Xi Hao, CFO of Cinda Bio: Accelerating innovation and evolution, striving to become a new force in the global pharmaceutical market

Three new drugs were launched, four products were commercialized, and PD-1 performance doubled; losses narrowed by more than 40%, and overseas presence deepened.

And behind this report card, what kind of growth logic and future strategic signals of Cinda Biotech are behind? In order to explore the answer, Sina Pharmaceuticals had a special dialogue with Xi Hao, the executive director and chief financial officer of Cinda Bio.

Xi Hao, Executive Director and Chief Financial Officer of Cinda

Red sea or blue sea, how can the PD-1 battle be better?

In the past year, in the PD-1 track, which is the most concerned and the most intense in the industry, Sintilimab (Daboshu®), as the only Cinda Biologics that has entered the high-volume growth of medical insurance in 2020, has The annual revenue of 2.

PD-1 is a rare super target in the history of innovative drugs for decades.

Has this track been a red sea or a blue sea all the time? How much space is there in the future market? The parties argued differently.

In this regard, Xi Hao said: “Despite the fierce competition, from the perspective of global PD-1 sales performance, it will be as high as about 30 billion U.

Xi Hao continued to add: "In addition, the current research results of PD-1 single-drug and combination drugs are still being released.

However, the cruel competition is also an indisputable fact.

In the face of more and more domestic PD-1 entering the medical insurance and direct competition with Daboshu®, Xi Hao said: “First of all, we are confident in the quality of the product and the affordable price for patients, and we believe that Daboshu® is still It has a certain first-mover advantage.

At the same time, in order to cover more patients, Daboshu® is still speeding up the race for indications.

In addition, Xi Hao’s confidence not only stems from the continuous expansion of Daboshu® in terms of indications, but also from Cinda Bio’s transformation of the once high-priced “magic drug” of PD-1 inhibitors into Patients are determined to be truly affordable and high-quality biological drugs.

Beginning on January 1, 2021, in response to the Beijing Kangmeng Foundation’s call to provide medical aid to cancer patients who are impoverished due to illness, Daboshu participated in the "Shuxinkeyi-Tumor Immunotherapy Patient Rescue Project":

The first round of "2+2" means buying 2 cycles (4 bottles) to get 2 cycles (4 bottles) of drug assistance, the first four cycles only pay 11,000 yuan; the subsequent "5+N" means buying 5 cycles (10 bottles) It can be rescued until the disease progresses.

According to Xi Hao, from the market feedback in the first quarter of 2021, Daboshu® sales continue to maintain a good momentum.

High-quality platform incubation, the product enters the harvest period

In addition to PD-1, there is another bright spot in Cinda's 2020 transcript: its hematopoietic ability has been further enhanced.

In 2020, Cinda Bio will welcome Dayoutong® (bevacizumab biosimilar), Surisin® (adalimumab biosimilar) and Dabohua® (rituximab biosimilar) The launch of three new drugs makes Cinda the only Chinese biopharmaceutical company that has launched four antibody biopharmaceuticals within nine years of its establishment.

How will these three new products develop in the future?

Judging from the financial report data for 2020, Daboshu® accounted for nearly 60% of the company's revenue that year, and these three newly listed products contributed relatively little to the revenue.

Regarding this disparity, Xi Hao said: “In terms of Cinda Bio’s product strategy, Daboshu®, as Cinda’s first product to be marketed and put on the market, has seized the opportunity in the PD-1 track.
The future is still the focus of the company’s development and is the company’s flagship product.
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"The reason why the three new drugs contribute less in 2020 is due to the late approval last year; on the other hand, the high cost of using one-off production lines for these three products in the past, and subsequent changes to stainless steel Production line, so as to achieve the effect of reducing costs and increasing efficiency".

In addition, Xi Hao emphasized: “In 2021, Cinda Bio will put more efforts to promote these three biological drugs, especially the two key products, Dabohua and Dayotong, so as to realize the full bloom of the company’s products.
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It is reported that in order to accelerate the company's commercial development, Cinda's current production capacity has been successfully expanded from 5,000 liters to 24,000 liters, which has made a strong production reserve for the company's future technological achievements conversion.
At the same time, 36,000 liters of stainless steel bioreactors are under construction, and the total production capacity is expected to reach 60,000 liters by the end of this year.

It can be seen that as more and more new drugs enter the harvest period, as a representative of local innovative pharmaceutical companies, "Cinda Speed" has become increasingly prominent.

And behind this rapid pace, Xi Hao believes that it benefits from the high-quality "platform" advantage of Cinda Biotech.

According to Xi Hao, Cinda Bio is now one of the few innovative pharmaceutical companies in China that has built a full-cycle technology platform for bio-innovative drug development, including platforms for R&D, pharmaceutical development and industrialization, clinical research, and marketing.
The efficient operation system has laid a solid foundation for Cinda Bio to continuously produce innovative drugs.

Currently on this platform, Cinda Bio has 23 products in clinical practice, among which, CD47, LAG-3, TIGIT and other high-potential and globally popular tumor immune drugs are progressing rapidly, and they are expected to become Cinda Bio at home and abroad in the future.
New power point.

In the next decade, the journey of internationalization will accelerate

The international vision is the genes of the new generation of innovative pharmaceutical companies, and Cinda Bio is the same.
2021 is the tenth year of Cinda Bio's establishment.
Xi Hao said that in the next ten years, global innovation and business globalization will be the company's most important strategic direction.

For this reason, Cinda Bio will play a few beautiful moves in 2020:

In June 2020, Cinda Biosciences and Roche Pharmaceuticals reached a cooperation of more than US$2 billion in the field of double antibodies and immune cell therapy.
It is one of the largest international technical cooperations in the field of biopharmaceuticals in my country so far, and it is also the first time Roche Pharmaceuticals has cooperated with China Biopharmaceuticals.
Enterprises carry out platform-based cooperation.

In August 2020, Cinda Biotech and Eli Lilly entered into a strategic expansion licensing agreement for the exclusive rights of Daboshu® outside of China.
This is one of the largest overseas licensing cooperations in the history of China’s biomedicine, and it is also the first time for China.
The self-developed and marketed macromolecular drugs successfully transferred the overseas market to the cooperation of the world's top 500 pharmaceutical companies.

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In terms of international cooperation, how to select excellent multinational pharmaceutical companies to "group together to fight the world", Xi Hao emphasized: "It must be based on the recognition of the quality and efficacy of the products and the high degree of market demand between the two parties.
Good cooperation can accelerate Promote good products to a larger market, benefit patients faster, and boost the company's development.
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Xi Hao said: “Multinational cooperation has opened a new chapter in Cinda Bio’s overseas expansion.
In the future, Cinda Bio will continue to improve its own independent capabilities while working with more partners to open up the future; it must move from walking to running on the road of internationalization.
, From R&D to sales, we will become a truly global company as soon as possible.
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Talents are the key to whether the globalization strategy can be implemented.

It is reported that in order to help upgrade global R&D and innovation, Cinda has continuously introduced global talents in recent years, and the company's team size has increased from about 2,000 employees (stated at the end of 2019) to 3,200 (stated at the end of 2020).
In addition, the company also focused on the introduction of world-renowned scientist Dr.
Liu Yongjun as its president, leading the company to develop its global R&D business.

It can be seen that, from strategy to manpower, Cinda Bio is fully prepared for the promotion of an international company.

A successful capital market

It is worth mentioning that, as an outstanding representative of an unprofitable biopharmaceutical company entering the Hong Kong stock market, Cinda Bio's performance in the capital market has always been remarkable——

As of today, the market value of Cinda Bio has reached 107.
4 billion Hong Kong dollars, which is nearly 7 times higher than the market value of 15.
6 billion Hong Kong dollars at the time of the initial public offering.

In addition, in 2020, Cinda Biotech successfully picked "B" in the Hong Kong stock market, and was successfully included in the Hang Seng Composite Index and Southbound Stock Connect, further expanding the investment base.

In addition, in terms of stock price trends, according to statistics from Sina Pharmaceuticals at the end of 2020, Cinda Biologics ranked second among newly listed pharmaceutical companies after the Hong Kong Stocks New Deal with an increase of about 487% from the issue price, and the results are far ahead.

Regarding the relationship between innovative pharmaceutical companies and capital, Xi Hao analyzed: "I believe that everyone has more and more understanding of biopharmaceuticals.
The characteristics of biopharmaceuticals are long investment periods and large investments, but once they succeed, the returns are very substantial.
Cinda Bio's stock price trend reflects the recognition of investors.
This is due to the company's constant emphasis on the capital input-output ratio and the high success rate of products under research.
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At the same time, he added: “As a commercial company, Cinda Bio will better create reasonable returns in the future while fulfilling its mission of benefiting the people, so that people all over the world can truly afford high-quality biological medicines.
”

Today, Cinda Bio is growing from a Biotech company to Biopharma.
In this growth process, Cinda Bio continues to show its own brand new look with vigorous "evolution".

The law of "evolution" is reflected in the two aspects of the company's "decision-making power" and "feedback power".
In Xi Hao's view, the key factor for the rapid growth of Cinda Bio is precisely the combination of "strategic vision" and "effective execution".
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