Yuandong Bio Today's Science and Trot board listed! It jumped 80 per cent at the open, with a market capitalisation of nearly $10 billion.

On September 2, Chengdu Yuandong Biological Co., Ltd. (hereinafter referred to as Yuandong Biological) officially listed on the Science and Technology Board Bell, opening at 78.00 yuan, up 73.54 percent, with a market value of 9.367 billion yuan.
According to the prospectos disclosed, the IPO, Yuandong Bio intends to issue 30.09 million new shares at the issue price of 44.36 yuan, raising 1,161 million yuan for major diseases in the field of innovative drug products industrialization base construction, pharmaceutical clinical research and biological drug research and development projects.
founded in 2009, Yuandong Bio is a pharmaceutical company focused on the development, production and sale of chemical raw materials and pharmaceutical preparations.
Ying, chairman and general manager of the company, controls a total of 58.11% of the company and is the de facto controller of Yuandong Bio.
90% of the revenue comes from generic drugs, which are more influenced by the policy According to the prospecto, from 2017 to 2019, Yuandong Bio's operating income was RMB476 million, RMB769 million and RMB947 million, respectively, of which generic products sales revenue accounted for 97.39 percent, 96.15 percent and 96.31 percent of the main business revenue, respectively.
7 products such as fumarate bisolol tablets, sodium Iban sodium phosphate injections, ubbenmeis capsules, injection compound glyphosate, hydrochloric acid narmefin injections, caffeine injections ofacid and ibuprofen injections are their core products.
Yuandong Bio's main business income details but with the introduction of pharmaceutical industry policies in recent years, such as two-vote system, medical insurance catalog adjustment, generic drug consistency evaluation and drug belt procurement, Yuandong Bio's many core products have been affected.
According to the prospectus, in the first half of 2020, Yuandong Bio expects to achieve operating income of about 405 to 440 million yuan, down 7.37% to 14.74% YoY, mainly due to the new crown outbreak, Fumaric acid bisolol tablets and Ubenzene Mes capsule sales revenue decline.
Fumaric acid bisorol tablets: is a beta-1-adrenal blocker for the treatment of high blood pressure, coronary heart disease (angina), accompanied by hypoarrosis of the median to severe chronic stability of heart failure.
won the bid in the second batch of belt purchases, with a winning bid of 6.15 yuan/box in 2.5 mg and 10.46 yuan/box in 5 mg in size, an average decrease of 69% compared to the pre-harvest price.
January-April 2020, Yuandong Bio has completed sales of 124 million tablets (5mg), accounting for 63% of last year's full-year sales.
but said that based on its sensitivity analysis, if sales of its Fumaric acid pesolor tablets did not reach 10 per cent year-on-year in 2020, operating profit for the product would fall year-on-year, adversely affecting the company's operations.
, a drug that boosts immunity and aids in diseases such as chemotherapy and radiation for cancer, will be removed from the National Health Insurance Directory in 2019.
2017-2019, the product's sales revenue was RMB125 million, RMB205 million and RMB203 million, accounting for 26.25%, 26.72% and 21.53% of the main business revenue.
45.86 percent from January to April 2020 compared with the same period in 2019, and is expected to see a further decline in sales revenue in the future.
It is worth mentioning that in the third batch of volume procurement just concluded this year, Yuandong Bio's newly listed Kaoxi film in 2019 won the bid, with a winning bid of 12.72 yuan/box, supplied by Beijing, Hebei, Shanxi, Liaoning, Jilin, Zhejiang, Fujian, Jiangxi, Shandong, Hunan, Guangxi, Sichuan, Tibet, Ningxia and Xinjiang (including the Corps).
"create imitation" combination, two-legged walking by the policy-influenced Yuandong creatures, began to explore the transformation.
According to the contents of the prospectine disclosure, Yuandong Bio will position itself as a research and development innovation-driven high-tech enterprises, and began to implement the "research and development generation, reserve generation, transformation generation" research and development strategy.
, Yuandong bio-research and development personnel total 255 people, accounting for 29.11% of the total number of companies.
8 experts at all levels, 17 Ph.D.s, 74 master's degrees, master's degree and above accounted for 35.69% of research and development personnel.
2017-2019, its research and development expenses were RMB77,224.8 million, RMB12,439.59 million and RMB15,657.17 million, respectively, accounting for more than 16% of revenue during the same period, slightly higher than the industry average (7%).
Yuandong Bio's three-fee expenditure in the field of generic drugs, Yuandong Bio began to focus on the "raw materials and preparations integrated production" of the core advantages.
According to the prospectus disclosed that Yuandong Biological has been fumaric acid than Solor tablets, relying on kaoxi tablets and other chemical preparation products to achieve the corresponding independent supply of chemical raw materials, so that its quality control capacity in the relevant products throughout the process, cost control capacity, RAW drugs to avoid monopoly on the supply of more advantages.
in the field of innovative pharmaceuticals, Yuandong Bio began to actively lay out biopharmaceutical products.
Up to now, Yuandong Bio has a total of 46 products in the study, of which 9 products have entered the declaration stage, hydrochlorochlorogre tablets sulfate, ibuprofen butanol injections and other high-end chemicals in the study are included in the priority review; Drug Uglitin tablets, Class I clinical trial phase 1 chemical CX3002 tablets, and 31 new class 1 drugs in the pharmaceutical research phase, including EP-9001A monoantigen injection, D0011 long-acting fusion protein injection 2 bio1 new drug projects.
YuanDong Bio is researching innovative drug species but it is worth mentioning that Yuandong Bio's "creation and imitation" combination strategy is still in its early stages, its innovative drugs, biological drugs face a long research and development cycle, large capital investment and commercialization is not successful and many other risk factors, or can not obtain the expected results.
up to now, Yuandong Bio's operating income is still mainly from generic products, in the future expenses also need to invest part of the funds for marketing and other sales activities, sales costs accounted for a relatively high.
addition to Yuandong Bio, Yuekang Pharmaceuticals, another generic drug company that is on the market, has also begun to actively lay out a "copy" combination strategy to help the company transform.
it is understood that Yuekang Pharmaceuticals has submitted its application for listing on April 29, 2020 and has been accepted, the current status is inquired.
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