The Shenzhen Stock Exchange on Wednesday night gave YLZ Info, a Chinese software company, 48 hours to provide details showing evidentiary support that it has the wherewithal to develop a blockchain technology to monitor the production and distribution of vaccines as the company announced recently.
Following recent allegations that the country’s State Drug Administration caught a pharma company called Changsheng Biotechnology cheating in its reporting of test results for a rabies vaccine, YLZ quickly issued a statement that it was working on a distributed ledger system to help keep track of the production and distribution of vaccines.
YLZ’s announcement came following suggestions from FinTech enthusiasts that the blockchain was the only solution to the myriad problems the country was facing in the pharmaceutical industry.
According to available data, the Chinese pharma industry was last year worth around $122.6 billion. Conservative estimates believe that this figure is set to reach between $145 billion to $175 billion by 2022.
Following massive public outcry regarding the falsification of reports, YLZ announced that it was developing the technology that would once and for all solve the problem in the country.
According to reports, YLZ’s announcement caused its stock values to increase by 10 percentage points within just three days. Now the Shenzhen Stock Exchange on which YLZ is listed is seeking proof from the company that it is indeed working on blockchain technologies for vaccines.
According to reports, the exchange also wants YLZ to shed light on its collaboration with Ant Financial with regards to the proposed blockchain. The exchange wants the company to detail the extent of its partnerships.
According to analysts, the quick move on the part of the exchange suggests that it wants to make sure that YLZ did not exploit public sentiment to dupe the unsuspecting masses for a quick buck.