Investment logic
Cell and gene therapy (CGT) has many advantages and great development potential in the future. Cell and gene therapy (CGT) is another heavy drug type after small molecules and macromolecules. It has a variety of advantages and great development potential in the future. The main advantages of CGT are: 1) the curative effect of single treatment is lasting; 2) There are many targets, which can cover refractory diseases. The main features are as follows: 1) with gene therapy vector as the core, process development and quality control are difficult; 2) It is closely related to basic research such as gene; 3) Greater reliance on cdmo. At present, CGT has experienced many years of development, and a number of new drugs have been approved and listed one after another, with great development potential in the future.
Gene therapy cro and cdmo markets expanded rapidly. From 2016 to 2020, the market scale of gene therapy cro in China increased from 170 million yuan to 310 million yuan, which is expected to increase to 1.2 billion yuan in 2025. In addition, China’s gene therapy cdmo industry will enter a stage of rapid development. It is expected that the market scale will increase from 870 million yuan in 2018 to 3.26 billion yuan in 2022, with a compound annual growth rate of 39.3%; It is expected that the market scale will increase to 19.74 billion yuan in 2027, and the expected compound annual growth rate from 2022 to 2027 will be as high as 43.3%.
Wuxi Apptec Co.Ltd(603259) wuxiatu, creating a new global ctdmo model. As a Wuxi Apptec Co.Ltd(603259) cell and gene therapy business platform, wuxiatu has created a unique ctdmo (contract testing, development and production outsourcing service) business model, which can better deal with the problems of high complexity and difficulty in testing, development and release in the current CGT field, and effectively solve the cost of enlarged production. Wuxi ATU’s three businesses have unique technical advantages. Through the acquisition of oxgene, the company further enhances the technical capacity of AAV and lentivirus platform, so as to improve Wuxi ATU’s ability to provide customers with integrated, end-to-end cell and gene therapy product development and production services.
Heyuan biology focuses on the field of CGT, and cro + cdmo double track development. Heyuan biology is a biotechnology company focusing on the field of gene therapy, focusing on providing integrated cro / cdmo services such as gene therapy vector construction, target and efficacy research, process development and testing, ind-cmc pharmaceutical research clinical / – phase 11 and commercial GMP production for the pilot research and drug research of gene therapy such as recombinant virus vector products, oncolytic virus products and car-t products. The company has a variety of advantages: 1) strategy first release Bureau and high-quality customer resources; 2) Cro / cdmo technology platform advantages; 3) Advantages of large-scale and highly flexible GMP production platform; 4) Advanced core technology cluster advantages; 5) Advantages of comprehensive gene therapy services; 6) Rich experience and advantages in project implementation.
Jinsirui vigorous Biology (cdmo) has solid technology, outstanding characteristics and steady international growth. The company has a one-stop biological drug R & D and production platform, which is committed to providing end-to-end cdmo services from target development to commercial production for CGT drugs, vaccines and biological drugs. In 2021, it undertook 390 antibody drug discovery projects and 80 precmc projects; 24 CMC + CMO projects.
Boten biology, focusing on cell and gene therapy, provides cdmo services. Relying on Porton Pharma Solutions Ltd(300363) as the support, boten biology provides services from preclinical R & D to clinical phase I production of monoclonal antibody and CGT, as well as supporting analysis and quality control services. At the same time, the company is actively expanding the scale of R & D and commercial production, so as to speed up the transformation of CGT drugs from R & D to commercial production.
Investment advice
We are optimistic about the investment opportunities in the field of cell and gene therapy outsourcing services in the future. We suggest to pay attention to: Wuxi Apptec Co.Ltd(603259) , Heyuan biology, Porton Pharma Solutions Ltd(300363) , Kingsley biotechnology, Pharmaron Beijing Co.Ltd(300759) , etc.
Risk tips
The risk that the R & D progress is less than expected, the risk of repeated covid-19 epidemic, the risk of supervision, the risk that the approval progress of new drugs on the market is less than expected, and the risk of intensified market competition.
