China drugmaker plunges after Wanda scion doubts Covid TCM efficacy

[BEIJING] Shares of a traditional Chinese medicine maker plunged by the daily limit after the son of one of China’s richest men questioned the efficacy of its drug commonly used to treat mild cases of Covid-19 in China.

Shijiazhuang Yiling Pharmaceutical fell by 10 per cent in Shenzhen on Monday (Apr 18) after Wang Sicong -  Dalian Wanda Group chairman Wang Jianlin’s son - reposted a video late last week on Weibo that questioned whether the World Health Organization had ever recommended the firm’s drug as Covid-19 treatment. The city of Shanghai has been distributing the medicine to its residents as the financial hub battles the virus outbreak.

The stock has gained over 260 per cent since end-2019, mostly for its Lianhua Qingwen capsules which have been recognised by the Chinese government in various treatment plans to to reduce Covid symptoms such as fever and sore throat for mild cases. The World Health Organization hasn’t approved the use of the drug or recommended it for treating Covid.

A spokesperson for the company didn’t immediately respond to a WeChat request and a call for comment.

Other traditional Chinese medicine manufacturers also sank Monday. Dali Pharmaceutical and China Meheco fell at least 8 per cent each, while KPC Pharmaceuticals was down as much as 7 per cent. BLOOMBERG