immune protection. Clinical data has shown that after 14 days of single-dose administration, the severe protection rate was 96.0%, and the overall protection rate was 63.7%.
Market Decline and Supply Exceeding Demand
The market for COVID-19 vaccines both domestically and overseas began to decline rapidly during 2022 and is expected to continue this trend in 2023. The global growth of COVID-19 vaccinations is slowing down, with supply exceeding demand in some regions. This market competition is intensifying, leading to a significant decline in the company’s sales revenue from COVID-19 vaccine products compared to the same period last year.
Inventory Impairment and Financial Impact
In light of these market conditions, the company has withdrawn more than RMB 800 million (USD 116.2 million) worth of COVID-19 vaccine-related inventory, indicating signs of impairment. This move reflects the financial impact of the changing vaccine landscape and the company’s strategic response to the current market situation.-Fineline Info & Tech