Rongchang Biology (688331)
A total of one company made an inquiry in this period. On Thursday, March 17, Rongchang biology, a listed company on the science and innovation board, will make an inquiry.
Rongchang Biology (688331): founded in 2008, the company is an innovative biopharmaceutical enterprise with a global vision. Since its establishment, it has been focusing on the field of therapeutic antibody drugs such as antibody drug conjugate (ADC), antibody fusion protein, monoclonal antibody and double antibody. The company is committed to discovering, developing and commercializing innovative and distinctive biological drugs of the same kind and the best biological drugs of the same kind; Up to now, the company has the world’s first innovative fusion protein product with double targets of B lymphocyte stimulating factor / proliferation inducing ligand (rc18), the first ADC innovative drug independently developed in China, and the only Chinese ADC product vidiximab (rc48) approved by the US FDA as a breakthrough therapy. From 2019 to 2021, the company achieved operating revenue of RMB 04.8 million / RMB 03 million / RMB 1.426 billion respectively, and yoy was – 63.66% / – 36.9% / 4675331% in turn; The net profit is RMB 13.9 billion / – 3.9 billion / – 3.9 billion / – 3.9 billion / – 0.7% of yoy. The company’s performance surge in 2021 was mainly due to the conditional approval of the listing of two products in China in 2021. At the same time, the company confirmed the down payment of US $200 million for the cooperation with Seattle gene on vidicizumab. According to the preliminary prediction of the company, the net profit attributable to the shareholders of the parent company is expected to be -445 million yuan to -329 million yuan in 2022q1, with a year-on-year increase of – 142.41% to – 79.17%.
Investment highlights: 1. Through independent innovation, the company has formed an innovative product pipeline with market competitiveness and differentiation advantages, and a variety of products are expected to achieve first in class. The company is committed to developing targeted biological innovative drugs with new structures and mechanisms. The products designed and developed through independent innovation have shown breakthrough therapeutic effects in clinical trials. Up to now, the company has developed more than 20 candidate biological drug products, all of which are targeted biological innovative drugs; The company has won 28 national patents for the invention of new drugs and the safety of civid, civid and other major products in the United States, and has won a number of national patents for civid and civid. 2. The commercialization of the company has been significantly accelerated. On the one hand, the core products tetasip and vidicizumab were included in the new national medical insurance catalogue in 2021, and the sales volume in the Chinese market is expected to double; On the other hand, the company signed an exclusive global license agreement with SeaGen to develop and commercialize vidicizumab. 1) In December 2021, the company announced that two core products, etacept and vidicizumab, were included in the new national medical insurance catalogue; A few months ago, the corresponding products were approved by the State Food and Drug Administration in March 2021 and June 2021 respectively. 2) In August 2021, the company announced that it had signed an exclusive global license agreement with SeaGen. SeaGen obtained an exclusive license to develop and commercialize the anti-HER2 antibody drug conjugate vidiximab in other countries in the world except Greater China and all other countries in Asia (except Japan and Singapore); According to the license agreement and its terms, the company will receive a down payment of US $200 million and a milestone payment of up to US $2.4 billion, and SeaGen will also pay royalties to the company. 3. The company attaches great importance to R & D and has a competitive and global R & D management team to provide talent guarantee for sustainable development in the future. From 2018 to the first half of 2021, the company maintained high-intensity R & D investment in the stage where the company has not been significantly commercialized; During this period, the R & D investment was 216438300 yuan, 352065900 yuan, 465821500 yuan and 326604400 yuan respectively, with a compound annual growth rate of 46.70% from 2018 to 2020. As of the current period, after years of cultivation and construction, the company has a high-quality and experienced R & D team, with a total of 891 R & D personnel (33 doctors and 324 Masters), accounting for 51.35% of the total number of employees. Among them, Dr. Fang Jianmin, the company’s R & D technology leader and co-founder, has more than 20 years of rich experience in biopharmaceutical R & D and more than 40 drug invention patents. He is one of the few enterprise founders with experience from new drug discovery to successful commercialization in China’s biopharmaceutical industry, He is also a member of the overall expert group of China’s “major new drug creation” national major science and technology projects.
Comparison of Listed Companies in the same industry: the listed companies of Rongchang biology in the same industry mainly include Shanghai Junshi Biosciences Co.Ltd(688180) , Baiji Shenzhou, Corning Jerry pharmaceutical, kangfang biology, Xinda biology and other biological innovative drug listed companies. Among them, innovative drug companies including Shanghai Junshi Biosciences Co.Ltd(688180) (loss in 2021 performance express), Baiji Shenzhou, Corning Jerry pharmaceutical, kangfang biology and Cinda biology have not achieved profits. Therefore, pe-ttm valuation may not be applicable to the industry; Assuming that Baiji Shenzhou and Shanghai Junshi Biosciences Co.Ltd(688180) are China’s leading bio innovative drugs with products on the market and R & D pipelines in the world, the latest average ps-ttm is 18.92x. In comparison, Rongchang biology is in the early stage of commercialization, and the income scale obtained through drug sales is generally in the middle and lower position of the industry; However, the company’s cooperation with Seattle on vidicizumab (including the agreed down payment of US $200 million and milestone payment up to US $2.4 billion, as well as gradient sales commission), milestone revenue is expected to contribute to the company’s valuation.
Risk tips: companies that have started the inquiry process may still be unable to be listed for special reasons, the company’s content is mainly based on the contents of the prospectus and other public materials, there is a risk that the selection of Listed Companies in the same industry is not accurate, there may be interpretation deviation in the selection of content data, and the risks of specific listed companies are displayed in the text, etc.
