CSPC Pharmaceutical Group Ltd.'s shares slumped on speculation that butylphthalide, a substance used in one of the company's key medicines, has been included on a watch list in China's eastern Zhejiang province, Bloomberg News reported.
The Chinese drugmaker's shares were down 6.10% to HK$16.02 as of market close Oct. 11. Butylphthalide is used in China to treat stroke, although it has not been proven to be effective in that indication.
The inclusion would put the usage of the ingredient under scrutiny and eat into CSPC's sales. CSPC uses butylphthalide to manufacture NBP soft capsule and NBP injections to treat acute ischemic strokes, a condition that causes the brain to not function properly, leading to loss of neurologic function.
CSPC generated 11.18 billion yuan in revenues during the first six months of the year, up 27.6% year over year thanks to strong growth in sales of innovative drugs.
Innovative drug sales surged 55.4% year over year to 6.15 billion yuan during that same period, and sales of NBP had increased by 35.9%.
As of Oct. 10, US$1 was equivalent to 7.12 Chinese yuan.
