Shares of BeiGene (BGNE) - Get Report fell Wednesday, after China suspended the importation, sale and use of the biotech company's Abraxane, which is used to treat cancers of the breast, lung, pancreas and other body parts.
“This suspension is based on inspection findings at BMS’s contract manufacturing facility in the U.S.,” BeiGene said in a statement.
“As a result, BeiGene expects a disruption in Abraxane supply in China and is working closely with BMS to restore supply as soon as possible, including through BMS’ remediation efforts at the current manufacturing site and application to qualify an alternative manufacturing site for China supply.”
China’s National Medical Products Administration made the decision. “We are extremely disappointed by this interruption in drug supply,” BeiGene Chief Executive John Oyler said in the statement.
“At BeiGene, the quality of our medicines is of the utmost importance, and we hold ourselves and our partners to the highest global industry standards. We are working with BMS to determine corrective actions for this situation as quickly as possible.”
He said the company continues to work on launches of other products in China and the U.S.
“In addition to the ongoing remediation efforts at the current manufacturing site with the contract manufacturer, BMS has applied for NMPA approval to source its supply for the China market from an alternative BMS manufacturing facility for Abraxane, which is currently under review,” BeiGene said.
As for Bristol-Myers, it said in a statement to Reuters that China’s decision “does not impact our ability to supply Abraxane outside of China."
At last check, BeiGene shares traded at $121.27, down 6.2%, in a rising broad market. Bristol Myers traded at $51.23, up 4%.