(Yicai Global) March 24 -- Shares of Guangdong Zhongsheng Pharmaceutical fell despite a unit’s 3CL protease inhibitor pill for Covid-19 becoming China’s second homegrown drug of its kind to get conditional market approval.

Zhongsheng Pharma [SHE: 002317] closed 1.2 percent lower at CNY20.24 (USD2.95) a share today, after having opened up by 2.9 percent. The broader Shenzhen market gained 0.3 percent.

Ray 1216 received the approval from the National Medical Products Administration yesterday. The drug, used to treat adults with mild or moderate symptoms, is also China’s fourth oral Covid drug to be granted such authorization, whose scope is wider than an emergency use approval.

The approval of Ray 1216, developed by unit Raynovent Biotech, will boost Zhongsheng Pharma’s market competitiveness and increase its market share, positively impacting future business, the Dongguan-based drugmaker said in a statement yesterday.

Taking Ray 1216 with no other drugs can significantly reduce a Covid-infected person’s viral load and speed their recovery, Zhongsheng Pharma said, adding that it can be an alternative for the elderly and those with underlying diseases who cannot take ritonavir or only in limited amounts.

Simcere Pharmaceutical Group's drug Xiannuoxin was China's first homegrown 3CL protease inhibitor pill for Covid-19.

3CL is a major protease found in coronaviruses that is necessary for its replication, and restraining its proteolysis can inhibit the virus' replication. 3CL is one of two key targets of global Covid-19 drugs.

Founded in 1979, Zhongsheng Pharma produces and sells Chinese patent medicines, chemical medicines, traditional Chinese medicine materials and herbal pieces, and active chemical pharmaceutical ingredients. Raynovent Biotech, headquartered in Guangzhou, was set up in 2018.

Editor: Futura Costaglione