Whoever wins the new crown wins the world!

Holding a lot of money to innovate

It can be said that the times create heroes.
If there was no new crown epidemic that swept the world, Moderna would not have been born
.
The research, development and application of biotechnology are a step-by-step process.
The immune cell therapy CAR-T has undergone seven years from the first clinical trial in 2010 to the approval of Kymriah and Yescarta in 2017.
The world's first Protac small molecule drug ARV -110, which received FDA Fast Track approval in 2019, is still in Phase II clinical trials
.

In the face of major public health emergencies related to the common destiny of mankind, mRNA technology has emerged due to its advantages of fast R&D and production, strong immunogenicity and high safety.
Moderna, as one of the few companies that master the key technology of mRNA, has become the most dazzling star , the clinical sample was developed in a record 42 days, and the clinical study was granted emergency use authorization by the US FDA 9 months later, and was fully approved by the FDA on January 31 this year
.

Founded in 2010, Moderna focuses on technology development in the mRNA field.
The company raised US$600 million in 2018 listings, setting the record for the highest IPO in the biotechnology field at that time
.
With the great success of the new crown vaccine product Spikevax, Moderna’s market value was close to $200 billion in August 2021, and it has more than 20 times in one year
.
After the peak, Moderna went into "stripping mode
.
" The company lowered its full-year revenue to $15 billion to $18 billion in its third-quarter 2021 report, down from its previous guidance of $20 billion
.
To make matters worse, both revenue and profit in the third quarter were lower than Wall Street analysts had previously forecast, raising concerns about the market trend of Spikevax in the post-pandemic period.
After all, Moderna is the only listed product so far
.

According to Moderna's quarterly report released on February 24, the total revenue in 2021 will be US$18.
5 billion (approximately RMB 116.
8 billion), and the net profit will be US$12.
2 billion (approximately RMB 77 billion)
.
As of the end of 2021, Moderna has $17.
57 billion in cash and equivalents, and has prepared sufficient ammunition for its next development
.

Figure 3.
Weekly K-line chart of Moderna's stock price change

There is no doubt about the layout of Moderna's R&D pipeline.
As early as in 2018, Moderna had 21 R&D projects, including 10 clinical projects, which were rare among Biotechs that started the IPO stage
.

Today, Moderna's 43 products under development and marketed on its official website cover the fields of infectious diseases, oncology, cardiovascular diseases, rare diseases and autoimmune diseases
.
The first mRNA AIDS vaccine based on Moderna technology has officially started human trials, and three new mRNA vaccines, including the herpes zoster virus vaccine, have entered the development process
.

With a lot of money in hand, Moderna will not stop the pace of innovation!

Figure 4.
Moderna's R&D pipeline, source: Moderna's official website

03

Kexing Bio

What was missed in the past has become a splendid warrior

The rise of Kexing Bio is inseparable from the promotion of China's "universal immunization" policy.
After layers of propaganda and mobilization of all levels of government, hospitals, enterprises and institutions, streets, schools and other forces, as of February 7, 2022, the national A total of 3 billion doses of the new coronavirus vaccine have been reported, and the total number of vaccinated people has reached 1.
27 billion, accounting for 89.
8% of the total population
.
Among all the vaccinated varieties, the inactivated vaccines from Sinopharm Zhongsheng and Sinovac are the dominant ones
.

According to the unaudited financial report for the first half of 2021 released by Sinovac, the company's revenue in the first half of 2021 was US$11 billion (US$67.
7 million in the same period of the previous year), or about 69.
9 billion yuan; net profit was US$5.
1 billion (the previous year).
Loss of 12.
61 million US dollars in the same period), about 32.
4 billion yuan, equivalent to 180 million daily earnings
.
The company supplies more than 2.
5 billion doses of vaccines globally, covering 56 countries and regions
.

A few days ago, Kexing Zhongwei invested 770 million yuan to set up a Beijing Kexing Yidao Real Estate Co.
, Ltd.
, and the news of "Kexing Biological's entry into real estate" was exaggerated by the media
.
Sinovac initially responded to the establishment of the company mainly to solve the problem of housing rental for employees and short-term accommodation of external experts.
Later, in response to speculations from all parties, Sinovision issued an announcement stating that the project company was cancelled, and stated that "Kexing does not currently have , will not enter the real estate industry in the future, and will firmly focus on the field of biomedicine
.
”

On February 21, Yin Weidong, chairman, president and CEO of Kexing Holding Biotechnology Co.
, Ltd.
, said: China Kexing will invest 10 billion yuan in the next five years to support basic research, innovative R&D and industrialization in the field of biomedicine, and promote Development of China's biopharmaceutical industry
.

Success is never achieved overnight.
Behind the brilliance of Kexing Biotech, there is a tortuous development process
.
After the outbreak of SARS in 2003, Sinovac urgently launched the SARS vaccine research and development project, formed a team and technically tackled key problems.
Clinical research, but the SARS epidemic has already ended at this time, and there is no reason to continue the phase II clinical research
.
When the H1N1 influenza and H7N9 avian influenza viruses appeared in 2009 and 2013, Sinovac seemed to have gone through a "cycle", and the epidemic had long since disappeared when the vaccine was developed
.
Although no economic benefits have been achieved, these valuable experiences have created Sinovac's "organizational, scientific research and production capabilities for high-quality and high-efficiency development of new vaccines", which seems to be accumulating and preparing for the near future
.

04

Yiling Pharmaceutical

Traditional Chinese medicine rejuvenates through time

At the beginning of the Boxer Year 2020, the new crown epidemic spread without warning.
The rapid spread of the epidemic and the rapid development of the disease brought panic to the people of the whole country
.
In the absence of vaccines and specific medicines, the treasure trove of traditional Chinese medicines in China has become the direction for clinical choices and people to seek help
.

Lianhua Qingwen Capsule, which passed the green channel for new drug approval during SARS in 2003, is based on Maxing Shigan Decoction in Zhang Zhongjing's Treatise on Febrile Diseases in the Han Dynasty and Yinqiao Powder in Wu Jutong's Diagnosis of Warm Diseases in the Qing Dynasty.
It is also possible to use the experience of rhubarb in the treatment of epidemic diseases in "The Treatise on Plague", which gathers the famous prescriptions of the three dynasties, "clearing the plague and detoxifying, and venting lung heat"
.

In March 2020, in the paper "Lianhua Qingwen has antiviral and anti-inflammatory effects on new coronaviruses", the research team of academician Zhong Nanshan found that Lianhua Qingwen can inhibit the replication of new coronaviruses, cause changes in the shape of virus particles and inhibit host cell inflammation factor expression
.
In April 2020, Lianhua Qingwen was approved by the Food and Drug Administration to add a new indication of "new coronavirus pneumonia mild and common"
.
As soon as the news came out, Lianhua Qingwen immediately became the target of people's rush to buy.
Not only domestic pharmacies sometimes ran out of stock, but overseas prices also soared due to shortages
.

Taking this opportunity, Yiling Pharmaceutical has achieved rapid development and achieved the best performance since its listing in 12 years
.
In 2020, the operating income was 8.
782 billion yuan, a year-on-year increase of 50.
76%; the net profit was 1.
219 billion yuan, a year-on-year increase of 100.
95%; the sales revenue of Lianhua Qingwen products was 4.
256 billion yuan, a year-on-year increase of 149.
89%
.
In 2021, Yiling Pharmaceutical is still developing strongly.
In the first three quarters, the total operating income was 8.
112 billion yuan, a year-on-year increase of 25.
8%; the net profit was 1.
224 billion yuan, a year-on-year increase of 20.
4%; Lianhua Qingwen products achieved operating income of 3.
37 billion yuan, a year-on-year increase.
17.
4%
.

Figure 5.
Yiling Pharmaceutical Revenue Comparison Chart

According to data from Zhongkang Information, the market share of Lianhua Qingwen products in retail terminal cold medicine/heat-clearing products jumped from 2.
44% in 2017 to 9.
86% in 2020, becoming the largest brand of Chinese patent medicine for cold medicine in the retail market
.

Figure 6.
Top five cold medicines/heat-clearing categories in retail terminals in 2020

It is worth mentioning that Yiling Pharmaceutical has been increasing its R&D investment in recent years.
According to statistics, Yiling Pharmaceutical will invest 737 million yuan in R&D in 2020, ranking first in the R&D investment list of traditional Chinese medicine companies; in the first three quarters of 2021, the company's R&D expenses It was 538 million yuan, a year-on-year increase of 37.
96%
.
Continued investment has led to the improvement of R&D output efficiency.
From 2020 to 2021, Yiling Pharmaceutical has approved 3 new traditional Chinese medicine drugs, including the 1.
1 category new drug Suxia Jieyu Chufan Capsule, Lianhua Qingke Tablets and Yizhi Anshen Tablets
.

According to statistics, Yiling Pharmaceutical currently has 8 innovative drugs under research and development, including 4 innovative Chinese medicine drugs and 4 innovative chemical drugs; from the registration classification, there are 6 innovative drugs in Category 1 and 3 new drugs in the original Category 6
.

  05

Jiu'an Medical

After ten years of deep cultivation overseas, it was once promoted as a "demon stock"

The new crown epidemic has driven the overall prosperity of the IVD industry, but no one is as crazy as Jiu'an Medical
.
Known by the media as the "New Year's Monster Stock", Jiu'an Medical has madly pulled 27 daily limits in 55 trading days, and its market value has risen from less than 3 billion to a maximum of more than 40 billion.
It was once famous in the secondary market
.

Figure 7.
The stock price trend of Jiu'an Medical

In the early morning of November 6, 2021, the iHealth New Coronavirus Antigen Home Self-Assessment OTC Kit of Jiu'an Medical's US subsidiary was authorized by the US FDA for emergency use.
Consumers can purchase from e-commerce, pharmacies, supermarkets and other channels without a prescription , which has since ignited the imagination and enthusiasm of investors
.

Figure 8.
Jiu'an Medical received a large order for iHealth's new coronavirus detection kit, source: Jiu'an Medical Official Website

On January 13, 2022, Jiu'an Medical announced that the subsidiary has received two purchase orders for test kits with a total amount of 420 million yuan, and signed a sales contract of about 760 million yuan with the New York State Department of Health, which caused the company's share price to be the second largest.
The wheel skyrocketed
.
Afterwards, Jiu’an Medical announced the news of “King Bombing”.
The US subsidiary signed a contract with the US ACC (US Army Contract Management Command) on behalf of HHS (US Department of Health and Human Services) on January 13 to sell 2.
5 100 million iHealth kits, about 8.
1 billion yuan, this figure is equivalent to the company's revenue in the past 4 years
.
Just when the public felt incredible about such a huge order, Jiu'an Medical announced on February 17 that the ACC of the United States paid for the goods one after another, and about 2.
95 billion yuan had been fully credited
.

Jiu'an Medical can become the first domestic supplier of domestic new crown kits recognized by the United States.
Jiu'an Medical mentioned at the investor exchange meeting: It has been operating in the United States for so many years, and it has lost so much money that it has established today's competitiveness.
It is not something that can be done in a short period of time
.

At present, the company's overseas orders mainly come from e-commerce platforms such as Amazon's official website, government orders and commercial customers
.
On Amazon’s official website, the iHealth new coronavirus home self-test kit ranks first in the “industrial and scientific” category of best-sellers, and was out of stock when the author inquired, with a total of 75,786 reviews so far; the iHealth kit forehead thermometer ranks in the “thermometer” category The best-selling list, with a total of 133,627 reviews
.

Figure 9.
Amazon’s official website iHealth kits and forehead thermometers top the best-selling list

On February 22, Jiu'an Medical received a regulatory letter from the Shenzhen Stock Exchange due to incomplete information disclosure of the experimental results and repeated inaccuracy and incompleteness of its responses on the investment platform
.
Just a week ago, the company received administrative measures from the Tianjin Securities Regulatory Bureau to take regulatory talks against Chairman Liu Yi and Secretary Wu Tong because it only disclosed some of the experimental results that were successfully tested and failed to disclose all of the experimental results
.
Talking only about the benefits, not the risks, the pace of Jiu'an Medical's information disclosure is just right, and the wording is worth pondering
.

06

Epilogue

Alpha, Beta, Gamma, Zeta, Delta, Lambda, Omicron.
.
.
With the rapid mutation and change of the new coronavirus, humans and viruses have launched a long-term tug-of-war between "the magic is one foot high, and the road is ten feet high"
.

Although we cannot predict how the new crown will end, or even coexist with humanity for a long time
.
However, these companies that are standing in the air have quietly been actively planning for the development of the post-epidemic era.
Moderna and Carisma Therapeutics have reached a cooperation to jointly develop CAR-M cell therapy based on macrophages.
Sinovac and the Institute of Biophysics of the Chinese Academy of Sciences jointly Establish a laboratory to promote the research and transformation of cutting-edge technologies in the field of new vaccines, optimize the pipeline layout of Yiling Pharmaceutical, and form sustainable growth momentum through the approval of 1-2 innovative traditional Chinese medicine drugs every year.
.
.

This is the best of times and the worst of times.
While we enjoy more choices from the times, we also have to bear the "involution" brought about by full competition
.
Even these "lucky ones" who were hit by the pie had to carefully plan their food and grass when the spring was bright, and be prepared for the unpredictable "winter" coming
.