Hundreds of billions of pharmaceutical giants continue to write the leading edge with Hillhouse.
On March 25, Asymchem Laboratories (Tianjin) Co.Ltd(002821) announced that in order to promote the business development of cdmo (customized R & D and production in the pharmaceutical field), Asymchem Laboratories (Tianjin) Co.Ltd(002821) subsidiary Shanghai Asymchem Laboratories (Tianjin) Co.Ltd(002821) Biotechnology Development Co., Ltd. (hereinafter referred to as ” Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology development” and “target company”) plans to introduce external investors such as Hillhouse through capital increase and share expansion. According to the announcement, the company plans to sign investment agreements with Haihe Asymchem Laboratories (Tianjin) Co.Ltd(002821) fund and Hillhouse Qirui. After Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology development completes the wholly-owned acquisition of Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology, all investors will invest in Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology development and subscribe for the newly increased registered capital of the target company. All investors will increase the total capital of Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology development by stages to no more than 2.534 billion yuan.
It is worth mentioning that according to the investment agreement, Asymchem Laboratories (Tianjin) Co.Ltd(002821) will try its best to promote the development of Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology to achieve a qualified initial public offering before December 31, 2026.
Asymchem Laboratories (Tianjin) Co.Ltd(002821) is a real bull stock in the A-share market. It has soared from about 16 yuan at the beginning of listing to a record high of 532.49 yuan on November 30, 2021, with a sharp increase of more than 30 times in five years. The correction began after December 2021, and hit a new low of 260.3 yuan on February 11 this year. The stock price was “halved” compared with the historical high, and then started a wave of rebound. As of the closing on March 25, the stock reported 351 yuan, with a current market value of 89.9 billion yuan.
It is worth noting that as early as 2020, Hillhouse has taken a stake in Asymchem Laboratories (Tianjin) Co.Ltd(002821) . In October 2020, Asymchem Laboratories (Tianjin) Co.Ltd(002821) non-public issued 10178700 shares at a price of 227 yuan / share, raising 2.311 billion yuan. Finally, there were 9 allocated objects, of which 4.453 million shares were allocated to Hillhouse capital, with an amount of about 1 billion yuan.
plans to introduce investors such as Hillhouse to overweight cdmo business
Asymchem Laboratories (Tianjin) Co.Ltd(002821) announced on the 25th that in order to promote the development of cdmo business including macromolecular drugs, antibody coupled drugs, cell gene therapy drugs and mRNA drugs, and meet the capital needs of the subsequent capital expenditure and operating expenditure of the subsidiary Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology development, Mr. Hao Hong, chairman of the company and Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology development Shanghai Asymchem Laboratories (Tianjin) Co.Ltd(002821) Biotechnology Co., Ltd. (hereinafter referred to as ” Asymchem Laboratories (Tianjin) Co.Ltd(002821) biology”) intends to sign the investment agreement with Tianjin Haihe Asymchem Laboratories (Tianjin) Co.Ltd(002821) biomedical industry innovation investment fund (limited partnership), Suzhou hilling Qirui medical and health industry investment partnership (limited partnership), Zhuhai daiheng equity investment partnership (limited partnership) and Kailai Tongxin (Tianjin) enterprise management consulting partnership (limited partnership).
Note: ( Asymchem Laboratories (Tianjin) Co.Ltd(002821) medicine, Hao Hong, Haihe Asymchem Laboratories (Tianjin) Co.Ltd(002821) fund, Hillhouse Qirui, Zhuhai daiheng and Kailai Tongxin are hereinafter collectively referred to as the “investor”, Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology development, Asymchem Laboratories (Tianjin) Co.Ltd(002821) biology and Asymchem Laboratories (Tianjin) Co.Ltd(002821) medicine are collectively referred to as the “guarantor”, and Zhuhai daiheng and Hillhouse Qirui are collectively referred to as the “Hillhouse”).
According to the terms and conditions agreed in the investment agreement, after Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology development completes the wholly-owned acquisition of Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology, all investors invest in Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology development and subscribe for the new registered capital of the target company. Each investor will increase the capital of Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology development by stages according to the investment agreement, with a total capital increase of no more than about 2.534 billion yuan, of which Asymchem Laboratories (Tianjin) Co.Ltd(002821) pharmaceutical’s maximum capital contribution to Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology development is 1.66 billion yuan. After all parties complete the first capital increase transaction, the shareholding ratio of Asymchem Laboratories (Tianjin) Co.Ltd(002821) pharmaceutical to Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology development is changed from 100% to 83%.
According to the investment agreement, the guarantor will do its best to promote Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology development to achieve a qualified initial public offering before December 31, 2026, including doing its best to enable the target company to meet the listing conditions according to its main business scope before the above date.
All parties agree that Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology development will operate the main business exclusively (compared with Hao Hong, Asymchem Laboratories (Tianjin) Co.Ltd(002821) medicine and other related parties), that is, contract R & D and production services including macromolecular drugs, antibody coupled drugs, cell gene therapy drugs and mRNA drugs.
Asymchem Laboratories (Tianjin) Co.Ltd(002821) pharmaceutical, Hao Hong and Kailai Tongxin promise that during the period when they directly or indirectly hold the equity of Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology development and within 2 years from the date when they no longer directly or indirectly hold any interest in any target group, they shall not directly or indirectly engage in any business similar to the main business of the target group or hold interests in competitive business.
After the capital increase, the board of directors of the target company is composed of three directors, including two directors nominated by Asymchem Laboratories (Tianjin) Co.Ltd(002821) pharmaceutical, one director nominated by Hillhouse, one chairman nominated by Asymchem Laboratories (Tianjin) Co.Ltd(002821) pharmaceutical and one vice chairman nominated by Hillhouse.
Asymchem Laboratories (Tianjin) Co.Ltd(002821) said that the company, together with the Gaoling and Haihe Asymchem Laboratories (Tianjin) Co.Ltd(002821) funds, intends to jointly contribute to the development of Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology to become a leading enterprise in the field of contract R & D and production services (cdmo) of biological drugs and advanced therapies in the world, and leverage the rapidly growing cdmo market of biological drugs and advanced therapies at home and abroad with high-level one-stop professional R & D and production services Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology development will be positioned as an exclusive contract R & D and production service (cdmo) enterprise in Asymchem Laboratories (Tianjin) Co.Ltd(002821) Pharmaceutical Group, including macromolecular drugs, antibody coupled drugs, cell gene therapy drugs and mRNA drugs. All parties will also rely on the resource advantages in their respective fields to carry out comprehensive and in-depth strategic cooperation in the field of industry ecology and capital market.
This Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology development introduces external investors by increasing capital and shares, which is in line with its future development strategy.
This capital increase is conducive to enhancing its capital strength, meeting the capital needs of its subsequent capital expenditure and operating expenditure, improving its overall competitiveness and promoting the development of the company’s cdmo business. This transaction will not affect the scope of the company’s consolidated statements. After the completion of the transaction, Asymchem Laboratories (Tianjin) Co.Ltd(002821) pharmaceutical will still be the controlling shareholder of Asymchem Laboratories (Tianjin) Co.Ltd(002821) biotechnology development. This transaction will not have a significant adverse impact on the company’s financial and operating conditions.
large orders continue, and the company’s performance grows strongly
According to the data, Asymchem Laboratories (Tianjin) Co.Ltd(002821) is a global leading and technology driven cdmo one-stop integrated service provider. Accelerate the clinical research and commercial application of innovative drugs by providing one-stop CMC services, efficient and high-quality R & D and production services for pharmaceutical companies and biotechnology companies at home and abroad. According to Frost & Sullivan’s statistics based on its revenue in 2020, the company is the world’s fifth largest cdmo company for innovative drug APIs and China’s largest cdmo company for chemical drugs at the stage of commercialization.
The performance forecast of 2021 disclosed by the company recently shows that the net profit attributable to the shareholders of the listed company is expected to be 1.04 billion yuan to 1.076 billion yuan, with a year-on-year increase of 44% – 49%; The non net profit deducted was 908940 million yuan, with a year-on-year increase of 41% – 46%. At the same time, the company expects the annual revenue to be 4.505 billion yuan – 4.662 billion yuan, a year-on-year increase of 43% – 48%, of which the revenue in the fourth quarter was 1.675 billion yuan – 1.73 billion yuan, a year-on-year increase of 57% – 62%; Excluding the impact of exchange rate, it increased by 52% – 57% and 62% – 67% in the whole year and the fourth quarter respectively.
The company pointed out that the reasons for performance growth mainly include two aspects: 1. Strong growth of small molecule business. The company maintained the global leading position of small molecule cdmo, with strong growth in orders. With the continuous delivery of new production capacity in the second half of the year, the revenue increased rapidly. It is estimated that the company’s small molecule business revenue increased by more than 45% year-on-year, including a year-on-year increase of more than 65% in the fourth quarter. Excluding the impact of exchange rate, the growth ratio was more than 50% and 70% respectively. 2. Emerging businesses enter the fast lane. The company quickly promoted the development of chemical macromolecules, biological macromolecules, cdmo, preparations, clinical cro and other emerging business segments. The annual revenue of emerging business segments increased by more than 65% year-on-year. Excluding the impact of exchange rate, the annual growth was more than 70%.
In addition, the company’s performance grew strongly from January to February, and its multi business developed rapidly. The main business data of January February 2022 disclosed by the company recently shows that the company has maintained a strong growth momentum this year. While continuing to undertake large orders, the business of other sectors has shown a momentum of accelerated growth. The scale of orders on hand and revenue growth from January to February have reached a record high. According to the preliminary accounting of the company, the operating revenue from January to February increased by more than 130% year-on-year. The company expects that the operating revenue in the first quarter of 2022 will increase by more than 150% year-on-year, with an amount of more than 2 billion yuan.
As the leader of cdmo in China, Asymchem Laboratories (Tianjin) Co.Ltd(002821) large orders continue. On February 20, the company announced that Jilin Asymchem Laboratories (Tianjin) Co.Ltd(002821) Pharmaceutical Chemistry Co., Ltd., a wholly-owned subsidiary of the company, recently signed a new batch of supply contract for related products with customers. The contract amount is equivalent to about 3.542 billion yuan, and the contract supply time is 2022.
The company announced on November 17, 2021 that it had signed orders of USD 481 million (about RMB 3.07 billion) with the above customers, and announced on November 29, 2021 that it had signed orders of RMB 2.72 billion. With the orders obtained this time, the total amount of the three orders is about 9.332 billion yuan, and the core supply time is 2022. The above three orders are small molecule chemical innovative drug cdmo, most of which will be delivered in 2022, which is expected to have a positive impact on the current performance.
Sinolink Securities Co.Ltd(600109) said that the CXO industry is booming and has strong certainty of future performance. The main driving factors are: the transfer and upgrading of the global industrial chain and the strong demand for overseas pharmaceutical innovation services; China’s local pharmaceutical innovation has entered a high-quality development stage, and CXO industry is expected to maintain a high boom in the future Asymchem Laboratories (Tianjin) Co.Ltd(002821) as the leader of cdmo in the industry, the newly signed and on-hand orders are full, and the future performance is uncertain. We are optimistic about the future development potential of the company.
