(Yicai Global) Jan. 30 -- Shares in Chongqing Zhifei Biological Products climbed as much as 4.3 percent today, before falling as investors cashed in, after the Chinese vaccine producer said it has extended its exclusive vaccine distribution contract with US pharma giant Merck & Co. until the end of 2026 in a deal involving over CNY100 billion (USD14.8 billion) worth of jabs.

Zhifei’s share price [SHE:300122] fell 5.05 percent at CNY99.30 (USD 14) by the close of trading. Earlier in the day it hit CNY109

Zhifei will have the exclusive right to import, sell and promote five of New Jersey-based Merck’s vaccines, including for the human papillovirus and pentavalent rotavirus, that have been approved for sale on the Chinese mainland until the end of 2026, the Chongqing-based company said yesterday.

The original deal, which was signed in December 2020, was due to expire on June 30. The renewal will have a positive impact on the company’s future profit and revenue, Zhifei added.

The pair, whose collaboration dates back to 2011, have agreed on basic purchase amounts and ensured future supply of the vaccines, Zhifei said. Last year, the company bought 75 percent more than the basic amount agreed. Between 2020 and 2022, all of Zhifei’s third-party vaccines came from Merck.

Merck’s HPV vaccine is of particular importance to Zhifei. It distributed 11.8 million quadrivalent HPV jabs in the third quarter last year, a two-and-a-half-fold jump from the same period the year before, while that of its 9-valent HPV jabs doubled to 12.3 million, according to the firm’s third quarter results for 2022.

Editor: Kim Taylor