With the meeting of Jiangsu Jicui Yaokang Biotechnology Co., Ltd. (hereinafter referred to as “Jicui Yaokang”), the track of research, development and breeding of laboratory mice has attracted attention. According to the prospectus, the gross profit margin of jijiyaokang commercialized mouse model sales has exceeded 70% in recent three years, and the gross profit margin of the main business is as high as 60%.
Before Jicui Yaokang, Nanmo biology, which is also a professional breeding experimental mouse, has landed on the science and innovation board, and the gross profit margin of the company’s main business has reached more than 60%. Although the gross profit margin is high, the development of the two companies also faces certain risks due to the small scale of the market segment and the risks of technology iteration. The prospectus shows that in 2020, the sales unit price of the most expensive spot mouse of jijiyaokang is 1172399 yuan / mouse, and the cheapest basic strain mouse is 62.91 yuan / mouse. A university researcher told the Beijing Business Daily that mice specialized in modeling diseases or pathological research are generally very expensive. One can cost tens of thousands of yuan, so there are also cases of buying healthy mice and modeling by themselves. Cost control and the success rate and stability of modeling have become the core competitiveness of these companies.
rats with unit price up to 10000 yuan
Every achievement of modern medicine is inseparable from animal experiments. Animal experiments will be carried out before human clinical trials. Mice are common animals used in experiments. With the disclosure of the prospectus of jiyaokang, the price of experimental mice can be seen.
The more sick, the more valuable it is. According to the prospectus of Jiji Yaokang, Jiji Yaokang focuses on experimental mouse models, including spotted mice, immune deficiency mouse models, humanized mouse models, disease mouse models and basic strain mice. Among them, spotted mice are the most expensive. In 2020, the sales unit price reached 1172399 yuan / mouse, and the basic strain mice are the cheapest, 62.91 yuan / mouse.
Researchers from a university told the Beijing Business Daily that generally, mice specialized in modeling diseases or pathological research are very expensive, and it may cost tens of thousands of yuan to make one. It is reported that the hypertension model itself is a genetically defective mouse, which will get hypertension after feeding for 10 weeks. The diabetes model is caused by taking medicine to make it suffer from disease. Mice that induce disease usually need extra money for research.
The most expensive spot mice of the collection medicine Kang are gene knockout mice. The prospectus shows that as of June 30, 2021, the resource bank of jijijiyaokang “spotted mouse plan” has about 19000 strains, covering genes in the research directions of tumor, metabolism, immunity, development, DNA and protein modification.
In view of the company’s business development, the reporter of Beijing business daily contacted Jicui Yaokang, but as of press time, no reply had been received.
gross profit margin exceeds 70%
The business of laboratory mice has supported two listed companies. In addition to the meeting of jijiyaokang a few days ago, Nanmo biology has landed on the science and Innovation Board last year.
The gross profit margin of jiyaokang and Nanmo biology is very considerable. According to the prospectus, jijijiyaokang currently serves more than 1000 customers, including China’s first-class scientific research institutions and third-class hospitals such as Tsinghua University, Peking University, Nanjing University, Sun Yat sen University, West China Hospital of Sichuan University and Peking Union Medical College Hospital of Chinese Academy of Medical Sciences, as well as Jiangsu Hengrui Medicine Co.Ltd(600276) , Baiji Shenzhou, Xinda biology, jinsirui, Wuxi Apptec Co.Ltd(603259) , Sino US crown medicine, Pharmaron Beijing Co.Ltd(300759) Novartis, Charles River and other well-known innovative pharmaceutical enterprises and cro R & D enterprises at home and abroad.
From 2018 to 2020, the gross profit margin of jiziyaokang commercialized mouse model sales was 76.73%, 74.71% and 81.52% respectively, and the gross profit margin of main business was 68.24%, 68.95% and 76.21% respectively. In the same period, the gross profit margin of the main business of Nanmo biology was 44.32%, 50.55% and 60.34% respectively.
According to Gong Tao, chairman of Shenzhen Zhongjin Huachuang fund, the epidemic has led hospitals to strengthen the research and development of biological vaccines, and the market effect has led relevant enterprises to seek listing.
He Juying, chief analyst of China Securities Co.Ltd(601066) securities and medicine, said that the China Meheco Group Co.Ltd(600056) industry continued to increase R & D investment, innovation and R & D were hot, and the demand for model animals was strong. Model animals are the “necessary conditions” for verifying the efficacy and safety of preclinical candidate drugs. Mouse models in model animals are very important. The market scale (including services) in 2019 is 2.8 billion yuan, which is expected to reach 8.4 billion yuan in 2024, with a compound annual growth rate of 24.4% and 23.6 billion yuan in 2030. Drug research and development becomes more difficult, the risk of clinical trials may be advanced, and the demand for animal models is expected to increase.
risks remain
Gross profit margin is considerable, but production and operation, mouse intellectual property protection, genetic variation and other factors also put the development of Companies in the industry at risk.
“The more sick, the more valuable, but ordinary infected mice are not worth money.” Industry insiders speak frankly. Jicui Yaokang also admitted in the prospectus that the company is mainly engaged in the R & D, production, sales and related technical services of experimental animal mouse models. The production quality of mouse model depends on good barrier environment and strict breeding management. If the company’s laboratory animal production facilities are accidentally damaged, or the staff fail to carry out standardized operation according to the process, the experimental animal mouse model in the barrier may be infected with external microorganisms or infectious diseases, and then the whole animal room needs to be re purified and verified, which will have a significant adverse impact on the company’s production and operation.
Although it has a considerable gross profit margin, the net profit of jijiyaokang and Nanmo biology is not high. In 2020, namo bio achieved a revenue of 196 million yuan and a net profit of 45 million yuan; Jijiyaokang achieved a revenue of 262 million yuan and a net profit of 71 million yuan.
According to the above-mentioned University researchers, some modeling is very difficult, such as carotid embolism. “I’m not sure if some companies can do it. We usually ask the surgeon of the hospital for help.”
This also reflects that there is almost no “user stickiness” in these companies. In recent years, with the intensive introduction of a number of national policies and the implementation of pharmaceutical innovation driven strategy, the development of animal model industry has been driven, and the market growth rate is fast. Jijiyaokang said in the prospectus that in this context, more and more participants are entering the market
The market competition intensifies after entering mouse model related industries. If the company cannot continue to carry out technological innovation and market development in the future, it may face the risk of pressure on product and service prices, weakening industry status and declining business performance.
“Cost control, success rate of modeling and other factors are the core competitive points of these companies.” According to the analysis of the above-mentioned University researchers, “most of these models are diseased rats, the survival rate is not necessarily easy to control, and the success rate and stability of modeling are key.”
