Shanghai Junshi Biosciences Co.Ltd(688180) inject "blood capital" into the innovative drug R & D track
On March 8, Shanghai Junshi Biosciences Co.Ltd(688180) released the A-share stock plan, which plans to issue no more than 70 million shares to specific objects and raise no more than 3.98 billion yuan for innovative drug R & D projects, Shanghai Shanghai Junshi Biosciences Co.Ltd(688180) science and technology headquarters and R & D base projects.
Among them, Shanghai Junshi Biosciences Co.Ltd(688180) plans to invest 3.68 billion yuan in innovative drug R & D projects, with a total investment of 4.6 billion yuan. Its main research directions include 20 clinical R & D projects such as js001 follow-up clinical R & D at home and abroad, as well as preclinical research of other early projects. The project is expected to be implemented for 3 years. Another fund-raising project, Shanghai Shanghai Junshi Biosciences Co.Ltd(688180) science and technology headquarters and R & D base, will be built into the R & D center of Shanghai company, which will also be used to meet the R & D needs of innovative drugs in the preclinical stage and the office needs of personnel involved in clinical research.
On the same day, Shanghai Junshi Biosciences Co.Ltd(688180) A-Shares closed at 67.50 yuan / share, down 14.30%.
race track competition is trapped everywhere
Shanghai Junshi Biosciences Co.Ltd(688180) (hereinafter referred to as Shanghai Junshi Biosciences Co.Ltd(688180) ) is a Chinese innovative pharmaceutical enterprise. The company was founded in 2012. At present, it has four R & D centers in Shanghai, Suzhou, San Francisco and Maryland, and two monoclonal antibody production bases in Wujiang, Suzhou and Shanghai Lingang Holdings Co.Ltd(600848) .
According to tianyancha information, Xiong Jun is the ultimate beneficiary of Shanghai Junshi Biosciences Co.Ltd(688180) . Xiong Jun was once the business manager of Nanjing Securities Co.Ltd(601990) Business Department of China Economic Development Development Corporation. He began to serve as the executive director of Shanghai BAOYING in February 2007.
As a pharmaceutical enterprise running on the inner track of innovative drugs, Shanghai Junshi Biosciences Co.Ltd(688180) has almost made a "blood capital" in R & D.
According to the mid-2021 report, Shanghai Junshi Biosciences Co.Ltd(688180) the pipeline of products under development at that time had covered five treatment fields, including malignant tumors, autoimmune diseases, chronic metabolic diseases, nervous system diseases and infectious diseases. There are 2 products under research in the commercialization stage and 1 product under research in the application stage of new drug listing. In addition to the above products, 16 products under research are in the clinical trial stage and 25 products under research are in the preclinical development stage.
According to the third quarterly report of the same year, Shanghai Junshi Biosciences Co.Ltd(688180) 's R & D expenses have reached 1.432 billion yuan, an increase of 17.56% year-on-year. In contrast, its sales expenses are only 527 million yuan.
However, the research and development results of innovative drugs did not appear soon after investing huge R & D expenses. In the past three years, Shanghai Junshi Biosciences Co.Ltd(688180) although its revenue has been growing, the situation of net loss has not changed.
From 2018 to 2020, Shanghai Junshi Biosciences Co.Ltd(688180) revenue reached 2.9276 million yuan, 775 million yuan and 4.014 billion yuan respectively, but its net profit lost 723 million yuan, 747 million yuan and 1.669 billion yuan respectively.
In 2020, the sales revenue of treprizumab reached 1.003 billion, while the operating revenue of Shanghai Junshi Biosciences Co.Ltd(688180) in that year was only 1.594 billion. The dependence on a single product is obvious.
In December 2020, treprizumab injection successfully passed the national medical insurance negotiation, but its sales volume did not rise significantly, because its competitor Cinda biology had been successfully shortlisted for medical insurance as early as 2019. After Shanghai Junshi Biosciences Co.Ltd(688180) losing the first opportunity, it had to find another way.
Therefore, Shanghai Junshi Biosciences Co.Ltd(688180) plans to make efforts in selling expenses. With more than 300 employees, the number of hospitals in 2020 is still far ahead of its competitors, but its sales is still far from 912 in 2020.
The data show that in 2020, the sales of treprizumab was 1.003 billion yuan, compared with 4.89 billion yuan for Jiangsu Hengrui Medicine Co.Ltd(600276) the sales of carrelizumab and 2.290 billion yuan for Cinda biology.
Facing the competition dilemma in the Chinese market, Shanghai Junshi Biosciences Co.Ltd(688180) chose to cooperate with AstraZeneca to explore the market in February 2021.
However, in the 2021 interim report, Shanghai Junshi Biosciences Co.Ltd(688180) did not disclose the sales performance of PD-1 monoclonal antibody. By the end of the year, there were a series of personnel changes within AstraZeneca, and the heads of county business and tumor business left one after another to join Baiji Shenzhou, and there were no small changes in business departments such as respiration, cardiovascular and metabolism. In January 2022, Shanghai Junshi Biosciences Co.Ltd(688180) announced the end of cooperation with AstraZeneca.
At the same time, the involution of PD-1 product track continues. According to the data, there are 154 PD-1 research enterprises in the world, of which 85 are Chinese enterprises or cooperative enterprises. It can be said that China is the most competitive market of PD-1 track.
On March 7, according to the official website of CDE, Shanghai Junshi Biosciences Co.Ltd(688180) the PD-1 monoclonal antibody subcutaneous injection js001 SC was approved clinically in China for the first time (acceptance No.: cxsl2101506) for advanced nasopharyngeal carcinoma. The reporter asked Shanghai Junshi Biosciences Co.Ltd(688180) about the current fixed growth and product pipeline research and development, but did not receive a reply.
future growth space geometry
Even if a large amount of money is invested, the research and development of innovative drugs will not be effective overnight.
In particular, PD-1, as the "inner volume" representative of China's innovative drug market, the competitive situation is equivalent to fighting in the red sea battlefield 6 Jinfa Labi Maternity & Baby Articles Co.Ltd(002762) 021 semi annual report shows that the sales revenue of carrelizumab has a negative growth month on month, which means that the sales situation of the product has taken a sharp turn for the worse.
So, how about Shanghai Junshi Biosciences Co.Ltd(688180) 's products under development? Specifically, the listing application of adalimumab injection has been accepted, but this variety has not been a heavy single product in China from the original research to biological similar drugs, so it is in a slightly embarrassing situation. Although PARP inhibitor, anti PCSK9 monoclonal antibody and avidin biological analogues have entered the phase III clinical stage, the market space in the future is not very clear.
According to Southwest Securities Co.Ltd(600369) statistics, due to the decline in the overall price of PD-1, China's PD-1 monoclonal antibody market may shrink from 30.5 billion yuan to 23.6 billion yuan. According to the new round of national medical insurance catalogue implemented on January 1, 2022, the average annual treatment cost after the negotiation of PD-1 monoclonal antibody was reduced to less than 50000 yuan.
The shrinking Chinese market has led some innovative drug enterprises to turn their horizons to foreign countries. In February 2021, Shanghai Junshi Biosciences Co.Ltd(688180) granted the exclusive license of coherus treprizumab in the United States and Canada, which will receive the down payment, execution payment and milestone payment of up to US $1.11 billion, plus 20% of the annual net sales of any product containing treprizumab in the licensed area. In addition, Jiangsu Hengrui Medicine Co.Ltd(600276) , Cinda biology and other enterprises have also turned to overseas to seek the market.
In the secondary market, investors' enthusiasm for Shanghai Junshi Biosciences Co.Ltd(688180) seems not high. Since February 2021, its share price has experienced a halving. Although it rose slightly in November 2021, it still hovered at a low level.
