\u3000\u3 Guocheng Mining Co.Ltd(000688) 180 Shanghai Junshi Biosciences Co.Ltd(688180) )
Event: Shanghai Junshi Biosciences Co.Ltd(688180) released the plan for issuing A-Shares to specific objects in 2022. On March 7, 2022, the company announced that it plans to issue no more than 70 million shares to no more than 35 (including 35) specific objects who meet the conditions specified by the CSRC, with a lock-in period of 6 months. The issuing price shall not be lower than 80% of the average trading price of the company’s A-Shares 20 trading days before the pricing benchmark date (the first day of the issuance period), and the fund-raising shall not exceed 3.98 billion yuan. The raised funds will be mainly used for innovative drug R & D projects, Shanghai Shanghai Junshi Biosciences Co.Ltd(688180) science and technology headquarters and R & D base projects.
The application for clinical trial of js001sc injection was approved. The company announced that the subcutaneous injection preparation developed on the basis of the listed product treprizumab injection has been approved by the State Drug Administration to carry out clinical trials for the treatment of advanced nasopharyngeal carcinoma.
Viewpoint:
The fixed increase is planned to raise 3.98 billion yuan: 1) the innovative drug R & D project is planned to invest 3.682 billion yuan, accounting for 92.52%. Including the follow-up domestic and overseas clinical research and development of js001 (PD-1 monoclonal antibody), domestic and overseas phase III clinical research and development of js004 (BTLA monoclonal antibody), domestic and overseas clinical research and development of js111 (egfrex20ins) and preclinical research of other early projects; 2) Shanghai Shanghai Junshi Biosciences Co.Ltd(688180) science and technology headquarters and R & D base project plans to invest 298 million yuan, accounting for 7.48%. It is proposed to establish Shanghai headquarters and R & D center in Shanghai Xi’An International Medical Investment Company Limited(000516) Park in Shanghai Zhangjiang Science City, with a total area of about 24.4 Mu and a planned total construction area of about 78331m2.
Vigorously invest in R & D and continuously enhance the core competitiveness of source innovation. The company is a rare high-quality biotech target with source innovation ability in China. It has successfully developed a number of candidate drugs with first in class or best in class potential, and successfully promoted the commercialization of many landmark products. It has a forward-looking vision of innovation and discovery, excellent clinical R & D strength and mature mass production technology. 92.52% of the raised funds are invested in the promotion of innovative drug projects, which once again reflects the company’s absolute attention to product research and development, strong confidence in the application potential of innovative targets and determination to promote international development of products.
Many innovators have made smooth progress in R & D at home and abroad. At present, more than js001 international multi center phase III clinical has been carried out or entered the preparation stage, more than js004 I / II clinical has been successfully enrolled, and the international multi center phase III clinical has entered the preparation stage; Js006 (tigit), js110 (xpo1) and other molecular phase I clinical trials have been carried out, and the international layout of products is extensive. Abundant capital injection will help to enrich the product pipeline, promote the clinical research process of new molecules under research, and accelerate the pace of product listing at home and abroad. The company will take this opportunity to improve capital reserves, dig deep into the industrial moat and continue to enhance the core competitiveness of source innovation.
Shanghai R & D headquarters will be built to integrate resources and realize R & D integration and coordination. Based on the company’s excellent innovation and R & D strength, potential development value molecules are emerging, and product pipelines are increasing day by day. It is imperative to further improve the R & D Progress of existing projects. Shanghai R & D headquarters is positioned as an integrated platform for drug discovery and identification, functional verification, process development and test, covering four research sectors: new drug target research, antibody discovery and screening optimization, production process amplification and optimization, and new biotechnology, which helps to integrate the resources of the company’s preclinical and clinical research departments and enhance R & D synergy, Improve R & D efficiency and save operating costs. It is planned to invest 298 million yuan to improve the strength of scientific research hardware and lay a solid foundation for the innovation and sustainable development of the company.
Subcutaneous injection improves the convenience of application, and the layout of PD-1 is becoming more and more perfect. The company innovated the dosage form on the basis of the first listed domestic PD-1 inhibitor treprizumab independently developed by the company. Js001sc has the same curative effect and good tolerance. Js001sc avoids infusion related adverse reactions caused by intravenous administration, improves the overall benefits of patients and reduces medical costs. Subcutaneous injection can increase the convenience of medication, effectively promote the “slow disease” of tumor immunotherapy, and improve the company’s competitiveness in PD-1 market.
Profit forecast and investment rating. It is estimated that the company’s revenue from 2021 to 2023 will be 4.014 billion yuan, 2.328 billion yuan and 4.238 billion yuan respectively, with a year-on-year increase of 151.7%, – 42.0% and 82.0% respectively; The net profit attributable to the parent company was -739 million yuan, – 1037 million yuan and -811 million yuan respectively, and the corresponding EPS was -0.81, -1.14 and -0.89 yuan respectively, maintaining the “buy” rating.
Risk warning: risk of R & D failure; Risk that the project progress is not as expected.
