Shanghai Junshi Biosciences Resumes Pharmaceutical Production Following Pandemic Disruptions

Reporter Zhang Min of This Newspaper

At the press conference on epidemic prevention and control held on the morning of May 18, Liu Bo, Deputy Commissioner of Shanghai Customs, introduced that a "green channel" would be opened for the entire industrial chain of integrated circuits, biomedicine, automobile manufacturing, etc., expanding the scope of facilitation measures from key enterprises to the upstream and downstream of the industrial chain and supply chain.

"Due to the industry's high requirements for logistics, personnel, and environmental protection, the main issues the company faced during the pandemic lockdown were logistics disruptions, R&D technical staff being unable to come to work, and hazardous waste disposal," a person from a pharmaceutical outsourcing services listed company, who wished to remain anonymous, told reporters from the Securities Daily. "After the lockdown, both international and domestic logistics were obstructed, affecting the shipping progress of the company’s products. We hope that as epidemic prevention and control steadily progress, domestic and international logistics will be effectively guaranteed to ensure the efficiency of logistics to other provinces and regions in China."

Since mid-April, how have the biopharmaceutical companies on the复工复产 whitelist progressed?

Hengrui Pharmaceutical Company personnel introduced to the "Securities Daily" reporter that its subsidiary, Hearm, has issued a special resumption of work and production plan. Currently, both research and development and production have achieved a certain degree of resumption. The company’s resumption of work and production is operating under strict closed management. In the near future, another group of employees will return to their posts, and the company will continue to advance relevant work in accordance with government requirements.

"As of May 15, 25 industrial enterprises under Shanghai Pharmaceuticals have initiated the resumption of work and production process, with more than 1,800 employees returning to work. Normal production has resumed for urgently needed key products in the market. These include Pefikon, Methotrexate, Ribavirin, and Salbutamol Sulfate from Xinyi Pharmaceutical; Colistin Sulfate, Benazepril Hydrochloride Tablets, and Mometasone Furoate Cream from Xinya Pharmaceutical; Liu Shen Pills and Jing Yin Granules from Raymon Pharmaceutical; and Pyridostigmine Bromide from Real Pharmaceutical," a person from Shanghai Pharmaceuticals told reporters.

"After being included in the first batch of the复工复产 white list, the company prioritized arranging the gradual return of employees from the production base, key projects, logistics support, and R&D centers in phases. Under the premise of ensuring safety measures, closed-loop management was implemented. As the number of employees returning to work under closed-loop management at the factory increased, the production base successfully restored its pharmaceutical production environment and initiated large-scale production for commercial and clinical-stage products," a person from Junshi Biosciences stated to the reporter.

"All employees of the company are steadily and orderly advancing the resumption of work and production while ensuring epidemic prevention and control. Currently, some staff have gradually returned to the office, but due to site restrictions, the overall progress has been slow," a person from Heryuan Pharmaceutical Company told reporters.

However, some industry insiders told the Securities Daily that policies vary by region, and the company is still waiting for the official notice to resume work.

Behind the resumption of work and production, it tests not only the company's original R&D and production operations but also its control policies as well as its capabilities in epidemic prevention and medical care, accommodation and logistics support, logistics transportation, and financial reserves.

"Some employees have returned to the company to start normal work," said a person from Hengrui Pharmaceutical. "They eat and sleep at the company. Although the conditions are relatively tough, everyone's morale is very high."

"Currently, research and development and production can be advanced through stockpiling, but the sales process will still be affected," a pharmaceutical company insider told reporters. "The company has not yet resumed work, but it is clear that both upstream and downstream of the industry are facing challenges. The company's cash flow is still sufficient, and it needs to accelerate the return to normalcy," a board secretary of a pharmaceutical listed company introduced to reporters.

"We look forward to achieving full resumption of work and production by mid-June, and returning to normal operations as soon as possible. At the same time, the company also hopes to make up for the delayed demand after the pandemic by working overtime and compensating shifts. Leveraging the accelerated release of pent-up demand in the Shanghai area post-lockdown, we aim to exchange time for space and make up for what we have lost," said a person from Asymchem.