Second Loss Companies Are Coming! Sitting On The World'S "Medicine King" Is The First To Imitate

In November 20th, second biopharmaceutical companies, including fifth sets of listing standards, were approved by the Shanghai Stock Exchange.

Prior to the meeting of zhe bio, it opened the listing channel for the unprofitable enterprises of the science and innovation board. As the second unprofitable enterprises that launched a shock to the science and technology board, the market is still concerned by the market.

It will be expected that we will have a good time. "Normal should be passed, the company meets the requirements, the science creation attribute is also enough, there is no specific reason to veto." Before the audit result came out, a senior investment banker told reporters.

Similar to biotech, at present, no product has entered commercial stage, and sales revenue has not yet been realized and will continue to suffer losses. Even after being listed, the company will not be able to make profits in a few years. In response to this, he has made several risk prompts in the prospectus.

Judging from the results of the audit, the listing committee has not paid more attention to the loss situation of the company. The focus of the audit is on the issuers' lending funds to the parent company, the identification of core technical personnel and the future earnings expectations.

"Unprofitable companies can apply for listing, which is one of the important institutional innovations of the" Chuang Chuang "board. It embodies the inclusiveness of the listing conditions of the science and technology board, and it is the most important point of registration system to fully indicate risks and allow investors to have more accurate expectations and judgments of risks. Zemin and Bai otai have passed the meeting, reflecting the core of the reform of the science and technology board. In November 20th, a Shanghai brokerage firm said in an interview.

Accumulated loss of 1 billion 600 million

The prospectus shows that biotech is an innovative biopharmaceutical enterprise based on the research and development of innovative drugs and bio similar drugs. The proposed public offering does not exceed 60 million shares, raising a total of 2 billion yuan for drug research and development projects, marketing network construction projects and supplementary working capital.

The company's choice of "listing market value of not less than 4 billion yuan" is the listing standard. This is another company that has chosen to apply for listing in the company after listing. The standard has long been considered a standard for unprofitable biotechnology enterprises.

Among the risk tips in the prospectus, the first thing about the risk is the risk of loss.

As of the prospectus day, except for BAT1406's approval, all products are in the research and development stage and have not yet been commercially produced and sold. The company's products have not yet achieved sales revenue, and the company has not yet made a profit and there is a cumulative deficit.

In the 2016-2018 years, the main business revenue of the company was 0 yuan. Among them, total revenues in 2016 and 2017 were about 5 million yuan, all of which were a few incidental technology transfer income. In 2016 -2018 and 2019 1-6, the net profit of the company was -1.4 billion yuan, -2.4 billion yuan, -5.5 billion yuan and -7.2 billion yuan respectively, with a total loss of 1 billion 640 million yuan, and the deficit continued to expand.

By studying the prospectus, reporters found that the loss of such a large scale is mainly caused by R & D investment and equity incentive.

During the reporting period, the R & D expenses were 130 million yuan, 240 million yuan, 540 million yuan and 350 million yuan respectively. During the same period, the 22 million 230 thousand yuan, 16 million 770 thousand yuan, 6 million 880 thousand yuan, and 350 million yuan of equity incentive fees were confirmed respectively by the company, and the total cost of equity incentive was 398 million yuan.

Prior to that, the market's focus on the risk of Bai's concern included the huge equity incentive on the eve of the listing, the transfer of shares by 0 yuan, and the violation of the relevant provisions of foreign exchange management by the company's actual control. However, the above matters have been asked several times in the inquiry.

Judging from the questions raised above, the Shanghai Stock Exchange's focus is on the funding of the company's loan to the parent company's seven HI group, the identification of its core technical personnel and its future earnings expectations.

Wang Jiyue, a senior sponsor representative of the former brokerage firm, told the twenty-first Century economic news reporter that "from the previous inquiries and the situation of zhe bio, the regulators will pay special attention to their future profitability and disclosure of risk factors in addition to the same concerns as other board companies."

Global "drug king" first imitated overweight

As the second "eat crab" loss making enterprises, what is the bottom line of the industry?

According to the listing standard five of the science and technology board, it is estimated that the market value is not less than RMB 4 billion yuan. The main business or products need to be approved by the relevant departments of the state, and the market space is large. In particular, the pharmaceutical industry needs at least one core product to be allowed to carry out the two phase of clinical trials.

From the valuation point of view, the estimated value of the company's valuation is about 13 billion 800 million yuan, which is much higher than that of Zawa.

As of the prospectus day, 1 products were approved by the company, and 20 were mainly in research products, of which 4 products were in the phase III clinical research stage, 1 products were in the phase II clinical research stage, and 4 products were in the I clinical research stage.

Among them, adalimumab BAT1406 was approved in November 2019 and approved for ankylosing spondylitis, rheumatoid arthritis and psoriasis. It is expected to be listed and sold by the end of 2019 or early 2020.

In fact, the response of BAT1406 was approved by the pharmaceutical industry.

It is reported that the original drug adalimumab repair Miller was approved in 2002 in the United States, its sales revenue for 7 consecutive years in the world's first place, in 2018, the global sales revenue reached 20 billion 500 million dollars, known as the global "medicine king". Prior to that, biotech, Hai Zheng and XinDa were competing for the first "Miller" biosimilars qualification.

An innovative pharmaceutical company in Shanghai told the twenty-first Century economic report: "BAT1406 has won the first imitation, and to a certain extent, it means more opportunities to win the market. The development difficulty and cost of the first generic drugs are lower than the innovative drugs, and the efficacy of the products has been verified. The market foundation has been developed and matting by the original research medicine. Once the first imitation is achieved, the pharmaceutical enterprises will gain prominent advantages in the market, and the sales volume of the market will be easy to open.

According to the Sullivan report, with the approval of China's first adalimumab biological analogues at the end of 2019, the market of adalimumab biologic analogues in China will increase to 4 billion 700 million yuan in 2023 and will reach 11 billion 500 million yuan in 2030.

Botai said that in the future, BAT1406 represented the successful listing of biological analogues, and the price of adalimumab would decline, and the products were expected to be incorporated into the national health insurance. Many Chinese patients with autoimmune diseases will no longer be affected by price. The penetration rate of adalimumab will increase rapidly.

However, Bai said that the competing products of adalimumab are more competitive, which will further aggravate the market competition, and the price of biological analogues is usually significantly lower than that of the control drugs. Under the trend of a sharp decline in the price of BAT1406 controlled drug repair Miller, the price of BAT1406 will have a certain impact on the pricing and market share of the company's commercialization, which may have adverse effects on the company's business performance and profitability.