(Yicai Global) Dec. 29 -- Frontier Biotechnologies’ stock price plummeted today after the entry of its drug to treat Acquired Immune Deficiency Syndrome into China’s medical insurance list precipitated a decline of almost half in its sales price.

Frontier Biotechnologies’ shares [SHA:688221] were 6.28 percent down at CNY18.95 (USD2.89) in late afternoon after shedding over 7 percent earlier in the day.

The sales price of each 160-milligram dose of the company’s Albuvirtide shot -- marketed under the brand name Aikening -- will be CNY532 (USD81) from March 1 to the end of 2022, the emerging biotech firm based in Nanjing, capital of China’s eastern Jiangsu province, listed on the Shanghai Stock Exchange’s Nasdaq-style Star Market, said in a statement yesterday.

The drug’s retail price to end users was CNY992 before its induction onto the list, the statement also noted, adding its entry cut its price by some 46.4 percent.

The patented medication earned Frontier Biotechnologies CNY23.2 million (USD3.6 million) in business revenue in the first nine months as the pharma firm’s only profitable product, per the statement.

Indispensable Injection

The drug is effective against both the drug-resistant virus and the frequently-seen Human Immunodeficiency Virus Type-1 when used in combination with other anti-viral medicines. It features a rapid effect, high level of safety and few side effects, rendering it virtually clinically irreplaceable, the statement explained.

The product’s inclusion will earn the drug developer the partial or entire coverage of sales by China’s medical insurance funds and thus augurs a massive spike in sales. The company had to offer grant price concessions to land it in the catalog.

The funding party of the government’s medical insurance funds hold annual talks with medicine developers to determine whether to induct a certain drug into the list as well as its post-inclusion sales price.

Formed in 2013, Frontier Biotechnologies is a tech and pharma company that researches, develops, produces and sells innovative medicines. The new drug got the nod for Chinese market access from August 2018, and its preliminary exploration and registration in overseas markets have already started.

The company also owns several other self-developed medicines in different stages of clinical trials, information on the company’s official website shows.

Editor: Ben Armour, Xiao Yi