Shares of one of China's biggest traditional medicine producers fell on Monday (Apr. 18) after reports called into question the effectiveness of pills approved by the authorities for coronavirus treatment.
Ever since the outbreak of COVID-19, it has rapidly spread around the world and is one of the infectious diseases that has seriously threatened global public health. Traditional Chinese Medicine has a long clinical history in the treatment and prevention of such acute infectious diseases.
Shanghai officials followed their Hong Kong counterparts in successfully distributing "Lianhua Qingwen," a herbal treatment promoted for fever and sore throats. The cities are experiencing their largest COVID-19 outbreaks since the pandemic began.
In 2020, Beijing approved the coronavirus treatment, which was initially conceived for the severe acute respiratory syndrome (SARS) and contains ingredients such as honeysuckle and apricot seeds.
Last month, during the height of its Omicron-driven outbreak, Hong Kong had one of the highest virus-related fatality rates in the world.
Boxes of Lianhua Qingwen tablets were included in the government care packages in financial centers in Hong Kong and Shanghai, which are struggling to contain fast-spreading Omicron-fueled surges.
However, in a report picked up by state media on Sunday, popular Chinese health platform Dingxiang Yisheng stated that the capsules, manufactured by Shijiazhuang Yiling Pharmaceutical, cannot prevent cases of the virus.
As per Dr. Fang Bangjiang of Long Hua Hospital in Shanghai, herbal medicine caused a slew of negative effects, including nausea, vomiting, diarrhea, and rash. He also stated that the treatment is appropriate for mild cases patients.
Stock prices and, as a result, the market price of manufacturer and supplier Shijiazhuang Yiling dropped shortly after the report was released.
According to sources in the Global Times, Lianhua Qingwen, a Chinese herbal medicine, accounted for approximately 40% of the entire sales. On Friday, the business was fined 6.7 billion yuan ($1.05 billion) due to its inefficiencies in treating COVID patients.
Meanwhile, China has been attempting to promote Lianhua Qingwen internationally-with mixed results. Russia began selling the capsules in late 2020, while authorities in other countries, including the U.S. and Singapore, have questioned the capsules' efficacy in treating Covid. Meanwhile, Lianhua Qingwen has not been approved or recommended by the WHO as a COVID treatment.
The U.S. Food and Drug Administration stated that Lianhua Qingwen has not been approved and that coronavirus-related claims about it are "not supported by reliable technological proof."
