Fujifilm share price rose by more than 15% in today’s trading after a Chinese official said that a drug which it manufactures has been effective against the coronavirus. As of this writing, it is trading at 5,238, higher than where it was yesterday at 4,538.
Avigan, which is also called Favipiravir, is an anti-flu drug produced by a subsidiary of Fujifilm which is more popularly-known for its cameras. According to Zhang Xinmin, an official at China’s Science and Technology Ministry, it has helped coronavirus patients recover. This came after a clinical trial in Shenzhen revealed that those who took Avigan showed clearer X-ray scans than those who didn’t. The same drug was also used as an emergency aid during the Ebola outbreak in Guinea.
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Fujifilm Share Price Outlook
With equities being aggressively sold-off for the past few weeks on coronavirus concerns, this news was a welcome relief to investors. It even helped AUDUSD find some bids in today’s Asian session. While the company has yet to comment on the success of its drug, it will not be surprising for the Fujifilm share price to trade to its January highs at 5,848. Currently, Avigan is only produced on a per-order basis from the Japanese government. A spokesperson has also said that they do not have sales targets for the drug.
If more information confirms the drug’s effectiveness, we may even see Fujifilm’s share price trade beyond its recent highs. On the other hand, if this claim is proven to be wrong, it could fall to 4,315 where it may test the rising trend line for support.