China Jo-Jo Drugstores & China Nepstar Chain Drugstore Soar Amid Legalization News, Buybacks

China Jo-Jo Drugstores Inc CJJD soared over 20 percent and China Nepstar Chain Drugstore Ltd. (ADR) NPD spiked over 30 percent Tuesday following news that online sales of prescription drugs are expected to be legalized sometime after January 1 in China.

According to Want China Times, following “its launch four years ago, the scale of China's pharmaceutical e-commerce market has ballooned at an average annual rate of 250.35 percent, reaching 4 billion yuan (US$646 million) in 2013 alone.”

China’s entire pharmaceutical retail market was valued at $210 billion in 2013 with over-the-counter drugs accounting for $48.4 billion.

Further boosting shares of China Nepstar Chain Drugstore Ltd. (ADR) was the announcement of a share repurchase program allowing the company to repurchase up to $5 million worth of its issued and outstanding American Depositary Shares over the next 12 months.

China Nepstar Chain Drugstore recently traded at $1.81, up 31.1 percent.

China Jo-Jo Drugstores recently traded at $2.95, up 13 percent.

Posted In: NewsBuybacksLegalIntraday UpdateWant China Times
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