The IPO was accepted, between the company or the fifth CRO company

Recently, Beijing Sunno and Pharmaceutical Research Co., Ltd. ("Sunnohe") Co., Ltd. board listing application was accepted, the total number of shares issued by the company does not exceed 20 million shares, to raise funds of 484 million yuan for special preparation research and development platform projects, drug innovation research and development platform projects, clinical trial service platform construction projects and innovative drugs PK/PD research platform projects.
is worth noting that this is also the fifth CRO company to apply for listing on the Board, following Medici, Chengdu Pilot, Yanyuan Pharmaceuticals and Jingyun Pharmaceuticals.
public information shows that Sunno and was established on March 9, 2009, is a focus on imitation and innovative drug research, committed to technical services as the core, to promote the development of China's pharmaceutical industry, to provide customers with "preclinical and clinical" whole process drug research and development services integrated CRO company.
since its inception, the company has provided drug research and development services to more than 200 pharmaceutical enterprises, most of which are large and medium-sized pharmaceutical manufacturing enterprises in China.
According to the prospectto disclosure, Sunno and this choice to the Standard 1 of the Board to apply for listing, that is: the market value is not expected to be less than 1 billion yuan, the net profit in the last two years is positive and the cumulative net profit is not less than 50 million yuan, or the expected market value is not less than 1 billion yuan, the net profit in the past year is positive and operating income is not less than 100 million yuan.
from the financial data disclosed by the company, the enterprise is in the rising stage.
2017-2019, Sunno and its operating income were RMB36,049.9 million, RMB13,479.59 million and RMB23,352.56 million, respectively, and the net profit for the past year amounted to RMB1,656.16 million, with an estimated market value of not less than RMB1 billion, in line with the listing criteria.
investment in research and development, during the reporting period (January-March 2020), the company's research and development expenses were RMB2.849 million, RMB8.4606 million and RMB1 906.55 million yuan and 3.9815 million yuan, accounting for 7.78 percent, 6.28 percent, 8.16 percent and 5.40 percent of current operating income, respectively.
, Sunno and has 542 research and development staff, accounting for 81.02 percent of the total.
According to the prospecto, since 2015, Sunno and a total of 133 generic clinical approvals or clinical filing numbers, of which 1 innovative drug entered Phase III. Clinical trials, and for "national major scientific and technological special - major new drug creation special", and another innovative drug entered Phase II. Phase II clinical trials;
note that during the reporting period, the gross margin of the Company's main business was 39.71 per cent, 42.38 per cent, 45.89 per cent and 45.35 per cent, respectively.
company provides drug research and development services are customized services, some of the service cycle is longer, drug research and development risk is high, research and development costs have a certain degree of uncontrollability, resulting in the company's different projects have a certain difference in gross margin, and the company's gross margin will fluctuate in different years.
addition, gross margin is affected by a combination of market supply and demand, company bargaining power, industry competition, specific orders and other factors.
as a result, companies may be at risk of fluctuations in gross margins.
years, with the rapid development of innovative pharmaceutical industry, the domestic CRO industry is also rising.
at present, China's CRO market is in a high-speed growth stage.
2013-2018, the size of China's CRO market rose from 23.1 billion yuan to 67.8 billion yuan, with a compound annual growth rate of 24.03 percent, according to statistics from the National Pharmaceutical Technology Market Association.
the future, with the normalization of collection and consistent evaluation, domestic demand for innovative drugs, high-end generic drug research and development will continue to expand, CRO industry will continue to maintain high-speed growth opportunities.