iHealth COVID-19 Antigen Rapid Test gets big US order soon after launch

Foshan, Guangdong, 18th Jan 2022, ZEXPRWIRE, On January 13, Jiu’an Medical issued an announcement saying that in the past two months, its US subsidiary iHealth Labs. billion dollar sales contracts. The supply products are the iHealth new crown antigen home self-test OTC kit (hereinafter referred to as “iHealth kit“) developed and produced by the company, with a cumulative amount of over 300 million US dollars (about 1.9 billion yuan).

The announcement shows that as of the announcement date, the total amount of orders and contracts between the U.S. subsidiary and the New York State Department of Health has reached 1.18 billion yuan (including freight and taxes), exceeding 50% of the company’s main business income in 2020.

In addition, the announcement stated that the performance of orders and contracts is expected to have a positive impact on the company’s financial status and operating results, but it also reminds that factors such as changes in local epidemics, changes in policies, changes in supply chain capabilities, and logistics and transportation risks may cause some orders to fail. The contract cannot be fulfilled on schedule or in full.

At the opening of the day, Jiu’an Medical’s daily limit was quoted at 68.44 yuan per share, with a total market value of 32.76 billion.

Under the circumstance that the new mutant strain of Omicron is invading European and American countries on a large scale, the United States will implement the new crown rapid test plan on the 15th of this month, and the huge demand for testing reagents is coming from this.

According to the latest report from CNBC, the monthly demand for antigen reagents sent by the US government to the public for free may reach 2.6 billion doses, and the purchase amount involved is expected to exceed 10 billion US dollars.

In China, only the products of Jiu’an Medical, Oriental Bio and Aikang Bio have obtained EUA authorization from the US FDA to enter the local market and are the main suppliers of antigen reagents in the United States.

However, compared with the monthly demand of 2.6 billion doses, the existing capacity is still insufficient.

According to public information, Jiu’an Medical expanded its production to 200 million doses per month at the beginning of this year, Dongfang Bio has a production capacity of about 150 million doses per month, and Aikang Bio has a production capacity of about 100 million doses per month, with a cumulative monthly supply of no more than 500 million doses. Even if all of them are put into the US market, there is still a huge supply gap.

Under this circumstance, manufacturers of new crown detection reagents such as Meikang Bio, Botuo Bio, Wantai Bio and Wan Fu Bio are also applying for the relevant certification from the US FDA to participate in the division of this tens of billions of dollars in the market.

However, just the day before, Jiu’an Medical received a letter of concern from the Shenzhen Stock Exchange, which issued a “seven consecutive questions” to the company, involving the information disclosure of the iHealth kit test performance experimental report, etc.

In fact, since November 8, 2021, the company announced that its US subsidiary’s iHealth kit received an emergency use authorization (EUA) from the US Food and Drug Administration (FDA), and it has received letters of concern from Shenzhen four times. , and all related to its new crown testing kits sold to the United States. At the same time, during the period, the company issued multiple announcements of stock price changes to remind investors of risks.

However, from the perspective of stock price performance, Jiu’an Medical has not been greatly affected, but has been greatly sought after by investors. Since mid-November 2021, the company has achieved 26 daily limit, and the stock price has risen by more than 900%.

Why is Jiu’an Medical so far?

In fact, Jiu’an Medical was originally an unobtrusive medical device manufacturer, focusing on diabetes management and selling hardware equipment such as forehead thermometers, oximeters, blood pressure monitors, and blood glucose meters. Among them, self-operated brands account for more than 70% of revenue, and they also do OEM business, focusing on foreign markets.

The company was listed on A-shares in 2010. Before 2020, the net profit attributable to the parent in the past years did not exceed 100 million yuan, and even suffered serious losses in 2015 and 2017. In terms of total revenue, it is basically maintained at the level of around 600 million yuan.

The year of the outbreak in 2020 was a turning point for the company’s performance.

Due to the surge in demand for medical equipment and equipment brought about by the epidemic, the company’s revenue and net profit both increased significantly that year. Revenue increased by 184.4% year-on-year to 2.01 billion, and net profit attributable to the parent increased by 264.7% year-on-year to 240 million.

This year’s financial report shows that the income related to epidemic prevention materials was 87.87 million yuan, accounting for less than 50%. Moreover, the financial report did not mention the business related to new crown testing.

With the slowdown of the global epidemic situation, in the third quarter of 2021, due to the decrease in sales of anti-epidemic materials at home and abroad, the company’s revenue and net profit attributable to the parent also fell sharply, with declines of 60.9% and 104.4%, respectively.

The inflection point appeared on November 8, 2021. The company announced that the iHealth kit of its US subsidiary had obtained the EUA of the FDA, and said that the test product enriched the company’s product line and was its leading role in the field of IVD (in vitro diagnostic medical equipment). important breakthrough.

With the large-scale invasion of Omicron in Europe and the United States, the demand for rapid detection reagents has surged, and the share price of Jiu’an Medical has also risen all the way, with a continuous daily limit.

However, the huge overseas orders, coupled with the presence of Omicron in Tianjin, where the company’s factory is located, and the rebound of the epidemic situation have also aroused investors’ confidence in the company’s production capacity.

Media Contact

Company Name: iHealth
Contact Person: iHealth support
Email: [email protected]
City: Foshan
State: Guangdong
Country: China
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