On March 17th, the Geneva Medicines PatentPool (MPP) announced that it had signed an agreement with 35 pharmaceutical enterprises to allow them to produce Nirmatrelvir API or preparation, one of the components of Paxlovid, which is a COVID-19oral drugin Pfizer, including 5 Chinese enterprises, namely Shanghai Desano Pharmaceuticals Co., Ltd, Huahai pharmaceuticalCo., Ltd, Apeloa Pharmaceutical Co., Ltd, Fosun Pharmaceutical (Group) Co., Ltd and Zhejiang Jiuzhou Pharmaceutical Co., Ltd. Apeloa and Jiuzhou Pharma only produce APIs, and the other three can produce APIs and preparations at the same time.

According to the terms of the agreement, these 35 pharmaceutical enterprises with global authorizationwill be able to provide Paxlovid combination therapy to 95 countries and regions, covering about 53% of the world's population, including all low-income and middle-income in sub Saharan Africa and some middle and high-income countries, as well as countries that have changed from low-income to middle and high-income in the past five years.

According to the Broker Research Report, considering the good treatment effect of Paxlovid, it is expected that after the implementation of authorization list, the relevant generic pharmaceutical enterprises and upstream industrial chain are expected to meet great demand. China has a mature basic chemical system and the layout of the whole industrial chain of pharmaceutical manufacturing. It has lower upstream raw material cost and the ability ofmore stable and sustainable supply. It is optimistic about the investment opportunities and long-term development of the whole industrial chain of COVID-19 oral drug.