Kingsley founder Zhang Fangliang was formally arrested and shares fell more than 14% as CAR-T therapy continued to burn

the | Linan announced on November 22nd that Zhang Fangliang, a non-executive director and chairman of the board of directors, had been arrested on suspicion of smuggling goods prohibited by Chinese law.
, two employees who had previously dealt with the Group's import and export activities have been arrested.
's share price plunged today (November 23), extending its afternoon decline to 16 per cent as a result of the incident.
close, Kingsley closed down 14.76 per cent at HK$10.740 per share.
's listed company Legendary Creatures has not been affected, after the smuggling storm, on November 9 Kingsley announced that Legendary Bio appointed Wang Wei as chairman and Huang Ying as ceo, the appointment took effect on November 6.
zhang Fangliang was still chairman of legendary bio-board of directors at the time.
source: Sina Finance founder has been under surveillance for 2 months Kingsley is suspected of human genetic irregularities out of Kingsley founded in 2002 by Zhang Fangliang, has a "global king of gene synthesis" name.
, the company's main service is to provide customers with gene synthesis.
products include gene synthesis services, peptide synthesis services, protein expression services, reagent antibody services, lead synthesis services, one-stop biopharmaceity research and development services, CRISPR/Cas9 services and other catalog products.
Just two months ago, Kingsley announced that China's customs and anti-smuggling authorities had inspected Kingsley's offices in Nanjing and Zhenjiang, China, on September 17th, which Henley said was "a suspected violation of Chinese law on imports and exports."
investigation, Dr. Zhang Fangliang, chairman, non-executive director and one of the controlling shareholders of Kingsley, was "under surveillance" and four other group employees were detained for questioning.
not say in the announcement of the specific cause of the incident, the industry speculated that Kingsley was being investigated or related to the government's ongoing national special examination of human genetic resources.
china attaches great importance to the supervision and protection of human genetic resources.
it is worth mentioning that on October 17th, the 22nd session of the Standing Committee of the 13th National People's Congress voted to adopt the Biosecurity Law, which will come into effect on April 15, 2021.
In the area of human genetic resources, the law emphasizes that "the collection of important genetic family systems in China, the collection of human genetic resources in specific areas or the collection of human genetic resources of the type and quantity prescribed by the competent department of science and technology under the State Council;
" the board of directors of Kingsley Biotech has announced that Mr. Zhang has resigned as a non-executive director, chairman of the board of directors, member and chairman of the company's nomination committee, member and chairman of the company's sanctions risk control committee, and a legendary bio-director.
At the same time, Zhu Li has been appointed as an Executive Director, Wang Xuehai has been appointed as an Independent Non-executive Director, Meng Jiange has been appointed As Chairman of the Board of Directors, and Wang Wei has been appointed as Chairman of the Corporate Sanctions Risk Control Committee with effect from 22 November 2020.
cell therapy products are expected to go on sale next year with continued research and development investment leading to the loss-making Big Kingsley subsidiary Legendary Bio specializes in CAR-T cell immunotherapy, which successfully landed on NASDAQ earlier this year.
's stake in Legend was diluted to 77.4 per cent before the listing and fell to 66 per cent after the listing.
In 2016, Legendary BioCAR-T Therapy achieved a 100% effective rate in eight patients with multiple myeloma, a result that made Legendary Bio famous at the 2017 Annual Meeting of the American Society of Clinical Oncology, and in 2018 won the country's first CAR-T Clinical Approval.
Since then, Legendary Bio has been favored by multinational pharmaceutical giant Johnson and Johnson, and in December 2017, Legendary Bio signed a global strategic cooperation agreement with Johnson and Johnson's Jansen to jointly develop BCMA CAR-T products, with Janssen paying Legendary a $350 million (RMB2.3 billion) down payment and a subsequent milestone payment.
the first half of this year, Kingsley achieved revenue of $166 million, up 36.5 per cent year-on-year, gross profit of $108 million, up 37.1 per cent year-on-year, and net profit of $161 million.
addition to cell therapy, the company's traditional business achieved revenue of $143 million, up 41.6% YoY, mainly due to COVID-19 testing-related products.
$23.1 million, up 11.6 percent from a year earlier, and a loss of $179 million, compared with a loss of $40.7 million a year earlier.
's operating losses were due to a significant increase in research and development spending at H116 million in 2020, up 83.9 percent year-on-year, from $102 million for the cell therapy division, due to continued research and development investment.
prior to the launch, Kingsley's revenue growth in the cell therapy business was primarily due to further confirmation of contract earnings from the development of LCAR-B38M/JNJ-4528 in partnership with Jansen.
the agreement, $35.8 million in annual service charges will be recognized between 2018 and 2026.
, according to Legendary Bio's previously disclosed results, Legendary Bio's earnings for the six months ended June 30, 2020 were $23.146 million, up 14.9 percent from a year earlier.
$179 million in the current period, up 3.34 times from a year earlier.
November 16, Legendary Bio Q3 reported revenue of $11.7 million, down 33.9 percent from a year earlier.
a net loss of $66.5 million, compared with a net loss of $27.8 million a year earlier.
expected to submit an LCAR-B38M listing application to the FDA in 2020, with the product in the priority approval process, with results available 3-6 months after submission and Q1 expected to be approved next year.
and in August this year, CDE recommended the inclusion of LCAR-B38M (Sidakioren race) in breakthrough therapeutic drugs, the first product in the country to be identified as a breakthrough therapeutic drug.
time, LCAR-B38M, a subsidiary of Kingsley, will become the world's first CART treatment for BCMA targets.
next year is also a key year for LCAR-B38M, with Kingsley submitting applications for listing in the European Union, China and Japan.
Securities forecast that the growth driver of Kingsley's performance over the next three years will also come from the biopharmaceitical CDMO business and the industrial enzyme business.