(Yicai Global) Aug. 30 -- Andon Health’s shares soared after the Chinese medical devices maker said first-quarter net profit surged 277 times from a year earlier because of stellar sales of its Covid-19 test kits in the United States.

Following a 9.6 percent surge this afternoon, Andon’s stock [SHE: 002432] closed up 8.3 percent at CNY53.35 (USD7.73).

Net profit was CNY15.2 billion (USD2.2 billion) in the six months ended June 30, compared with CNY54.8 million (USD7.9 million) a year earlier, the Tianjin-based firm said yesterday. That led profit gains among all 377 Chinese mainland-listed firms in the biopharma sector. Revenue was CNY23.3 billion, up 4,000 percent.

The Covid test kits developed by Andon’s US unit iHealth Labs were given emergency use authorization by the US Food and Drug Administration last November. The US faced a new wave of the virus at the end of 2021, leading to a test kit shortage when local production increases were less than expected. Andon won several big orders after upping its output.

Last year, it was unclear when the US would have promoted the use of reagent test kits, so many Chinese companies decided to launch products in other markets and avoid any costs in the US, a source at a Covid test kit maker told Yicai Global.

In the second quarter, Andon’s revenue plunged to CNY1.5 billion (USD216.8 million) from CNY21.7 billion in the first quarter. Net profit also slumped 94 percent to CNY932 million (USD134.7 million).

Demand for antigen kits depends on the pandemic’s future course, which is uncertain, Andon said. Competition also has increased as many other companies have been authorization for emergency use in the US.

Editors: Shi Yi, Futura Costaglione