RepliCel Life Sciences Inc (TSXV:RP)
RepliCel is a regenerative medicine company developing autologous cell therapies that address diseases caused by a deficit of healthy cells required for normal healing and function.
Prices of Chinese face mask fabric and production equipment have plummeted after hordes of new manufacturers rushed to enter the scene amid the worst times of the country’s Covid-19 epidemic, causing excessive supply.
The price of nonwoven meltblown fabric, carrying a filtration rate below 80 percent, has dropped to less than ten thousand Chinese yuan per ton, instead of the earlier minimum of CNY400,000 (USD56,247), the 21st Century Business Herald reported, citing an insider at Guangzhou-based medical supplies maker Well Lead Medical.
People who purchased their face mask machinery for as much as CNY1 million (USD140,292) during the peak period of the pandemic can now ask for a regular price of CNY200,000 to prevent the equipment from turning into scrap metal, the person added.
New players raced to enter the field early this year amid shortages of supplies — and rising profit margins — but once state-owned giants, such as China Petrochemical & Chemical, started boosting production, pharmacies’ shelves were soon stocked up with masks. By the end of last month, the petrochemical giant pledged to fire up 16 production lines to make as many as 13.5 billion medical masks each year.
Meanwhile, the demand surged overseas. As China re-emerged from lockdowns, the virus was picking up the pace of spreading abroad. But exporting personal protective equipment became more difficult. On April 10, China’s customs authority started requiring exporters to verify their product quality through certificates, which caused shipment disruptions that left boxes and boxes of masks lying around in their country of origin.
During the epidemic, new exporters played an important role in alleviating the disparity between supply and demand, but established medical companies are simply bound to eventually take over with stronger advantages in sales channels, the insider added.
Source: Yicai Global
