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    Home > Active Ingredient News > Drugs Articles > Fosun Pharma and BioNTech jointly promote the localization of mRNA vaccines, which is expected to increase profits by billions in the short term

    Fosun Pharma and BioNTech jointly promote the localization of mRNA vaccines, which is expected to increase profits by billions in the short term

    • Last Update: 2021-06-02
    • Source: Internet
    • Author: User
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    Recently, Fosun Pharmaceutical Industry, a subsidiary of Fosun Pharma’s holding company, plans to establish a joint venture company with BioNTech.
    Both parties will subscribe to 50% of the registered capital of the joint venture.
    Fosun Pharmaceutical Industry intends to use cash and/or tangible or intangible assets (including Plants and production facilities, etc.
    ) will not exceed 100 million U.
    S.
    dollars in total.
    BioNTech intends to use its related production technology and proprietary technology licenses and other intangible assets to contribute a total of not more than 100 million U.
    S.
    dollars.
    Fosun Pharmaceutical Industry provides an annual production capacity of 1 billion doses of vaccine production facilities.
    BioNTech should complete the technology transfer and provide the technical support required for the production of mRNA COVID-19 vaccine.

    Recently, Fosun Pharmaceutical Industry, a subsidiary of Fosun Pharma’s holding company, plans to establish a joint venture company with BioNTech.
    Both parties will subscribe to 50% of the registered capital of the joint venture.
    Fosun Pharmaceutical Industry intends to use cash and/or tangible or intangible assets (including Plants and production facilities, etc.
    ) will not exceed 100 million U.
    S.
    dollars in total.
    BioNTech intends to use its related production technology and proprietary technology licenses and other intangible assets to contribute a total of not more than 100 million U.
    S.
    dollars.
    Fosun Pharmaceutical Industry provides an annual production capacity of 1 billion doses of vaccine production facilities.
    BioNTech should complete the technology transfer and provide the technical support required for the production of mRNA COVID-19 vaccine.

    BioNTech is a leading mRNA platform biotechnology company

    BioNTech is a company registered in Germany, established in 2008, and listed on the Nasdaq in the United States in 2019, with the stock code "BNTX".
    Its main focus is on the treatment of cancer, infectious diseases and other serious diseases and the research and development of preventive immunotherapy.
    BioNTech is one of the industry's leading mRNA platform biotechnology companies, and has established large-scale manufacturing workshops and equipment.

    The immunogenicity of the mRNA vaccine and the stability of the preparation are the two major technical thresholds for its clinical application.
    With the modification of mRNA technology, scientists have successfully solved the problem that the mRNA chain may cause an unexpected immune response.
    The created mRNA can sneak into the cell without causing inflammation caused by cell defense; the mRNA is made into lipid nanoparticles (Lipid Nanoparticles, LNPs) to improve stability and make it easier to enter cells, significantly improving the information transmission efficiency of mRNA vaccines.

    These scientific advances have made the widespread use of mRNA vaccines possible.
    The approval of the mRNA vaccine has become a major leap in the field of pharmacy, and it will be one of the most cutting-edge therapies in modern medicine.
    Therapeutic methods based on mRNA technology may be applied to other important fields at a faster speed, especially cancer treatment.

    Figure 1: Data on the advantages of mRNA vaccine technology path : company announcement, Zhongkang Industrial Capital Research Center

    BioNTech is a global leader in mRNA technology and has the largest number of mRNA technology platforms.


    It currently has a uridine mRNA (uRNA) technology platform, a modified nucleoside mRNA (modRNA) technology platform, and a self-amplified mRNA (saRNA) platform.
    The current R&D pipeline situation is as follows:

    Chart 2: BioNTech's three mRNA technology platforms

    Chart 3: BioNTech R&D pipeline


    Data: Industrial Securities, Zhongkang Industrial Capital Research Center


    As of December 31, 2020, BioNTech’s total assets were 2,318,620,000 euros, net assets were 1,371,85 million euros, and total liabilities were 946.


    77 million euros.
    In 2020, BioNTech’s revenue was 482.
    33 million euros, and the net profit attributable to the parent company was 3.
    83 million.


    China will introduce mRNA new crown vaccine

    As early as March 13, 2020, at the beginning of the global new crown epidemic, Shanghai Fosun Pharmaceutical Industry Development Co.


    At this stage, the joint venture company's specific production and sales plan for the new crown vaccine product has yet to be further negotiated between the two parties.


    According to the previous agreement, Fosun Pharma cooperated with BioNTech to introduce the mRNA COVID-19 vaccine, which was approved for vaccination in Hong Kong and Macau in March, while continuing to advance phase II clinical trials in mainland China.


    BioNTech promises to supply no less than 100 million doses of vaccine to Mainland China in 2021: According to the License Agreement and Supply Agreement signed in December 2020, BioNTech will supply finished products before the joint venture company realizes localized production and commercialization.


    Vaccine listing will bring billions of dollars in profits

    According to the 2021 quarterly report of Pfizer Pharmaceuticals and Moderna, among the two new mRNA vaccines currently on the market, Pfizer/BioNTech's mRNA new coronavirus vaccine BNT162b2 has sales of 3.


    According to real-world research data published in NEJM, the effectiveness of BNT162b2 is 94%, which can effectively reduce the risk of hospitalization, severe illness and death of infected persons, providing important evidence for the further large-scale promotion of the vaccine.


    According to the long-term judgment of the new crown vaccine market, the new crown vaccine vaccination will go through two stages.


    Based on the above judgment, it is expected that as Fosun's new crown vaccine is expected to be approved for listing in the country in the near future, it is expected to bring huge profit flexibility to Fosun in the short term.


    Although the current price is undecided, because the vaccine has the potential of global BIC, the company is expected to have strong pricing power in the self-pay market.


    Concluding remarks

    According to the new cooperation intentions of the two parties, Fosun Pharmaceutical Industry should provide a production facility with an annual production capacity of 1 billion doses of mRNA COVID-19 vaccine, and inject the facility into the joint venture as part of its investment.


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