21 Century Economic Report reporter Tang Weike reported in Guangzhou
Recently, after the GEM meeting of Feipeng Biotechnology Co., Ltd. (hereinafter referred to as "Feipeng Biotechnology"), Feipeng Biotechnology disclosed the latest prospectus, updated for 2021 Annual performance. The
prospectus shows that in 2019, 2020 and 2021 during the reporting period, Feipeng Bio achieved revenue of 289 million yuan, 1.068 billion yuan and 2.332 billion yuan respectively, representing year-on-year increases of 30.61%, 269.31% and 118.44% respectively; during the same period , net profits were 57.4549 million yuan, 633 million yuan and 1.503 billion yuan respectively, a year-on-year increase of 133.53%, 1001.95% and 137.38% respectively.
It is worth mentioning that in the past two years, the company's new crown and non-new crown products have achieved large performance growth, of which reagent raw material revenue was 599 million, a year-on-year increase of 76%; non-new crown product revenue was 722 million, a year-on-year increase of 96%. IVD reagent core raw materials + reagent solutions + open instrument platform are driven by the trinity of innovation, becoming the " troika " that drives the company's performance growth.
As an upstream platform enterprise for in vitro diagnostics, Feipeng Biotech's main business direction is the research and development, production and sales of in vitro diagnostic reagents and core raw materials, and provides customers with overall solutions for in vitro diagnostic instruments and reagents. Public information shows that its revenue in 2021 far exceeds the 51.864 billion yuan and 965 million yuan of Yiqiao Technology in the same industry, making it a "top student" in the industry.
Raw materials for in vitro diagnostic reagents drive performance growth
In March this year, the Joint Prevention and Control Mechanism of the State Council issued the "Notice on Issuing the New Coronavirus Antigen Detection Application Plan (Trial)", proposing to add antigen detection as a test based on nucleic acid detection In addition, community residents who need antigen self-testing are encouraged to purchase antigen testing reagents through retail pharmacies, online sales platforms and other channels for self-testing.
During the period when the domestic epidemic broke out at multiple points, many places in the country adopted the method of "antigen testing + nucleic acid testing" to improve detection efficiency, which also increased the market demand for antigen detection reagents.
New coronavirus detection reagents are mainly divided into three categories: nucleic acid detection, antigen detection and antibody detection. Among them, nucleic acid detection is the "gold standard" of clinical etiology, and the main raw materials are mainly molecular diagnostic enzymes; antigen detection uses protein fragments as a marker to identify infection. mark, which can directly detect whether the human body is infected with the new coronavirus. The main raw material is antibodies, but the sensitivity and specificity will be lower than laboratory data; antibodies detect the antibodies produced by the -specific immune response produced after the human body is infected with the virus, and are mainly used In infection traceability investigations, the main raw material is antigen. The quality of raw materials determines the quality of end products. Antigens, antibodies, and diagnostic enzymes are also important strategic nodes for in vitro diagnostic quality control.
With the in-depth application of various detection reagents in prevention and control scenarios, a pattern of "nucleic acid detection + antigen detection" has gradually formed, and antigen detection has been used on a large scale in Jilin, Shanghai and other places.
During the reporting period, antibodies accounted for the largest proportion of Feipeng Biotech’s current COVID-19 product revenue. The sales revenue of antibodies were 129 million yuan (accounting for 44.76% of total revenue) and 392 million yuan (accounting for 3.668% of total revenue). %) and 1.360 billion yuan (accounting for 58.34% of total revenue), with a compound growth rate of 224.25% from 2019 to 2021, and a year-on-year growth of 247.44% in 2021.
In addition, the company's diagnostic enzyme products are also growing rapidly. The prospectus shows that in 2019, 2020 and 2021, Feipeng Bio's diagnostic enzyme product revenue was 24.7535 million yuan, 279 million yuan and 255 million yuan respectively, with a compound growth rate of 221.03% during the three-year period. Unlike the explosive growth of antibody performance in 2021, Feipeng Biotech's new crown diagnostic enzyme product revenue is basically the same as in 2020.
According to Frost & Sullivan research, my country's in vitro diagnostic raw material market has grown to 12.2 billion yuan in 2021, and will continue to maintain a growth rate of more than 15% in the future, and is expected to reach 20 billion yuan in 2024.
In recent years, domestic IVD companies have lived up to expectations and gradually targeted domestic brands to catch up with international giants.Among them, Novezan has a dual-platform layout of enzymes and proteins that are scarce in the country and occupies the absolute position of domestic molecular reagent companies; Yiqiao Shenzhou is the leading domestic recombinant protein company and has the country's leading monoclonal antibody and recombinant protein production technology and technology platform; Based on recombinant proteins, Bepsis has deployed domestic and overseas markets and expanded downstream applications. How does
maintain its continued growth momentum?
However, as the price of testing reagents and testing units gradually declines, and the growth caused by the epidemic begins to ebb, can Feipeng Biotech achieve sustainable growth in performance?
For a long time, our country has been encouraging the local biological reagent industry to carry out technological innovation, create an independent and controllable biological reagent supply chain, and further promote the localization process of biological reagents. At present, many domestic IVD companies are working hard to open up the IVD upstream and downstream industry chains. Some companies choose to extend from the upstream to the midstream and downstream, and some choose to expand from the midstream to the upstream.
For example, Ividia, originally an IVD raw material supplier, has developed into a platform biotechnology company that can provide a variety of diagnostic core raw materials and specialty reagent solutions in batches and with high quality based on independent core technology; , antigens, antibodies and other functional proteins and polymer organic materials, it has successively entered the business fields of biological reagents and in vitro diagnostics, and is conducting research and development of antibody drugs ; Mindray Medical has completed the acquisition of HyTest, and its It stated that it will strengthen the core research and development capabilities of chemiluminescence products and raw materials, and solve the "stuck neck" problem in the supply of upstream raw materials for in vitro diagnostics. The
prospectus shows that Feipeng Biotech plans to raise 2.511 billion yuan of funds, and plans to invest 876 million yuan in the research and development and production projects of in vitro diagnostic instruments and supporting reagent solutions, which exceeds the 525 million yuan of its reagent core raw material construction project. In terms of R&D investment, the prospectus shows that Feipeng Biotech’s R&D expenses in 2019, 2020 and 2021 are 104 million yuan, 112 million yuan and 185 million yuan respectively, accounting for 35.92%, 10.51% and 185% of operating income respectively. 7.95%, and the two-year compound growth rate of R&D expenses is approximately 33%.
It is reported that the scale of my country's IVD upstream raw material market is relatively fixed. Therefore, for most reagent raw material companies, under the premise that a single product limits production capacity and sales, increasing product lines and extending to the downstream industry chain are the endogenous impulses of upstream companies. .
Previously, there were reports that Feipeng Biotech’s customers were relatively scattered and the sales proportion of a single customer was relatively small. During the reporting period, the list of Feipeng Biotech’s top five customers also changed significantly. Feipeng Biotech emphasized in its prospectus that it does not have a major dependence on a single customer. The change in the company's main customers is mainly due to the large increase in sales of new crown diagnostic-related products, which has caused certain changes in the customer structure.
Ou Gaobing, Secretary of the Board of Directors of Feipeng Biotechnology, also told 21 Century Economic Report reporter, "We will not expand from product form to downstream, and we will not compete with customers. At the current stage, we chose to enter the capital market because at this stage The industry's integration period has arrived. Only by taking advantage of the trend and leveraging mergers and acquisitions can we have the next step of development and maintain our leading advantage for a long time."
After the outbreak, the demand for reagent testing in foreign countries also increased simultaneously, which brought a boost to the domestic IVD raw material market. Come to the window period for going overseas. Feipeng Biotech has also broken the long-term monopoly of foreign brands in the field of upstream diagnostic raw materials, achieving localized large-scale supply of diagnostic raw materials and export sales to developed regions in Europe and the United States. In 2021, the company's overseas revenue from reagent raw materials and reagent semi-finished products will exceed 800 million, accounting for approximately 35%. The compound growth rate of overseas revenue from 2019 to 2021 will exceed 220%.
Ou Gaobing told the 21st Century Business Herald reporter that with the launch of new fifth-generation antigen detection raw material products, the advantages of its products in overseas markets are gradually becoming apparent. In the future, we will continue to develop more cost-effective and higher-performance raw materials to replace original products to improve performance.
The major expansion of the industry brought about by the new crown epidemic is very impressive, but many opinions believe that the growth dividend period of the IVD raw material industry will not exist for a long time, so it is particularly important to identify the sustainable growth point of the next performance.
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