A number of Chinese pharma stocks surged Thursday after reports confirming domestic infections of a deadly fungus that is spreading around the globe, although none of the companies has a proven therapy.
Share prices of antifungal drugmakers listed in Shanghai and Shenzhen have climbed over the past few days. Several stocks rose by their 10% daily limits, including Jiangsu Lianhuan Pharmaceutical Co. and Jiangsu Sihuan Bioengineering Co.
At least 18 people in China are known to have been infected in recent years with Candida auris, although no deaths have been reported, Caixin learned. The fungus, which can cause deadly infections of the bloodstream and wounds in people with weakened immune systems, is often resistant to common antifungal drugs and is described as a “serious global health threat” by the U.S. Centers for Disease Control and Prevention.
Analysts said the pharma stock surges are mainly driven by hot money as none of the companies has been proven to have effective therapy against Candida auris.