On December 15, Baiji China boarded the science and innovation board and became the first biopharmaceutical enterprise to be listed on Nasdaq, HKEx and Shanghai Stock Exchange.
This time, Baiji Shenzhou publicly issued 115 million new shares, raising more than 20 billion. With the previous number theory financing, the total financing scale reached 70 billion yuan.
However, there was a break on the first day of listing, which fell 8% at 176.96 yuan / share. Then the share price continued to plunge, falling nearly 20%. As of press time, it was reported to 162.49 yuan, with a total market value of 216.9 billion yuan.
In the circle, this is the most money throwing and financing enterprise.
capital chase
Baiji Shenzhou takes money all the way and gets more and more, which is inseparable from the good match between its R & D progress and commercialization.
In 2010, Baiji Shenzhou was established. At the initial stage of its establishment, Baiji Shenzhou received capital injection from CITIC Industrial Fund, Hillhouse capital and other institutions, with a limited amount. Some people familiar with the matter said that its early capital chain was tense and once fell into a life and death crisis. It was difficult for some people in the founding team to insist on leaving.
In 2013, Baiji Shenzhou transferred overseas rights and interests of two self-developed anti-cancer drugs to Merck in the form of license out, and obtained more than US $400 million to tide over the temporary difficulties.
In 2016, its IPO on NASDAQ in the United States was the first case of a local biotechnology company in China, but it raised only $182 million.
In 2017, Baiji Shenzhou's self-developed pipeline was still in the clinical stage, but it won the American pharmaceutical enterprise celgene, took over the operation of Xinji in China, and had the exclusive authorization of its approved products in China. This cooperation is very important. It has found a good partner for the joint development and commercialization of PD-1, which is a great blessing.
More importantly, money!
Baiji Shenzhou obtained an advance payment of about US $263 million, an equity investment of US $150 million, a milestone payment of up to US $980 million (including R & D, registration and sales) and a franchise fee for the sale of bgb-a317 by Xinji, with a total package price of up to US $1.4 billion.
With nearly 10 billion yuan in one fell swoop, Baiji China bid farewell to its difficulties and moved towards the mainstream vision.
After winning the new foundation cooperation, it successfully landed in Hong Kong stocks in 2018 and raised another US $903 million.
the road to happiness is strewn with setbacks.
In 2019, BMS acquired Xinji for us $74 billion, the cooperative research and development of PD-1 was suspended, and the use of a drug Abraxane was stopped in China, and the fate increased.
Immediately, Baiji Shenzhou locked in a stronger partner in time - pharmaceutical giant Amgen.
In November 2019, Amgen bought 20.5% shares of Baiji Shenzhou at the price of US $2.7 billion (about RMB 18 billion) and won a board seat; It also gave the latter the sales rights and interests of three cancer drugs in China, and agreed to jointly develop 20 Amgen anti-tumor drugs.
Taking advantage of this cooperation, Baiji Shenzhou kept on Issuing 146 million new shares to major shareholders in July 2020 and received about US $2.08 billion.
In particular, Hillhouse has made a big bet. Since round a, it has invested for eight consecutive rounds. Last year, it subscribed for a share of more than US $1 billion. Now it holds 147 million shares in total, becoming the third largest shareholder. Now, the value of this equity is 23.8 billion yuan.
In January this year, Baiji Shenzhou announced to cooperate with Novartis to develop and commercialize its PD-1 antibody "tirelizumab". It received an advance payment of US $650 million, potential payment of up to US $1.55 billion, and product sales royalties.
So far, this is the highest down payment of China's new drug licensing cooperation project. Coincidentally, it submitted its IPO application to Kechuang board at the end of January.
Every time a good thing approaches, Baiji China will always make up a round of huge financing in time.
burn money for R & D
At present, the valuation of Baiji Shenzhou has been rising all the way, and it has been able to sit on the negotiation table repeatedly and win high cooperation and financing. The cards are rich in targets, many candidate drugs and strong R & D strength.
According to the prospectus, there are 48 Baiji ShenZhou commercial products and clinical stage candidate drugs, including 10 commercial stage drugs, 2 declared candidate drugs and 36 clinical stage candidate drugs, more than 50 preclinical projects, and many research projects with similar innovative potential.
Since 2019, the BTK inhibitor zebutinib (bayozer) has been awarded the "breakthrough therapy recognition" by FDA. In the same year, it was officially approved by FDA to go on the market, realizing the "zero breakthrough" of China's original anti-cancer new drug.
After that, the heavy product PD-1 baizean and PARP inhibitor baihuize were commercialized successively, and different indications were approved.
Over the past three and a half years, the company's R & D investment has reached 24.3 billion yuan, and its scientific research team has more than 2800, accounting for more than 36% of the total number of employees.
Most of its money is also spent on expensive clinical trials.
By September 2021, Baiji Shenzhou had implemented more than 95 planned or ongoing clinical trials, including 38 phase III or potentially registered clinical trials, with a total of more than 13000 enrolled patients and healthy subjects, involving more than 40 countries and regions, of which nearly half were enrolled overseas.
Its prospectus claims that it is engaged in the development of more than 100 clinical trials and more than 50 preclinical projects worldwide, many of which are research projects with the potential to become similar initiatives.
The company has 11 independently developed drugs that have entered the clinical trial or commercialization stage, including anti-tumor drugs with unique and differentiated design and drug candidates with the potential to become the first in class of the same kind.
"For Biopharmaceutical Enterprises like Baiji Shenzhou, investors look at pipeline capacity and progress, data results, international BD capacity, and whether there is good international cooperation."
An analyst told 21cbr that the risk of such enterprises is that the valuation is unstable, the market is good and the liquidity is abundant. When we recognize R & D, it is positive feedback, otherwise it is negative feedback.
Since 2018, Baiji Shenzhou has accumulated a loss of 25.5 billion. Without the support of performance, once encountering a headwind and failing to meet expectations, the valuation may also fall very quickly.
(21st Century Business Review)
