By Justina Lee
Healthcare stocks are trading higher in Hong Kong, led by Shanghai Fosun Pharmaceutical (Group) Co., after it announced a joint venture with German biotechnology company BioNTech SE to manufacture and sell coronavirus vaccines.
Shares of Shanghai-based Fosun Pharma rose as much as 23% to 61.35 Hong Kong dollars Monday morning, nearing a record, after the company said on Sunday it will have a plant in China capable of producing up to a billion doses annually of BioNTech's Covid-19 vaccine.
Fosun Pharma's shares were recently trading 17% higher at HK$58.50, bringing its year-to-date gains to 58%.
Gains by the stock and other Hong Kong-listed healthcare shares helped the Hang Seng Healthcare Index rise 2.7%. The broader Hang Seng Index was down 0.4%.
Sinopharm Group Co. advanced 6.4%, after the World Health Organization on Friday approved the company's Covid-19 vaccine for emergency use. CanSino Biologics Inc. added 6.1%. Wuxi Biologics (Cayman) Inc., which on Friday said it completed the acquisition of manufacturing facilities in China and Germany, gained 2.7%.
The sector's rise comes amid a resurgence of Covid-19 cases world-wide, with pharmaceutical companies and governments racing to supply sufficient vaccine doses as the coronavirus continues to mutate. Brokerage IG noted that India's Covid-19 cases aren't showing signs of peaking, which would build the case for a nationwide lockdown.
Write to Justina Lee at email@example.com
(END) Dow Jones Newswires