Geli is expected to become an unprofitable biotechnology company listed in Hong Kong stock market

[China Pharmaceutical network enterprise news] after the new deal of the Hong Kong stock exchange was implemented, the industry was still guessing who would be the pharmaceutical industry's first pharmaceutical company to apply in Hong Kong Dr Wu JINZI, the founder of Geli pharmaceutical, led the company, closely behind Lei Jun's millet, and knocked on the door of the Hong Kong stock exchange On the evening of May 7, ascletis submitted an application for listing to the Hong Kong stock exchange Hong Kong Stock Exchange has allowed biotechnology companies to apply for listing without income since last week, but at least one product must pass the first round of clinical trials, with a market value of more than HK $1.5 billion The ascletis product line is higher than the new requirements, and last year it also earned 8.99 million yuan, but lost about 130 million yuan As of December 31, 2016 and 2017, Geli did not commercialize any products, so it did not generate any product sales revenue In the past two years, the company has separately recognized the proceeds from Roche's early installment payments on the gonoway licensing arrangement Other income and income in 2017 mainly include government subsidies to support the growth of the company's business According to Geli's announcement, the funds raised at present may be used for the continuous R & D of the product line, the commercialization of gonoway and ravidaway, as well as the search for new projects under research It should be noted that, in accordance with rule 8.12 of the Listing Rules of the stock exchange, the issuer shall have sufficient management personnel in Hong Kong However, Geli does not have enough management personnel in Hong Kong, but in combination with the actual development of its own company, Geli has also applied to the stock exchange, which has strictly complied with the provisions of article 8.12 of the listing rules In the end, the company appointed two authorized representatives to serve as the main communication channel between the company and the stock exchange to ensure that the company has always complied with the listing rules The two representatives are Wu JINZI, chairman, executive director and CEO of the company, and Wang jianjiong, Secretary of the joint company At the same time, the co sponsors are Morgan Stanley, Goldman Sachs and China Merchants Securities International Focusing on the fields of HCV, HIV and HBV in 2013, Geli biotechnology was registered and established in China with a registered capital of US $700000, which is the headquarters of R & D and commercialization in China A year later, Geli pharmaceutical was established, mainly responsible for manufacturing, commercialization and R & D in April this year, Geli biopharmaceutical was established As an innovative pharmaceutical enterprise, the company started the first round of financing in 2015 to restructure the company The following year, Geli made a second financing and completed the subscription at the end of the year A The financing amount of the two rounds of B reached US $155 million In fact, Geli is an integrated anti-virus platform, which focuses on the development and commercialization of similar good innovative drugs for HCV, HIV and HBV, liver cancer and fatty liver disease Under the leadership of the management team with profound professional knowledge and past achievements, the company has developed into an integrated anti-virus platform, covering the entire value chain from new drug exploration and development to production and commercialization At present, the company has five antiviral drug discovery and development projects As of the practical date, there are two hepatitis C drugs under development in Geli, one is in the stage of clinical trial HIV drugs in research have completed phase IIa clinical trials, while liver cancer drugs in research have completed phase I and phase I extended clinical trials Table 1 among the assets of Geli's product line close to commercialization, gonovi (danorevir) is a HCV treatment drug developed by domestic companies near the commercialization stage in China, which is expected to be launched in China before the third quarter of 2018 As a direct antiviral drug (DAA) and NS3 / 4A protease inhibitor, it can achieve high cure rate (97%), shorter treatment course (12 weeks) and excellent safety and tolerance performance when taken together with pegylated interferon and ribavirin At present, the cure rate of pegylated interferon and ribavirin is about 60%, and the treatment course is 48-72 weeks in China This is also a kind of hepatitis C therapy developed by domestic enterprises in the near commercial stage Ravidavir is a good generic DAA targeting ns target of hepatitis C When ravidavir, gonovide and ribavirin are taken at the same time, they constitute a full oral HCV treatment plan without interferon, i.e BDV / CNV treatment plan This program is a full oral HCV treatment program developed by domestic companies, which has completed phase III clinical research without interferon It is expected to submit a new drug application in China by the third quarter of 2018 Hepatitis C is a widespread infectious liver disease caused by HCV There is no vaccine for HCV Hepatitis C is one of the main causes of chronic liver disease in China In 2017, the prevalence of hepatitis C in China was 1.82%, with an estimated 25.2 million people infected with HCV In 2017, the number of newly infected and reinfected persons was 350000 and 2000 respectively Due to the lack of breakthrough anti HCV treatment, only about 74000 patients were treated in 2017, with a treatment rate of only 0.3% In China, there are three types of current and next generation hepatitis C therapies The second is DAA + PR, the third is DAA all oral therapy In 2017, the former State Administration of food and drug administration applied for approval of four new DAA therapies Compared with pegylated interferon and Leigh Bhave Lin combined therapy, DAA therapy has the advantages of high cure rate, short treatment cycle, better safety and tolerability for HCV With the introduction of the DAA of HCV in 2017, the Chinese market and the competition pattern of HCV treatment are expected to change significantly due to the high expectations of Chinese patients and doctors for effective treatment of HCV The number of HCV patients in China is expected to increase steadily to 27.3 million in 2026, and the prevalence of hepatitis C is 1.89% Therefore, the market potential of breakthrough hepatitis C treatment in China is huge Because of such a huge market, for Geli, the company's drugs under research are also facing fierce competition According to the F & s report, there are many multinational and domestic companies in China to conduct the DAA clinical trials for the treatment of hepatitis C In China, sofosbuvir, a competitive product of gonovi, combined with pegylated interferon and ribavirin, began to be sold in November 2017 Viekirax / exviera and daklinza / sunvepra launched in November 2017 and June 2017 respectively are competitive products of ravidaway In addition, Gilead submitted harvoni's new drug application in December 2017, while MSD submitted zepatier's new drug application in August 2017, both of which are RDV / DNV therapy of Geli and competitive therapy of RDV / asc21 In the same year that Geli was founded, Roche announced to cooperate with it to develop danoprevir, a new drug for hepatitis C, which became the "test water" for Roche to cooperate with domestic pharmaceutical companies to develop, produce and sell new drugs Several years ago, many multinational pharmaceutical companies, including MSD, GSK and Geely, promoted the development of the company through acquisition and cooperation in innovative drug research and development This enlightens Wu JINZI at that time He believes that innovative drug research and development through cooperation and acquisition has become a common way adopted by multinational pharmaceutical companies, and open innovation has become a trend Wu JINZI took Geli and embarked on the road of introduction and innovation Only later did he cooperate with Roche on new hepatitis C drugs According to Ji Xiaohui, vice president of Roche's global cooperation department who promoted the cooperation at that time, "the more flat the world becomes, the more opportunities there will be for cooperation." Then, with the help of capital, the company cooperates to introduce projects, making Geli quickly known to the industry in China Now, this kind of cooperation and introduction is also a way for many innovative pharmaceutical enterprises to rapidly promote commercialization Zaiding, Hualing and other domestic enterprises have all introduced foreign products for development and obtained the rights of Greater China Table 2 five licensing arrangements of Geli, with the gradual development of gonoway, Geli also began to consider building a commercial team At the beginning of 2016, the company began to establish a commercialization team to lay the foundation for the commercialization of the first batch of products and formulate targeted marketing strategies The company has established a commercial team of about 145 members, covering more than 850 hospitals with a broad strategic position in hepatitis C in China The main work includes pre-sales Market Research and patient analysis, brand building, identification and education of about 5500 experts and key opinions in the field of hepatitis According to the announcement, it expects to sell its products to hospitals and other medical institutions, DTP pharmacies and other pharmacies directly or through its distributors Geli is in the process of establishing the company's distributor network and intends to enter into distribution agreements with distributors in the foreseeable future In terms of production and manufacturing, Geli has built a factory in Shaoxing with a production line designed to produce 130 million pieces per year The tide of "floating in Hong Kong" of pharmaceutical enterprises is coming In addition to Geli pharmaceutical, which has already submitted the prospectus to the Hong Kong stock exchange, there are media reports that the first order of "new third board + H" may also be spent in the biomedical industry, and Chengda biology intends to apply for listing on the main board of the stock exchange On April 21, a signing ceremony was held between the national stock transfer company and the Hong Kong stock exchange, with representatives of Chengda biology and Junshi biology attending Chengda biology is the global leader in human rabies vaccine, with a domestic market share of 50% In 2017, its net profit was 558 million yuan, with a year-on-year growth of more than 20% for two consecutive years In the quarter of this year, the revenue was 248 million yuan, up 14.79% year on year; the net profit was 110 million yuan, up 21.83% year on year In order to complete the issuance and listing of the main board of the Hong Kong stock exchange, Chengda biology intends to change into an overseas offering Co., Ltd According to the announcement, the number of H shares issued by Chengdu University biology Co., Ltd does not exceed 25% of the total share capital after the issue (the exercise of the over allotment right is not considered), and the bookkeeper can be granted the over allotment right which does not exceed 15% of the number of H shares issued above The funds raised from the issuance of H shares will be used for the company for all the appropriate purposes determined by the board of directors or authorized persons of the board of directors, which may include (but not limited to) increasing the capital of the company, promoting the development of domestic and foreign businesses, etc At the same time, domestic pharmaceutical enterprises, such as Xinda biology, Yasheng pharmaceutical, Hualing pharmaceutical, Fuhong Hanlin, have also reported that they intend to go to Hong Kong for listing (part of the information is quoted from Geli's public announcement, hexun.com and financial circles) original title: Geli is expected to become an unprofitable biotechnology company listed in Hong Kong stock market