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Newly listed pharmaceutical companies are the vane
of the pharmaceutical and biological industry.
of the pharmaceutical and biological industry.
In 2022, the number of pharmaceutical and biological companies with A-share IPOs shrank from 61 in 2021 to 50, a decrease of 18%.
Among them, 19 broke the issue, accounting for nearly 40%.
Innovative pharmaceutical companies, known as the "crown jewels" of the biomedical industry, have also turned from hot to cold
.
.
This paper selects 13 innovative pharmaceutical companies that will IPO in A-share in 2022 for comprehensive analysis
.
They are Asia Hong Pharmaceutical, Mabwell, West Point Pharmaceutical, First Drug Holdings, Tynecon, Rongchang Biotechnology, Haichuang Pharmaceutical, Fuyuan Pharmaceutical, Yifang Biotechnology, Mengke Pharmaceutical, Sinotherapeutical, InnoCare and Chuanning Biotechnology
.
Raised 22.
1 billion yuan, more than 60% of which was not profitable
1 billion yuan, more than 60% of which was not profitable
◆Fundraising: The total of 13 companies is less than BeiGene's
◆Fundraising: The total of 13 companies is less than BeiGene'sIn terms of fundraising capacity, the 13 innovative pharmaceutical companies raised a total of 22.
154 billion yuan, which is less than that of BeiGene, which went public in 2021
.
Among them, Mabwell Biotech has a maximum of 3.
477 billion yuan, and Sinotherapeutics has a minimum of 425 million yuan
.
Mabwell, which has only been established for 5 years, currently has 14 varieties under research and development in different stages of research and development, of which 1 product has been marketed, 2 varieties have submitted marketing applications, and 3 varieties are in the key registration clinical trial stage
.
Among them, there are many R&D hotspots in ADC, dual antibody and other industries, and even surpass many old biotechnology companies
in terms of number and type.
Figure 1 IPO funds raised by 13 companies
Figure 1◆Stock price: 5 breaks
◆Stock price: 5 breaksStock prices and valuations reflect market expectations
for the future development of the company.
Since the second half of 2021, the pharmaceutical and biological industry has suddenly turned from being popular with capital to winter
.
It has continued to decline since the beginning of 2022, rebounded in June, accelerated its decline, bottomed out at the end of September, and recovered slightly at the end of 2022
.
In this context, the stock price trend of 13 innovative pharmaceutical companies was also affected
.
Based on the closing price on December 30, 2022, a total of 5 companies fell below the issue price
.
Among them, Mabwell Biotechnology and Yahong Pharmaceutical fell by more than 50%, and the corresponding market value also fell sharply
.
The two highest increases were Chuanning Biotech (79.
00%) and Sinotherapeutics (78.
76%)
.
On the one hand, it is because the issue price pricing is low, and on the other hand, the company's performance is more predictable
.
It is worth noting that innovative drugs are not the main business
of these two companies.
In addition, Tynecon and Remegen also led the gains, rising 63.
07% and 61.
44%
respectively.
Among them, Remegen Biologics' stock price has risen all the way since June, with the highest increase of more than 150%.
Figure 2 Stock prices of 13 companies
Figure 2◆Performance: 8 companies reported a loss of 3.
2 billion yuan in the third quarter
2 billion yuan in the third quarter
The trend of stock prices is supported by fundamentals in the long run
.
According to the third quarterly report, only 5 of the 13 newly listed innovative pharmaceutical companies achieved profitability
.
Among them, Chuanning Biotechnology achieved revenue of 2.
94 billion yuan, a year-on-year increase of 15.
83%; The net profit attributable to the parent was 332 million yuan, a year-on-year increase of 93.
31%.
In the prospectus, Chuanning Biotech expects a net profit range of 382 million yuan to 3.
769 billion yuan in 2022, with a year-on-year increase of 243% to 269%.
On the one hand, the performance growth is due to the short suspension of production in the fourth quarter of 2021 due to the epidemic, resulting in a low profit level in 2021; On the other hand, the selling prices of major products are expected to show an upward trend in 2022 compared with the same period last year, of which the average sales price of erythromycin thiocyanate is expected to increase by 18%, the average sales unit price of 6-APA is expected to increase by about 41%, and the average sales unit price of penicillin G is expected to increase by about 63%.
Declines in performance are more common
than in a small number of companies with higher performance.
Among the 13 newly listed innovative pharmaceutical companies, 8 had negative net profits, with a total loss of 3.
278 billion yuan
.
Among them, InnoCare's revenue in the first three quarters was 442 million yuan, down 55% year-on-year; Net profit -834 million yuan, down 1048.
85%
year-on-year.
Its core product orelabrutinib was approved for marketing in December 2020 and achieved sales of 215 million yuan
in 2021.
After the price reduction of 50% at the end of 2021 was included in the national medical insurance catalog, the annual treatment cost dropped to 130,000 yuan, and the sales of orelabrutinib from January to September this year were 400 million yuan, and there was no explosive growth
.
Under the continuous promotion of medical insurance negotiations and national procurement, the prices of both innovative drugs and generic drugs have dropped
significantly.
At the same time, labor costs, raw materials and other costs continued to rise, revenue declined, and costs increased, resulting in pressure on the performance of the entire pharmaceutical industry
.
In addition, Yahong Pharmaceutical, First Drug Holdings, Hitron Pharmaceutical, and Yifang Biotech have not yet achieved commercialization, and the loss will continue
in the short term.
Figure 3 Performance of 13 companies
Figure 3◆ Gross margin: generally declined
◆ Gross margin: generally declinedThe gross profit margin reflects a company's profit space and comprehensive competitiveness, and the highest gross profit margin among the 13 companies is Mabwell, reaching 99.
67%, a year-on-year increase of 34.
62%.
Since the first prescription of adalimumab injection developed by it and Junshi Biotech on May 25, 2022, as of September 30, 2022, it has achieved excellent results
in 14 provinces nationwide, covering 447 hospitals, covering 653 pharmacies, and achieving 45 hospital access procurement.
The third quarterly report showed that 6 of the 13 companies experienced a decline
in gross margin.
Among them, the gross profit margin of Remegen Biotech fell the most, reaching -33.
27%.
Mainly after the two core products of Tatacept and vedicitumab were included in medical insurance, the price decreased by 68.
34% and 71.
85%
respectively.
Figure 4 Gross profit margins of 13 companies
Figure 4R&D investment increased by 11.
76%,
76%,
Cash flow is generally abundant
Cash flow is generally abundant◆R&D investment: Rongchang Biotech first
◆R&D investment: Rongchang Biotech firstFor innovative pharmaceutical companies, the potential of the R&D pipeline is the source of
their core competitiveness.
In the case of intensification of innovative drug involution, each hot target is crowded with competitors, in order to stand out from many competitors, it is necessary to compete not only with the effect of the product, but also with the speed of
research and development.
In order to gain a head start in the new target race and gain a first-mover advantage in the market, huge R&D investment is essential
.
In the first three quarters, the R&D expenses of 13 newly listed innovative pharmaceutical companies totaled 2.
941 billion yuan, with an average year-on-year increase of 11.
76%.
Among them, the highest R&D expenditure is Remegen Biologics, with R&D investment reaching 663 million yuan, a year-on-year increase of 26.
28%.
The increase in R&D investment means that its R&D pipeline continues to enter the clinical stage
.
Up to now, Remegen has laid out three pipelines of antibody fusion protein, ADC, monoclonal antibody and bispecific antibody drugs, covering the three major fields of autoimmune diseases, oncology and ophthalmology, and has developed more than 20 candidate biological drug products, of which more than 10 biological drug candidate products are in the commercialization, clinical research or IND preparation stage
.
Among them, tatacept and vedicitumab are constantly expanding other market-competitive indications
in addition to the three approved indications.
The fastest growth rate of R&D expenses was Yifang Biotechnology, reaching 377 million yuan, a year-on-year increase of 54.
88%.
There are 3 oncology products BPI-D0316, D-0502 and D-1553 in its R&D pipeline, which are in the marketing application (NDA) stage, phase III clinical trial and phase II clinical trial stage, respectively, with leading R&D progress, but more and more
domestic competitors.
In order to ensure the leading edge of R&D progress, Yifang Biotech has to continue to increase R&D investment
.
The bottom of R&D expenses is West Point Pharmaceutical, which is only 4.
097 million yuan, down 59.
56% year-on-year, and the R&D expense rate is 2.
22%.
In this regard, West Point Pharmaceutical explained that the company mainly introduces new varieties for early development through the transfer of technological achievements and entrusted development mode, and then combines its own competitive advantages to transfer scientific research results, and R&D investment is cyclical
.
◆ Cash flow: relatively abundant
◆ Cash flow: relatively abundantHuge R&D investment requires sufficient cash flow as a guarantee, and in the cold winter of capital, innovative pharmaceutical companies that can IPO are lucky
.
Since they have just gone public and raised enough funds from the A-share market, none of the 13 innovative pharmaceutical companies have the problem of
tight cash flow.
From the balance of cash and cash equivalents at the end of the period, InnoCare ranked first with 4.
414 billion yuan, and West Point ranked last
with 190 million yuan.
Among the 8 companies that are still losing money, regardless of investment and financial management, the average support time is 3.
4 years by dividing the cash balance by the annual loss, and the longest support time is 7.
8 years
for First Drug Holdings.
Figure 5 R&D expenses and cash flow of 13 pharmaceutical companies
Figure 5Data as of 2022.
09.
30(: billion)
brief summary
brief summaryLooking back on 2022, the entire pharmaceutical industry is still shrouded in
a spreading cold.
In the A-share market, the pharmaceutical and biological sector as a whole fell by 23.
7%, and 330 pharmaceutical companies fell, accounting for nearly 70%.
The domestic pharmaceutical industry, after experiencing different stages of barbaric growth and standardized development, should seize the development opportunities of the era of innovative drugs and hand over a more satisfactory report card
.
References: annual reports, semi-annual reports, quarterly reports
of major companies.
of major companies.
