Green Leaf Pharmaceutical 1 Billion 400 Million Acquired Boan Bio Deep Layout Of Biopharmaceutical Whole Industry Chain

In December 1st, the green leaf Pharmaceutical Group announced the acquisition of Shandong Boan biotechnology limited company (hereinafter referred to as "Boan bio"). After the acquisition, all of the assets of Boan bio products, such as research products, antibody screening platform, intellectual property rights, antibody production platform, will belong to the green leaf Pharmaceutical Group, with a transaction price of 1 billion 447 million yuan. According to the agreement, the transaction will be paid in installments.

Statistics show that Boan bio is an integrated biopharmaceutical company, focusing on the development of antibody products and developing bio products in China, the United States and the European Union market. Previously, green leaf pharmaceutical has introduced 4 bio antibody drugs from Boan bio, and the clinical progress is good.

It is also understood that, with the advent of innovative preparations in the US and the arrival of other R & D pipelines, the green leaf pharmaceutical company is promoting the next stage of strategic objectives. This is also one of the main objectives of the green leaf pharmaceutical acquisition of Boan bio.

In December 2nd, Wang Gang, chief scientist of the Greater China region of the division of life sciences and pharmaceuticals, said to the twenty-first Century economic report reporter that the acquisition means that green leaf pharmaceutical will further promote the development strategy of innovative biopharmaceuticals. "Green leaf pharmaceuticals will get a complete industrial chain from R & D, production to commercialization, and accelerate the global layout of its biopharmaceutical industry."

Layout of biopharmaceutical industry chain

It is understood that through this acquisition, green leaf pharmaceuticals will get all the research products of Boan bio (including 8 biopharmaceutical products, and more than 10 innovative bio medicine products), 3 self owned intellectual property rights antibody screening platforms, 20 intellectual property rights, and antibody optimization and production platforms.

The total price of the acquisition is RMB 1 billion 447 million yuan. According to the agreement, the transaction will be paid in three stages.

Wang Gang, chief scientist of Greater China in the science and Pharmaceuticals Division of corret, believes that green leaf's acquisition of Boan bio is in line with the global biopharmaceutical enterprise layout.

"According to correv's annual analysis of the global biopharmaceutical industry, more than 50% of the new molecular entities (NME) were approved to be listed in the latest 8 years of -2018 in 2010. In other words, there are 100 new drugs listed on the world market, of which at least 50 drugs are involved in the transaction. Such a way through transaction cooperation can effectively provide the fastest support for product listing and R & D pipeline expansion. Wang Gang analysis said.

In fact, in addition to green leaf pharmaceuticals, many biomedical enterprises are introducing more projects through installment payment. For example, in November 2018, Baiji Shenzhou spent $430 million to win the Zymeworks two dual specificity antibody drugs and technology platform. In May 2019, hausen pharmaceutical invested 220 million US dollars to reach a strategic cooperation agreement with Viela Bio, and jointly developed and commercialized Inebilizumab antibody therapy in China to treat autoimmune diseases and hematoma.

However, compared with the above acquisitions, green leaf pharmaceutical's acquisition has a higher cost performance, with relatively few funds to acquire a wealth of product lines. Wang Gang believes that the acquisition is a successful reinforcement of green leaf pharmaceutical research and development capability, and green leaf pharmaceutical will form a complete industrial chain layout from R & D, production and commercialization in the field of biological medicine.

It is understood that in the past few years, Boan bio has accumulated rich experience in antibody generation and optimization of lead compounds, cell line establishment and process development, pilot production and commercial production, and has the whole human antibody transgenic mouse technology, phage display technology and nano antibody platform.

Among the 8 biosimilar drugs in Boan bio, 5 kinds of bio analogues have entered the clinical stage, including 2 current phase III clinical trials, and the other 3 currently carry out phase I/II clinical trials, including 4 biological analogues that have previously been transferred to green leaf pharmaceuticals. They are biosimilar drugs like Avastin, Prolia, Xgeva, Eylea and Eylea. If the clinical progress is progressing smoothly, these products are expected to be approved in the next few years.

In addition to researching biological analogues, Boan bio's new antibody has more than 10 candidate innovative biological products. These new product combinations are expected to further enrich the product portfolio of green leaf pharmaceuticals and have the potential to provide substantial growth opportunities for green leaf pharmaceuticals for a long time.

In Wang Gang's view, the whole product line of Boan has a balanced risk, including a near biological similar drug in clinical stage, and a new and early innovative antibody product with a layout target, which has strong market potential.

In addition, Boan's existing production platform and production management team will help improve green leaf pharmaceutical manufacturing and quality management system, and further optimize the production efficiency of biologics and reduce production costs. On the other hand, Boan's biological production lines can be grafted to the global supply chain system of green leaf pharmaceuticals, so that subsequent bio products can be sold to more markets in China and the world after being marketed.

Accelerating global business development

The reason why biomedicine is highly sought after is that it is the fastest growing field in the global pharmaceutical industry. According to public data, the scale of the global biopharmaceutical market is expected to increase from 228 billion US dollars in 2019 to US $323 billion in 2023, with a compound annual growth rate of 7%.

"Biomedicine is a hot topic in the development of the entire pharmaceutical industry. From the perspective of global Top10 sales, 8 of the top 10 are biopharmaceuticals, and there are many biological drugs approved by the FDA every year. For example, 17 of the 59 new drugs approved in 2018 are biological drugs, close to the proportion of 1/3. Wang Gang believes that biopharmaceuticals, whether from the heat of R & D to its market performance, are undoubtedly hot spots in the field of pharmaceutical development.

According to other statistics, in the first half of 2019, TOP20 accounted for 12 seats in the products of global sales, including antibody / fusion protein, vaccine, insulin and other macromolecule biological drugs, with a total sales income of 46 billion 372 million dollars, accounting for 64.4% of the total TOP20 drug revenue. With the rapid growth of some kinds of heavy biological drugs in tumor immunotherapy, the above figures will continue to rise.

But at the same time, the market for Biologics also has a high entry barrier, which includes intensive knowledge and skills integration, 8-10 years and complex development process, technically difficult replication, challenging production and supply chain management, huge capital investment and strict supervision, all of which put forward higher requirements for pharmaceutical enterprises entering this field.

How to integrate the existing technological advantages and R & D resources of green leaf pharmaceuticals and effectively enter the huge market will directly relate to the long-term global competitiveness and the sustainability of high performance growth.

Green leaf Pharmaceutical Group Management said that green leaf pharmaceutical has begun to move forward towards the next 5 years of strategic planning. "Bio antibody technology is one of our strategic areas of transformation and upgrading. The addition of Boan bio will speed up the company's deep layout in biopharmaceuticals, especially the innovation of biological antibodies. Boan bio products and technologies will complement each other and help us achieve strategic resource integration and collaborative development in many areas of R & D, production and marketing.

In fact, accompanied by the emergence of a group of bio pharmaceutical innovation enterprises in China, and the mature pharmaceutical enterprises will shift their core business to innovative drug research and development, Chinese pharmaceutical companies are also aiming at the world.

Heng Rui medicine set up the center for innovative drug research in the United States, undertaking research on innovative drugs such as frontier targets, and also undertaking ANDA and API market access and sales business in the United States. This is the starting point of Heng Rui's internationalization strategy. It not only provides a basis for entering the US market, but also shows that Heng Rui has been developing the R & D system from the benchmarking country to the global perspective.

In 2018, Shanghai pharmaceuticals acquired the United States Medical Laboratory in Philadelphia, as the research platform for overseas high-end pharmaceuticals, learning from the mature experience of the United States in the research and development, declaration, production and sale of generic drugs, and developing research and development with the aim of meeting the needs of clinical needs between China and the United States, speeding up the transformation and upgrading of Shanghai medicine in drug research and development.

Green leaf pharmaceuticals also has a deep layout of biopharmaceutical product lines both inside and outside the country through independent research and development and international cooperation. In the United States, green leaf pharmaceuticals is also working with several leading Biotech Corp to develop the next generation of innovative antibody products in the field of tumor immunity, and continue to increase the development and supply of new drugs for biological medicine.

And the acquisition of Boan biology will also contribute to the global development of green leaf pharmaceuticals.

Prior to the introduction of green leaf pharmaceutical from Boan bio 4 bio antibody drugs (Avastin, Prolia, Xgeva and Eylea Eylea bio similar drugs), the introduction of clinical progress has been progresses smoothly, the 4 products are also in the United States, Europe or Japan market entry into the new drug research application phase.

"The global layout of new drug research needs to consider the local market. Biological analogues themselves have certain technical barriers. If they can be listed in the United States, Europe, Japan and other countries and regions, Chinese enterprises, including green leaf pharmaceuticals, have access to these regulated markets through reasonable pricing, and there are still very large business opportunities. Wang Gang told the economic news reporters in twenty-first Century.