On April 25, cro enterprise Boji Medical Technology Co.Ltd(300404) ( Boji Medical Technology Co.Ltd(300404) . SZ) released the annual performance report of 2021. In 2021, the company’s business growth momentum was strong and its profitability continued to improve. The revenue reached 324 million yuan, a year-on-year increase of 24.47%; The net profit attributable to the parent company was 388822 million yuan, a year-on-year increase of 128.87%; Deduct non net profit of RMB 252147 million, with a year-on-year increase of 155.84%. It is disclosed that at the end of 2021, the unrecognized revenue from the contracts executed by the company was about 1.28 billion yuan, which will support the continuous improvement of the company’s business scale in the future. The company announced the profit distribution plan for 2021 at the same time. It plans to pay 0.20 yuan for every 10 shares and increase 4 shares to actively repay investors.
In the first quarter of 2022, the company continued its growth momentum. In a single quarter, the company achieved a revenue of 741843 million yuan, a year-on-year increase of 34.28%, and the net profit attributable to the parent company was 124619 million yuan, a year-on-year increase of 69.11%. It is worth mentioning that in the first quarter, the company increased its business expansion, with a new contract amount of about 200 million yuan, a year-on-year increase of about 104%, doubling, which laid a solid foundation for large-scale performance in 2022.
clinical research business increased by 46%, and the transformation of innovative drugs was quite effective
Innovative drugs are the focus of China Meheco Group Co.Ltd(600056) industry development in recent years. Throughout the world, China is the second largest market in the pharmaceutical field after the United States, but there is a significant gap in the field of innovative drugs, which accounts for 90% of the added value of the industry. In order to promote the sustainable development of the industry, the state has implemented the drug examination reform since 2015 and the centralized purchase of generic drugs since 2019. Driven by multiple factors, the innovative drug industry has grown rapidly in recent years. In this context, the demand of major pharmaceutical enterprises for cro services has increased rapidly, and the scale of cro market continues to expand. According to Sullivan data, the scale of China’s cro industry is expanding rapidly with an average annual growth rate of 26.5% in recent years.
Closely following the development trend and policy orientation of the pharmaceutical industry, the company has started the cro strategic transformation from generic drugs to innovative drugs since 2019. In the past two years, with the efforts of business expansion, fund-raising project construction and talent introduction, the transformation of the company’s innovative drug business has been quite effective.
The annual report disclosed that in 2021, the company’s clinical research service revenue was nearly 200 million yuan, with a year-on-year increase of 45.88%. The smooth promotion of research projects and the strong momentum of order growth are the main drivers of the company’s performance to maintain high growth. Among them, innovative drug projects have accounted for more than half of the total revenue. During the reporting period, the company carried out more than 100 drug clinical research services and obtained 14 new drug certificates and production approvals for customers, including 3 class 1 new drugs and 4 class 2 new drugs. 2021 has become the year with the most approved achievements since the establishment of the company.
In 2021, the company’s preclinical research service revenue was 660564 million yuan, with a year-on-year increase of 19.56%. The company’s R & D and testing teams have passed the R & D, generation and use of synthetic drugs, and some of them have passed the R & D, R & D and reporting period. In the future, as the raised investment project continues to be put into operation and release production capacity, the preclinical research service of innovative drugs is also expected to contribute to excellent performance.
In the field of innovative medicine, talents are the core of competitiveness. In the process of transformation, the company has paid full attention to talent introduction. According to the summary of investor research in April 2022, the company has introduced a total of 12 high-end talents above doctoral level in the past two years, including Dr. Zuo Lian, the current deputy general manager, Dr. Meng Yuru, a postdoctoral doctor in tumor immunity, and Dr. Zhang Xuehui, a former CDE reviewer with rich experience in the field of innovative drug evaluation. In March 2022, the company promoted the option incentive plan to 87 executives and backbones, including the above-mentioned core talents of innovative drugs, so as to fully mobilize the enthusiasm of talents and promote the long-term development of business.
China US double report promotes international development and helps pharmaceutical enterprises obtain 10 fdaid licenses
At the same time of transformation and development in the field of innovative drugs, looking at the global market to help Chinese drugs go abroad and realize internationalization is another major highlight of the company’s business development during the reporting period. In 2021, the revenue of other consulting business segments of the company reached 366969 million yuan, with a gross profit margin of 69.28%, mainly from the business of China US double report.
According to the company, the company can provide customers with registration, declaration and commercial evaluation services for new drugs, generic drugs and OTC products of China nmpa, the US FDA and the Canadian Ministry of health. On the one hand, the company’s registration consulting team has a number of regulatory experts, FDA pre-trial reviewers and executives of well-known multinational pharmaceutical enterprises with rich practical experience. On the other hand, the company has set up professional registration and reporting subsidiaries in China, Hong Kong and Maryland, with smooth customer communication. After years of accumulation, the company has an excellent reputation and reputation in the industry.
In 2021, the company provided customers with about 70 new drug ind services at home and abroad and obtained 22 ind licenses at home and abroad. Among the above 22 licenses, the company helped Chinese pharmaceutical enterprises to obtain 10 FDA ind licenses for innovative drug projects, and the Sino US double reporting business grew steadily. It is worth mentioning that in 2021, its subsidiary, American Humphrey (HPC), helped the anti-tumor innovative drug bs001 (oh2) injection project to obtain the ind license from FDA. Up to now, the success rate of FDA ind project approval provided by HPC registration service is nearly 100%.
In 2021, the company acquired 44% of the minority equity of Hong Kong Yonghe, a Sino US dual reporting business platform, by means of cash payment. At present, the company has held 95% of the total shares, realizing the further improvement of the ability of registration and reporting service. In the future, the company will accelerate the M & A of overseas clinical cro companies, link with HPC China US double reporting business, and accelerate the improvement of international service capacity.
traditional Chinese medicine innovative drug business is commendable, and the construction of integrated platform helps the development of traditional Chinese medicine R & D Industry
Under the epidemic prevention and control, the popularity of traditional Chinese medicine has revived in the past two years, and the enthusiasm for the research and development of innovative traditional Chinese medicine in the industry has increased significantly. Traditional Chinese medicine has always been the characteristic field of the company, accounting for about 20% of the revenue. There are more than 20 important clinical projects with a certain scale under research every year, including excellent projects with good prospects such as Ginkgolide B injection and niter Gandan granule. In the field of innovative traditional Chinese medicine, in 2021, the company helped customers obtain four clinical approvals for innovative traditional Chinese medicine.
In 2021, the company integrated the clinical and preclinical business of traditional Chinese medicine into Xinglin traditional Chinese medicine, a wholly-owned subsidiary, and cooperated with the governments of Nanchang, Nanyang and other places to jointly build an industrial park of innovative traditional Chinese medicine and build an integrated service platform of innovative traditional Chinese medicine (CRO + cdmo + incubator). The construction of the platform is expected to continuously improve the company’s R & D capacity and service level in the field of traditional Chinese medicine, promote the development of innovative traditional Chinese medicine industry, and contribute to the R & D of new traditional Chinese medicine in China.
For the future outlook, the company said that in the next three to five years, it will firmly grasp the policy dividends and development opportunities of CXO industry, vigorously develop innovative drug business and Sino US double newspaper registration business based on clinical research services, continue to strengthen independent innovation ability and steadily develop self-developed varieties. In the future, the company will continue to promote the integrated construction, build a one-stop new drug R & D platform from preclinical to Sino US double reporting, give full play to the enterprise characteristics of the whole process cro service, and build the company into a leading large-scale pharmaceutical research and service institution in China.
