Iron-beaten Biotech flowing CFO

With the opening of NASDAQ to Chinese biotechnology companies in recent years, the introduction of the 18A New Deal on the Hong Kong Stock Exchange, and the opening of the listing channel of the Science and Technology Board, biotech companies in China have ushered in an unprecedented listing boom. Behind the launch of Biotech, a
company, is inextricably linked to the company's business development team, particularly the Chief Financial Officer (CFO), in addition to the core elements of product technology, research and development capabilities and the star team's ability to "draw water".
CFO is less closely related to the founding team and more likely to play the role of professional manager than other executives at the innovative drug company.
Combing the industry Biotech on the eve of the listing or after the listing of the talent flow situation is not difficult to find that the CFO is the most changeable senior executive positions, some people are retiring or have left, such as Baiji Shenzhou Liang Heng, Junshi Bio's original, Keystone Pharmaceuticals' Ye Wei, Yasheng Pharmaceutical's Li Yan, pioneering the pharmaceutical industry Huang Yuqing and so on.
even if the old Chinese saying "the soldiers of the iron-hit camp" is changed to the "iron-hit Biotech, the CFO of the running water" does not seem to be too much.
there are already 25 innovative pharmaceutical enterprises (tail-B) in the Hong Kong Stock Exchange successfully IPO innovative pharmaceutical enterprises growth can not be separated from the CFO entrepreneurial groping process painful and long, for the professional barriers of the higher areas of innovative drugs.
biotech's founders come from biological or chemical or pharmaceutical backgrounds, and entrepreneurs will mostly introduce CFOs at the right time after completing a 0-to-1 commercial closure.
CFO's importance to Biotech is self-evident, and the most representative example is Dr. Liang Heng, the CFO of Baiji Shenzhou, whose five years in charge of the company's finances have not only enabled THEOs on NASDAQ and HKEx, but also created a "10 times over four years" growth miracle in the NASDAQ stock price.
, ceo and chairman of Baiji Shenzhou, "Dr. Liang Heng has contributed greatly to the success of the company since he joined in 2015.
his role in the expansion of Baiji Shenzhou and becoming a truly top-notch global business company with research, development and production capabilities.
every milestone we achieve, every achievement, depends on his efforts.
we are very grateful for what he has done for Baiji Shenzhou.
" from the CEO's comments, enough to see CFO Liang Heng in Baiji Shenzhou's important position.
" When investing in innovative pharmaceutical companies, we generally greet the founding team in advance, the pool of shares used to motivate employees can not be divided too early, but also to reserve a part in the later stages, as CMO, CFO and other executives introduced as the company continues to grow.
, especially CFOs, wages alone can be hard to attract to this group of guys who have been dealing with capital for a long time.
" a first-tier market investor told the author.
advice, which he says is also based on a summary of the development of other industries.
because of the role of cfOs, it is more to help companies with financing, especially when the company first sells shares in the public market, the role of CFO is very much in need of the power.
more than a decade, the Internet industry's proposed public companies and CFOs have reached such a tacit understanding.
And now, the economic development cycle to the biopharmaceutical industry, especially in the past two years, the major capital markets for unprofitable biotechnology enterprises opened a "green channel", the same urgent need for CFOs to help enterprises build a sound financial system, team and compile financial reports, operating investor relations and so on.
so where do CFOs come from? In terms of investment, they come mainly from "ABC", A is auditor, that is, audit, such as we often hear about the "big four" EY, Deloitte, KPMG and PwC; B is banker, that is, bankers, such as our often referred to investment banks, Citigroup, Goldman Sachs, Bank of America Merrill Lynch, etc.; and C is controller, generally refers to the company's traditional financial accounting department, with a biased financial background.
the areas where CFOs from different backgrounds excel.
e.g. CFO technical ability with Class A background, accounting, financial reporting, tax control, internal control and other modules are more handy;
class B talents with a background in top-level schools and investment banks, to some extent, the transformation of IPO is a water-to-water path, but also the most favored CFO background in the market.
we combed two years ago, the CFOs of innovative pharmaceutical companies also come from Wall Street investment banks and are typical category B talent.
two years ago, we combed through the background of dozens of CFOs joining innovative pharmaceutical companies and analyzed the main reasons behind the elite joining these investment banks.
now, two years on, what are the new developments of these capital market darlings, the star-studded CFO bigwigs? There are several reasons for CFO changes.
is retirement.
, for example, on the eve of the listing of Baiji Shenzhou, Liang Heng chose to retire from Baiji Shenzhou, a resignation that is expected to take effect by the end of the first quarter of 2021.
The second is other positions within the company, such as Junshi Bio on November 16 issued a notice that its finance director, Ms. Yuan Yu, applied to the company to resign as the company's finance director, the company's head of strategic investment Xu Baohong to replace, and the former will serve as Junshi Bio's assistant general manager, the head of the internal audit department and other positions.
joined Junshi Bio as Finance Director in June 2018 and is a typical CFO with a Category C background.
third, and have chosen to move to other innovative pharmaceutical companies.
such as the original cornerstone pharmaceutical CFO Mr. Ye Wei recently joined Heyu Pharmaceuticals, leading the responsibility and reputation of pharmaceutical financial transactions, financial strategic plans, financial accounting reports, risk control and financing and listing work.
, Mr Ip was CFO of Keystone Pharmaceuticals in July 2018, responsible for the latter's finance, wind control and IPO.
in February 2019, Keystone Pharmaceuticals successfully IPOd on the Hong Kong Stock Exchange, and Ye's phased mission was a success.
In addition to the likes of Liang Heng, Ye Wei and Yuan Yu, who left their original positions after the successful IPO, there are some CFOs who left before the company went public, such as Dr. Li Yan-zhong, the CFO introduced by Asason Pharma from Wall Street, who joined in July 2017 and is primarily responsible for AAST's financial financing, business development cooperation and corporate strategy.
in August 2019, on the eve of Asason Pharmaceuticals' IPO on the Hong Kong Stock Exchange, the company's Chief Financial Officer was replaced by Mr. Zhang Wei, Director of Health Care at the Research Department of the former China Merchants Securities International Limited.
, according to people familiar with the matter, Mr. Li's background is better than listing on NASDAQ, and AXA Pharma's subsequent decision to list on the Hong Kong Stock Exchange was the main reason for the change in its CFO.
Mr. Huang Yuqing, a former Chief Pharmaceutical Analyst for Jefferies China, joined Pioneer Pharmaceuticals in March 2018 and also changed his chief financial officer to Ms. Lu Yan in December 2019, primarily responsible for the Group's financial planning investor relations and internal controls.
before joining Pioneer Pharmaceuticals, Mr. Lu was the Director of Investment Banking and Managing Director of Guangfa Finance (Hong Kong, China).
Of course, there are a very small number of CFOs, in the career after helping IPO, not satisfied with the management of finance and capital markets, began to the company's operating spire role of the president, such as Sibiman Liu Bizo, he was Microsoft's investment director in China, later joined Alibaba in charge of international strategic investment, as general manager of the international e-commerce platform, and later he was CEO from CFO in Sibiman.
the conclusion of the CFO should be in a business to adhere to the end to become the head of the enterprise, or shuttle through a number of enterprises, the number of IPOs as the goal of career? Different CFOs have different pursuits and answers.
the phenomenon of "iron-hit Biotech, flowing CFO" as described in this article may also be temporary and not general.