Gan & Lee Pharmaceuticals Co Ltd – Major International Contract and Market Impact
Gan & Lee Pharmaceuticals Co Ltd (stock code 603087.SH) announced on 23 September 2025 the signing of a ten‑year framework agreement with the Brazilian public health system that includes a technology‑transfer component and a minimum order value of RMB 30 billion (US$4.2 billion). The agreement is with the Brazilian Institute of Science and Technology (Fiocruz) and the local biopharmaceutical company Biomm, and is part of Brazil’s “Production Development Partnership” program.
The contract covers the transfer of Gan & Lee’s gliclazide insulin technology, the supply of insulin raw materials, and the provision of insulin injection products to Brazil. The deal represents the company’s first large‑scale export of a fully integrated insulin supply chain, positioning it as a key partner in the country’s effort to establish local insulin manufacturing.
Immediate Market Reaction
The announcement triggered a 10 % jump in the Shanghai Stock Exchange, with the share price rising from 72.13 CNH on 22 September to a record high of 79.34 CNH on 24 September. The 24‑hour trading volume reached 8.84 billion CNH, a 6.65 % share of the total daily volume, and the stock hit the daily limit‑up band for 3 hours 20 minutes. A net inflow of 1.8 billion CNH was reported in block‑trade orders, reflecting strong institutional support.
Strategic Significance
- Export Expansion – The deal marks a milestone in Gan & Lee’s international strategy, diversifying revenue sources beyond the domestic insulin procurement program.
- Technology Transfer – By transferring proprietary insulin production technology, the company secures a long‑term supply relationship and gains a foothold in the South American market.
- Supply Chain Integration – The agreement includes both raw material supply and finished product delivery, ensuring control over the entire production line in Brazil.
Financial Context
Prior to the announcement, Gan & Lee’s market capitalization was approximately 41.15 billion CNH, with a price‑to‑earnings ratio of 43.84. The company’s last 52‑week high was 81 CNH, and the low was 39.5 CNH, indicating a volatile but upward‑trending share price. The new contract is expected to generate incremental revenue and strengthen earnings stability over the next decade.
Broader Market Impact
The insulin supply sector in China is currently undergoing consolidation through national procurement initiatives. Gan & Lee’s successful expansion abroad underscores the potential for domestic manufacturers to compete internationally. Other listed pharmaceutical companies, such as Xinlitai and Huaren Pharmaceuticals, also experienced share‑price gains on the same day, reflecting a broader market rally in the innovation‑drug segment.
In summary, Gan & Lee Pharmaceuticals Co Ltd’s 30‑billion‑yuan contract with Brazil represents a significant step in its global expansion and is likely to have a lasting positive effect on the company’s financial performance and market valuation.