Review of Shanghai Junshi (1877.HK)

 I bought 5,000 shares of Shanghai Junshi (1877.HK) at $41.65 HKD on 9 Jan. The price jumped by 7.7% to $45.00 within one day.

I bought this stock because it produced the VV116 theraphy for covid that is more effective than Paxlovid. They have applied for approval of this drug, and are waiting for the decision.

The company is still operating at a loss. The future profit depends on the approval of VV116 and its sales.

In November 2021, the US government paid $5.3 billion for 10 million courses of Paxlovid. This works out to US $530 for a 5 day course. It implies a large profit margin to the manufacturer Pfizer.

Shanghai Junshi should be able to sell VV116 at a lower price, gain a large market share and show a huge profit.

I read from other reports that Shanghai Junshi had also developed therapies for the treatment of cancer and have entered into marketing arrangements to sell the therapies.

I will study them in more detail.

Note - this is my finding on the stock. I am not giving investment advice.

Tan Kin Lian
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