Tuoxin Pharmaceutical Clarifies It Is Not in Merck's Qualified Supplier List and Has Filed IPO Prospectus

China Securities News (Reporter Guo Jiling) — On the evening of January 24, Xinxiang Tuoxin Pharmaceutical Co., Ltd. issued an announcement on unusual stock price fluctuations, stating that the company is not in MSD's qualified supplier list system, has not signed any cooperation agreements with MSD, and has not supplied uridine products to MSD.

According to the announcement, the cumulative deviation of the closing price declines of Tuoxin Pharmaceutical's stock on January 21 and January 24 exceeded 30% over two consecutive trading days, which is considered an abnormal fluctuation in stock trading.

Xinxiang Tuoxin Pharmaceutical Co., Ltd. stated that the company is not in MSD's qualified supplier list system, has not signed any cooperation agreements with MSD, and does not have a cooperative relationship with them. The company has not supplied uridine products to MSD. In addition, the production process of uridine as a pharmaceutical intermediate is relatively mature, without significant technical barriers or market access thresholds. During the fiscal year 2020 and January-September 2021, the revenue contribution of uridine products accounted for 11.02% and 9.63% of the company’s total revenue respectively, having little impact on financial performance. The company currently has no pending orders for uridine.

Xinxiang Tuoxin Pharmaceutical Co., Ltd. also stated that the Azvudine API produced by its subsidiary, Xinxiang Pharmaceutical, has passed the associated review with the Azvudine formulation. However, Xinxiang Pharmaceutical is only the manufacturer of the Azvudine API and does not have information on the clinical trials for Azvudine's COVID-19 indication. Whether the COVID-19 indication for Azvudine will be approved, the timing of approval, and its impact on the company remain uncertain.