On December 13, Northland’s “30cm” rose strongly, becoming the first stock to close at the limit price since the opening of the Beijing stock exchange. As of the closing, the company’s share price was 26.07 yuan / share, with a turnover of 280 million yuan and a market value of 6.7 billion yuan. The company’s share price has soared by more than 75% in recent 10 trading days.
Last weekend, Guosheng securities released a research report, saying that Northland had a “reasonable market value of about 15.27 billion yuan”. As of last Friday’s closing, the market value of the company was only 5.2 billion yuan, corresponding to nearly 200% of the potential market value growth space.
launch the first refinancing project after the opening of the Beijing stock exchange
According to public data, Northland, founded in 2004, is an innovative biopharmaceutical enterprise specializing in the R & D, production and sales of gene therapy drugs, recombinant protein drugs and ophthalmic drugs. Its biomedical industry is a strategic emerging industry encouraged by the state. The company was successfully listed on the new third board in February 2009, entered the innovation layer of the new third board in May 2020, promoted to the selected layer of the new third board in November of the same year, and landed on the Beijing stock exchange in November of this year.
The company has abundant R & D pipelines. The company is developing 13 bioengineering new drugs corresponding to 15 indications, including 7 gene therapy drugs and 6 recombinant protein drugs. Two phase III clinical studies, one phase II clinical study and many other innovative projects are in the preclinical research stage. The company has passed the GMP certification / inspection of 2 eye drops production lines, obtained 3 eye drops product registration approvals, 5 eye drops products are under registration and approval, and several eye drops related chemicals are in the R & D stage. The company’s core product recombinant human hepatocyte growth factor naked plasmid injection (nl003) project plans to submit a new drug marketing application (NDA) in 2022.
The company recently launched the first refinancing project of the Beijing stock exchange. According to the 2021 prospectus (Draft) for issuing shares to specific objects issued by the company on December 3, the company plans to issue no more than 32 million shares to specific objects by bidding, accounting for 12.44% of the current total share capital, and the raised funds are expected to be no more than 300 million yuan.
The fund-raising of the company is intended to be used for three projects: drug R & D project, bioengineering new drug industrialization project and supplementary working capital. The funds to be invested are 82.17 million yuan, 189 million yuan and 28.541 million yuan respectively.
The company said that part of the funds raised in this issuance will be used for R & D investment, which will accelerate the R & D process of the company’s innovative drugs, expand the breadth and depth of clinical trials under research, and lay the foundation for the company to realize more industrialized products. The construction of nl003 project will greatly improve the production capacity of bioengineering drugs, ensure the company to realize the industrialization of innovative drug nl003, fully transform innovative advantages into product advantages, improve the core competitiveness of drug production links, expand revenue sources and realize the growth of revenue scale.
favored by securities companies
Last weekend, Guosheng securities released a research report, saying that it was optimistic about the long-term development of Northland and gave a “buy” rating.
According to the research report, the company is a scarce target of gene therapy that has not been widely recognized by the market. At present, the first gene therapy variety has been promoted to phase III clinic, and it is one of the few gene therapy drugs promoted to the later stage of clinic in China. The company’s naked plasmid system and platform have competitiveness and barriers, and the current market awareness is also insufficient. The company’s core product nl003 is a 5 billion level heavy single product, and its current value is underestimated.
The company has recently been investigated by 7 institutions, which pay great attention to the company’s nl003 products. In view of the market scale of the product, the company said that according to the analysis of sagegroup, 5.6-6.3 million of the 42-60 million PAD patients in China in 2017 suffered from cli (severe limb ischemia). According to the analysis data of sagegroup and the calculation of collategene treatment cost, the number of CLI patients in China will reach 7.82 million in 2020, and the market scale of CLI drug treatment will reach 173.8 billion yuan.
Guosheng securities predicts that the operating revenue of Northland from 2021 to 2023 will be 42 million yuan, 50 million yuan and 153 million yuan respectively, with a year-on-year growth rate of 2.4%, 16.7% and 208.2%. By summing up the valuation of various varieties, it is estimated that the reasonable market value of the company in 2021 is about 15.27 billion yuan.
30cm limit! Products under research are expected to be listed. Northland is favored by securities companies. How to tap the treasure of the Beijing stock exchange?
(China Securities Journal)
