Runda Medical‘s Stock Price Dips Due to False Positive Incidents

Healthcare, Financials Author: Jizhen Huang May 12, 2022 12:27 PM (GMT+8)

Founded in 1999, Shanghai Runda Medical provides integrated medical laboratory service by offering a full range of IVD products. Headquartered in Shanghai, the company is one of the providers of antigen tests during the Shanghai lockdown 2022. Runda is listed on the Shanghai Stock Exchange market since 2015.

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The stock price of Shanghai Runda Medical (SH:603108) opened and fell by the limit yesterday. Although picked up by midday, as of the closing price, it was CNY 10.94 (USD 1.62) apiece, a sharp drop of 5.93% throughout the day.

Shanghai Zhongke Runda Medical Laboratory, a nucleic acid testing subsidiary of Runda Medical, is facing allegations of "false positive" reports, which has aroused market attention.

Some communities in Huangpu District, Shanghai reported that some residents tested “false positive” by antigen test, as the review results of “positive” were in fact all negative. The antigen tests providers of "false positive" is Zhongke Runda Medical Laboratory.

All residents in Shanghai are under lockdown, any positive case should be transferred to centers of quarantine. A positive case may lead to a building apartment’s transfer.

 The Shanghai Stock Exchange issued a supervision letter to Runda Medical and put forward work requirements for related matters. Runda Medical subsequently issued an incident statement claiming that the Zhongke Laboratory conducted daily tests in strict accordance with the laboratory's standardized procedures.

 Before the epidemic, the main business of Runda Medical's IVD products was for the diabetes disease area, and the market share of its glycosylated hemoglobin (HbA1c) analyzer was next only to imported brands. In addition, Runda Medical's business scope also includes third-party quality control information management systems and chemiluminescence immunology products.

 As of press time, Runda Medical’s price dips at CNY 10.69 (USD 1.58) apiece, slipping 0.25% on the A-share market.