Once approved by bribe vaccine, can Chengda bio become the first "A-D"? IPO Research Institute

Guide: Whether the board can accept into a large creature, please stay tunedSince the 2018 Changchun Long Life Biofake Vaccine scandal came to light, Liaoning Chengda Biological Co., Ltd(hereinafter referred to as Chengda Bio) has gradually occupied the market for human rabies vaccineaccording to public information, Chengda creature suing dating is Liaoning Chengda (600739SH) subsidiary, Liaoning Chengda, owns more than 60% of its sharesPreviously, Chengda Bio had wanted to list in Hong Kong failed, the company intends to list in the company board, if successfully listed, Chengda Bio will become the domestic "A demolition A" first shareshowever, Chengda Biological Company itself has a single product structure, weak ability to resist risksAnd the company is frequently broke by the bribery to obtain vaccine approval scandal, into the big creatures really can become the domestic "A demolition A" the first stock?A to dismantle the first shares, had wanted to Hong Kong listing failedit is understood that Chengda Bio is the biopharmaceutical business platform of Liaoning Chengda, as of the end of 2018, Liaoning Chengda holds 60.54% of Chengda Bio's equityIn 2018, Liaoning Chengda achieved pre-tax profit of 983 million yuan, of which Chengda bio-profit profit amounted to 719 million yuanLiaoning Chengda adopts the "medical and health care industry and financial investment" two-wheel drive strategy, in which the biopharmaceutical business is carried out by Chengda BioIt can be seen that Chengda Bio has an important impact on the performance of listed companies in 2018The Daily Financial Report learned that Chengda Had wanted to list in Hong Kong, but ended up in failureApril 2018, the Hong Kong Stock Exchange and the national stock transfer company signed a contract to formally implement the "new three-board and H-shares" listing mechanismSigning the scene, the national stock transfer company found 11 representatives of enterprises to attend, into the big creatures among them11 companies, each want to be the first share of the "new three-plate and H-shares" 10 days later, Chengda Bio took the lead in convening a board meeting to approve an IPO bill in Hong Kong However, thousands of calculations, did not think of this "new three boards and H shares" the first stock, by the same pharmaceutical industry, the junshi creatures (01877.hk) to take the lead Chengda Bio lost its due opportunity when he submitted its prospectus two months later than Junshi Bio in the long-distance sprint race of the Hong Kong stock IPO In December 2018, Junshi Creatures rang the listing bell gong in Victoria Harbour did not announce until July of the following year that it decided to abandon its listing in Hong Kong in view of changes in the market environment However, there is widespread speculation that Chengda Bio abandoned the Hong Kong stock listing plan because of the agency's dissatisfaction with the inquiry the "Daily Financial Report" on the termination of the hong Kong stock listing of the real reason, sent a letter to ask Cheng Da bio, the company only said that the specific reasons have been "Liaoning Chengda Biological Co., Ltd on the termination of the issuance of H-shares and listing on the Stock Exchange of Hong Kong" disclosure it is worth noting that The parent company of Chengda Bio, Liaoning Chengda, is a holding platform, which owns four major sectors: medicine, financial investment, trade, energy development and so on According to public media reports, when Liaoning Chengda has a sector loss, it will be another profitable sector launched, financing listing, to make up for the loss this time, Liaoning Chengda launched into a large creature, is to make up for the previous loss Public information shows that in 2013, Liaoning Chengda issued a public announcement, raising 1.856 billion yuan for investment in Xinjiang Baoming oil shale integrated development and utilization projects According to the 2019 annual report, Xinjiang Baoming Project lost 432 million yuan and total assets of 5.610 billion yuan, but its liabilities were 5.738 billion yuan and its net assets were 128 million yuan , last year, Liaoning Chengda's trade sector revenue fell sharply, the pre-tax profits of the companies responsible for trade were only 99.75 million yuan, a decline of 52.9 percent year-on-year asked the Daily Financial Report whether "the money earned by Chengda Bio will be used to fill the hole in the parent company and Baoming in Xinjiang", Chengda Bio only said in a reply, "Liaoning Chengda and the company are two independent public companies." product structure is single, the market space is limited
Chengda biological main business for human vaccine research and development, production and sales, the main products include human rabies vaccine and e-brain inactivated vaccine Rabies vaccine is just needed, the demand is more stable after the Changchun long-lived fake vaccine scandal came to light and then withdrew from the market, it brought good benefits to Chengda Chengda bio supplements the market supply, the company's rabies vaccine market share of about 70% It is worth noting that Chengda bio is also faced with a single risk of product structure large biological business income mainly from rabies vaccine and e-brain inactivated vaccine two products According to the prospectus, Chengda Bio's 2019 operating income from rabies vaccine was RMB1,567 million, accounting for more than 90% of the main business revenue, while the operating income from e-brain vaccine was RMB086 million, accounting for about 5% of the main business revenue in addition, according to Frost and Sullivan data, the market size of China's human rabies vaccine for 2016-2018 was 2.99 billion yuan, 3.01 billion yuan and 2.84 billion yuan, respectively, showing a decline overall another main product of large organisms, the E-brain inactivated vaccine, is subject to the overall market size is limited China's b-brain vaccine is divided into anti-toxic live vaccine and inactivated vaccine two, the former is the immunization program vaccine, the market space of 480 million yuan in 2018 -large biological production of the e-brain inactivated vaccine is a non-immune planning vaccine, although the price is relatively high, but the market size is limited, in 2018 about 100 million yuan, the same as in 2017 Although in addition to these two main products, Chengda biological in recent years there are many in the research products However, according to the prospectus, the company has obtained five conventional vaccines such as the flow of the brain, influenza, hepatitis A clinical approval, but in addition to the bivalent nephropathy haemorrhagic fever vaccine (Vero cells) has completed clinical trials, other products are in clinical I or earlier stage It's too early to rely on research products to contribute revenue to the company by paying bribes through the approval, involved in a number of medical disputes
2017, the fall of the former State Food and Drug Administration official Yan Hongzhang, was made public court judgment The judgment revealed the fact that nine pharmaceutical companies had paid bribes to them, including adults 2009, Chengda Bio sent 20,000 cash to Yan Hongzhang after the clinical application for the rabies vaccine was approved However, perhaps because the money is not in place, in 2010, Chengda bio once again submitted to the State Food and Drug Administration 2-1-1 injection method application, did not expect to delay approval, on the grounds that the clinical trial program lacks an experimental data Chengda Bio's general manager Zhuang Jirong in order to make the company's vaccine early approval, found the application for approval of the Red Seal Afterwards, Chengda Bio General Manager remitted 1 million in the name of "operating futures" to the account of the son of Yan Hongzhang it can be said that Chengda wants to get approval through bribery, the facts are clear How can such a vaccine be guaranteed health and safety in human life if the lack of experimental data is approved by bribery? According to the information of enterprises, Chengda biological has a number of cases involving the right to life, physical disputes, as well as a number of disputes on liability for medical damage the above-mentioned bribery executive, Zhuang Jirong, resigned from all positions at the company in 2014, however, according to the company's investigation data, Zhuang Jirong still holds 3.3614 million shares of Chengda Bio on why the bribed executive is still a shareholder in the company, Cheng da Bio said that Mr Zhuang's shareholding in the company was his personal investment can the company really accept the big creatures that open up the market by paying bribes? Can the potential risk of large organisms be eliminated from the market? The Daily Financial Report will continue to be watched