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    Home > Medical News > Latest Medical News > Is the new crown vaccine not "red" anymore?

    Is the new crown vaccine not "red" anymore?

    • Last Update: 2021-11-16
    • Source: Internet
    • Author: User
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    Following the development of the new crown vaccine cooperation between Tibet Pharmaceuticals and Sri Lanka Microbiology, another new crown vaccine cooperation has ended before it officially started
    .

    Unlike the cooperation between Tibet Pharmaceuticals and Sri Lanka Microbiology, the new coronavirus vaccine (PIV-5 carrier) licensing cooperation agreement of Changchun High-tech, Beike Biotech and Guangzhou Sianxin Biotech is a connected transaction
    .
    Before the disclosure of the cooperation, Changchun Hi-tech had already had a closer equity relationship with Sian

    .

    But even so, Changchun Hi-tech and its subsidiary Beike Biotechnology and Sianxin were unable to reach an agreement on the R&D rhythm, transaction consideration and other content in the end
    .

    Regarding this transaction, some investors believe that at the moment when the new crown vaccine winners have emerged, it is wise to stop invalid investment in a timely manner, and other companies with a slower R&D process should also rationally give up
    .
    Others believe that in the current situation of normalization of the epidemic, the market for new crown vaccines still has a lot of room for development, and it is worth a fight

    .

    01 Proposed 840 million yuan related-party transactions fell through

    01 Proposed 840 million yuan related-party transactions fell through

    On September 27th, Changchun Biotech issued an announcement on the termination of the company and its parent company and Guangzhou Sianxin Biotechnology Co.
    , Ltd.
    signed a new coronavirus vaccine (PIV-5 carrier) license cooperation agreement and related transactions

    .

    Beike Biotechnology is a subsidiary of Changchun High-tech.
    Changchun High-tech holds 41.
    54% of its shares (the State-owned Assets Supervision and Administration Commission of Changchun New Area is the actual controller of Beike Biotech), and Sianxin is a related party of Changchun High-tech

    .
    In March 2020, Changchun High-tech signed a capital increase agreement with Sianxin, after which Changchun High-tech held a 25.
    53% stake in Sianxin

    .
    In addition, Changchun High-tech Chairman Ma Ji holds the position of director in Sianxin; An Jixiang, director and general manager of Changchun High-tech, holds the supervisory position of Sianxin

    .

    After taking a stake in Sion, Changchun Hi-tech announced on June 7 this year that the company and its subsidiary, Changchun Baike Biotechnology, will obtain Sion’s new coronavirus vaccine (PIV-5 vector) and target new coronavirus mutant strains for a total of 840 million yuan.
    Exclusive license rights for the developed vaccine (PIV-5 vector) related technology in the license area

    .

    According to the announcement, Changchun High-tech will make a down payment of 35 million yuan to Sianxin.
    Changchun High-tech and Beike Bio will pay Sianxin a total of 240 million yuan in R&D milestone payments.
    After the products are launched, Changchun High-tech will pay the corresponding sales price and sales volume every year.
    Pay a total limit of 565 million yuan in sales milestone payments to Sianxin.
    The above payment totals 840 million yuan.
    At the same time, after the product is launched, Beike Bio will pay Sianxin a certain percentage of sales commissions according to the corresponding sales price and sales volume every year until permission is granted.
    The validity period of the patent authorization of the patent expires

    .

    However, the above-mentioned relevant "licensing cooperation agreement" has not been signed so far.
    Changchun Hi-tech has not made actual investment in the research and development of the new coronavirus vaccine (PIV-5 vector), but Beike Biosciences has paid 1.
    5535 million yuan for the preliminary investigation and evaluation of the project

    .
    Beike Biotech does not hold any shares in Sion, and the two parties have no plans to cooperate in the next 12 months

    .

    According to the announcement, the main reasons that led to the end of this cooperation are as follows: First, the importing party hopes to require Sianxin to hand over biological materials for verification experiments before the agreement is signed, but Sianxin disagrees; second, the two parties have failed to evaluate the project.
    Reach an agreement

    .
    Based on the vaccine's phase I clinical trials in the United States, Sionson requires the valuation of the upgrade project

    .

    02 A case of not simple authorization introduction

    02 A case of not simple authorization introduction

    Regarding the results of this cooperation, Mr.
    Yin Gang, a partner in the Shanghai office of Dacheng Law Firm, analyzed that based on the consideration that Changchun Hi-tech holds 25.
    53% of the shares of Sianxin, such a major shareholder and the target company terminated the transaction due to differences in commercial terms.
    The situation is not common

    .

    In a licensing transaction, the licensor and the licensee have many interests in common, which is the basis of a pharmaceutical licensing transaction
    .
    A successful license transaction is to maximize the common interests of both parties to the transaction while minimizing the conflicts of interest between the two parties, especially how to break in or resolve the conflicts of interest between the two parties.
    It is of vital importance to the successful conclusion of a license transaction.
    Role

    .

    Pharmaceutical licensing transactions are not simply licensing the licensor’s intellectual property or know-how to the licensee and then charging a licensing fee
    .
    Pharmaceutical licensing transaction is a multi-task, long-term transaction.
    A successful pharmaceutical licensing transaction requires the licensor and the licensee to have close and long-term cooperation in the pharmaceutical R&D, production, and commercialization stages

    .
    This requires the licensor and the licensee to clearly stipulate their rights and obligations at each stage of R&D, production and commercialization in the pharmaceutical licensing agreement

    .

    According to the information disclosed by both parties, the importer and the authorized party have been deeply bound this time
    .
    At present, it is quite common for domestic companies to authorize the introduction of research projects.
    So when the product is in the R&D stage, lawyer Yin Gang reminds the company to be The licensor may also require the licensor to provide certain personnel and technical support

    .

    Especially at the stage of technology, material and data transfer, the personnel and technical support of the licensor is indispensable
    .
    During the research and development process, as the licensor is more aware of the characteristics of the target product, the licensee may also try to require the licensor to continue to provide personnel and technical support.
    However, at this time, the licensor may require As a negotiation strategy, the licensee can claim that this part of the fee has been included in the license fee or use this to make a certain deduction for the license fee

    .

    However, according to the information disclosed this time, it is not common for the introducing party to ask the authorized party to provide scientific research data in advance when the two parties have not signed a formal binding agreement
    .
    A more common process in the industry is to first sign a binding agreement, and then link the transfer of scientific research data with the down payment, such as starting or completing the data transfer within a period of time after the first payment is paid

    .

    03 Give up decisively, or catch up?

    03 Give up decisively, or catch up?

    For Changchun Hi-tech, this is an important attempt to "enter" the new crown vaccine
    .
    For Baike Biotech, this is also the first important transaction after its spin-off and listing

    .

    According to the announcement, since the agreement has not been signed and neither Changchun Hi-tech nor Beike Biotech has carried out relevant research work, the company does not need to bear the responsibility for breach of contract
    .
    The signing of the termination agreement will not adversely affect the overall business and profitability of Changchun Hi-tech and Baike Biotech, nor will it affect the company's overall future development plan, nor will it harm the interests of the company and the majority of shareholders

    .

    For this cooperation, Beike Biotech also pointed out the relevant risks in the listing prospectus.
    The products involved in this transaction still need 2-3 years of clinical trials before they can be approved for sale

    .

    Beike Biotech also has a new crown vaccine in hand, but it is also in the early stages
    .
    According to the prospectus of Baike Biology, its nasal spray new crown vaccine is one of Baike Biology's key vaccines

    .
    As of the date of the signing of its prospectus, the nasal spray neocorona vaccine under development by Beike Biotechnology has prepared three batches of pilot scale samples, which have been certified by the China National Institute of Inspection and Quarantine, and the preclinical research has been completed

    .
    In addition, the pre-review clinical trial data has been submitted to the Drug Evaluation Center of the State Drug Administration, but the product has not yet obtained the clinical trial license notice, and there is still a long way to go before it is approved for marketing

    .

    Whether it is introduced or self-developed, a reality that Beike Biosciences needs to face is that even if its products are successfully listed in the future, it will face fierce market competition
    .

    Up to now, it is visible to the naked eye that the main winners of the new coronary pneumonia vaccine at home and abroad have emerged
    .

    Overseas giant Pfizer recorded US$11.
    3 billion in revenue from mRNA COVID-19 vaccine in the first half of the year, Moderna’s COVID-19 vaccine accounted for US$5.
    93 billion in the first half of the year, AstraZeneca’s related revenue in the first half of the year was approximately US$1.
    17 billion, and Johnson & Johnson’s revenue of US$264 million in the first half of the year

    .

    For domestic companies, Kexing's new crown vaccine's profit in the first half of the year was close to 50 billion yuan, the Cansino adenovirus vector new crown vaccine's revenue in the first half of the year was about 2.
    06 billion yuan; Zhifei's recombinant protein new crown vaccine achieved revenue of about 5.
    3 billion yuan, and Kangtai's new crown inactivated vaccine achieved revenue About 160 million yuan

    .

    In the hot mRNA vaccine field, the mRNA COVID-19 vaccine jointly developed by Fosun Pharma and BioNTech has been put into use in Hong Kong, Macau and Taiwan
    .
    China Biotech's Fonogym mRNA variant strain vaccine made its debut at the Service Trade Fair on September 2, and the construction of its industrialization base began on September 25

    .
    On September 14, the mRNA COVID-19 vaccine jointly developed by Watson Biotech and Abbio Biotech held the first overseas researcher kick-off meeting of the global multi-center phase III clinical trial, which is one step closer to the launch of the vaccine

    .
    In addition, on September 1, the mRAN modular vaccine production plant of Yuxi Watson Biotechnology's New Crown Vaccine Industrialization Base was completed and delivered

    .

    As a latecomer to the new crown vaccine research and development, Changchun Hi-tech and Beike terminated the agreement this time.
    Some investors believe that this is "terminating invalid asset investment" and is a welcome event

    .
    On the other hand, there are still many companies that are still investing in development.
    They believe that under the normalization of the new crown epidemic, whether it is in the domestic or foreign markets, the market space for the new crown pneumonia vaccine is still full of imagination

    .

    Is it to continue to work hard on research and development, or "just enough"? This is a common problem faced by companies in the process of research on the new crown pneumonia vaccine
    .
    As for the choice of Changchun Hi-tech and Baike Biotech to announce the end before it has officially started this time, whether it is a wise move, the market will soon give an answer

    .

    Just today, the CCTV news client reported that Sanofi announced that it would stop the third phase of the messenger ribonucleic acid new crown vaccine.
    The reason is that the vaccine has missed the best time to put it on the market

    .
    However, Sanofi will continue to advance the research and development of the recombinant protein new crown vaccine

    .
    This vaccine research and development plan has now entered the phase III large-scale clinical trial phase, and it is expected that the phase III trial data will be obtained by the end of this year

    .

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