CSPC took the lead in buying the bottom, and the domestic Biotech selling tide is about to start

On February 5, the capital-loving upstart Jianshi Medical completed the acquisition of TAVR domestic manufacturer Jiecheng Medical

On February 9, CSPC announced that the group has completed the acquisition of 100% equity of Zhuhai Zhifan Enterprise Management Consulting Center (Limited Partnership).

Although the two acquired Biotechs belong to the innovative device and innovative drug tracks, the intensive occurrence of such uncommon events is often a precursor to an industry trend

0 1.

The hidden worry is that NBP (approved in 2002) is about to face the patent cliff, and it has been found that Nanjing Ruckus and Livzon have submitted applications for generic drugs

CSPC's acquisition of Mingkang Bio is regarded by the market as a supplementary operation for the company's existing pipeline of nervous center drugs

Guangzhou Mingkang Bio was established in 2000.

The core product of Mingkang Bio is the third-generation specific thrombolytic drug Mingfule (TNK-tPA), which was exclusively launched in 2015.

As we all know, stroke is the leading cause of death in China, and acute ischemic stroke accounts for about 70% of strokes.

Mingfule has also carried out the exploration of the indications of thrombolysis for cerebral infarction.

Although the market size and penetration rate of thrombolytic drugs are not large, the early promotion of NBP has a strong sales foundation in the field of central nervous system drugs.

0 2.

The tide of selling is bound to happen

Are there other endings?

There is also a way to learn from the West, that is, to transform and upgrade into a Bio pharma that is good at R&D, has a sustainable production and sales system, and finally becomes a Big pharma
.

This is the upgrade path that all Biotechs are thinking about, but very few successful ones can be seen from the fact that the number of global pharmaceutical giants is rare
.

At the moment, it is against the law that Biotechs want to knock on the door of Bio pharma through low-risk me-too
.
In addition, a Biotech with strong R&D capabilities may develop a first-in-class pipeline, but it is difficult to continuously develop the second and third first-in-class pipelines
.

The research and development of innovative drugs is often divergent, innovation is contingent and random, and the cascading effect of leading pharmaceutical companies is not obvious, which means that the starting lines of leading pharmaceutical companies and small pharmaceutical companies are relatively close
.
From the past history to the present, less than half of new drugs were developed by small pharmaceutical companies a few decades ago, and now more than three-quarters of new drugs were originally developed by small pharmaceutical companies
.

This is why there is a division of labor between Biotech and Pharma in the mature global pharmaceutical market.
Biotech is responsible for exploration without scale effects, and Pharma is responsible for other links with scale effects
.

The reason why there is no obvious trend of division of labor in China is because the time has not yet come
.

According to industry observers, on the one hand, most of the pipelines developed by Biotech in China are still in the category of me-too or me-better, which is of limited appeal to Big Pharma.
The research product has become Biopharm, so the subjective willingness to sell is not strong
.

We were previously in "18A spoiled by China's innovative drug market: Biotechs are caught in the speed of life and death, who will run out of cash within 2 years? " mentioned that the listed Biotech may be "not hitting the south wall, not looking back", as long as the money is not used up, it will still have its own stubbornness
.

Under the big trend of the times, after all, there is a choice to be made
.

With the price of the second-level upside down and the financing window closed, the first to sell itself must be the waist Biotech, which is difficult to continue to spread in the first-level market
.

The threshold of the A-share Science and Technology Innovation Board is insurmountable.
Hong Kong's 18A may be the last place of salvation for these Biotechs
.

Although the Hong Kong market has a fast financing speed and the listing threshold is not high, the financing can be completed within a week after listing
.
However, it should be clearly considered that the supply of 18A companies is currently in excess.
Investors' recognition of the international marketization of listed companies and products is a huge test, and liquidity exhaustion is a common final problem
.

There is a problem with the enterprise core, and it can only last 2-3 years through the 18A listing
.

If you don't sell your body, and you can't go public alone, are there other options?

Perhaps based on the synergy effect of the technology platform or the track, the merger and reorganization between Biotech and Biotech, the reorganization of Guichuang Medical and Tongqiao Medical under the capital matching, is also a textbook case
.

In addition, for some Biotech companies whose BD capabilities are not strong and whose business leaders cannot grow from scientists to entrepreneurs, they can also choose to transform into characteristic CXO companies to obtain cash flow for the continued existence of the company, A-share Sunshine Guojian and Hong Kong stocks The Chuangsheng Group has such a meaning
.

0 3.
Is there an opportunity for traditional big pharmaceutical companies to harvest the battlefield?

In the next 5-10 years, there will be thousands of Biotech companies that will be "optimized" through upgrading and transformation, mergers and acquisitions, etc.
, which can be understood as the survival of the fittest
.

Big Pharma in China is not in a hurry at all, because the further you go, the more benefits you might get
.

In the United States, the integration of Biotech has become the norm.
In addition to being acquired by large pharmaceutical companies, it can also form new consortia with large CDMO companies and professional CSO companies
.

However, it is different in China.
The mergers and acquisitions of foreign companies are restricted.
At the same time, there is a lack of truly international large-scale biopharmaceutical companies in China.
There are not many choices for Biotech to sell themselves
.

Looking ahead to 2021, the domestic Big Pharma and Biotech are fighting against each other and look down on each other.
At that time, the Biotech financing round after round, and no one wants to be the "horse boy" of these traditional pharmaceutical companies
.

"Thirty years Hedong, thirty years Hexi
.
"

It can be clearly felt that after 2021, there will be more news of cooperation between Big Pharma and Biotech in China
.

Under the circumstances that some Biotechs are difficult to commercialize their products on their own, the Chinese->
.
Basically, due to their strong capital, deep R&D pipeline and mature market channels, such companies can quickly deploy popular targets, forming a virtuous circle from R&D investment to sales returns
.

As of 2021H1, the cash equivalents of the above Big Pharma are: Hengrui 10.
805 billion, Zhongsheng 8.
029 billion, CSPC 8.
085 billion, and Fosun 10.
119 billion, all of which have strong purchasing power
.

"The family has surplus food, so don't panic
.
"

Conclusion: CSPC is the first to end the bargain hunt, which will inevitably affect the heartstrings of other Big Pharmas
.
It could also be just the beginning of a chain reaction
.