Hong Kong stock 18A is the worst biotech?

A few days ago, Jiahe Biotechnology (06998.

Dr.

According to the data, Dr.

It is reported that after Dr.

At that time, such a product pipeline was considered advanced, and it also attracted the attention of many investors before Jiahe Bio was listed, and it was also favored by star capital such as Hillhouse

However, what is surprising is that Jiahe Biotech, which was originally full of stars and halo, fell continuously after its listing, and was even called the worst Hong Kong stock 18Abiotech

As of the close on April 14, 2022, Jiahe Biotech closed at HK$4.

Perhaps it is precisely because of the irreversible capital decline that Dr.

It is worth noting that before Dr.

Today, the entire senior management team of Jiahe Biotechnology can be described as a big change.

01.

On October 7, 2020, Jiahe Biotech officially landed on the Hong Kong Stock Exchange.

At that time, when the Hong Kong stock biotech broke and flew all over the sky, Jiahe Biotech once rose by more than 30% on the first day of listing, and finally closed up 16.

Why was Jiahe Biomass stars holding the moon and full of halo? The main reason is-

(1) "Father" is Hillhouse Capital, which has just been promoted to the altar

At that time, Gao Ling was being praised as a "golden signboard"

(2) Celebrity agencies hold the moon in their hands
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In addition to Hillhouse Capital, Jiahe Biotech also received institutional investment from Qiming Venture Partners, Huaxing Venture Capital, Temasek and other institutions before listing.
On the eve of listing, 12 cornerstone investors including OrbiMed, Hong Kong Tiger, Matrix Partners China, and Pacific Asset Management were introduced
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(3) A high-profile all-star lineup sponsor
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The sponsors of Jiahe Biotech are Goldman Sachs, JPMorgan Chase and Jefferies
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With the support of Hillhouse, the blessing of star institutions, and the veteran sponsor, Jiahe Bio IPO can be described as a high-profile all-star lineup
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However, under the halo of many stars, after the listing, the upward trend of Jiahe Bio has only lasted for 2 days, and then it has turned sharply down, and it has been falling all the way.
Today, the decline has not stopped
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02.
Watson's bet on a "black hole" that can't afford to burn money

If it is said that Jiahe Bio is the target of Hillhouse’s investment disappointment at present, then Jiahe Bio is more like Watson Bio’s money-burning “black hole”
.

A few days ago, Watson Bio announced its 2021 annual report, showing that the net profit attributable to shareholders of listed companies fell by 57.
36% year-on-year.
Due to the large decline, Watson Bio subsequently received an inquiry letter from the Shenzhen Stock Exchange
.

In response, Watson Bio responded that the main reasons for the severe decline were: first, the increase in the company's R&D expenses; second, the decline in the shares of Jiahe Biopharmaceuticals held by it, and the fair value change income decreased by 200.
3% compared with the same period of the previous year
.

The connection between Watson Bio and Jiahe Bio began about 10 years ago
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data shows that--

In 2007, Wison Group invested US$1 million to establish Jiahe Biotechnology;

Since 2013, Watson Bio has entered Jiahe Bio through acquisition and capital increase, and finally obtained the controlling stake
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Since then, Jiahe Bio has become the monoclonal antibody product line (the remaining two are preventive vaccines and blood products) among the three product lines of Watson Bio's 1.
2 billion layout "big biological strategy"
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Then, due to the high investment in monoclonal antibody products, Watson Bio was unable to support the third-line battle, so Watson Bio transferred part of the equity of Jiahe Bio
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In 2018, Watson Bio transferred some of its shares in Jiahe Bio.
After several changes, Hillhouse Capital became the largest shareholder
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According to industry insiders, Hillhouse was aiming to build Jiahe Bio into the second "BeiGene", which shows that the momentum is coming
.

According to Sina Pharmaceutical's inquiry, Jiahe Bio's 2020 annual report shows that HHJH Holdings Limited, a subsidiary of Hillhouse, has reduced its holdings of Jiahe Biotechnology by 13.
3625 million shares, while Watson's holdings remain unchanged (as shown below)
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The 2021 interim report of Jiahe Biotech shows that the top two shareholders, Hillhouse Capital and Watson Bio, will remain unchanged
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However, it is worth noting that the latest 2021 financial report disclosed by Jiahe Biotech did not mention the update of the top ten shareholders
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Therefore, any changes to its top ten shareholders are still unknown
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03.
In dire straits, can Jiahe Biotech fight back?

With the departure of Dr.
Zhou Xinhua, Jiahe Biotech has undergone a major change in the lineup of board members from its listing announcement in October 2020
.

Source: Jiahe Biological Announcement

In April 2021, Jiahe Biotech announced that Dr.
Li Ming resigned as a non-executive director of the company and no longer served as a member of the audit committee
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In November 2021, Jiahe Biotech announced that Mr.
Yi Qingqing resigned as chairman of the company's board of directors and non-executive director
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At present, the new leadership team of Jiahe Biotechnology is mainly:

Image source: Jiahe Bio official website

Among them, the Chief Commercial Officer, Chief Science Museum, and Chief Technology Officer are all the talents introduced in the past two years
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According to Dr.
Guo Feng, Chairman of the Board of Directors and CEO of Jiahe Biotechnology, Jiahe Biology plans to focus on achieving in 2022:

Successful commercialization of Jiayoujian® (Infliximab, GB242)
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Approved for marketing of Erbinin® (jelolimumab, GB226) for the indication of relapsed or refractory peripheral T-cell lymphoma, and is actively pursuing other indications and the potential of new combination therapies
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Continue to accelerate key projects, including the Phase 1 clinical trial and preliminary clinical POC validation of GB492 (IMSA101) combined with GB226; rapid advancement
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Continue to promote a variety of bispecific/trispecific antibody drug candidates: On March 18 and March 28, 2022, the National Medical Products Administration (NMPA) accepted the GB261 and GB263T clinical trial applications respectively
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The Phase 1 clinical trials and preliminary clinical proof of concept (POC) of GB261 and GB263T will be further advanced
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Promote multi-dimensional exploration of early R&D projects with highly differentiated FIC/BIC potential.
Currently, 5 FIC/BIC dual/multi-antibody molecular discovery projects have been launched; GB267 has been approved and entered the IND-enabling stage
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Starting from 2023, it is planned to submit an average of 1 FIC/BIC potential self-developed new drug R&D candidate to the IND every year
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Reached a cooperation with the mRNA drug research and development platform on early-stage mRNA tumor immunotherapy research
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However, the industry is still full of wait-and-see about Jiahe Bio's current R&D pipeline and upcoming commercialized products
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As Jiahe Bio's first approved product that is about to be commercialized, Jiayoujian® (infliximab, GB242) was officially approved by the State Drug Administration on February 23, 2022 for the treatment of rheumatoid joints inflammation, ankylosing spondylitis, psoriasis, ulcerative colitis in adults, Crohn's disease in adults and children over 6 years of age, fistulizing Crohn's disease
.

It is worth noting that before the approval of Jiayoujian®, infliximab biosimilars from Taizhou Maibotec Pharmaceuticals and Hisun Bio have been approved in China.
Although compared with other biosimilars, infliximab Domestic competition for biosimilars is relatively moderate
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However, among TNF-α antibody drugs, infliximab is also facing fierce competition from adalimumab.
At present, in addition to the original research drug Humira, domestic adalimumab has a number of biosimilars approved in China , In addition, there are many products in the queue.
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Therefore, the competitive pressure of Jiayoujian® cannot be underestimated
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And Erbinin® (Jelolimumab, GB226), which is also highly expected by Jiahe Bio, is currently slightly optimistic in the industry.
It is reported that jelolimab is used as an indication for relapsed or refractory peripheral T-cell lymphoma (PTCL).
The new drug marketing application has been officially accepted by the National Medical Products Administration (NMPA) and has been included in the priority review by the Center for Drug Evaluation (CDE), and has successfully passed the clinical and production site inspections for drug registration
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An industry insider told Sina Pharmaceuticals that if jerolizumab can become the first domestic monoclonal antibody for the treatment of PTCL, the value it brings to Jiahe is worth looking forward to
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The latest product pipeline announced by Jiahe Bio is as follows:

On the whole, the current competition pattern and progress of Jiahe Bio's product pipeline are still full of challenges.
Now that the capital of the pharmaceutical industry is cold, under more stringent evaluation criteria, can Jiahe Bio be able to achieve the reverse in the future after the executive change.
Attack, Jedi rebound? Sina Pharmaceutical will continue to pay attention
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