How are the pharmaceutical companies doing now after those "sending children to fly solo"?

【Pharmaceutical Network Industry News】In the past two years, spin-off and listing has become an important choice
for A-share companies to broaden financing channels and release the intrinsic value of their business.
In the pharmaceutical industry, the popularity of pharmaceutical companies "sending children to fly alone" is also very high, almost becoming the
norm.
Since 2019, MicroPort has spun off a subsidiary almost every year to go public, and currently has listed Cardio Medical, Cardio Medical, Minimally Invasive Robot, Minimally Invasive Brain Science and Minimally Invasive Electrophysiology
.
In addition, its subsidiaries MicroPort Heart Rhythm and MicroPort Mingyue have completed financing this year, plus MicroPort Orthopedics, and the industry expects that these three companies are likely to be spun off and listed
in the future.
At that time, MicroPort Medical may gather 8 listed companies, which is quite spectacular
.
On February 18 this year, Hualan Vaccine, a subsidiary of Hualan Biotechnology, was successfully listed on the Growth Enterprise Market, and it is planned to raise 2.
495 billion yuan this time, which will be used for influenza vaccine development and industrialization and existing product supply guarantee capacity building projects, freeze-dried human rabies vaccine development and industrialization construction projects, multi-bacterial vaccine development and industrialization construction projects, new pneumonia vaccine development and industrialization projects, and new vaccine research and development platform construction projects
。 In 2022, a large number of pharmaceutical companies plan to spin off subsidiaries to list, such as at the end of October, Dean Diagnostics announced that the company intends to spin off its subsidiary Guanhe Pharmaceutical to go public; On September 9, according to the Hong Kong Stock Exchange, Xintai Medical, a subsidiary of Lepu Medical, submitted a prospectus to be listed on the main board of Hong Kong; On July 2, Luye Pharmaceutical announced that its subsidiary Boan Biotech will be listed
independently.
Behind the "solo flight" of a large number of pharmaceutical companies, the industry believes that it is mainly due to the continuous improvement of relevant policies, and many listed companies feel that the spin-off is conducive to the company's rationalization of the business structure and plays a positive role
in improving the incentive mechanism of subsidiaries.
So, how are the pharmaceutical companies doing now after those "sending children to fly solo"? In fact, some people rejoice and some people worry
.
Taking MicroPort, which was spun off and listed by a number of subsidiaries, the company achieved revenue of US$405 million in the first half of the year, a year-on-year increase of 5.
3%, lower than last year's 20.
45%; The loss was $253 million, an increase of 120%
year-on-year.
The main reason was the sluggish growth of its three main businesses, cardiovascular interventional business, orthopedic medical device business and heart rate management business, resulting in a decline
in revenue.
At present, the new market value of MicroPort Medical is only HK$31.
240 billion, which has evaporated more than HK$
90 billion compared with the market capitalization high in mid-2021.
The Hualan vaccine, which was launched this year, has also fallen below the issue price, closing at 50.
46 yuan as of November 23, down significantly from the closing price on the first day of listing (70.
30 yuan), and the current market value is about 19.
632 billion yuan
.
The share price of its parent company, Hualan Biologics, has also fallen from its high in August 2020, and now has a total market value of about 36.
7 billion, nearly 100 billion
from its peak.
In addition, it is not easy to spin off and list, and the listing of many subsidiaries of pharmaceutical companies has been frustrated
.
In June this year, Baiyunshan announced the temporary suspension of the work related to the listing of Guangzhou Pharmaceutical in Hong Kong, taking into account factors such as the expiration of the validity period of the approval issued by the CSRC on June 23 and changes in the capital market environment in Hong Kong.
At the end of August 2020, Yan'an Bicon issued an announcement that it intends to terminate the spin-off of its holding subsidiary Jiujiu Technology to the
Growth Enterprise Market of the Shenzhen Stock Exchange.
However, with the change of the pharmaceutical market pattern, it is expected that the wave of spin-offs of pharmaceutical companies will continue
.
In this regard, some industries believe that the parent company should be cautious enough when choosing the spin-off target, and choose a growth subsidiary for spin-off, in order to increase its own valuation, otherwise it may be pulled into a low valuation
.
For spin-off subsidiaries, investors should pay attention to their development prospects
.
Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.