Wuxi apptec will go to Hong Kong again and focus on new drug research and development in the future

Recently, it was reported that Chinese pharmaceutical company Wuxi Kant is considering listing in Hong Kong and plans to raise about 300 million US dollars, equivalent to about 2.34 billion Hong Kong dollars On December 11, 2015, Wuxi Wuxi Wuxi Pharmaceutical Co., Ltd announced the completion of privatization after the closing of the day and delisted from the New York Stock Exchange, with a market value of 3.3 billion US dollars From the initial announcement of privatization in August 2015 to the completion of privatization, it only took less than four months for Wuxi apptec In fact, since Wuxi apptec announced the privatization, there have been various rumors in the industry, saying that its delisting is to transform the research and development of new drugs, while American investors want listed companies to focus on the main business of CrO (outsourcing service agency of new drug research and development contracts); there are also various news about the way to be listed after the return For these rumors, Wuxi Kant has not made a positive response On February 17, the relevant directors of Wuxi apptec replied to the 21st century economic news reporter that the issue of listing is not responding at present However, it can be seen from a document provided by the person in charge that Wuxi apptec will focus on new drug research and development, which is also the strategic direction of its future development It is said that in 2000, when Wuxi apptec went to Hong Kong for IPO, Li Ge, founder of Wuxi apptec, returned from the United States to start his own business Seven years later, Wuxi apptec went public on the New York Stock Exchange Seven years later, it chose privatization again During this period, Wuxi apptec has become a leading cro enterprise In August 2015, Wuxi apptec announced the start of privatization, completed the privatization on December 11, 2015, and announced the delisting from NYSE In fact, the privatization of zhonggai stock has always been the focus of the market According to the incomplete statistics of 21st century economic reporter, with the rise of a shares in the first half of 2015, nearly 25 Chinese stocks announced the delisting of privatization successively, with a total amount of more than 300 billion US dollars Among them, two US listed companies, Ikon Guobin and Mindray medical, are also seeking privatization Shi lichen, head of Beijing Dingchen medical management consulting center, pointed out to the 21st century economic reporter that a large number of China capital stocks were privatized, mainly due to differences in valuation between China and the United States Yang Qing, chief operating officer of Wuxi apptec, previously introduced to the media that most of its investors are from the United States and other countries because of their presence in the U.S stock market They have different views from those of Wuxi apptec in developing the above-mentioned new business forms and seizing opportunities in the field of health in China To a certain extent, this also led to the privatization process of Wuxi apptec In fact, from the announcement of privatization to the completion of the whole process of privatization, no matter Li Ge, the chairman of the company's founder, Huiqiao capital group, Boyu investment and other venture capital institutions, as well as the institutions of Ping An insurance group and Singapore Temasek holding company, have not explained the reasons for privatization, but only claimed that "this transaction It's a very attractive opportunity for corporate shareholders As for which sector to list after privatization, Wuxi apptec has not made any statement Yaomingkant told 21st century economic reporter that the issue of listing is not responding at present There is no official response from Wuxi apptec All that remains is hearsay and speculation In August 2015, after Wuxi apptec announced its privatization, it was reported that Wuxi apptec would like to return to China's A-share market in a way that is likely to be "backdoor", and the next step is likely to be to split its plates into three major companies, which will be listed in China Recently, there was a rumor that Wuxi apptec plans to list in Hong Kong However, a person in the industry said to the 21st century Investors in Hong Kong have low valuations and recognition of pharmaceutical R & D companies, Ji said In the view of many insiders such as Mr Shi lichen and an analyst in the pharmaceutical industry of a securities firm in Shanghai, it is inevitable for Wuxi apptec to choose privatization The time of its announcement of privatization is exactly two months after A-share suffered a heavy blow in June 2015 "In the first half of 2015, many enterprises announced privatization, which is just the overvalued value of A-share, but Wuxi apptec still chose privatization after A-share's violent shock, It's more about strategy " Shi lichen said It is not clear whether to return to A-share market or choose Hong Kong to list after delisting from the New York Stock Exchange The person in charge of Wuxi Wuxi Pharmaceutical Co., Ltd has not made a clear statement to the 21st century economic reporter, but it is certain that Wuxi Pharmaceutical Co., Ltd has determined the way of transformation According to a report given to 21st century economic reporter by the above director, Wuxi apptec should focus on the research and development of new drugs On the day of Wuxi apptec's successful privatization, its senior executives said: "we will focus 100% of our energy on the dream of transforming new drug R & D at the beginning of the company's entrepreneurship, and on the technology and capacity building of the open and integrated R & D platform of Wuxi apptec." In fact, Wuxi apptec is not willing to be a cro company In recent years, it has been trying to expand its own business Dr Liu busjun, chief operating officer of the testing department of Wuxi apptec, once told the media: "now we are not a simple cro company We build an integrated new drug R & D platform, and focus on M & a cooperation in the upstream and downstream of the industrial chain, so as to make the company Scale up " At present, through continuous acquisition of Wuxi apptec, it has formed three parts: cro business, CMO business (contract processing outsourcing) and gene business The following is the external investment situation of Wuxi apptec in 2014: since 2014, Wuxi apptec has carried out a series of external investment actions and strategic layout (see attached table) it can be seen from the situation sorted out by the 21st century economic reporter in attached table that Wuxi apptec is expanding its business beyond cro, but American investors are not optimistic about its investment and only recognize the stable income and cash flow brought by CrO (new drug R & D and processing agent) business For example, on March 5, 2015, after Wuxi apptec announced its financial statements for the fourth quarter and the whole year of 2014 and the subsequent announcement of the new car-t plant in Philadelphia, it even caused investors to sell shares, and the share price fell to 34.39 US dollars from about 40 US dollars at the beginning of March last year, down more than 16% It is understood that yaomingkant is not an isolated example Q NYSE, a new drug R & D company that started earlier than Wuxi apptec, also suffered a share price crash due to the development of venture capital business extension In the end, it can only choose privatization to delist to complete the company's M & A expansion The above insiders pointed out to the 21st century economic reporter that although both Kuntai and Wuxi apptec are cro companies and have the same delisting path, their positions in the industrial chain are not the same Kuntai mainly focuses on outsourcing services of clinical trials When Kuntai got the contract from the pharmaceutical company, the pharmaceutical company had completed the research and development work of compound design and optimization, and the establishment of patent wall had also been completed; while Wuxi apptec started from chemical synthesis, screening, and even reverse innovation, bypassing its own patent wall Moreover, gene sequencing is considered to be a promising sector in the industry among the major businesses of Wuxi apptec According to the above insiders, Wuxi apptec will focus on the clinical application of gene sequencing, especially tumor treatment, rather than just the service of gene sequencing It is worth noting that China's version of the precision medical plan has recently been introduced, with an estimated investment of 20 billion yuan It is reported that Yang Qing, COO of Wuxi apptec, is on the list of the policy-making committee of the precision medical plan, but it has not been officially confirmed.