With the latest round of valuations of its proposed spin-off of its subsidiary exceeding $15 billion, will Tiansli become a troubled anti-transformation company?

Introduction: The decline in sales earnings in the Chinese medicine sector is serious, but it is also the key to its transformation.
, nothing has attracted more attention recently than its spin-off subsidiary, Tiansli BioCrowsing.
Transgene transferred its 10.3 million shares to a Chinese investment fund company for $22.2 million, according to an august 4, 2020 announcement by Transgene France, a shareholder of Transurian Bio.
completion of the transfer, Transgene still holds 17.1 million shares, or 1.58 percent of Tiansli Bio, valued at approximately $36.9 million.
in light of this news and the prospectos previously issued by Tiansli Bio in Hong Kong, Tiansli Bio's current pre-IPO valuation is: 2220/1030 x 10.8257 x $2.333 billion, or 3690/1.58% x $2.335 billion.
the latest estimate of RMB1 to RMB6.94, 23.3 x 6.94 x RMB16.170 billion.
kind of company is Tiansli Bio? As an innovative biopharmace product enterprise with a mature and comprehensive commercialization platform for research, production and marketing, Tiansli Bio focuses mainly on the treatment of three major diseases: cardiovascular, tumor and autoimmune and digestive metabolism, and enriches the product pipeline through independent research and development, authorized introduction, cooperative development and acquisition of commercial rights "four-in-one" approach.
, the listed company Tiansli holds 92.37 percent of Tiansli Bio, 161.70 x 92.37 percent x 14.94 billion yuan.
the IPO of Tiansli Biotech will be the catalyst for the rise of Tiansli's share price? In addition to this expectation, with our in-depth study of Tiansli, we increasingly feel that Tiansli has the potential to become a difficult anti-transformation company.
1, become a difficult anti-transformation company's simple logic combing 1, the recent (one or two years), the market share of listed products to enhance the protection of positive growth, such as Puyuk, compound Dansan pills, etc.; Laying the foundation, such as therapeutic hepatitis B vaccine research and development can be successfully listed, the market space is huge, second, financial analysis first look at the last five years Tiansli's main financial indicators, 2016-2019, 2020 mid-year reported operating income increased by 5.43%, 15.41%, 11.78%, 5.61% and -8.43%, respectively.
net profit for 2016-2019 and 2020 was -20.43%, 17.01%, 12.25%, -35.19% and -23.65%, respectively.
gross margin for 2016-2019 and 2020 was -5.71%, -0.60%, -0.25%, -13.54% and -4.58%, respectively.
as can be seen from the chart above, Tiansli's operating income is increasing year by year, but the increase in net profit is not obvious, in the last two years there has even been a sharp decline in the trend, gross margin is declining year by year.
This is because by 2020, 60% of Tiansli's business is pharmaceutical business, the pharmaceutical industry accounted for only 40%, pharmaceutical business 10.02% of the gross margin is lower than the pharmaceutical industry, reducing the company's overall profitability, while in the context of health care charges, the company's Chinese medicine sector sales decline seriously, resulting in performance pressure.
On August 16, 2020, Tiansli announced that the pharmaceutical business had been sold and completed, and that the divestiture of the commercial sector was expected to significantly improve the quality of the company's operations, the asset-liability ratio would be reduced to about 30%, cash flow would be significantly better, accounts receivable would be significantly reduced, and financial statements would be clearer and of higher quality.
according to the snowball spread of research minutes, the company from last year began to actively carry out channel inventory adjustment, actively reduce shipments and reduce channel inventory, such adjustments caused a short-term decline in performance.
During the outbreak, the terminal sales data show that the company's core product sales data remained stable growth, such as the company's largest varieties of compound dansin pills in the context of the outbreak also has a 4% to 5% growth, Puyuk, Dansan polyphenolic acid, beneficial gas refruct needles, water forest Jia and other products end-sales growth, and is expected to achieve positive full-year 2020 results.
, research and development cost analysis Tiansli 2017-2019 research and development investment is 620 million, 1.20 billion, 810 million.
In 2019, Tiansli invested 800 million yuan in research and development, accounting for 4.26% of operating income, but also accounted for 81% of net profit, which is not a low proportion of the entire industry, precisely because of large investment in research and development, the reserve of a large number of products with great potential.
, research and development product analysis Tiansli research and development mainly focused on cardiovascular, digestive metabolism and anti-tumor three major diseases, the collaborative development of modern Chinese medicine, chemical drugs, biological drugs.
There are 78 research projects, 28 innovative drugs of 1 category, 47 of which have entered the clinical research stage, of which 53 are independent research and development projects, 19 are product introduction projects, 2 are cooperative development projects, and 4 are investment priority licensing projects.
1, modern Chinese medicine layout of 26 products, solid Chinese medicine research and development leading position of the core varieties of internationalization to make new progress: compound Dansan pill (T89) U.S. FDA new drug research and development project is progressing smoothly.
its clinical Phase III validation trial for the treatment of chronic stable angina adaptation (code-named ORESA study) actively responded to the impact of the outbreak, and the recruitment and grouping of subjects continued to advance.
Phase II Trials for the Prevention and Control of Acute Highland Syndrome (code-named AMS Research) have completed the case group, held an EOP2 (EndofPhase II) meeting with the FDA, and have now completed the first draft of The Phase III Clinical Programme in accordance with the minutes of the meeting.
Innovative Chinese medicine research and development and large varieties of secondary development rapid progress: in the first half of 2020, the company received the approval of the State Drug Administration issued a cymbal temperature renal cyst particles for polycystic ovary syndrome (spleen and kidney impotence, sputum hypoallerepsis certificate) adaptation, ginseng beneficial gas drops to increase chronic heart failure adaptation, serum brain pills to increase Alzheimer's disease (AD) adaptation "clinical trial notice."
2, biological drug layout of 20 products, to build innovative biopharmaceutical research and development cluster heavy product Puyuk new adaptive clinical trials smoothly advanced: Puyuk as a new generation of specific thrombolytic drugs, with high clinical opening rate, low risk of bleeding characteristics (Puyuk IV.phase clinical trial results show that its clinical opening rate of 85.0%, brain haemorrhage rate of only 0.29%).
, driven by clinical needs, is actively promoting Pouke's expansion from heart-infarction thrombosis to acute ischemic stroke (cerebral infarction) and acute pulmonary embolism (pulmonary infarction) thrombosis treatment.
In the first half of 2020, the Phase III clinical trials for the treatment of acute ischemic stroke (including 0-4.5h, 4.5-6h time windows) and the treatment of acute pulmonary embolism Phase II clinical trials have all completed case out-of-group work and are in the process of statistical reporting, clinical study writing and preparation of registration materials.
The distribution of biopharmaceasers in the research portfolio has been steadily advancing: clinical stage, the treatment of rectal cancer class 1 new drug Amemu monoantigen has entered the phase of phase IIa clinical trials, in June completed the first group of subjects into the group of drugs;
The rapid advance of Phase II clinical trials with hepatitis B adenovirus injection T101 for treatment is accelerating the completion of all subjects' entry into the group, and the completed Phase I clinical trials have been shown to be effective while being safe, the results of which were published at the annual meeting of the European Society for The Study of the Liver and the annual meeting of the American Liver Association.
Recombinant lysoma pox virus injection T601 is in the clinical stage of phase I/IIa, the current progress of single-drug dose climbing trial is progressing smoothly, the treatment of hypercholesterolemia products recombinant all-human source anti-PCSK9 monoclonal antibody injection in May received the State Drug Administration approved the issuance of the "clinical trial notice", is currently in the clinical phase I preparatory stage.
preclinical stage, the company introduced Taiwan Yuanxiang International's leading PD-L1/OX-40 dual resistance, PD-L1/VEGF dual resistance and CD137 single resistance, the current technology transfer and preclinical research is progressing smoothly.
3, chemical drug layout of 32 products, the creation of anti-combination research and development pipeline to continuously optimize innovative pharmaceutical products to achieve phased progress: the beginning of the reporting period to the present, class 1 chemical drug innovation drug TSL-1502 (PARP inhibitor) Phase I clinical research smoothly advanced, 1 class of chemical drug innovation Drug JS1-1-01 (antidepressant class 1.1 new pills) obtained the "Drug Clinical Trial Approval Notice", TSL-1806 (GPR40 astigids) submitted clinical applications to further improve the anti-tumor, digestive metabolism, psychoimmune and other research and development pipeline. More than
generics have been approved for market and approved for conformity evaluation: from the beginning of the reporting period to the present, the company's generic drug tadalla non-tablets (20mg specifications) have been approved for listing, and are considered to be approved for consistent evaluation; The varieties of hydrochloric acid methicillin slow release capsules, injectable tymoazamine, benzodiabet slow release tablets, zushubili tablets and other varieties submitted for registration of production applications, of which gifeitini tablets have passed the development site verification and production site verification; Three generic pharmaceutical products, benzodialyc tablets and Shubili tablets, successfully passed the consistent evaluation, accumulated valuable experience for the company's follow-up products to carry out the evaluation of generic drug consistency, of which the hydrochloric acid phenylsoline tablets and Shubili tablets were the first approved in China; Two varieties, Catopri tablets, have completed bee tests and submitted supplementary applications for consistent evaluation, chlorine flat tablets have completed BE tests, Reinolpri hydrochlorin tablets have been in the start-up BE trial stage, and Nicodir tablets have been in the pharmaceutical research and pilot amplification stages.
, the future performance growth point analysis in the future for a considerable period of time, the company will have a lot of early investment in research and development of drugs concentrated on the market, for the performance of the sustained high-speed growth to lay the foundation.
expects full-year 2020 results to achieve positive growth, with Puyuk and other listed products to increase the market share, in the research products have been successfully listed commercial, Tiansli has the potential to become a difficult anti-transformation company.
1. Sales of compound dansin drop pills, dansan polyphenol acid, beneficial gas re-pulse powder needles, water forest Jia and other products have been growing steadily.
has listed traditional Chinese medicine business to provide stable cash flow.
2. The increase in the market share of Puyuk is expected to enable Tiansli Bio to achieve a break-even.
3. In the study of chemicals and biological drugs, such as Puyuk cerebral infarction (Puyuk cerebral infarction potential market space of 5 billion plus) and other products in the research, the successful commercialization for the future long-term development to provide a stable growth rate of spring warm flowering .