CXO listing feast: after 4 arrows in a row, there are 7 more on the road

Note: This article does not constitute any investment opinions and suggestions, and is subject to official/company announcements; this article is only an introduction to medical and health-related drugs, and non-treatment plan recommendations (if involved)
.

The fruits of midsummer are round, plump and ripe
.

In the capital market, the CXO sector has undoubtedly been a fruitful fruit in the past two years.

The share prices of leading companies have reached record highs, and the total market value of 23 companies has exceeded 1.
5 trillion

When the market value of the "water-selling" (Wuxi AppTec) surpassed that of the drug-selling (Hengrui Medicine), CXO was pushed to a climax
.

Capital’s eyes are discerning.

The CXO sector has been enthusiastically embraced by the securities market in the past two years under the aura of centralized immune procurement, immune epidemics, immune trade frictions, and the promoters of new drug research and development.
The listed CXOs enjoy high valuations.

The high valuation has inspired the enthusiasm of similar companies to go public
.

In the past month, Nuotai Biology, Shengnuo Biology, Haoyuan Co.
, Ltd.

Basic situation of the four newly listed CXO companies

Data source: prospectus Unit: 100 million yuan

PE static (calculated based on 2020 net profit) Market value is based on the closing price at noon on June 28

From the above table, it has the following characteristics:

0 1

From the perspective of PE and market value, the capital market gives new high valuations
.

Capital's eyes are the brightest, and the highest valuation is Haoyuan Pharmaceuticals.

The current PE is 275 times.
The characteristic targeted drug development platform is an important factor pushing up the valuation

The company started the development and research of ADC drugs earlier in China, and has applied for six patents on key technologies, two of which have been authorized, and one PCT international patent application has been accepted
.

In terms of PROTAC: The company's R&D team has designed and developed 7 types of characteristic PROTAC tool molecular libraries, including more than 400 PROTAC new drug development related products, based on its rich experience and technical advantages in click chemistry technology and coupling reaction technology

02

CDMO business accounts for a relatively large and high valuation
.

The two companies are also engaged in the peptide business.

Nuotai Biotech's PE is 122 times taller, while Shengnuo Biotech's PE is only 63 times higher

According to QYResearch data, global peptide drug sales in 2018 were about 28.

5 billion U.
S.
dollars, and the CAGR from 2018 to 2025 was about 6%.
In 2025, the global peptide drug market was about 42.
8 billion U.
S.
dollars

European and American veteran peptide manufacturers such as Bachem, Polypeptide, Lonza, etc.

have basically monopolized the CDMO business, which has the largest market share, by virtue of years of technical accumulation, customer relationships, and project management experience
.

The domestic peptide CDMO industry is still in its infancy.
With the rise of domestic peptide innovation, the global peptide original research patent cliff and domestic engineer dividends, the industry is expected to have more room for development in the future
.

03

The PE of generic drug CRO is lower than that of innovative drug CRO
.

Sunshine Novo: The company's main business is to provide R&D outsourcing services to pharmaceutical companies, involving generic drug development, consistency evaluation and new drug development.
The source of income is mainly concentrated in the generic drug field.
The current static PE is 104 times that of other innovative drugs that have been listed.
CRO companies are still much lower
.
In 2020, the company's revenue from generic drug development business will account for about 70%, generic drug consistency evaluation revenue will account for about 20%, and innovative drug development revenue will account for about 8%
.
The company has strong market influence among the "pharmacy + clinical" comprehensive CRO companies
.
In the future, if the proportion of revenue from the development of innovative drugs is increased, the valuation will be even higher
.

Source: Sunshine Novo Prospectus  

7 CXO companies are on the way to IPO

As a manifestation of the success of going public or starting a business, as of June 28, 2021, there are still 7 CXO companies that have submitted IPO prospectus, waiting to enter the door of the securities market
.

Source: public information  

Judging from the information in the above table, most of them are CRO companies.
Among them, Heyuan Biosciences is worth noting.
The company’s main business income has gradually evolved from gene therapy CRO services to gene therapy CDMO services.
The proportion of CDMO service revenue to main business revenue increased from 29.
79% in 2018 to 71.
47% in 2020, and it is expected to increase further in the future
.

Fosun Kate’s  CAR-T product Yiqililunsai injection was officially approved, opening the way for the commercialization of domestic cell therapy ,  catalysing the vigorous development of cell therapy CDMO companies , and Harmonicare has been on this emerging track, and the future can be expected
.

to sum up

The listing is only a new beginning for pharmaceutical entrepreneurs.
From a global perspective, there is still a big gap in the revenue scale and profit of domestic CXOs compared with multinational companies.
Especially in terms of internationalization, most domestic companies have improved There is still a lot of space
.
After listing, CXOs have not only improved their brand, but also diversified their financing channels, which can help the company to usher in a faster development
.