WuXi And then live? Aiming at this blank market, the giants began to actively layout!

Recently, Biotech WuXi Borui, which focuses on the development of a new generation of targeted nuclide-coupled drugs, announced the completion of nearly 300 million yuan of Series A financing

I don't know how long it took for another clear-flag Wu Ming company to obtain large financing

Does this mean that a new round of accumulation has begun?

Does this mean that a new round of accumulation has begun?

01 The aura of the WuXi system does not seem to have dissipated

01 The aura of the WuXi system does not seem to have dissipated

In today's domestic biomedical investment industry, the two CXO giants have a pivotal position, WuXi AppTec and Tigermed have a total value of illiquid assets invested abroad of nearly 20 billion, and the more aggressive Tigermed launched a 20 billion yuan industrial fund

Tigermed 2022H1 data shows that its illiquid financial assets reached 9.

Tigermed calculates investment income and financial asset changes, which seems to be difficult to understand and guess, and the company's annual report shows:

The valuation of a company's financial instruments is based on a combination of market data and a valuation model, the input values of which include data that can be reliably obtained from active markets, and when observable parameters are not reliably available, the input values are based on management assumptions and estimates

And when observable parameters are not reliably available, input values are based on management assumptions and estimates

Both exceed 50%.

WuXi AppTec looks "more honest"

In 2021, WuXi AppTec had more than RMB8.

WuXi AppTec's net investment income once reached 20.

According to incomplete statistics, WuXi AppTec directly or indirectly participates in and invests in more than 60 companies, from genetic testing, innovative drugs, cell therapy, medical devices to physical examination institutions, specialized hospitals, WuXi App Department, all over the medical and health industry

In 2021, WuXi AppTec's investment map received 6 IPOs

Although the benefits are not as good as Tiger on the surface, it does not prevent WuXi AppTec from playing the "VIC model (VC + IP + CRO)"

Hua Ling Pharmaceutical is a typical case, WuXi AppTec is not only the founding shareholder of the company, but also provided a series of CRO services for Hua Ling in the early days, and in a certain year's financial report, three of Hua Ling's five major suppliers are WuXi Appit.

CStone Pharmaceuticals

WuXi Junuo was jointly established by WuXi AppTec and Junuo Company of the United States in 2016 (the early core product was the asia-Pacific interest of Junuo's CAR-T product), until the time of WuXi AppTec's IPO, WuXi AppTec still occupied the position of the third largest shareholder; After the listing, WuXi Reduced its holdings of 23 million shares (a total of about 38.

WuXi Macro

This time, WuXi AppTec also conforms to the development of the market, gets rid of the points that the market does not like in license in and the single pipeline, actively lays out the transformation of scientific research, and saves a new bureau

This time, WuXi AppTec also conforms to the development of the market, gets rid of the points that the market does not like in license in and the single pipeline, actively lays out the transformation of scientific research, and saves a new bureau
such as WuXi Borui.

Different from earlier times, WuXi Borui was jointly incubated by WuXi AppTec to help Peking University's Southern Institute of Molecular Engineering in 2018, and is committed to creating a new generation of radio-targeted drug research and development, production and clinical application platform, and the company's R&D pipeline has a number of FIC/BIC nuclear-coupled drugs and neutron capture therapeutic drugs, all of which are independently developed & have global intellectual property rights
.

As of now, WuXi AppTec and its related parties are the largest shareholders of WuXi Borui, holding more than 70% of the
shares.

02 In the blue ocean market with a good competitive pattern, MNC rushed to the beach

02 In the blue ocean market with a good competitive pattern, MNC rushed to the beach

What exactly are nuclide-coupled drugs (RCCs) and neutron capture therapies developed by WuXi Borui?

What exactly are nuclide-coupled drugs (RCCs) and neutron capture therapies developed by WuXi Borui?

First look at neutron capture therapy, taking the recently hot boron neutron capture therapy (BNCT) as an example: first inject the patient with a boron-containing drug (the drug has a strong affinity for the tumor), the drug quickly and specifically gathers in the tumor cells (equivalent to labeling the tumor), and then irradiate the tumor site with a directional low-energy superheated neutron beam, when the irradiated neutrons are captured by the boron in the tumor cell, and then produce highly lethal particles (the damage size is about a tumor cell-size nuclear reaction), This makes the tumor cells completely die due to DNA breaks, so that the tumor can be accurately killed without damaging normal tissues
.

Boron neutron capture therapy is treated for 30 minutes to 1 hour each time, and the effect on some tumors is very significant, and a 2015 study by Kyoto University and Osaka University in Japan showed that after clinical trials of 37 patients with end-stage head and neck cancer, more than half of the cancer cells in patients disappeared
.

ADC is known as the precision version of chemotherapy, in which the targeted antibodies play a role in precise navigation, and the small molecules are responsible for killing tumor cells; The structure of RDC is similar to that of ADC, that is, the small molecule drug is replaced by radionuclides, and different medical nuclides are used, which can play different functions of imaging or treatment, and the application prospects are broad
.

How does RDC specifically destroy tumor cells?

How does RDC specifically destroy tumor cells?

Tumor cells need to continue to grow in value, while cells in the division phase are the most sensitive to radiation, and cells in the DNA synthesis phase are the least
sensitive to radiation.
Nuclides, or radioisotopes, can decay to produce radioactive rays that destroy the chromosomes of cells and stop growing, thereby destroying proliferating cancer cells
.

In terms of commercial value, RDC has been fully recognized by international pharmaceutical giants, Novartis and Bayer are very active in this field, since 2017 Novartis has spent nearly 10 billion US dollars to acquire early products and technologies in the field, and Bayer announced that there are 4 RDC drugs
in the clinical pipeline under research.

In the past 5 years, the US FDA has successively approved 5 RDC drugs, of which Novartis' lutethoxy octreotide for the treatment of gastrointestinal pancreatic neuroendocrine tumors has reached sales of $
445 million in 2020.

Sales reached $
445 million in 2020.

For Novartis' birchoxy octreotide, a 12-year follow-up study showed that 32% of patients with metastatic or non-surgical treatment after peptide receptor radionuclide therapy (PRRT) were still alive
after 12 years.

The efficacy and safety of RDC have been fully verified
.

The efficacy and safety of RDC have been fully verified
.

(RDC drugs approved by the FDA in the past 5 years Source: Medware Cube)

Due to the stable technical and policy barriers such as antibody screening and industry supervision of radionuclide-coupled drugs RDC, compared with the research and development of ADC, there are very few domestic and even global participants, and the competition pattern is good
.

Roundless RDC and neutron capture therapy can be regarded as the scope
of nuclear medicine.

From the perspective of domestic industry competition, the production and sales operations of the nuclear pharmaceutical industry in China require companies to obtain GMP certification, radiation safety licenses issued by the Ministry of Environmental Protection at the national or provincial level, multiple licenses issued by the Food and Drug Administration for the production of radioactive drugs and business licenses, especially radiation safety licenses that need to go through multiple and strict review stages, which require higher requirements for enterprises, and strict access requirements make the intra-industry competition small
.

Not only is the competition pattern good, but the market development potential is also huge
.

According to everbright securities statistics, in 2017, global nuclear drug sales reached 4.
5 billion US dollars, of which the United States accounted for 38%, Europe accounted for 24%, China accounted for less than 8%, the current penetration rate of Chinese nuclear drugs is much lower than the mature market, 10 years later the market size is expected to reach more than
20 billion.

In addition to policy supervision, nuclear drugs are also a series of barriers and problems
in the track, such as the restrictions on logistics of nuclear drugs' half-life, dependence on imports of raw materials, and high technical difficulties.

03 In addition to WuXi AppTec, Zhaoyan New Drugs also expanded its layout

03 In addition to WuXi AppTec, Zhaoyan New Drugs also expanded its layout

It is rumored that Gülen recently reduced its holdings & clearance of Zhaoyan new drugs, although it has not been confirmed, but the company's stock price has fluctuated greatly in recent days
.

It is rumored that Gülen recently reduced its holdings & clearance of Zhaoyan new drugs, although it has not been confirmed, but the company's stock price has fluctuated greatly in recent days
.

This does not prevent Zhao Yan from using the funds in hand to lay out a new field
.

In November 2021, Zhaoyan New Drug increased its capital by about 25.
714 million yuan to Jiangsu Xiantong, holding 30% of the equity
of the target company.

Jiangsu Xiantong Molecular Imaging Company, which Zhaoyan invested in this time, is in a leading position
at home and abroad in terms of nuclide types, number of sites, production capacity and professionalism.
Since 2016, its parent company, Syntao Pharmaceutical, has completed four rounds of financing, raising a total of more than 800 million yuan, attracting CICC, Qiming Venture Capital, Guokejiahe and other institutions to invest in shares
.

It is a leading
position in terms of nuclide species, number of sites and production capacity, as well as professionalism.

At present, domestic nuclear drug enterprises mainly through imitation and legitimacy in the addition of new varieties, nuclear drug research and development laboratories with high administrative regulations threshold, long construction cycle, complex equipment and other characteristics, the current domestic can provide third-party research and development services platform scarcity, from the level of listed companies, only Dongcheng Pharmaceutical through the acquisition of molecular imaging company Midu nuclear drug CRO layout, it can be seen that the market is still a "virgin land"
.

After the cooperation between Zhaoyan and Xiantong Pharmaceutical, it can get involved in the field of nuclear drug CDMO, and can also rely on its facilities, equipment, nuclides, and professional reserves to carry out nuclear drug CRO services (and jointly set up a radiopharmaceutical research and development service platform "Wuxi Zhaoyan Molecular Imaging"), so as to gain a first-mover advantage
in the field of drug release.

Conclusion: The management of WuXi Biologic Department has such a shrewd investment vision, for shareholders, it is a blessing or a curse, and time can only be judged
.

Epilogue: