A new CRO company was added to the ChiNext board, and the company had nearly 200 pharmaceutical R&D personnel at the end of 2021

【Pharmaceutical Network Enterprise News】On October 13, news that a new CRO enterprise was added to the Growth Enterprise Market, namely Anhui Wanbang Pharmaceutical Technology Co.
, Ltd.
(hereinafter referred to as Wanbang Pharmaceutical).

According to the data, Wanbang Pharma was established in 2006, engaged in innovative drugs, improved new drugs and generic drugs pharmaceutical development to clinical research of the whole process of CRO (pharmaceutical research and development outsourcing service organization) service platform
.
The company intends to issue no more than 16,666,700 shares on the Growth Enterprise Market of the Shenzhen Stock Exchange, accounting for no less than 25% of the total share capital after the issuance, and intends to raise 484 million yuan, which will be used for drug research and development and pharmacokinetic engineering center projects and supplementary liquidity projects
。 According to the prospectus, the revenue of Wanbang Pharma in the first half of 2019, 2020, 2021 and 2022 was 103 million yuan, 139 million yuan, 211 million yuan and 108 million yuan respectively; The net profit was 26.
49 million yuan, 54.
5156 million yuan, 81.
87 million yuan and 35.
8254 million yuan respectively; The net profit after deduction was 25.
4348 million yuan, 49.
27 million yuan, 72.
53 million yuan and 31.
406 million yuan
respectively.
In addition, the company expects to achieve operating income from January to September 2022 in the range of 172 million yuan to 190 million yuan, a year-on-year increase of 12.
09% to 23.
89%; The range of net profit attributable to shareholders of the parent company was 59.
375 million yuan to 65.
625 million yuan, a year-on-year increase of 0.
18% to 10.
72%; Non-net profit ranged from 53.
2 million yuan to 58.
8 million yuan, a year-on-year increase of 0.
76% to 11.
37%.

At the end of the reporting period, the total balance of accounts receivable and contract assets of Wanbang Pharmaceutical was 13.
9359 million yuan, 28.
6769 million yuan and 54.
0497 million yuan respectively, accounting for 13.
52%, 20.
61% and 25.
60% of the current period's revenue.
The accounts receivable turnover ratios were 8.
31, 6.
53 and 5.
10
respectively.
In terms of R&D investment, from 2019 to 2021, Wanbang Pharmaceutical's R&D expenses were 6.
7346 million yuan, 7.
7831 million yuan and 10.
3474 million yuan respectively, accounting for 6.
54%, 5.
59% and 4.
9% of the current period's revenue, showing a downward trend
year by year.
Since CRO is an intelligence-intensive industry, it has a strong dependence on
core talents and core technologies.
Statistics show that as of 2021, there are 198 R&D personnel of
Wanbang Pharmaceutical.
In recent years, with the rising demand for R&D services of domestic pharmaceutical enterprises and the continuous enhancement of R&D outsourcing demand, the CRO industry has developed rapidly, among which domestic CRO head enterprises represented by WuXi AppTec, Kanglong Chemical, Tigermed and others have continued to grow and actively carry out industrial layout, the market concentration is also high, and the industry competition is becoming more and more fierce.

The industry pointed out that it can be seen from the data that compared with other heads, the current R&D team of Wanbang Pharma is relatively small, and the company itself is facing the risk
of decreasing R&D rates, declining accounts receivable turnover and bad debts.
The sponsor of Wanbang Pharmaceutical's offering is Minsheng Securities Co.
, Ltd.
, and the sponsor representatives are Wang Lu and Fu Defu
.
The main questions raised at the Listing Committee meeting include: inviting the issuer to further explain the technological innovation in combination with the business process and key technical points of the bioequivalence study; Combined with the existing business scale, technical strength and basic conditions for carrying out self-research and development of innovative drugs and improved new drugs, the competitive advantages and disadvantages and related risks
of comparable companies in the same industry are explained.
Ask the sponsor for a clear opinion
.
Revenue recognition for issuer pharmaceutical research services adopts the milestone method of the output method, with 12 milestones set to determine the progress
of performance.
In addition, the issuer is requested to compare the revenue recognition policies of comparable companies in the same industry and the settlement nodes set by contracts, further explain the necessity of setting milestone nodes, and the reasonableness
of the corresponding performance progress setting.
Ask the sponsor for a clear opinion
.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice
to anyone.