This biotech company intends to spin off its pharmaceutical business and focus on its three main businesses

On November 18, the biotechnology company VTR announced that the company plans to sell the pharmaceutical business based on business development and strategic layout considerations, and will cooperate with Changde Caixin Financial Holding Group Co.
, Ltd.
and Jinshi Jiashan on October 20, 2021.
Industrial Development Investment Co.
, Ltd.
signed an agreement of intent for this transaction
.
It is expected that this transaction may constitute a major asset reorganization
.
The semi-annual report shows that VTR is mainly engaged in the research and development, production, sales and service of biological enzyme preparations, steroid hormone raw materials, functional feed additives and other products, and provides customers with overall biotechnology solutions
.
Among them, biological enzyme preparation products mainly include feed enzymes, energy enzymes, food enzymes, papermaking enzymes, textile enzymes, environmental protection enzymes and other categories; API products are mainly respiratory and immune system drug APIs (ie cortex Hormone raw materials) and raw materials for the reproductive health system (that is, sex hormone raw materials) are two major categories
.
From the perspective of VTR’s revenue composition, the 2020 annual report shows that most of VTR’s revenue comes from the pharmaceutical sector.
Biomedicine, biological products, and biological agriculture and animal husbandry pharmaceuticals contributed 56.
7%, 29.
02%, and 10.
33% of the company’s Income
.
Among them, VTR's steroid hormone API segment has been profitable in recent years.
Financial data shows that in 2018, 2018, and 2020, segment revenues were 1.
106 billion yuan, 1.
207 billion yuan, and 1.
087 billion yuan, respectively.
The gross profit margin is more than 30%
.
This year, as sales of related products returned to normal levels, the performance fell year-on-year
.
Previously, the company stated in the announcement that the asset sale was based on the company's business development and strategic layout considerations
.
It is reported that after the completion of this transaction, VTR will divest its steroid hormone API related business, and the funds obtained from the sale of assets are expected to be used to increase investment in the three main businesses of biological enzyme preparations, plant extracts, animal nutrition and health And industrial upgrading
.
Specifically, VTR plans to target the industrial enzyme preparations and "replacement" markets in the next step, focusing on the development of the three main businesses
.
On the one hand, we will focus on the development of bio-enzyme preparations, plant extracts and animal nutrition and health care industries by leveraging on the various advantages accumulated in the industry over the years, and seizing the major opportunities of structural changes in enzyme preparations
.
On the other hand, using the funds from the sale of the pharmaceutical sector to speed up the company’s industrial upgrading, focus on the domestic high-end industrial enzyme preparation field that is completely dependent on imports, and expand and strengthen the high-end biological enzyme preparation
.
At present, China has entered the ranks of major industrial enzyme production countries, and the market prospect is broad
.
According to the 2021 semi-annual report, VTR's operating income in the biological enzyme preparation segment reached 302 million yuan, a year-on-year increase of 28.
7%
.
In the field of feed enzyme preparations, the company maintains an annual sales growth of 10%-15%, and is expected to maintain a year-on-year growth rate in the next few years
.
In addition, the revenue of functional feed additives reached 106 million, a year-on-year increase of 60.
98%, and it has become an important growth point for the company
.
Under the trend of “restricted resistance” in feed, the industry believes that the market capacity of feed additives “replacement” products is expected to increase rapidly
.
As of the disclosure date of this announcement, matters related to this transaction are being actively promoted, and the transaction plan is under further negotiation.
The parties involved in the transaction have not yet signed a formal agreement.
After the completion of the due diligence, audit, evaluation and other related work involved in this transaction, the company said The relevant review procedures and information disclosure obligations will be fulfilled as soon as possible in accordance with the requirements of relevant regulatory rules
.