Watson, a low-priced HPV vaccine subsidiary, has attracted 怼 attention from investors

In 2013, Watson Bio acquired a 50.69 percent stake in Shanghai Zerun Bio, which owns several new vaccines such as HPV, for 265 million yuan in order to quickly enter the HPV (cervical cancer) vaccine field.
currently owns more than 65 per cent of Zerun.
the deal is completed, Watson's stake in Zerun is expected to be reduced to 28.5 per cent and will no longer be controlled.
Technology Research and Development of two-price HPV vaccine, nine-price HPV vaccine, of which the second-price HPV vaccine drug registration application was accepted in June.
, the industry expects the product to become the second domestic market after Wantay Bio's two-price HPV vaccine.
Images from Weibo In a conference call, Watson Bio's management was razed by investors for example, investors forced to ask whether Zerun was actively sold by Watson or Zerun management forced to sell; Zerun products immediately on the market, you can make your own blood, why sell? ... Some investors have even suggested that Watson suspend his business and replace his management.
conclusion, investors believe that Zerun Bio's second-price HPV vaccine application for new drug production has been accepted, Watson at a low price at this time to transfer Zerun shares.
, zerun's valuation should be at least 3.5 billion yuan.
And the second- and nine-price HPV vaccine is still in the clinical phase of Jiangsu Ruike biological valuation reached 3.25 billion yuan, "domestic HPV vaccine first share" Wantay biological market value has been close to 80 billion yuan.
, Southwest Securities Research Institute mentioned that China's second-price HPV vaccine penetration rate is low, only 0.26%.
Domestic secondary HPV vaccine market occupied by Wantay Bio and GSK, of which Vantai Biological's two-pin HPV vaccine using 2-pin vaccination method, Watson Bio also completed a two-pin clinical trial, the future will also be approved two-pin vaccination procedures, and GSK still uses 3-pin vaccination method, taking into account GSK's secondary HPV vaccine price is higher, the vaccination process is more complex, Watson Bio HPV vaccine is expected to have a better competitive advantage.
second-price HPV vaccine will be available in June 2020 and is expected to be available in 2021.
the HPV vaccine market under Zerrun Bio is still promising.
However, due to HPV vaccine as a vaccine to prevent cancer, the research and development cycle is long and difficult, Shanghai Zerun performance has been in a loss-making state for years, 2017-2019 Shanghai Zerun net profit is -52.3401 million yuan, -3048.89 million yuan and -47.3249 million yuan, respectively.
Shenzhen Stock Exchange also raised questions about a 68.61 percent drop in revenue and a 55.22 percent drop in net profit in Shanghai in 2019 that did not include impairments on goodwill.
, founded in 2001, was listed on the Shenzhen Stock Exchange GEM in 2010.
data show that Watson's shareholders are relatively dispersed, with the largest shareholder, Yunnan Industrial Investment Holdings Group Co., Ltd., holding only 4.97 percent and Chairman Li Yunchun holding 3.13 percent.
In addition, the Hong Kong Central Clearing Company has a 4.66 per cent stake, The New Yufang Xiaorun Investment Management Center has a 2.95 per cent stake, The China-Thai Nebula 2 Pooled Asset Management Plan has a 1.76 per cent stake, China Merchants China Securities Biopharmaceutical Index Grading Fund has a 1.58 per cent stake and Yuxi Gaoxin Group Real Estate Development Co., Ltd. has a 1.56 per cent stake.
Watson currently has seven vaccines on the market, including Hib vaccine, 23-price pneumonia vaccine, 13-price pneumonia vaccine, AC combination vaccine, AC polysaccharose vaccine, ACYW135 polysaccharose vaccine, white-crack vaccine, etc.
said in its 2019 report that the company continues to focus on marketing and marketing of its own vaccine products, represented by the 13-price pneumonia vaccine, the 23-price pneumonia vaccine and the Hib vaccine.
with the help of this year's new crown vaccine, Watson's bio-market capitalisation reached 100 billion yuan at one point, and its share price rose to 96 yuan per share in August.
then ushered in a "retreat" and the share price fell all the way down, with an offer of 45.66 yuan per share as of the date of writing, inging on the market value of 70.474 billion yuan.
Watson's third-quarter results showed operating income in the first three quarters of this year was RMB1,567 million, up 96.5% year-on-year, while net profit attributable to the parent company was RMB435 million, up 261.8% YoY, and net profit after deduction was RMB432 million, up 278.3% YoY.
, despite good results in the third quarter, has not been able to get the share price back to its peak.
, chairman of Watson Bio, responded on a conference call that "the abandonment of Shanghai Zerun's controlling stake has been carefully considered and is good for both listed companies and Shanghai Zerun."
"He points out, "In terms of opportunity cost, the company can invest more resources in valuable products such as the laid-out mRNA vaccine, and in terms of equity, the company is also a major shareholder, and can get profit-sharing from the industrialization and sales side of Shanghai Zerun... In addition, the industrialization of the two-price HPV vaccine and the continued development of the nine-price HPV vaccine, at least 1.5 billion yuan need to be invested, and the nine-price HPV vaccine from the promotion of Phase III clinical to the market at least 4-5 years, Watson Bio's current resources are difficult to support Shanghai Zerun to maintain a rapid progress in research and development.
" is also worth noting that the Watson sale of the subsidiary's main transferor Fang Zibo Yunze, was established on November 19, 2020, the executive partner for Ningbo cheng venture capital, the general partner for Xi'an Taiming equity investment.
and Xi'an Taiming equity investment behind the emergence of Tag Pharmaceuticals.
after a weekend phone call, the Shenzhen Stock Exchange today (December 6) sent Watson Bio a letter of concern asking the company to explain its previous disclosure of the form of its core subsidiary, Zerun Bio.
Shenzhen Stock Exchange asked Watson to explain the reasonableness of the transfer of control of Shanghai Zerun in the transaction, as well as the basis for determining the proportion of the transfer of equity, whether the transaction has any interest transmission and other acts that harm the interests of listed companies and small and medium-sized investors.
added that between the company and the Shanghai Zerun management team, whether there are problems affecting the development of Shanghai Zerun due to insufficient incentives, Shanghai Zerun as a holding subsidiary of the company, the company can not market incentives, attract and retain high-end talent specific reasons.
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