Baekje, the first listed pharmaceutical company in three places, is coming!

Pharm.
com, June 29, news from more and more innovative biomedical companies' desire for cash flow is becoming increasingly urgent
.
As of June 28, there have been a number of "18A companies" (unprofitable biotechnology companies listed in Hong Kong) with an average daily turnover of less than 10 million Hong Kong dollars
.
Among them, Maibo Pharmaceutical's turnover rate today was only 0.
01%, with a turnover of 452,500 Hong Kong dollars, while TOT Yao's turnover rate and turnover were actually 0.
The liquidity of unprofitable biotech companies in Hong Kong stocks is worrying.

.
On the same day, BeiGene, which was listed on the Hong Kong and U.
S.
stocks, was approved for its first listing on the A-share Sci-tech Innovation Board.
This is the first domestic biopharmaceutical company to be listed in three places
.
According to its prospectus, BeiGene intends to raise 22.
345 billion yuan for the construction of drug clinical trial research and development projects, research and development center construction projects, industrialization projects, and supplementary liquidity
.
BeiGene continues to invest in early drug discovery, preclinical research, clinical development, production, and commercialization.
Although the innovative drugs Baiyueze and Baizean have been launched from January to September 2020, they have achieved sales revenue of nearly 900 million yuan , But at the same time continue to invest in the expansion of the indications of the listed drugs and other new drug research, so the sales of listed drugs are still at a loss
.
From this point of view, based on the ratio of cash reserves to losses during the year, many bio-innovative companies are facing a cash flow test
.

　　The light of
new drugs behind the cash reserves The first test of new drug research and development is the strength of cash flow
.
In recent years, BeiGene's R&D investment has continued to increase, from 2.
017 billion yuan, 4.
597 billion yuan, 6.
588 billion yuan to 6.
603 billion yuan, and the R&D expense ratio is at the leading level in the industry
.
As of the first three quarters of 2020, its R&D expense ratio is as high as 452.
66%, which is much higher than the industry average of 68.
70%
.
Therefore, its sci-tech innovation board is also supported by CICC and Goldman Sachs.
This is because BeiGene has successfully developed the first new generation of BTK inhibitor zebutinib independently developed by China, and its other independent research and development.
The PD-1 drug tislelizumab was bought by Novartis with an advance payment of up to 650 million US dollars and a total transaction amount of 2.
2 billion US dollars
.
However, data shows that from 2017 to January-September 2020, BeiGene’s revenue was 1.
611 billion yuan, 1.
310 billion yuan, 2.
954 billion yuan and 1.
459 billion yuan, including revenue from drug sales and technology licensing and R&D services.
The net profit attributable to shareholders of the parent company was -982 million yuan, -4.
747 billion yuan, -6.
915 billion yuan, and -1.
04 billion yuan
.
As of September 30, 2020, BeiGene has accumulated undistributed profits of -24.
303 billion yuan
.
For BeiGene, it is no easy task to simultaneously advance hundreds of global clinical trials and achieve product launches at home and abroad.
It not only requires strong innovation capabilities, but also relies on a strong commercialization system
.
Take Zebutinib as an example.
Except for China and the United States, the drug has been approved for marketing in Canada, Israel and other international markets.
As of May 2021, it has submitted more than 30 new drugs and new indications worldwide.

.
Let’s look at another core product, the PD-1 drug tislelizumab.
The company has carried out 35 clinical trials of tislelizumab monotherapy and combination drugs worldwide.
A wide range of indications have been carried out
.
This is also one of the realistic driving forces for BeiGene's financing in the three places
.
Similarly, at the end of May 2020, Jacos and AbbVie reached a strategic cooperation agreement of more than US$855 million.
This is one of the largest transactions in which China’s self-developed small-molecule anti-tumor drugs have been granted patents to overseas markets.
One
.
Based on this, Jacos will generate revenue of 486 million yuan in 2020.
It is one of the few biotech companies listed on the 18A charter in Hong Kong stocks that can generate revenue before commercialization and has a "hematopoietic mechanism".

.
In mid-June this year, Jacos Pharmaceuticals announced that the company’s research project SHP2 inhibitor JAB-3312 has completed the first patient in clinical trials of PD-1 antibody K drug and MEK inhibitor bimetinib.
Gacus will receive a milestone payment of US$20 million from AbbVie
.
It can be seen that behind the comprehensive product power is the capital power
.
But in sharp contrast, more "18A companies" failed to do so
.
Before, there was the helplessness of Songli Pharmaceutical, and now there is the helplessness of Maibo Pharmaceutical and Toyo Pharmaceutical
.
As of press date, the market value of Maibo and Toyo were only HK$4.
825 billion and HK$2.
695 billion
.
For example, Toyo Pharmaceuticals is still waiting for the ADC R&D project and CDMO's efforts to overcome the immediate cash flow pressure
.
Some institutional analysts pointed out that the current cash reserves of many bio-innovative companies have an average of about 5 years to "maintain their livelihood"
.
Including Kangfang Sheng was Yasheng medicine , Chinese medicine and other leading companies are faced with the test of cash reserves, many pharmaceutical companies have even fast do nothing to boil
.
From this point of view, if the waves are scouring the sand, companies will inevitably be photographed on the beach
.

　　The mysterious reduction of 3SBio's holdings and the hurried transformation
of Golly Pharma are also puzzling incidents in Hong Kong's 3SBio on the 25th
.
In the absence of any negative conditions, the company has been sold by mysterious shareholders, and more than 2.
5 billion funds have left the market
.
At the close of the day, the stock price fell 16%, evaporating more than 5 billion market value.
It has not fallen sharply until today, and it still fell 3.
45%
.
This phenomenon has also triggered a lot of speculation in the market
.
According to the 2020 annual report of 3SBio, in the company’s shareholding structure, there are shareholders with such large holdings.
Except for the actual controller, only the second largest shareholder CITIC Securities and the third largest shareholder Hillhouse Capital, both holding 4.
722 Billion shares and 229.
37 million shares, corresponding to 18.
56% and 9.
02%
.
It doesn't really matter which institution is reducing its holdings.
What is important is that the capital market is more rational about biomedicine
.
Although 3SBio has maintained a relatively stable growth in both revenue and profit, it is interesting to look at 3SBio’s share price performance based on the data.
After the company reached its market value peak in 2018, the stock price continued to fall to the bottom.
Shows a very sluggish trend
.
At present, its revenue support comes from three single products: TPIAO (49%), Yisaipu (11%) and erythropoietin (17%).
The revenue of the three will account for the company's total revenue in 2020.
77%
.
However, TPIAO occupies more than 72% of the market share of similar drugs, and Hengrui's improved new drug, Hetropopag ethanolamine tablets, has been approved for marketing.
With its focus on the major indications of Hetropopag ethanolamine tablets For development, TPIAO will face greater competitive pressure in the future
.
However, Yisaipu and the global "drug king" adalimumab are the same track drugs, and the competition for TNF-α inhibitors in the Chinese market is very fierce
.
If you look at the new product layout, the company's HER2 monoclonal antibody will be the first domestically approved listing in 2020, but the HER2 monoclonal antibody track is very crowded in China
.
Also facing the same challenge is Gallite Pharmaceutical
.
In just three or four years, the enthusiasm of capital has been completely different
.
Although its two leading hepatitis C drugs, Danorevir and Lavidavir, were launched as scheduled, they were not satisfactory under the encirclement and suppression of foreign companies
.
Prior to this, introducing advanced overseas products and reducing dimensionality and combating domestic products was the biggest attraction of Gerry Pharmaceuticals
.
But the good times didn't last long, and Dano Ruiwei and Lavidavir, which made Gallite Pharmaceutical's infinite beauty, also let them fall from the altar
.
In 2019, Danoruiwei's sales revenue is only 124 million yuan, and in 2020, Geli Pharmaceutical will simply stop sales
.
Regrettably, Ravidavir, which was highly expected in July 2020, was approved for marketing, but domestic oral hepatitis C treatment drugs have been embarrassed and the price has fallen to the floor price
.
Gilead's several hepatitis C treatment drugs that have entered medical insurance make it difficult for Lavidavir to catch up
.
According to the performance report of Geli Pharmaceutical in 2020, the annual revenue was 35 million yuan, a year-on-year decrease of 79.
8%
.
At the same time, R&D expenditure decreased by 13.
4% year-on-year to 109 million yuan
.
In 2021, Gallée will focus on the four treatment areas of NASH, tumor lipid metabolism and oral checkpoint inhibitors, hepatitis B clinical treatment and HIV/AIDS
.
The above are only representative companies.
Many companies’ weapons (in-progress projects) have lost the favor of capital.
How to break through the new path and prove their value in the next 3 to 5 years is very important, whether it is good or bad.
To be tested by the market
.