Holding a number of pioneering drugs Deqi pharmaceutical by the capital market "wrong kill"?

Disease is a problem that human beings have to face.
due to climate change, major infectious diseases and other reasons, human beings face major survival challenges, but also have to overcome a variety of incurable diseases.
of many diseases, there is a large patient population of tumors, the mortality rate is second only to cardiovascular disease.
, according to statistics released by the National Cancer Center, malignant tumors (cancers) became more common in 2015, with about 3.929 million cases and 2.338 million deaths.
than 10,000 people are diagnosed with cancer every day and 7.5 people are diagnosed with cancer every minute.
cancer burden continues to rise compared with historical data.
surgery, chemotherapy and radiotherapy were the main cancer treatments prior to the birth of immunotherapy such as PD-1/PD-L1 monoantimmune therapy.
, immunotherapy and targeted therapy have become dominant as medical technology continues to advance.
from an investment perspective, innovative pharmaceutical companies that insist on independent innovation and address clinically unsolved needs have gradually gained popularity in the capital markets in recent years.
of the pharmaceutical "new expensives" listed on the Hong Kong Stock Exchange in 2020 fell below their offering prices.
, many high-quality enterprises have been "mistakenly killed" by the capital market.
Pharmaceutical-B (6996.HK) is one of them.
-eyed and well-regarded ANTENGENE, an investment agency, was founded in 2016 as a biopharmaceutical company focused on innovative anti-tumor drugs with an experienced and excellent management team.
, according to the prospectus, Deqi Pharmaceuticals currently has 90 employees, most of whom have work experience in multinational pharmaceutical companies, and more than 60% of employees have a master's degree or above.
founder and CEO of the company, Mei Jianming (M.D., Ph.D.) served as clinical research and development director for Celgene (New Base, later acquired by BMS).
, several of the company's Group Vice Presidents have worked with multinational pharmaceutical giants and have more than 15 years of experience.
pharmaceutical management source: Prospectine currently, Deqi Pharmaceutical's business covers drug discovery, clinical development, drug production and other aspects.
breakdown, drug discovery is led by Dr. Shan Bo, vice president of the company's early drug development and group.
holds a Ph.D. from Aston University in the UK and has over 15 years of experience in drug development in Europe and China.
, the company's drug research and development center in Shanghai's Zhangjiang Hi-Tech Park opened in October 2020 and will accommodate more than 30 scientists.
addition, the company already has its first production base, located in Shaoxing Pharmaceutical Industry Park, Zhejiang Province, and plans to build a pharmaceutical plant that meets the requirements of GMP Clean Workshop, with a construction area of 16,300 square meters.
Against the background of the current transformation of the domestic pharmaceutical industry from generic to innovative drugs, Deqi Pharmaceuticals, with the strategic positioning of "developing and commercializing the world's first, only and best-of-its-kind therapies", will undoubtedly gain the favor of many investment institutions.
since its inception in 2016, the company has received investments from leading investors in the industry, including strategic investors Celgene, Pharmaceuticals and Tiger Pharmaceuticals, as well as financial investors including Fidelity, BlackRock, GIC, Takahagu, Boyou Capital, Fangyuan Capital, Qiming Ventures and Taikang.
Pharmaceutical Financing Source: On November 20, 2020, Deqi Pharmaceuticals was officially listed on the Hong Kong Stock Exchange, up 1.11% on the first day.
but the next day the share price opened lower and fell below its offering price (HK$18.08).
close on December 24, the shares closed at HK$17.94, with a total market capitalisation of HK$12 billion.
recently, Goldman Sachs and Xiaomo, well-known foreign institutions, gave HK$23.61 and HK$30 respectively "buy" and "overweight" ratings, and the share price showed an upward trend.
Deqi Pharmaceuticals share price chart Source: Futu Niu Niu differentiated research and development pipeline unique currently, Deqi Pharmaceutical's research and development team has 53 members, and plans to expand the research and development team to more than 100 members by 2023.
, about 90% of research and development team members earn graduate degrees.
2018, 2019 and the first half of 2020, the company expected to spend 116 million yuan, 115.8 million yuan and 170 million yuan, respectively, according to the prospecto.
through the direct introduction of late-stage pharmaceutical projects from abroad, in the domestic synchronous follow-up development, is deqi pharmaceutical unique business model.
the advantage of this model is that it can not only take advantage of the cutting-edge innovation in Europe and the United States, but also connect with the domestic technical team and huge market demand, greatly shorten the investment cycle, reduce the pre-research and development investment, reduce process risk.
As a result, with its outstanding capabilities in target selection and differentiated research and development strategies, the company has established a strong and highly collaborative research and development pipeline of 12 products, including two late-stage clinical assets, four early clinical assets and six preclinical assets, targeting highly endemic cancers in Asian patients, such as liver, nasopharyngeal, stomach, bile and certain types of blood cancer.
, the company has nine ongoing clinical trials and eight planned clinical trials, and has obtained 10 clinical approvals for nine cross-regional clinical trials in the Asia Pacific region.
Pharmaceuticals Research and Development Pipeline Source: The prospectose currently includes three innovative drug candidates, ATG-010 (selinexor), ATG-016 (eltanexor) and ATG-527 (verdinexor).
among them, XPOVIO® (selinexor, ATG-010) is the company's core product, which promotes the accumulation of tumor suppressor proteins in the nucleus, selectively induces the apoptosis of cancer cells, and is used to treat various hematosomas and solid tumors. according to
, ATG-010 is the first of its kind and the only oral SINE compound of its kind, and the first and only FDA-approved drug for the treatment of multiple myeloma and diffuse large B-cell lymphoma, developed by Karyopharm (NASDAQ: KPTI) and studied by Deki Pharmaceuticals.
Pharmaceuticals owns XPOVIO ® exclusive development and commercialization licenses for the Asia Pacific region, including China.
TO date, ATG-010 has been approved for three adaptations: on July 3, 2019, XPOVIO® was approved by the U.S. Food and Drug Administration (FDA) to treat recurring multiple myeloma (rrMM®); Single-drug oral therapy is used to treat patients with recurring incurable diffuse large B-cell lymphoma (rrDLBCL), and on December 21, 2020, the U.S. FDA approved XPOVIO®'s New Adaptation Listing Application (SNDA), a combination of boronicazome and low-dose dexamethasum to treat adult multiple myeloma patients who have received at least one line of treatment in the past.
based on the results of a validated BOSTON Phase III clinical trial, this adaptation was approved exactly three months before the PDUFA date (March 19, 2021).
Three is the third XPOVIO® approved for listing, highlighting the clinical potential and broad market prospects of the product," said Dr. Jianming Mei, founder, chairman and CEO of Deqi Pharmaceuticals.
" Currently, Deqi Pharmaceuticals is conducting ATG-010 Phase II registered clinical studies (code-named MARCH) for recurring multiple myeloma and Phase II registered clinical studies (code-named SEARCH) for recurring diffuseric large B-cell lymphoma II.
At the same time, Deki Pharmaceuticals initiated a clinical study (code-named TRUMP) of ATG-010 for the treatment of external T-cell lymphoma, NK/T cell lymphoma (code TOUCH) and KRAS mutations for non-small cell lung cancer.
, ATG-010 has conducted a number of mid- and post-clinical trials for multiple solid tumor adaptations, including liposarcoma and endometrial cancer.
according to Frost Sullivan, 100,000 cases of multiple myeloma in China are expected to grow to about 167,000 in 2024, with a compound annual growth rate of 10.4%, and the market size is expected to reach RMB14.7 billion in the same year.
199,000 DLBCL patients in China in 2019, with an estimated 251,000 cases by 2024, a compound annual growth rate of 4.7%, and a market size of RMB18.6 billion in 2024.
number of patients with multiple myeloma in China 2019-2030 Source: Pharmaceutical Min-Juno Prospectus To expand the global commercial market for ATG-010, the company also plans to submit new drug listing applications for ATG-010 in Chinese mainland, Hong Kong, Taiwan, Australia, Singapore, South Korea and Thailand by 2021.
, South Korea has granted ATG-010 orphan drug eligibility.
addition to the ATG-010, the company has two other effective SINE drugs in the works , the ATG-016 (eltanexor) and the ATG-527 (verdinexor).
, the second-generation selective nuclear output inhibitor compound ATG-016, which treats bone marrow-growth abnormal syndrome, was approved for Phase I/II clinical trials in China on November 26 this year.
, the company also plans to further develop ATG-016 for high-risk tumors (such as KRAS mutant solid tumors) and viral infection-related malignancies (e.g., nasopharyngeal cancer) in the Asia Pacific region.
addition, the company has two other products, the ATG-008 and the ATG-017, which have the potential of first-in-class and best-in-class, respectively.
, the ATG-008 has the ability to simultaneously suppress XPO1 and mTOR signals and improve anti-cancer effectiveness.
ATG-008 mechanism source: prospectine in addition, Deqi Pharmaceuticals in the preclinical stage of research drugs also have the potential to become the first of its kind, the same should not be underestimated.
's early preclinical research and development of new drugs for several innovative target drugs in the areas of small molecules, monoclonal and dual-specific antibodies, including ATG-101 (PD-L1/4-1BB dual Products such as heterosexual antibodies, ATG-018 (ATR inhibitors), ATG-022 (Claudin 18.2 monoantibodies), ANDG-012 (KRAS inhibitors) are currently advancing rapidly.
, it can be seen that Deqi Pharmaceutical's research and development pipeline layout is not only differentiated, but also in the market prospects of research products, commercial potential is very strong.
conclusion from the investment point of view, Deqi Pharmaceuticals is still in a loss-making state.
the prospecties, the company reported losses of $150 million, $320 million and $540 million in fiscal 2018, 2019 and the first six months of 2020, respectively, and net operating cash outflows of $110 million, $120 million and $140 million, respectively.
Deqi Pharmaceuticals' performance comes from: the prospectus, however, the company has an excellent management team and research and development team, as well as a number of heavyweights in the research and development of new drugs, with global technology research and development capabilities and commercial competitiveness, compared to other Biotech companies do very well.
addition, in the commercialization of cash, the company's management is also promoting the globalization of products.
Can be foreseen, through the domestic pharmaceutical industry from generic drugs to the era of innovative drugs, as well as the capital market for the core track, high-quality companies, both growth and scarcity characteristics of Deqi Pharmaceuticals, is expected to grow rapidly from Biotech into a very attractive pharmaceutical cattle stocks.
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