The second anniversary of the opening of the Sci-tech Innovation Board, the biomedical sector is advancing

Time has passed, and now it has been two years since the official opening of the Sci-tech Innovation Board on July 22, 2019
.

I still remember the exciting scene when President Xi Jinping announced at the opening ceremony of the first China International Import Expo in Shanghai in November 2018 that he would set up a science and technology innovation board on the Shanghai Stock Exchange and pilot the registration system
.

In the past two years, each item of data such as acceptance, listing, fundraising, and market value has continued to rise
.
More importantly, there is a signal behind the numbers—the effect of the science and technology innovation board is becoming more and more pronounced

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A hundred flowers bloom

On July 22, the Science and Technology Innovation Board ushered in the second anniversary of the opening of the market
.
As of this special day, the Science and Technology Innovation Board has handed over a beautiful report card of 313 listed companies with a total market value of about 4.

9 trillion yuan and IPO funds of about 380 billion yuan

The establishment of the Science and Technology Innovation Board and the pilot registration system, this very courageous decision has had a positive impact
.
We see that the reform of the capital market is advancing to the deep water zone

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Biomedicine, as one of the industries clearly supported at the beginning of the establishment of the Sci-tech Innovation Board, has developed vigorously in the past two years and has become the second largest industrial cluster on the Sci-Tech Innovation Board
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As of the second anniversary of the opening of the Sci-tech Innovation Board, there are as many as 75 companies in the biomedicine sector based on pan-field statistics

.

In the two years since the opening of the market, the pace of listing of biomedical technology companies has gradually accelerated, with 16 listed in 2019, 34 listed in 2020, and 25 listed from January to July in 2021
.
From the perspective of the number of listed companies, the biomedical sector of the Sci-tech Innovation Board is basically on a par with Nasdaq and the Hong Kong Stock Exchange

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Timetable for the listing of biomedical technology companies on the Science and Technology Innovation Board, drawing: Shell Club

Why does the Sci-tech Innovation Board gather so many biomedical technology companies?

On the one hand, the Science and Technology Innovation Board emphasizes the attributes of technological innovation and "hard technology positioning", which is naturally compatible with the industry attributes of biomedical companies
.

On the other hand, the Science and Technology Innovation Board allows unprofitable companies to go public, especially the fifth set of listing standards is considered to be specifically set up for biomedical companies
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However, different from the "big and strong" of the semiconductor industry chain, the biomedicine industry chain shows the relatively richer characteristics of the fine-molecule industry
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The biomedicine section of the Sci-tech Innovation Board is divided into broad areas and covers key subdivisions such as chemical pharmacy, biological products, CRO, medical equipment, and animal health

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The industry composition of the science and technology innovation board biomedical technology company, drawing: Shell Club

In terms of market value, only Kangsino and Huaxi Biotechnology have a market value of over 100 billion, and both have a market value of over 140 billion; the number of companies with a market value of between 10 billion and 100 billion and a market value of between 1 billion and 10 billion accounted for roughly the same proportion
.
In comparison, in the biomedical sector, there are 8 A-share main boards with a market value of over 100 billion yuan, 6 ChiNext and 14 H-shares.
The respective leading companies are WuXi AppTec, Mindray Medical, and WuXi Biologics.
It is 3.
4 times, 4.
1 times, and 3.

7 times that of Huaxi Biology, the leading company in the science and technology innovation board
.

Many features such as registration system, special shareholding structure, and allowing unprofitable companies to be listed together form a strong attraction.

More and more biopharmaceutical companies are actively "applying" for the science and technology innovation board
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With "U" feature

Since the Science and Technology Innovation Board allowed unprofitable companies to go public, biomedical companies, especially innovative drug companies, are flocking to the Science and Technology Innovation Board
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As of the second anniversary of the opening of the market, a total of 8 biomedical companies with "U" have landed on the Sci-tech Innovation Board, accounting for half of all "U" companies on the Sci-tech Innovation Board
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Among them, some "U" companies have achieved major breakthroughs with the help of raised funds
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The development of unprofitable enterprises on the Science and Technology Innovation Board, drawing: Shell Club

Zejing Pharmaceutical-U

In January 2020, Zejing Pharmaceutical was listed on the Science and Technology Innovation Board, becoming the first company to adopt the fifth set of standards and the first company that has not yet made a profit on the Science and Technology Innovation Board
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In June 2021, Zejing Pharmaceutical's first-line advanced liver cancer targeted drug Donafenib was officially approved for marketing.
This is its first commercialized product and the first domestically-made first-line innovative drug for advanced liver cancer
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In addition to Donafinil, Zejing Pharmaceutical's product pipeline also has 38 research projects with 13 major drugs under research
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The current market value is about 17 billion, which is within the normal valuation range of innovative pharmaceutical companies
.

Cansino-U

Kangsino is a "star vaccine stock" and has been listed on the Hong Kong Stock Exchange before listing on the Science and Technology Innovation Board
.
It has attracted much attention because of its cooperation with the team of Academician Chen Wei to develop an adenovirus vector new coronavirus vaccine .
The issue price was 209.
71 yuan when it was first listed on the Science and Technology Innovation Board.
It was generally questioned that the price was too high and experienced a period of lows.
With the official approval of the adenovirus vector new crown virus vaccine in February 2021, its stock price has reached a maximum of 709 yuan.

.
As of July 22, after a callback, its stock price is still as high as 594 yuan, with a total market value of 147.
2 billion yuan, temporarily ranking first on the Science and Technology Innovation Board
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With the help of the new crown vaccine Dongfeng, its 2021 mid-year report performance forecast net profit will be between 900 million and 1.
05 billion, and it will turn losses into profits, and it is expected to pick "U"
.

Junshi Bio-U

Due to the possession of the first domestically produced PD-1 tereprizumab, Junshi Bio was once a benchmark for the development of innovative pharmaceutical companies
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It was listed on the Science and Technology Innovation Board in July 2020, and opened with a 290% increase on the first day, and its market value once exceeded 100 billion
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However, as the PD-1 of other innovative pharmaceutical companies followed one after another, Junshi Bio's stock price fell all the way, to the current market value of only about 56.
4 billion
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However, the competitiveness of its PD-1 product is still strong, and this product alone will achieve a net profit of 377 million in the first quarter of 2021
.

Ellis-U

As an unprofitable innovative pharmaceutical company, Alis appears to be very non-existent
.
It went public in December 2020 with an issue price of RMB 22.
73
.
In March 2021, its core product vometinib was approved for marketing
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At the end of June, vometinib received a license-out with a total payment of US$765 million
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Even though it was good again and again, it never showed up in its stock price
.
As of July 22, its closing price was 29.
35 yuan, only 29.
12% higher than the issue price
.
Maybe it has something to do with the fact that there is no decent product except vometinib, and the progress of the pipeline in research is relatively lagging behind
.

Biotech-U

Biotech’s founder, Yi Xianzhong, was once the actual controller of Focus Media’s backdoor listing target Hedy Holdings.
After selling the shell, he invested in Biotech and entered the biomedical industry
.
Biotech was approved for the first domestically produced adalimumab biosimilar drug in November 2019 before listing on the Science and Technology Innovation Board.
So far, it has been approved including ankylosing spondylitis, rheumatoid arthritis, psoriasis, etc.
6 Indications
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In addition to adalimumab, Biotech also has 20 products under development, of which 2 products have been submitted for marketing applications, and the R&D strength is quite strong
.
But the market does not seem to buy it.
The current price is RMB 24.
12, which is lower than its issue price of RMB 32.
76
.

Shenzhou Cell-U

On July 23, there was good news from Shenzhou Cell that its recombinant human coagulation factor Ⅷ for injection was officially approved.
This is the first domestically produced recombinant human coagulation factor Ⅷ product and its first approved product
.
Indications for teens and adults of bleeding in hemophilia A patients Control and Prevention
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Based on the prediction of this news, its stock price has risen by more than 45%.
As of July 22, its total market value reached 29.
4 billion
.
In the pipeline, another product listing application was accepted, and three products entered phase III clinical studies
.

Frontier Bio-U

Frontier Biotech was approved in May 2018, known as the "first domestic anti-AIDS drug," Aikening
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Aikening is a national first-class new drug, China's first original innovative drug for the treatment of AIDS, and the world's first long-acting HIV fusion inhibitor.
It achieved sales of 46.
623 million in 2020
.
At present, its stock price is very depressed, and it has not exceeded its issue price so far
.

Tianzhihang-U

Tianzhihang is the only unprofitable medical device company on the Sci-tech Innovation Board.
It is mainly engaged in the design, development and production of orthopedic surgical robots.
It is the first medical robot company to go public
.
When Tianzhihang was first listed, it was highly sought after by capital.
The listing price was 12.
04 yuan, which was once as high as 141.
6 yuan, an increase of more than 11 times
.
After that, he went all the way down without looking back.
So far, there is only about 24 yuan left, a decline of more than 80% in one year, which can be described as a "fracture"
.
In the first quarter of 2021, there is still a loss of 24.
46 million, which seems to be still some distance from the turning point
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Explosive "reagents"

In the past year and a half, the new crown epidemic has affected all aspects of people all over the world
.
Some companies have been forced to go bankrupt for various reasons, while some companies have made a lot of money by producing new crown-related products
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In the science and technology innovation board, a large number of in vitro diagnostic companies have gathered, relying on the sale of new crown virus detection reagents and detection equipment, the performance has increased by hundreds of thousands of times, which is really staggering
.

The net profit of Shengxiang Bio will increase by 65 times in 2020, leading the A-share market; Oriental Bio and Zhijiang Bio will follow closely behind, and their net profit will increase by 19 times and 17 times respectively in 2020; Shuoshi Bio and Aotai Bio will also achieve Net profit increased by 8.
8 times and 7.
7 times
.

Entering 2021, the follow-up of the follow-up echelon will let the majority of investors understand what is "explosive" growth
.
In the first quarter of 2021, the performance of Hotview Biology continued to explode: total revenue was 1.
228 billion yuan, a year-on-year increase of 31 times; non-net profit deducted 600 million yuan, a year-on-year increase of 1,250 times
.
Such an adverse performance has caused its stock price to soar more than 5 times in less than 15 trading days
.
In the 2021 interim report, net profit is estimated to be between 1.
38 billion and 1.
6 billion, an increase of 705 times to 818 times
.

The "medical beauty" on the tuyere

The four kings of medical beauty in the A-share market, and the science and technology innovation board accounted for half: Huaxi Biology and Haohaishengke
.
These two companies have repeatedly hit record highs in their share prices since the market hyped the concept of medical beauty in October last year
.

Huaxi Biology is a hyaluronic acid manufacturer.
The output of hyaluronic acid raw materials is ranked first in the world, accounting for about 36% of the market.
It also produces cosmetics
.
In November 2019, it landed on the Science and Technology Innovation Board.
In just one and a half years, its stock price rose more than 5 times, with a market value of 140 billion.
Ophthalmology and other products are the main business
.
On June 25, it announced the 2021 mid-year performance forecast.
It is expected that the non-net profit attributable to the parent will be 210 million to 240 million yuan, a year-on-year increase of 2582.
03% to 2965.
17%.
The stock price rises accordingly, exceeding 45 billion
.

CRO and scientific services in gestation

With the implementation of many national policies to support the development of the innovative drug industry, the CRO industry, as a "shovel-selling" industry, has seen rising premiums as a whole
.
And as expectations continue to strengthen, such high premiums may continue for a long time
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At this critical node, more and more CRO companies are targeting the science and technology innovation board, rushing to the top
.
Nuohe Zhiyuan, Nuotai Bio, Sunshine Nuohe, and Haoyuan Pharmaceutical will intensively land on the Sci-tech Innovation Board in the second quarter of 2021; Medicilon, which was the first to land in 2019, has achieved a 10-fold increase
.

The laboratory service industry, which has the same development logic as CRO, has also attracted the attention of growth.
Titan Technology and Aladdin are typical representatives
.
Titan Technology mainly provides scientific research reagents, special chemicals, scientific research instruments and consumables, laboratory construction and scientific research information services to meet the scientific research-related needs of scientific research workers, analytical testing and quality control personnel; Aladdin is a collection of R&D, production and A sales-integrated manufacturer of scientific research reagents, with business covering the four major areas of high-end chemistry, life sciences, analytical chromatography and materials science
.
Since the two listed in October last year, their stock prices have also gained more than 4.
5 times
.

In addition, high-end medical-related materials companies have also attracted market attention
.
Nanomicro Technology, which owns high-performance nano-microsphere materials, achieved an increase of 1273.
98% on the first day of listing on June 23, ranking first among all sci-tech innovation board stocks; mainly engaged in medical and pharmaceutical polyethylene glycol and its activity Jiankai Technology, which develops, produces and sells derivatives, has also gained a 4.
7-fold increase since it went public for nearly a year
.

Concluding remarks

In fact, in addition to the above-mentioned unique stocks, other companies that are not yet eye-catching on the Sci-tech Innovation Board also have broad development prospects, such as Kangzhong Medical and Yirui Technology, which focus on the research and development of X-ray detectors; High-end cardiovascular equipment such as the heart and vein medical treatment; vaccine companies Baike Biology, Olin Biology, etc.
; pre-science biological, Shenlian Biology, etc.
, which are classified in the field of animal health care
.
These highly technologically-rich companies carry the future of China's biomedical technology.
It is believed that over time, the pilot reform of the science and technology innovation board will continue to win
.
The Shell Club will continue to follow up and report on the follow-up development
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Reference

Reference

1.
Announcements, annual reports, and official websites of major listed companies

1.
Announcements, annual reports, and official websites of major listed companies

2.
"The second largest "family" on the Science and Technology Innovation Board has a total market value of 1.
3 trillion yuan, how well is the biomedical sector?", The Paper, July 9, 2021

2.
"The second largest "family" on the Science and Technology Innovation Board has a total market value of 1.
3 trillion yuan, how well is the biomedical sector?", The Paper, July 9, 2021

3.
"Science Innovation Board 2nd Anniversary Special Issue|The Joy of Growth", People's Information, July 22, 2021

3.
"Science Innovation Board 2nd Anniversary Special Issue|The Joy of Growth", People's Information, July 22, 2021

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"The Second Anniversary of the Science and Technology Innovation Board: A total of 313 listed companies with a total market value of 5.
38 trillion", Capital State, July 23, 2021

4.
"The Second Anniversary of the Science and Technology Innovation Board: A total of 313 listed companies with a total market value of 5.
38 trillion", Capital State, July 23, 2021

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"The Two Anniversary of the Science and Technology Innovation Board: From 0 to 4.
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"The Two Anniversary of the Science and Technology Innovation Board: From 0 to 4.
7 trillion, handing in hard-core transcripts", Caijing Magazine, July 23, 2021

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"Two Anniversary of the "Experimental Fields" on the Science and Technology Innovation Board: Harvests and Shortages, Economic Observer Network, July 23, 2021

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"Science and Technology Innovation Board Two Anniversary: ​​From "Riding the Wind and Waves" to "Saving Innovation", Science and Technology Innovation Board Daily, July 22, 2021

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