Wan Tai Bio IPO Waiting For Approval In March, "Only Wolf" Zhong Yan Is Facing New Capital Issues.

Soon after the news from farmer's spring outside IPO, another company in Zhong capital's capital territory also sent good news.

In March 27th, 92 days later, the Beijing Wan Tai bio pharmaceutical Limited by Share Ltd (hereinafter referred to as "Wan Tai bio") received the IPO approval approved by the SFC, and the road of listing for many years could finally be concluded.

Wan Tai bio is mainly engaged in R & D, production and sales of in vitro diagnostic reagents, in vitro diagnostic instruments and vaccines. Its latest report was that the company had approved the launch of the new crown pneumonia virus test kit. Before that, Wan Tai bio was also attracted the attention of the first batch of two generation cervical cancer (HPV) vaccines.

In addition to the above halo, as the chairman and real controller of Wan Tai biology, the huge volume of traffic has covered everything. The low-key stealth rich man may not be known, but when it comes to farmer's spring, it's almost unheard of.

Because of his few public appearances and his independence, Zhong Zhong is known as "the only wolf" in the Chinese business community. But with the listing of Wan Tai bio, as the chairman of the company, he may have to walk to the stage. In particular, along with the questioning of IPO, the high cost of sales and the involvement of officials in bribery cases, how to deal with public doubts is a new topic facing the public after the listing.

Nine valence HPV enters clinical phase 1

In recent years, Zhong Yuan, once away from the capital market, has seen a significant style shift. In March 17th, the application materials of IPO outside farmer's mountain spring were accepted by the SFC. If there is no accident, it is only a matter of time before the listing of Wan Tai bio.

From the IPO process of Wan Tai bio, bell Chung has planned for the company to go public.

As early as June 2016, Wan Tai bio announced the prospectus for the first time. It wanted to land on the A share market, but it was terminated in December 29, 2017. The reason for its termination was unclear. It is worth mentioning that the background was: a large number of pharmaceutical companies broke through A shares, but when the new commission of the securities and Futures Commission took office, the IPO audit became tighter.

In November 2018, Wan Tai bio restarted IPO to raise 380 million yuan, mainly for chemiluminescence reagent manufacturing system automation technology transformation and internationalization certification, cervical cancer vaccine quality system upgrading and internationalization, and marketing network center expansion project.

Among them, the production of cervical cancer vaccine will become an important help for the future of Wan Tai bio.

At the end of 2019, the State Drug Administration approved the application of the bivalent human papillomavirus vaccine (E. coli) (trade name: Cecolin) in Xiamen Wan Tai Hai Hai Biotechnology Co., Ltd., the first approved domestic vaccine against human papillomavirus, which is suitable for women aged 9-45. Xiamen Wan Tai is a wholly owned subsidiary of Wan Tai bio.

The HPV vaccine has attracted attention since 2017, especially after the nine valent HPV vaccine was approved in 2018.

I have to admit that Zhong's eyes are unique.

As early as 2002, Xiamen Wan Tai and Xiamen University professor Xia Ningshao opened the research and development of HPV vaccine with independent intellectual property rights. After 15 years of research and clinical trials, Wan Tai's first two valent cervical cancer vaccine was launched in November 2017 and approved in December 2019.

However, for the first approved two price HPV vaccine in China, the industry did not buy it all.

"With the approval of the quadruvalent and nine valent HPV vaccines, the market share of the two price has been compressed and the market competition has intensified significantly. For Wan Tai biology, it may have lost the opportunity. A medical profession analysis.

The data from health protection committee reflect the market pattern to some extent: in 2019 1-11, the number of HPV vaccine issued in China exceeded 8 million 700 thousand, of which 1 million 700 thousand were two valent HPV vaccines, 4 million 400 thousand were quadruple HPV vaccines and 2 million 600 thousand were nine valent HPV vaccines. The two valent HPV vaccine accounted for the least.

Looking back at the same industry company, Zhi Fei bio has earned a full profit in 2019 by acting as a tetravalent and nine valent HPV vaccine in Mercedes, with net profit growth exceeding 6.

Of course, the future growth of vaccine market is still huge. "Now the nine price penetration is the highest, and all companies are speeding up the development of the nine valent vaccine, who can give priority to producing nine price, or the last winner in the market." The aforementioned analyst said.

The updated prospectus in May 2019 showed that the nine valent cervical cancer vaccine was approved by the clinical trial in November 2017 and is still in phase one clinical trial. Another vaccine listed company Watson bio 2019 annual report shows that the nine valent HPV vaccine is being launched in a phase clinical trial.

In addition to the HPV vaccine, the new type of coronavirus (2019-nCoV) kit developed by Wan Tai bio has also brushed a sense of existence in the face of the spread of the epidemic.

Public information shows that Wan Tai bio is working with Xiamen University's national infectious disease diagnostic reagents and vaccine Engineering Technology Research Center (NIDVD) to develop a new coronavirus (2019-nCoV) antibody test reagent and nucleic acid reagents (RT-PCR) to get EU CE access.

High rate of sales expenses

On the one hand, the identity of the real clock and the "fraternal relationship" with farmer's spring make IPO more natural. On the other hand, the company also superimposed many popular concepts, including HPV vaccine production, virus detection, etc., will be favored by capital after the listing.

But behind the aura, the problems behind the Wan Tai life also make the questioning voice go with IPO.

For example, the time that Wan Tai bio got approval was three months away from the meeting time, and the enterprises that had passed it later got approval. This has led to speculation that regulators may also have many concerns.

From the board's inquiry and external concerns, it focuses on the high cost of sales.

In twenty-first Century, the economic news reporter found that from 2016 to 2018, the sales cost of Wan Tai bio three consecutive years exceeded 250 million yuan, accounting for 27.04%, 28.02%, 29.85% of the current revenue. In 2016 and 2017, the average sales cost rate in the same industry was 21.42% and 20.98%, and the cost of biological sales in Wan Tai was 10% higher than that in the same industry.

In this regard, the interpretation of Wan Tai bio is due to the difference between the sales mode of the company and the product structure. First, the proportion of direct selling is generally higher than that of the competitors. Two, more than 95% of the company's sales revenue comes from in vitro diagnostic reagents. Most of the sales volume of the in vitro diagnostic instruments of the same industry is higher than that of Wan Tai biology, and the expense rate of the instrument sale is far lower than that of the reagent.

The high cost of selling pharmaceutical companies is a common phenomenon in the industry. There are many names in the sales expenses of pharmaceutical enterprises, for example, there are many grey areas in the name of doctors, distributors and so on. Therefore, for the pharmaceutical enterprises, the company's sales model, marketing fees and other issues have been the focus of the SFC.

In the inquiry, the issuing Committee directly asked Wan Tai biology whether there was any interest in delivery of the company's business fees to doctors or medical staff, and whether there were commercial bribery cases.

Widely concerned by the market, the verdict published by China's referee's written network shows that Wan Tai bio has been involved in two cases of bribe taking by officials, including Wei Qiwei, director of the inspection department of the former Wang Mo County People's Hospital, and bribery case of Liu Hong Tao, deputy director of Xuchang City blood station. He is a medical supplies supplier Yang and a manager of Shangqiu Hua Jie Pharmaceutical Co. Ltd.

The evidence of the two cases includes the voucher and voucher of Wan Tai bio, as well as the multiple contracts signed by Xuchang central blood station and Wan Tai bio. What role does Wan Tai biology play in it?

However, there was no mention of the alleged bribery case in the "reporting period of illegal behavior" disclosed in the prospectus.

"Since Wan Tai's life has passed, it is clear that the influence factors of the case have been eliminated. Prior to the meeting, Hong Wah biological has also been exposed to bribery, in the sponsor's due diligence, accurate letter Phi on the basis of, it can be solved, not necessarily constitute a distribution barrier. A Shanghai investment bank said.

For the above problems, in March 31st, the reporter called Wan Tai biology, and the staff said they would convey the interview question. However, as of press release, no reply was received.

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