Three listed pharmaceutical companies are scrambling for "gene sequencing" cake

Source: on May 26, 2014, the cost of China business daily dropped to $1000 / person time, and the trillion market of gene sequencing is about to break out? In April 2014, in the silent A-share market, the concept of gene sequencing stock was unique According to statistics, from April 1 to May 20, conceptual stocks such as Daan gene, Qianshan pharmaceutical machinery and Zixin pharmaceutical, which are related to the concept of gene sequencing, experienced a wave of gains How big is the market for gene sequencing and which A-share companies may benefit from it? Our reporter made an in-depth interview and investigation for the readers A-share market has always been full of concepts, and recently gene sequencing concept stocks have soared, causing widespread concern in the market From April 1 to May 20, the price per share of Qianshan pharmaceutical machinery (300216 SZ) in A-share gene sequencing concept stock rose from 13.15 yuan to a high of 20.25 yuan, with the highest increase of 53.99% during the period In the same period, Zixin Pharmaceutical (002118 SZ) shares rose 32.5% at the highest, and Daan gene (002030 SZ) shares rose 39.31% at the highest Gene sequencing is very popular in recent years, which has a great relationship with the cost of sequencing down to 1000 USD / person time, which makes the market see a broad prospect in this field If the cost of sequencing falls so low that everyone wants to know their own genetic information to guide daily health care and clinical medicine, the market will reach more than a trillion, according to analysts from securities companies According to the reporter of China business daily, at present, there are only three companies related to gene sequencing in A-share listed companies, while none of Lidman (300289 SZ) and Kehua Biology (002022 SZ) that are concerned by the market have gene sequencing products and R & D Will cost reduction explode trillion market? Gene sequencing refers to the analysis of DNA base sequence molecules, which is used to predict the risk of a certain disease, so as to take measures in advance It is widely used in personalized medicine, tumor and genetic disease, microorganism, agriculture, organ transplantation, forensic identification and other fields A person in the gene testing industry said that on the one hand, gene sequencing can help to screen in advance which types of diseases specific individuals may be vulnerable to, and if there are symptoms of disease, the technology can immediately check to confirm the condition; on the other hand, after the diagnosis, the gene sequencing base can be used to find the most appropriate prescription, while during the treatment, the sequencing technology can To detect the whole process It is understood that the human gene map has been completed as early as 2003, but due to the high cost, this technology has not been really used in the medical field in the past 10 years With the development of technology, the cost of human gene sequencing has been greatly reduced twice In 2011, the cost was $100 million In 2013, the cost has been reduced to less than $10000 In 2014, with the emergence of new high-end gene sequencer, the cost has been reduced to $1000 The potential beneficiaries of gene sequencing and personalized medicine may include manufacturers of gene sequencing instruments and kits, biomedical and diagnosis and treatment enterprises, as well as end users such as doctors and patients, the industry said Clinically, gene sequencing has been applied to cancer, genetic diseases and other fields "The main target market is at least US $23 billion From the perspective of technology, gene sequencing has experienced three generations since 1975 The second generation of gene sequencing is becoming more and more mature In particular, Illumina has reduced the cost of sequencing to US $1000, which will stimulate the explosive growth of market demand and reduce the cost of equipment purchase and service provision in China." Xie Weiyu, an analyst at Shenyin Wanguo, pointed out that from the perspective of classification, molecular diagnosis is the fastest-growing and the most technologically advanced field of IVD, while gene sequencing represents the development direction of molecular diagnosis In the next five years, it will maintain double-digit growth, of which China has the fastest growth rate, with a prospect of more than 20% Tian Jianqiang, an analyst at Dongfang securities, pointed out that the reduction of cost will lead to the increase of the application scope and depth geometric progression of gene sequencing With the continuous expansion of the customer scope of sequencing equipment, large-scale clinical application of gene detection is coming, including heritage screening for new population, disease risk guidance for healthy population, targeted drug development and application fields It is predicted that only calculating the market segmentation capacity of genetic disease screening, using sequencing technology to screen genetic diseases before pregnancy, 5% of the penetration rate nationwide can bring 7 billion yuan of market capacity, while using non-invasive prenatal screening, 100% penetration rate for high-risk pregnant women over 30 years old will bring 7.6 billion yuan of market capacity, 50% penetration rate for all pregnant women will bring 140 Billion yuan market capacity If the cost of sequencing falls so low that everyone wants to know their own genetic information to guide daily health care and clinical medicine, the market will surely be more than a trillion Recently, marketing and markets, an American market research and consulting company, released a report on the market of gene expression analysis, pointing out that with the decrease of gene sequencing costs and people's attention to personalized medicine, the global market size of gene expression analysis reached 2.6 billion US dollars in 2013, and is expected to reach 4.3 billion US dollars in 2018, 2013-2018 The compound annual average growth rate was 10.4% A-share companies actively enter into such a large potential market, A-share listed companies naturally do not want to stand by After the announcement of suspension of reorganization on January 6, 2014, Qianshan Pharmaceutical Machinery Co., Ltd announced on April 4 that the company decided to terminate the planning of major asset reorganization and resume the trading on that day Different from the sharp drop of the stock price after the termination of the reorganization of other listed companies, the trading limit of Qianshan pharmaceutical machinery appeared on the day of resumption This is just the beginning of the company's share price rise By May 20, the company's per share price had reached a new high of 20.25 yuan According to the closing price of 11.95 yuan per share on the trading day before the resumption of trading, the company's share price rose by 69.46% to May 20 Qianshan pharmaceutical's share price still soared after the termination of the restructuring, related to its acquisition of a gene testing company this year On March 14, Qianshan pharmaceutical machinery announced that the company plans to purchase 41.5% equity of Hunan Honghao gene Biotechnology Co., Ltd (hereinafter referred to as "Honghao gene") with 38.18 million yuan, and after the completion of the above transfer, the company increased capital of 2142 million yuan to Honghao gene After the completion of capital increase and share expansion, Qianshan pharmaceutical machinery holds 52.57% equity of Honghao gene According to the purchase agreement, Honghao gene has obtained the access license of gene testing industry - medical device registration license of testing kit (gene chip law) issued by the State Food and drug administration, as well as the service access license of the state health and Family Planning Commission (it has entered the catalogue of charging items of national medical institutions in 2013, No 1496) And Honghao gene has the world's first (subject to obtaining the national product registration license) and the exclusive domestic product registration license of "hypertension individual drug detection gene chip", as well as the matching production license, system certification, GMP standard workshop and other production hard indicator systems For the relationship between gene chip and gene sequencing, Dr Ren Lufeng of Beijing Institute of genomics and gene research, Chinese Academy of Sciences, said that known gene mutations can be made into chips for detection, while gene sequencing detection range is broader, including known and unknown Gene chip is an indirect detection method, and gene sequencing is a direct detection method To a certain extent, gene sequencing and gene chip are in the same gene detection industry chain, which is also the reason why Qianshan pharmaceutical machinery has attracted market attention, said a person in the gene sequencing industry "At present, the company has paid part of the capital for the acquisition of Honghao gene equity, the equity transfer agreement has been completed, and the capital increase will be completed within this year." A person from Qianshan pharmaceutical machinery Securities Department told reporters that after the capital increase, the company will consider mass production of the gene chip for hypertension individualized drug detection Since it has obtained the national approval qualification, the product can be used in clinical or research and development In addition to the thousand yam machine, Zixin pharmaceutical also signed the letter of intent for industrial transformation investment of sequencer project with Beijing Institute of genomics, Chinese Academy of Sciences (hereinafter referred to as "Institute of genomics") in October 2013 to jointly develop the gene sequencer project The specific implementation unit is Jilin Zhongke Zixin Technology Co., Ltd., a wholly-owned subsidiary of the company (hereinafter referred to as "Zhongke Zixin") Zhongke Zixin has signed a technical cooperation agreement with genome research institute, which has entrusted Genome Research Institute to carry out follow-up research and development on the project of "sequencer product development" However, two other gene sequencing concept companies, Lidman and Kehua biology, which are concerned by the market, currently do not have relevant products and R & D of gene sequencing Yang Luping, a representative of Lidman securities affairs, told reporters that there is no business and R & D in this area for the time being Whether to enter this area in the future should be determined according to the market situation and the company's development There is no clear plan yet A person close to the senior level of Kehua biology pointed out to reporters that at present, the company has no gene sequencing products in more than 120 research and development projects If the company is optimistic about the prospect of the industry in the future, it will not exclude other ways to enter the field