China's CanSino seeks more vaccine contracts after AstraZenca deal

Cansino Biologics

31/08/2023 09:02

By Brenda Goh and Miyoung Kim
       SHANGHAI, Aug 31 (Reuters) - China's CanSino Biologics
 6185.HK , which recently announced a contract manufacturing
deal to support AstraZenca's  AZN.L   messenger RNA (mRNA)
technology vaccine programme, is in talks with more firms on
similar deals, its CEO said, as it seeks new revenue streams to
make up for plummeting COVID vaccine demand.
    CanSino begun researching mRNA technology in 2018 and has
built a facility in Shanghai that can produce up to 200 million
doses a year, giving it the capacity to provide similar services
to other companies, CanSino's CEO and co-founder Xuefeng Yu told
Reuters in an interview. 
    "This is the first step," he said, describing the AstraZenca
deal announced earlier this month as "a business model".
    "We do have discussions with not just the multinational
giants, we also discuss with partners in Malaysia, Indonesia and
Mexico, Argentina, any market that may need our technology and
product."
    AstraZeneca said the deal would support investigational mRNA
vaccines early in its pipeline, but the companies have declined
to provide any further details. 
    CanSino, whose one-dose COVID shot is approved for sale in
countries including China and Mexico, saw its revenues soar in
2021 at the height of the pandemic, but like many of its peers
its sales have since tumbled as demand waned. 
    CanSino heavily relies on COVID vaccines and meningococcal
vaccines for revenue. On Wednesday, it reported a gross loss of
776.5 million yuan ($106.5 million) in the first half, mainly
due to reduced COVID vaccine sales and write-downs of unsold
COVID vaccines.  
    Yu expected no further significant writedowns involving
unsold COVID vaccines. 
    The company has paused its clinical trials for mRNA COVID
vaccine candidates, and will explore using the technology for
other diseases. It is also looking at other uses for its factory
in Tianjin which makes its COVID shot, Yu added. 
    "That facility shares the same platform technology with
other vaccines, it could easily be used for other vaccine
production," Yu said. CanSino's pipeline includes vaccines aimed
at infections and diseases such as tetanus and polio. 
    The company made headlines last year when its inhalable
version of COVID vaccine was approved for use in China. It is
now developing an inhalable vaccine against the zoster virus, as
the inhalable COVID vaccine stimulated strong mucosal
immunization and a robust immune response, Yu said.
    China's healthcare industry has in the past month come under
pressure from Chinese regulators who launched an anti-corruption
campaign targeting rampant graft and bribery in sales practices.
    Yu said it would be difficult for him to comment on the
campaign's impact, adding that CanSino was complying with the
rules and had an audit and compliance team that reported
directly to him.  
    "I hope the system can go on to the right track and they can
encourage the right practices," he added. 
($1 = 7.2899 Chinese yuan renminbi)

 (Reporting by Brenda Goh and Miyoung Kim; editing by Miral
Fahmy)
 ((brenda.goh@thomsonreuters.com; +86 (0) 21 2083 0088; Reuters
Messaging: brenda.goh.thomsonreuters.com@reuters.net))