Securities code: 301096 securities abbreviation: Baicheng pharmaceutical Hangzhou Baicheng Pharmaceutical Technology Co., Ltd
Record of investor relations activities
No.: 2022013
Investor relations activities □ specific object research □ analyst meeting
Category □ media interview □ performance briefing
□ press conference □ Roadshow
□ site visit
□ others (telephone)
Name of participant and Cathay Pacific Fund: Jiang Ying
Personnel name Sinolink Securities Co.Ltd(600109) : Zhang Wei
Time: March 31, 2022
Location teleconference
You Minwei, director, deputy general manager and Secretary of the board of directors of the listed company
Name of securities representative Xu Yi
1、 Company profile:
The company is a comprehensive pharmaceutical R & D enterprise with technology development as the core. Its main business covers comprehensive R & D services (CRO business), customized R & D and production services (cdmo business), R & D technology achievement transformation and innovative drug R & D for generic drugs and generic drug quality and efficacy consistency evaluation. The service contents mainly include various pharmaceutical enterprises Pharmaceutical R & D investment enterprises provide integrated whole industry chain services such as pharmaceutical research, clinical trials, customized production, investor relations activities and registration and declaration. The company has accumulated rich experience in the field of pharmaceutical research and clinical trial. The company’s business areas widely cover a series of businesses, such as drug target selection, lead compound screening and optimization, discovery of candidate compounds, API synthesis, preparation process development, quality research, stability research, biological test, customized R & D and production, registration and declaration, etc. The company has provided more than 400 pharmaceutical research, clinical trials or related integrated R & D services to more than 300 customers. Since its establishment, the company has attached great importance to the construction of R & D platform. With years of technology accumulation and R & D investment, the company has built platforms for innovative drug R & D, generic drugs and consistency evaluation, pharmaceutical research, be / PK research, compatibility and impurity research, and deeply arranged high-end preparation fields such as inhalation preparations, transdermal preparations, sustained and controlled release preparations and fine particles,
Formed a strong core competitive advantage. As of December 31, 2021, the company has 18000m2 laboratory and office area, 765 employees, equipped with various advanced instruments and equipment, and established a perfect drug R & D system and quality assurance system. With the rapid progress of the construction project of Baicheng pharmaceutical headquarters and R & D center, a 46.18 Mu raised investment project of the company located in Linping District, Hangzhou, it is expected to be delivered and put into use in the middle of 2023. At that time, the newly built laboratory and office area of the company will reach 73900 m2, and the company will have enough space to accommodate the increasing R & D personnel to meet the increasing R & D orders of customers. In addition, Zhejiang Saimo, a wholly-owned subsidiary of the company, is located in the customized R & D and production service base in Jinhua Jinxi development zone. At present, the construction area of the base is more than 180 Mu and the construction plant area is 137100 square meters. As of December 31, 2021, the cumulative investment of the base is 437804 million yuan, the plant area that has been put into use is 8917240 m2, and 12 drug R & D and production lines have been built. Zhejiang Saimo has complete production equipment, Perfect R & D and production quality management system can provide customers with efficient and high-quality customized production and R & D services. In the second half of 2021, Zhejiang Saimo’s cdmo business achieved an external revenue of 9.4014 million yuan, internally provided cdmo services for the company’s 57 entrusted R & D projects, made a phased breakthrough, and laid a solid foundation for the company’s double-line expansion of cro business and cdmo business in the future and further enhance the R & D value.
During the reporting period, the company applied for 62 projects and obtained 23 approvals, of which 2 projects were the first approved in China and 5 projects were the top three approved in China. The company has independently developed the innovative drug bios-0618 and has obtained the notice of approval for clinical trial. As of the disclosure date of the annual report, the company has approved more than 250 independent R & D projects that have not yet been transformed, completed 225 in the small-scale test stage, 27 in the pilot scale-up stage, and 6 in the verification production stage, and has realized the transformation of R & D technical achievements of 72 projects in total. By the end of the reporting period, the company had 33 R & D projects with sales equity share, of which the Valsartan amlodipine tablet project jointly invested with Huayuan Pharmaceutical received equity share of RMB 321714 million (excluding tax) in 2021. 2、 Q & a session 1. Q: the impact of centralized purchase on the company. At present, the procurement with quantity has been normalized. The procurement cycle of the drugs that have won the bid is 1-3 years. The varieties of drugs that have passed the consistency evaluation or deemed consistency evaluation still have the opportunity to participate in the national centralized procurement and win the bid. Generally, generic drugs corresponding to generic drugs that pass the consistency evaluation or are deemed to pass the consistency evaluation are selected for volume procurement. In addition, with the gradual progress of consistency evaluation, the number of manufacturers participating in centralized purchase gradually increases. In the corresponding centralized purchase rules, the maximum number of bid winning enterprises can also be increased from 1 to 10, which is conducive to ensuring drug supply. At the same time, enterprises are encouraged to promote consistency evaluation and invest in new generic drug development business. After the implementation of centralized procurement, many pharmaceutical sales companies and pharmaceutical representatives have been greatly impacted. However, due to the implementation of MAH system, the ownership of products has been clarified and the value that can be traded in the market has been realized, which makes pharmaceutical sales companies and pharmaceutical representatives become the main body of pharmaceutical R & D investment, invest in the development of new generic drugs, and broaden the service objects covered by cro business. The newly established pharmaceutical R & D investment enterprises have no R & D capability, have a streamlined team and pursue efficiency. They usually choose the way of contract R & D outsourcing,
Outsourcing drug R & D to professional R & D institutions, thus greatly accelerating the development of cro industry.
2. Progress in research and development of new drugs and future development goals
At present, the company has 5 innovative drug projects under research, of which bios-0618 has obtained the notice of approval for clinical trial (supported by the project approval of key R & D plan of Zhejiang Province in 2020), and the indication is neuropathic pain. Pharmaceutical research is the premise of carrying out the research on the drug properties of innovative drugs. The company has accumulated rich experience in pharmaceutical research and clinical trials, and the core members of the company’s new drug R & D team have accumulated more than ten years of technical experience. At present, a professional innovative drug technology research and development platform has been established to research and develop innovative drugs for new targets, and has the potential to become the world’s first in class in some indications and a new generation of therapeutic drugs with breakthrough and difference for clinically mature targets, Research fields include: tumor, nervous system, respiratory system, digestive system, immune system, etc. In the future, the company will continue to maintain the leading advantage of R & D services and technical achievement transformation integrating the whole process of pharmaceutical research and clinical trials. At the same time, through the construction of the company’s headquarters and R & D center projects, the company will further improve the construction of the company’s generic and innovative drug R & D platform. Comprehensively improve the drug R & D service level and independent R & D capability, strengthen the strategic layout of the company in the R & D industrial chain, provide customers with more types, more difficult and higher added value R & D services, continuously improve the company’s sustainable profitability and comprehensive competitiveness, and consolidate the company’s competitive position in the industry.
3. What are the current orders and production capacity of the company
As of December 31, 2021, the company’s orders on hand were 893 million yuan (excluding tax), and the amount of new orders in the current period was 808 million yuan (including tax), a huge increase over the same period of last year. Sufficient orders provided guarantee for the growth of the company’s performance;
As of December 31, 2021, the company has 18000m2 laboratory and office area, 765 employees, equipped with various advanced instruments and equipment, and established a perfect drug R & D system and quality assurance system. With the rapid progress of the construction project of Baicheng pharmaceutical headquarters and R & D center, a 46.18 Mu raised investment project of the company located in Linping District, Hangzhou, it is expected to be delivered and put into use in the middle of 2023. At that time, the newly built laboratory and office area of the company will reach 73900 m2, The company will have enough space to accommodate the increasing R & D personnel to meet the increasing R & D orders of customers.
Annex list (if any) none
Date: April 2, 2022
