Is the future of cell therapy bright for GenScript, who has received a lot of money from Hillhouse Capital and settled in the dust?

On the 14th, Hillhouse Capital invested heavily in buying shares of GenScript and its many subsidiaries, which aroused strong concern:

1.
HK$1.
921 billion to subscribe for 5% of GenScript

GenScript will issue approximately 103 million new shares to Hillhouse Capital today, accounting for approximately 5% of the enlarged share capital
.

The subscription price is HK$18.

2.
HK$1.
153 billion bought 3% of the controlling shareholder of KingScript

At the same time, GS Corp, the controlling shareholder of GenScript, sold 61,789,100 shares to GNS Holding for HK$18.
658 per share, accounting for about 3% of the enlarged shares, that is, the subscription price is about HK$1.
153 billion
.

It is reported that Hillhouse Capital is the sole investment manager of GNS Holding.

3.
HK$1.
165 billion invested in KingScript Biotech

       On the same day, Probio Cayman, a subsidiary of GenScript, ushered in a round of financing.
Before this round of financing, GenScript was valued at US$730 million
.

       Hillhouse Capital subscribed for GenScript's A-round financing of Class A preferred stocks with a total investment of US$150 million (HK$1.
165 billion)
.

       GenScript is an indirect wholly-owned subsidiary of GenScript, which was incorporated in the Cayman Islands as an exempted limited company on May 7, 2021
.

Probio Group provides five types of comprehensive services including antibody drug discovery, preclinical antibody drug development, antibody drug clinical development, preclinical plasmid and virus development, and plasmid and virus clinical development

       4.
HK$3.
88 billion won the legendary creature

       On the same day, Legend Biotech, a non-wholly-owned subsidiary of GenScript Biotech, entered into a subscription agreement with Hillhouse Capital, pursuant to which Legend Biotech agreed to:

       Hillhouse Capital purchased 20,809,850 shares of Legend at a total consideration of US$300 million (approximately HK$2.
33 billion);

       Legendary Bio will issue Legendary Warrants to Hillhouse Capital, which can subscribe and purchase up to a total of 10,000,000 Legendary shares from Legendary Bio.
The total exercise price is US$200 million (approximately HK$1.
554 billion)
.

       It is reported that after the subscription is completed, GenScript's equity in Legendary Bio will be diluted to 58.
31%
.

       Due to Hillhouse Capital’s outstanding investment record, not only did it strongly buy GenScript’s parent company this time, it also bought two subsidiaries, which instantly stimulated the enthusiasm of the capital market
.

Affected by this news, GenScript Biotech’s stock soared today, and as of today’s close, it has risen by 21.

       King Sri

       GenScript is known as the "king of global gene synthesis".
Its Legend Bio is a multinational subsidiary specializing in CAR-T cell immunotherapy.
It was established in 2014
.

       According to data, gene synthesis service is an foundry service.
Although the equipment and technology are complicated, but the profit is low, the gene synthesis business of GenScript in the early days is not attractive to investors
.

       Until 2016, the CAR-T therapy developed by Legend Bio was 100% effective in 8 patients with multiple myeloma, and this result also made Legend Bio at the American Society of Clinical Oncology (ASCO) annual meeting in 2017.
It became famous in World War I and won the first CAR-T clinical approval in China in 2018
.

GenScript therefore ushered in a bright moment

       Since then, Legendary Bio's breakthrough in the CAR-T field has also won the favor of Janssen, a subsidiary of Johnson & Johnson, and the two parties have reached a global cooperation to jointly develop and promote the drug to treat patients with multiple myeloma
.

       Then, on June 5, 2020, Legendary Bio was listed on the Nasdaq
.

Affected by the rapid global development of the cellular immunotherapy industry in recent years, Legendary Biology opened sharply to 37 US dollars, an increase of 60.

       However, just as the legendary creatures and Jin Sri were singing and leaping forward, an explosion news came:

       On September 22, 2020, Zhang Fangliang, the person in charge of GenScript Biotech, was revealed to be suspected of customs anti-smuggling inspection.
As soon as the news came out, it caused an uproar.
GenScript's stock price crashed afterwards, with a maximum of more than 25% drop and a market value loss of approximately 5.
3 billion.
Hong Kong dollar
.

       As Zhang Fangliang concurrently served as the chief executive officer of its subsidiary Nanjing Legend, the share price of Legend Biotech also plummeted by 14.
06% immediately
.

(News review: "King Sri at the cusp of the storm, the CAR-T undercurrent surging behind it")

       Under such explosive news, the development of GenScript Biotechnology and Nanjing Legend seems to be overshadowed by a lot of low-key.
Now with Hillhouse Capital’s strong presence and return to the public eye, how will GenScript Biotechnology develop in the future? Sina Medicine will continue to pay attention
.

       Paved Cell Therapy

       Here, we pick up the cellular immunotherapy and CAR-T therapy behind GenScript Biotechnology and Legendary Biotechnology
.

       Cellular immunotherapy is an immunotherapy in which immune cells are injected into patients to treat cancer
.

In layman's terms, this principle is similar to "targeted killing of cancer cells", avoiding damage to normal cells and tissues and avoiding the drawbacks of current cancer treatment methods.

       To be precise, cellular immunotherapy can be divided into non-genetically modified and genetically modified cell products
.

       Among them, activated autologous lymphocytes (including Immunocell-LC? and EAL?) are non-genetically modified cellular immunotherapy, which can be used for patients with early malignant tumors to prevent recurrence after surgery
.

For patients who cannot receive surgical treatment, it can also be used together with other types of treatments (such as chemotherapy)
.

       Today's brilliant CAR-T therapy belongs to the genetic modification technology route
.
Since CAR-T therapy has shown great power in the field of hematology and tumors in recent years, global capital has quickly concentrated on this track, and many companies have participated in it, and many clinical results have been published
.

       It is reported that up to now, a total of 5 CAR-T products have been approved by the FDA in the world.
They are Abecma from Celgene under BMS, targeting BCMA; the other 4 are Breyanzi from Juno Therapeutics under BMS and Yescarta from Kite Pharmaceuticals under Gilead.
And Tecartus, as well as Novartis’ Kymriah, these four products all target CD19
.

       In China, the cellular immunotherapy, which once entered the winter due to the "Wei Zexi Incident", has been following the progress of theory and technology in recent years, and has successively ushered in the signal of policy lifting, and a large number of excellent enterprises and clinical results have emerged
.

       In the product field, as a hot spot in the genetic modification technology route, a number of CAR-T therapies have entered clinical trials in China, and existing products have entered the stage of administrative approval, which means that China’s CAR-T products are about to usher in a "zero breakthrough" "; As a representative product of the non-genetic modification technology route, Yongtai Biotechnology recently announced that the core product EAL? is currently clinically progressing smoothly.
It is expected to conduct mid-term data analysis in the second quarter of this year at the earliest and enter the research phase of drug marketing
.

       In the capital market, Legendary Biotech (LEGN), Yongtai Bio-B (6978.
HK) and WuXi Giant Nuo-B (2126.
HK), the three leading cell immunotherapy companies, have successfully landed on Nasda in the past two years.
Gram and Hong Kong stocks
.

       There is no doubt that the domestic cellular immunotherapy industry is about to explode
.
However, behind the prosperity, there are still hidden worries and challenges
.

       Targets get together, CAR-T track ushered in the red sea of ​​competition

       It is reported that cellular immunotherapy has experienced more than 30 years of development.
CAR-T, TCR-T, TIL, CAR-NK and other types of cell therapies are showing a trend of blooming all over the world
.

       Among them, CAR-T is like a dark horse, with rapid development, and a large number of enterprises in China have joined it
.

       But behind the big hit also means that the track is unprecedentedly crowded
.
It is reported that the number of CAR-T clinical trials in China has surpassed that of the United States, and it is in a state of "blowout", and the homogeneity of research and development targets is serious, and the battle on the field is particularly tragic
.

       It can be seen that the clinical trials of CAR-T cell therapy in China are mainly focused on targets such as CD19 and BCMA
.
Among them, the main CAR-T product of Nanjing Legend is the BCMA target
.

       Among them, according to the statistics of Clinical Trials, there are 175 trials involving CD19 targets
.
There are 43 trials involving BCMA targets, of which 27 clinical trials use BCMA CAR-T as the sole therapy
.

       In addition, the current competition for CAR-T-BCMA therapy is not only from similar products, but also treatments such as double antibodies and ADC
.
It is reported that Autolus and Gilead both stopped the development of their CAR-T-BCMA cell therapy in 2019 due to competition reasons
.

       Obviously, under the competitive situation of severely congested R&D pipelines, mastering core technologies, multiple targets, and differentiated layout have become the key to the survival of future enterprises
.

       Under such a situation, as the first CAR-T clinical approval in China, the legendary creature and GenScript, who once relied on CAR-T therapy to become famous in the first battle, how will they develop in the future after the strong entry of Hillhouse Capital , Sina Pharmaceuticals will continue to pay attention
.