On the 7th, Shanghai Junshi Biosciences Co.Ltd(688180) -u ( Shanghai Junshi Biosciences Co.Ltd(688180) . Sh, 01877. HK) pushed 15 announcements, of which 14 were related to the fixed increase fund-raising plan of the enterprise this is also the first additional issue after the listing of Shanghai Junshi Biosciences Co.Ltd(688180) science and innovation board. From the content of the announcement, the core purpose of the fixed increase fund-raising is to plan for the overseas listing of products under research in the future
However, affected by the overall downturn of the recent pharmaceutical market and other factors, after the fixed increase plan was issued, Shanghai Junshi Biosciences Co.Ltd(688180) Hong Kong stocks and science and Innovation Board fell by more than 13% and 14% respectively on the 8th.
about 70% of the fund-raising amount will be used for “going to sea”
According to the announcement, Shanghai Junshi Biosciences Co.Ltd(688180) this time plans to issue no more than 70 million shares to specific objects, raising a total of no more than 3.98 billion yuan (including issuance expenses). Among them, more than 90% (3.682 billion yuan) of the fund-raising amount will be invested in new drug research and development, and the remaining 298 million yuan will be used for the construction of Shanghai Shanghai Junshi Biosciences Co.Ltd(688180) science and technology headquarters and R & D base.
The reporter of the science and Innovation Board daily further combed and found that Shanghai Junshi Biosciences Co.Ltd(688180) plans to increase the “blessing” of new drug R & D projects by a total of 29, of which nearly half of the projects are related to overseas clinical research, including 12 R & D projects planned to carry out “International multi center phase III clinical research”, and 1 phase I clinical research project at home and abroad One phase I / II clinical research project at home and abroad.
In order to promote the above-mentioned 14 overseas clinical research projects, according to the preliminary estimation of the reporter of science and Innovation Board daily, Shanghai Junshi Biosciences Co.Ltd(688180) plans to invest about 2.922 billion yuan, accounting for 70% of the total amount of the fixed increase
When drugs seek to be listed overseas, the clinical research data of international multi center is the most important evaluation basis for overseas drug regulatory authorities. Therefore, Shanghai Junshi Biosciences Co.Ltd(688180) this fixed increase is undoubtedly planning for the future sailing of the enterprise.
In this regard, Shanghai Junshi Biosciences Co.Ltd(688180) also told the reporter of science and Innovation Board daily, innovation and internationalization are the pursuit of Shanghai Junshi Biosciences Co.Ltd(688180) all the time : ” Shanghai Junshi Biosciences Co.Ltd(688180) from the beginning of its establishment, we have established the strategic plan of” based on China and layout the world “. We are one of the first Chinese innovative pharmaceutical enterprises to establish laboratories in the United States. In 2013, we established R & D centers on the East and west sides of the United States. Relying on these R & D centers, we have established a global integrated R & D system to realize two wheel drive outside China and double reporting between China and the United States.”
has been in high risk of loss for nearly ten consecutive years
Going to sea can occupy a broader market space and is also a common strategic choice for innovative pharmaceutical enterprises. But how? Can we achieve better commercial returns after going to sea? For these uncertainties, at present, no innovative pharmaceutical company can give a better answer.
As for Shanghai Junshi Biosciences Co.Ltd(688180) , because the enterprise has been in a state of loss and the research and development of innovative drugs itself has high risk, therefore, some institutional people told the reporter of science and Innovation Board daily that they may not participate in the fixed increase .
Public data show that from 2013 to 2020, Shanghai Junshi Biosciences Co.Ltd(688180) ‘s attributable net profit was in the state of loss, and the scale of loss expanded year by year. The situation did not improve until 2021, according to the performance express disclosed by Shanghai Junshi Biosciences Co.Ltd(688180) on February 25, the loss of net profit attributable to the parent company narrowed to 739 million yuan.
Shanghai Junshi Biosciences Co.Ltd(688180) itself is thirsty for funds due to its long-term failure to make profits. According to media statistics, if the additional issuance of A-Shares is successful, Shanghai Junshi Biosciences Co.Ltd(688180) has obtained a cumulative financing of nearly 15.7 billion yuan in domestic and foreign capital markets such as the new third board, A-Shares and Hong Kong shares since 2015.
enterprises claim to have satisfactory clinical data
In this case, Shanghai Junshi Biosciences Co.Ltd(688180) what “capital” can attract additional issuance objects?
In this regard, Shanghai Junshi Biosciences Co.Ltd(688180) told the reporter of science and Innovation Board daily that the multiple “international multicenter clinical research” projects involved in the fund-raising and investment have certain attraction.
” this year, our anti-PD-1 monoclonal antibody treprizumab is expected to be approved for listing overseas. ” Shanghai Junshi Biosciences Co.Ltd(688180) said.
Specifically, three indications of treprizumab (respectively: for gastric or gastroesophageal junction adenocarcinoma, advanced intrahepatic cholangiocarcinoma and locally advanced head and neck squamous cell carcinoma) appeared in the list of raised projects Shanghai Junshi Biosciences Co.Ltd(688180) plans to invest 860 million yuan in the international multicenter phase III clinical study of these three indications.
Shanghai Junshi Biosciences Co.Ltd(688180) further stated that the above three indications of are those that have not been approved by the listed PD-1 monoclonal antibody at present, “and we have seen excellent data in the phase II clinical trial, which gives us confidence to continue to carry out international multi center phase III clinical research. “
“Judging from the public statement of the U.S. Food and Drug Administration (FDA) in the fourth quarter of last year, the FDA is cautious in approving repeated and me too indications, but it welcomes drugs that can meet unmet clinical needs.” Shanghai Junshi Biosciences Co.Ltd(688180) said that in addition to treprizumab, a number of fund-raising projects participating in the fixed increase also meet the characteristics of “unmet clinical needs”.
The other two key fund-raising and investment projects are js004 and js006, which are planned to raise 865 million yuan and 5.05 billion yuan respectively Shanghai Junshi Biosciences Co.Ltd(688180) told the reporter of science and Innovation Board daily that js004 targets BTLA and js006 targets tigit. “They are new immune checkpoint inhibitors, of which tigit is the target preliminarily verified in the world; BTLA is the new target, and we are confident to develop it into a first in class new drug.” Shanghai Junshi Biosciences Co.Ltd(688180) scale.
If this additional issue is successfully implemented, the common shareholders’ equity may be diluted. In this regard, Shanghai Junshi Biosciences Co.Ltd(688180) plans to take “measures to fill the return” and formulate the shareholder dividend return plan for the next three years (20222024). Among them, a necessary condition for meeting the dividend is that “the distributable profit realized by the company in this year (i.e. the after tax profit after the company makes up the loss and withdraws the public reserve fund) is positive”.
since Shanghai Junshi Biosciences Co.Ltd(688180) is still not profitable, can the enterprise turn around its losses in the next three years Shanghai Junshi Biosciences Co.Ltd(688180) said it was unable to give guidance at present
