On September 16, Hong Kong-listed FUSEN PHARM experienced abnormal upward movement, surging over 400% intraday and reaching its highest price level since 2023. As of press time, the gains had narrowed to 355.88%, trading at HK$1.55 per share, with a total market capitalization of approximately HK$1.1 billion.

On the news front, FUSEN PHARM announced on the evening of September 15 that the group's self-developed "Metformin Empagliflozin Tablets (I)" has received marketing approval from China's National Medical Products Administration. The drug is indicated for use in conjunction with diet and exercise to improve glycemic control in adult patients with type 2 diabetes who are receiving empagliflozin and metformin hydrochloride treatment.

According to the announcement, fasting and postprandial bioequivalence studies showed that the product demonstrated bioequivalence consistent with the original reference formulation, providing a very favorable risk-benefit ratio for treating adult patients with type 2 diabetes and improving their glycemic control.

Company data shows that FUSEN PHARM is a modern comprehensive pharmaceutical enterprise integrating traditional Chinese medicine cultivation, drug research and development, production, and sales. Its main products include Shuanghuanglian Oral Solution, Shuanghuanglian Injection, and Qingre Jiedu Oral Solution.

It's noted that since 2022, FUSEN PHARM's net profit attributable to shareholders has been in a loss-making state. In 2022 and 2023, the net profits attributable to shareholders were -34.61 million yuan and -36.28 million yuan, respectively. In 2024, the company achieved revenue of 326 million yuan, down 42.4% year-over-year, with net profit attributable to shareholders losing 189 million yuan, declining approximately 420.2% year-over-year. In the first half of this year, revenue was 111 million yuan, down 43.3% year-over-year, with net profit attributable to shareholders losing 23.14 million yuan, improving 37.37% year-over-year.

Notably, in April this year, FUSEN PHARM's stock price once fell to HK$0.235, hitting a historical low since listing.

Analysts believe that FUSEN PHARM had a market capitalization of only HK$251 million before the stock price surge, making it a typical small-cap stock. Such stocks have small free float and low liquidity, allowing small amounts of capital to drive significant price fluctuations. For example, in July this year, Hong Kong-listed Golden Stream Investment surged over 650% intraday due to "stablecoin concept" speculation, but subsequently fell back quickly.

The abnormal movement in FUSEN PHARM's stock price may be primarily attributed to the positive news of drug approval, combined with factors such as prolonged previous stock price weakness and high ownership concentration.