July 2020 is a month that will be remembered by Chinese stock investors this year. The A-share 4 major stock indexes have risen in volume. The Shanghai Composite Index rose by 5.71% points and exceeded 3,300 points. People are looking forward to the arrival of 3,500 points again. Over the past half month, the capital market, the barometer of the real economy, has repeatedly sent positive signals. From the perspective of investment, the turning point of this year seems to be emerging.
Recently, Arterial Network systematically sorted out the situation of IPO and its listing performance in the first half of 2020, trying to find key points worthy of continuous attention.
innovative drug project leads the IPO, with doubled market value
In the past 6 months, a total of 31 medical and health projects have entered the capital market. The A-share main board, Science and Technology Innovation Board , Hong Kong Stock Exchange, and Nasdaq have all ushered in new domestic medical and health projects. At least two medical and health companies complete IPOs every month. June is the most intense month for IPOs in the first half of the year, and the number of IPOs in the second quarter was significantly higher than in the first quarter.
Monthly distribution of IPO medical projects in the first half of the year (data comes from Oriental Fortune Choice, as of June 30, 2020)
31 medical and health IPO projects cover seven major sub-sectors including innovative drugs, medical devices, biological products, pharmaceutical circulation, hospital management, raw materials, and traditional Chinese medicine. Among them, innovative drug projects have the largest number of markets, followed by medical device projects.
The segment distribution of IPO medical projects in the first half of the year (data comes from Oriental Fortune Choice, as of June 30, 2020)
We list the full list of projects as follows:
31 IPO projects (data comes from Oriental Fortune Choice, the market as of July 15, 2020)
In order to clearly find out the overall performance of these new members of the capital market after listing, we did not directly analyze the daily market trends of a single stock, but instead summarized the stock price trends of the above 31 companies in the past six months, and used the total market value as the weight, and imitated the algorithm of the Shanghai Composite Index to create a new market index. This index takes the first trading day after the first listing of Tebao Bio and Tianjing Bio, which were listed in 2020, that is, January 20, 2020, as the starting point, with 1,000 as the starting point.
31 IPO project market index (data comes from Tongdaxin, the market as of July 15, 2020)
On July 15, when we extracted the data, this index had risen to 2905.73 points, with the lowest level as low as 771.47 points and the highest level reached 3062.32 points. In other words, the medical and health companies listed in the first half of 2020 have tripled their overall market value.
Since 2018, as an innovative attempt to establish a multi-level capital market, the Hong Kong Stock Exchange and the Shanghai Stock Exchange have gradually adjusted their listing rules, opening the door to listing a large number of unprofitable technology companies. In June 2020, the Shenzhen Stock Exchange ChiNext also launched reforms, and the registration system pilot officially kicked off. According to the latest rules, for unprofitable companies, the GEM will cancel the requirement of "no unrecovered losses in the latest period" in the existing rules after a one-year transition period. It can be imagined that in the future, major capital markets will compete for high-quality high-tech projects.
Public annual report shows that among the 31 IPO projects, only Kangji Medical, Slam Group and Haiji Medical generated pre-tax profits in the previous financial cycle. The failure of major IPO projects to make profits means that when analyzing most emerging secondary market targets, it is still necessary to follow the ideas of some primary markets. Next, we will sort out projects worth paying attention to in the field of pharmaceutical and equipment based on market value, stock price fluctuations, average growth rate, price-to-research rate and other data, and analyze the advantages and disadvantages of their development.
In addition, it needs to be explained that since most projects do not generate pre-tax profits or income, we have selected the commonly used "price-research rate" indicator in the industry, namely R&D expenses/latest market value, to measure the innovation and growth potential of the project from the perspective of R&D investment.
Medical devices: The total market value exceeds 250 billion, facing the comprehensive consideration of innovation implementation
In the primary market, the project valuation level is a very popular indicator. Therefore, we first analyzed the average market value level of 31 medical and health projects divided by sub-sectors.Data shows that medical device projects rank first among the seven major sub-sectors with an average market value of RMB 27.946 billion, ranking second with RMB 27.817 billion, and innovative drug projects rank third with RMB 23.099 billion.
industry trends, the traditional innovative way of domestic substitution is still an important logic to support domestic innovative medical device projects entering the capital market and obtaining high valuations. The productization of IPO medical device projects such as Wantai Biological, Kangji Medical, Peijia Medical, Xinye, Oriental Bio, Sanyou Medical and other IPO medical device projects in the first half of the year are all on the road of domestic substitution. Among them, for star IPO projects such as Wantai Biologics, Peijia Medical, and Kangji Medical, investors often estimate the growth potential of alternative products based on the market size of the replaced foreign blockbuster products, thereby promoting high valuation and market value growth.
Secondly, domestic high-end medical devices have entered the capital harvesting period, and heavy holdings such as cardiovascular and orthopedics have begun to result. High-end domestic medical devices have always been a key area for early investment institutions. The listing feast of these institutions' investment logic is the verification process of these institutions' investment logic.
Third, tumor NGS projects are crowded and listed, and the capital market responds in a variety of ways. In the first half of the year, two tumor precision medical projects, Renshi Medicine and Pan-Genomics, were launched intensively, which once set off a small climax in the circle of medical people's friends. Behind these two projects, there are more similar projects being prepared to go public. As recognized as potential NGS in the field of NIPT, tumor NGS has received very high attention. Almost all medical investors have looked at some projects in depth or shallow, and almost all medical investment funds have also considered the layout of tumor NGS sooner or later. The market battles in product innovation and iteration, the hard breakthrough of the capital market, tumor NGS affects the nerves of more people, and the evaluation criteria given by investors in the Nasdaq market may be a consideration of market exclusive capabilities.
Finally, it has to be mentioned that the impact of the new crown epidemic on the medical industry has been transmitted to the capital market as well. The specific manifestations are the centralized launch of diagnosis and vaccine-related targets. For example, Wantai Biological, Xinye, Oriental Biological, Anpaike, etc. are all diagnostic concept targets, and Wantai Biological has also taken the vaccine route.
Medical device project analysis (data comes from Oriental Fortune Choice, the market as of July 15, 2020)
Domestic substitution is still an important valuation logic
In April, Wantai Biologics, which landed on the A-share main board, became a star stock in the pharmaceutical and biological sector because of 28 daily limit increases within 50 days of listing. In the medical device list we compiled, Wantai Bio ranked first with a market value of US$71.605 billion and a 1932.11% increase, which is why we are paying attention to it in this article.
Wantai Bio's main business is in vitro diagnostic reagents (98%) and vaccines (2%). Just one week before its launch, Wantai Bio's HPV bivalent vaccine (Xinkening) obtained the bioproducts batch issuance certificate from the National Medical Products Administration and was officially launched on the market. Compared with imported HPV vaccines, Xinkening has the advantage of low prices and is highly competitive in the mid- and low-end markets. In my country, there is a strong demand for HPV vaccines. However, with the approval of Merck's quadrivalent HPV vaccine to enter the Chinese market, the market share of the bivalent HPV vaccine has been severely squeezed.
In fact, based on the proportion of revenue (1.184 billion yuan in 2019), Wantai Bio's main business is not vaccines (2%), but in vitro diagnostic reagents (98%). Among them, the main source of revenue of enzyme-linked immunologic reagents and chemiluminescence reagents, accounting for 39% and 19% respectively, with production and sales rates close to 100%. This type of conventional in vitro detection reagent has long been a mature and fully competitive market. The direct consequence is that the sales expenses are high. Between 2016 and 2019, Wantai Bio's sales expense rate was nearly 30%.
However, price-to-research data shows that Wantai Bio's R&D investment is at a better level compared with medical device companies listed at the same time. According to the prospectus, the company's nine-valent HPV vaccine development is in the Phase II clinical trial stage. The domestic competition is also in the Phase II clinical trial stage and Shanghai Bowei, which is conducting Phase III clinical trials.After the popularity of
bivalent HPV vaccine fades, short-term in vitro diagnostic reagent sales expense control and long-term innovative product development may be issues that investors of Wantai Biotech need to consider.
The trend of high-end domestic medical devices has entered the capitalization stage
In mid-May, Peijia Medical, one of the four domestic clinical-stage transcatheter aortic valve replacement (TAVR) product developers, landed on the Hong Kong Stock Exchange. This high-tech company founded by former executives of Medtronic, Otsuka China and Minimally Invasive Medical has attracted the attention of top investment institutions since its inception. Eight years after its establishment, Peijia Medical went public as a leading transcatheter valve treatment medical device market in China and a developer of neurointerventional surgery medical device. It has paid great attention all the way, and has subscribed more than 5,000 times before the opening, becoming the "freezing capital king" in the first half of the year.
In this article, Peijia Medical has attracted our attention because of its price-to-research rate of 1057.02 times. After all, after the project enters the secondary market, investors' attention to products and markets will be greatly increased. Obviously, Peijia Medical's trial rate is much higher than the industry average and several times higher than other medical device projects with similar market value levels on the list.
Cardiovascular disease has always been the "number one killer" in the health of the elderly. Against the backdrop of intensifying global aging, the future demand for interventional surgery with less trauma and increasingly mature technology is needless to say. According to statistics, in 2018, the number of patients who can undergo TAVR surgery worldwide was about 3 million, and the number of surgeries was about 120,000; corresponding to the country, the number of patients was about 700,000, and the number of surgeries was about 1,000, and the number of surgeries was about 1,000, which had considerable development space.
Previously, Peijia Medical has invested nearly 100 million yuan in the development of TaurusOne®. To meet the needs of domestic doctors and patients, this product has specially designed a variety of functions. It was recognized by the State Food and Drug Administration in 2017 and entered the rapid approval process. Currently, Peijia Medical is collaborating with six hospitals in TaurusOne® to conduct confirmatory clinical trials for 125 patients. On the other side of the
coin, in terms of progress, Peijia Medical's current main track TAVR is not high. Domestic TAVR manufacturers Qiming Medical, Jiecheng Medical, and Minimally Invasive Xintong have all been approved by their products, and the products of foreign benchmark companies Edwards have also been approved recently, and Peijia Medical products are about one year behind. However, the products launched in the early stage only accounted for a small overall market share, and Peijia Medical still has the opportunity to use its technical advantages to make up for the gap in progress. In other words, for secondary market investors, the subsequent clinical trial results released by Peijia Medical will be very critical.
Sanyou Medical is the only medical device project to land on the A-share Science and Technology Innovation Board in the first half of the year, which has brought it into the business we analyzed. With the research and development, production and sales of medical orthopedic implant consumables as its main business, Sanyou Medical is a leader in the field of spinal implant consumables in China and one of the few companies with the ability to carry out original innovation based on clinical needs. The domestic orthopedic market demand is huge. In 2018, the market share of Sanyou Medical spinal series products ranked third among domestic companies and sixth among the entire market.
Although its performance in the capital market is not very impressive, Sanyou Medical 's innovation is worth paying attention to. The price-to-research rate of 812.01 made Sanyou Medical ranked first among the A-share Science and Technology Innovation Board projects listed in the first half of the year and second among the medical device projects. Sanyou Medical also stated in the prospectus that the funds raised from the IPO plan to invest in projects such as orthopedic implant expansion, orthopedic product R&D center construction, and marketing network construction.
Qiming Venture Capital is an early investor of Sanyou Medical and is also the largest shareholder of "successful" for 6 years. Hu Xubo, the managing partner of Qiming Venture Capital, talked to the media about the original intention of investing in Sanyou Medical that he valued the latter's ability to achieve domestic substitution of high-end medical devices, and hoped that domestic good brands and good products would reduce medical expenses and enhance the accessibility of orthopedic medical services.
However, in the context of long-term imports, foreign medical device brands such as Johnson & Johnson, Medtronic, and Ssek still account for more than 60% of the market for orthopedic spine implant consumables.For Sanyou Medical , how to make the quality of flagship products surpass imported similar products and truly realize domestic substitution is a problem that must be solved at the moment.
In the domestic high-end medical devices, there is another object that must be mentioned, namely Haijiya Medical. This project, which is listed on the Hong Kong Stock Exchange as the largest oncology medical group in China, is a wholly-owned subsidiary and gamma ray equipment manufacturer Gamma Star Medical.
Gamma Star Medical's main product gyroscope, adopts a rotation principle similar to an aerospace gyroscope. It was independently developed by Song Shipeng, then chairman of Gamma Star Medical Group in 2004. According to the prospectus, Haijiya's medical business can be divided into three parts: hospital business (87% of revenue in 2019), third-party radiotherapy business (the highest gross profit, reaching 64.6%) and hospital custody business.
With the construction of independent hospitals and the intensive acquisitions in recent years, Haijiya Medical has established more than 50 chain tumor medical institutions integrating diagnosis, treatment and scientific research functions in many provinces and cities across the country, including Shanghai, Beijing, Chongqing, Sichuan, Guangdong, Jiangsu, Hunan, Hubei, Shandong, Liaoning, Henan, Hebei, Jiangxi, Fujian, Heilongjiang, Guangxi, Yunnan, Guizhou, Shaanxi, etc.
However, half of Haijiya Medical's revenue in the past year came from its own Danxian Hospital and the acquired Suzhou Canglang Hospital. Unlike most domestic high-end medical equipment developers that have just been launched, although gamma knife production is still its core underlying technology, for Haijiya Medical, the next development problem that needs to be solved is no longer the commercialization of products, but how to optimize the level of continuous operation while expanding the hospital management map.
market development ability has become an important consideration for the valuation of tumor NGS projects
00. Renshi Medicine, which landed on the Nasdaq market in early June, is another star project in the first half of the year. Under the halo of tumor genetic testing and the "first stock" of precision tumor services, Ranshi Medical ushered in a wave of stock price climax after its listing. At the end of the first half of the year, it maintained a market value of 19.272 billion yuan and an average stock price growth rate of 0.49%. It also became the only domestic medical device company that maintained its stock price rise after it landed on the Nasdaq market in the first half of the year.
Ranshi Medicine focuses on second-generation tumor sequencing (NGS) services and product development, and conducts business through the central laboratory model (the hospital sends patient samples to the company's laboratory for testing, accounting for 72.4% of the revenue) and the in-hospital model (the company helps the hospital establish internal laboratories and builds NGS testing platforms, and provides training and support, and then repetitively sells the company's testing products, accounting for 23% of the revenue).
In the past few years, Ranshi Medical's business revenue has grown rapidly, ranking first in the domestic tumor gene sequencing market, reaching 26.7%. In 2019, the number of laboratory tests in the Ranshi Medical Center exceeded 20,000. In addition, Ranshi has a total of 13 products. In July 2018, its product "Human EGFR/ALK/BRAF/KRAS gene mutation joint detection kit" became the first similar product to be approved for marketing by NMPA.
Another tumor NGS company, PanGenomics, was launched one week after Renshi Medicine. It is understood that PanGeno has three major business segments including diagnosis and monitoring, early cancer screening and pharmaceutical company services (drug research and development services). Its glioma fund detection business has long occupied the first market share in the segmented fields. Glioma IDH1 and TERT gene detection kits and lung cancer 8 gene detection kits were approved for listing in 2017 and 2020, respectively. In addition to the
detection reagent product, PanGenero has been committed to the development of independent technology platforms, with Genetron S5, Genetron S2000 and 3D Genetron biochip reader. During the COVID-19 pandemic, PanGenomics, driven by the growth of IVD business revenue due to the decrease in revenue from LDT business based on NGS, increased by 15.3% compared with the same period in 2019.
It is reported that the sequencer of PanGentron S5, Genetron, has entered hospitals such as Huoshenshan, and its coronavirus (COVID-19) detection kit launched in February 2020 was also quickly approved for market launch.
in the country, it is an indisputable fact that tumor gene sequencing has become the Red Ocean market.Between 2016 and 2018, a large number of tumor gene sequencing service providers appeared in China. These companies were unwilling to be homogeneous competition and tried to find breakthroughs in innovation in product and service models. In the future, new productization, such as the approval of tumor immune response pretest kits, independent innovation of sequencing platforms, and new service models, such as precision medicine cooperation with pharmaceutical companies in the development of new drugs, are test questions for the continuous growth of Ranshi Medicine and also test questions facing PanGenomics.
innovative drugs: 250 billion market value, 300 million loss, commercialization test is right in the meantime, in addition to the total market value of
, considering the total market value of innovative drugs projects is still the highest among all seven sub-sectors, accounting for 446%. If biological products, traditional Chinese medicine, and raw materials are included in the consideration, the latest market value of biomedical projects will account for half of the total market value of 31 projects.
31 projects total market value distribution (data comes from Oriental Fortune Choice, market as of July 15, 2020)
industry trends. In the first half of 2020, the tumor innovative drug project ushered in a second wave of IPO climax. Unlike the major-molecular tumor innovative drug projects such as Junshi Biologics and Innovent Biologics, the Zejing Pharmaceutical , Tianjing Biologics, Nuocheng Jianhua, Kaituo Pharmaceutical, etc., which were launched in the past six months, are mainly focusing on small-molecular tumor innovative drugs.
Innovative Drug Project Analysis (Data from Oriental Fortune Choice, the market as of July 15, 2020)
The second industry trend worthy of attention is that with the commercialization and market expansion of macromolecular drugs, especially innovative tumor drugs in the early stage, domestic raw material suppliers upstream of the industrial chain and element suppliers around the development of new drugs have ushered in a new breakthrough in the capital market. For example, Tebao Bio, which is engaged in the development of recombinant proteins, and Jete Bio, which provides cell culture laboratory consumables, have entered the capital market and obtained better valuation returns.
Third, diabetes drug targets continue to gain attention from the capital market. As one of the most common diseases in the world, diabetes has always been the focus of research and development for pharmaceutical companies. This time, Ganli Pharmaceutical, one of the three major domestically produced recombinant insulin analog suppliers, landing on the Shanghai Stock Exchange, achieving full listing of major domestic insulin suppliers.
Fourth, the immune cell therapy project has begun to be launched for financing. Immune cell therapy is one of the few domestic biomedical fields that can advance alongside global leading competitors in terms of technological research and development progress. There are many participants and many breakthroughs. At present, special regulatory policies have not been introduced and there are many controversies. Legend Bio has always been a star project in the field of immune cell therapy. From entering the clinical trial stage first, to being questioned in clinical data, to becoming the first domestic immune cell therapy stock, regardless of the development prospects of the project itself, Legend Bio's story of continuing to push domestic immune cell therapy forward will be remembered by the market. In addition, Shenzhou Cell, which focuses on new differentiated drugs of monoclonal antibodies, has also laid a cell therapy pipeline.
diabetes drugs are very popular among the capital market
Ganli Pharmaceutical, which was only launched at the end of the first half of the year, is another star in the capital market. With a market value of 48.677 billion, the innovative drug list for IPO projects in the first half of the year, and the average growth rate of 10% of the stock price is the highest among all IPO projects in the first half of the year.
Ganli Pharmaceutical focuses on the research and development of third-generation insulin drugs. It is now the leader in the domestic diabetes drug segment market and is also a project that Qiming Venture Capital has been "successful" for many years. In fact, whether it is generic drugs (such as metformin) or innovative drugs (such as DPP-4), domestic biopharmaceutical companies have always been very popular in developing diabetes drugs. Dr. Gan Zhongru, founder of Ganli Pharmaceutical, participated in the development of my country's first genetically recombinant human insulin, and continued to focus on the research and development, process optimization and industrial production of insulin drugs in the following years.
It is reported that in 2005 and 2007, Dr. Gan Zhongru led the research team to complete the development of the first fast-acting recombinant insulin analog "Suxiulin" in China and the long-acting recombinant insulin analog "Changxiulin", making China one of the few countries in the world that can carry out industrial production of recombinant insulin analogs.
In 2019, the size of my country's insulin market was about 20 billion yuan. At present, domestic recombinant insulin analog products include three foreign pharmaceutical companies, Sanofi, Eli Lilly, Novo Nordisk, and three domestic pharmaceutical companies, Ganli Pharmaceutical, Federal Pharmaceutical, and Tonghua Dongbao. Among them, Ganli Pharmaceutical’s four major recombinant insulin analog products cover three insulin functional segments, long-acting, fast-acting and medium-acting. With its first-mover advantage among domestic companies, it has gained market opportunities for import substitution.
As of the end of 2019, Ganli Pharmaceutical products were sold in nearly 7,700 county-level and above hospitals across the country, including more than 2,400 hospitals at or above level 3. However, in domestic clinical practice, the first and second generations of insulin are still the main focus. How to use the third generation of insulin to squeeze out the market space of the first two generations of insulin may be a problem facing Ganli Pharmaceutical, which is in the industrial stage.
Oncology innovative drugs are highly competitive in commercialization
html Zejing Pharmaceutical , which was launched in January, is the first unprofitable biopharmaceutical project to land on the A-share Science and Technology Innovation Board. It is an innovatively driven chemical and biological new drug research and development enterprise focusing on multiple therapeutic fields such as tumors, bleeding and blood diseases, liver and gallbladder diseases. The core product Donafenib is an innovative drug for many cancers such as hepatocellular carcinoma, , colorectal cancer, and differentiated thyroid cancer. It is also the first domestically produced new targeted drug in my country to carry out first-line clinical trials for advanced hepatocellular carcinoma.In addition, Nocheng Jianhua, founded by scientist Professor Shi Yigong, was listed on the Hong Kong Stock Exchange in March. It is one of the many celebrity projects in the field of innovative drugs that were launched in the first half of the year. With a price-to-research rate of 13779.84, Nuocheng Jianhua is a clinical-stage biopharmaceutical company focusing on cancer and autoimmune disease drugs. In terms of disease types, it is quite similar to the Zejing Pharmaceutical , Kangfang Biology, Tianjing Biology, and Kaituo Pharmaceutical, which were launched at the same time.
If we consider the price-to-research rate, investing in Nocheng Jianhua’s innovative drug projects at other clinical stages will have a higher cost-effectiveness. However, the price-to-research rate only measures innovation investment, but cannot guarantee innovation output. To analyze the competitiveness of innovative drug projects, we also need to start from the comparison of peers with R&D progress, advantageous drugs and indications. Research progress of the innovative drug project in
(data comes from public information sorting, as of June 30, 2020)
Zejing Pharmaceutical is called "Little Beda". Its independent small molecule multi-target new drug, donafenib, is mainly used for the first-line treatment of advanced hepatocellular carcinoma. However, this field is not a clinical gap. Currently, there are two similar drugs approved for this indication in the world, namely Sorafenib from Bayer in Germany and Lentaenib from Eisai in Japan, which were approved for marketing in China in 2008 and 2018 respectively. Among them, sorafenib was admitted to national medical insurance in 2017.
In addition, after the Chinese patents of sorafenib and lenvatinib expire in 2020 and 2021, generic drugs from companies such as Qilu Pharmaceutical, Zhengda Tianqing, and Kelun Pharmaceutical will be launched one after another. Second-tier drugs such as cabotinib and Keytruda are also in advanced hepatocellular carcinoma. The research and development and commercialization of Zejing Pharmaceutical are not small.
Norcheng Jianhua's core product is obutinib, and its research on recurrent chronic lymphocytic leukemia (CLL), recurrent small lymphocytic lymphocytic carcinoma (SLL) and recurrent mantle cell lymphocytic carcinoma (MCL) has basically completed the clinical stage II. Currently, three similar drugs have been approved for marketing around the world, namely Johnson & Johnson's ibrutinib, AstraZeneca's acalabrutinib and BeiGene zanubrutinib. Among them, only Johnson & Johnson's ibrutinib has obtained a marketing license in the domestic market, and acalabrutinib and zanubrutinib are approved for marketing in the United States respectively.
From a time perspective, obttinib does not take the lead, but because it has higher selectivity and stability than other competitors, it has fewer side effects and has its own competitiveness. Specifically, the other three BTK inhibitors all use fused double-ring cores, while obttinib adopts a unique single-ring design. Judging from the results, obttinib significantly reduces the off-target situation, and the probability of side reactions is much lower than that of the other three products that have been launched on the market.
Kangfang Bio received more than 600 times subscription at the beginning of its issuance, and was the "freezing capital king" before the emergence of Peijia Medical. As the only one engaged in PD-1-related development, Kangfang Bio has made some differentiated layouts in the market that is becoming a red ocean: PD-(L)1/CTLA4 combination therapy, IL-12/IL-23 target monoclonal antibody, PD-1/VEGF bispecific antibody, etc.
Among them, only one PD-(L)1/CTLA4 combination therapy in the world has been approved, and the five PD-(L)1/CTLA4 dual anti-anti-projects are in the clinical stage. No PD-(L)1/CTLA4 dual antibiotics have been approved for marketing in China. Only the two PD-(L)1/CTLA4 dual antibiotics, Corning Jerry KN046 and Kangfang BioAK104, are in the clinical trial stage.
Kangfang Biodeveloped by the first monoclonal antibody targeted with IL-12/IL-23 developed by domestic enterprises is better than the first-generation target TNF-α in terms of efficacy, safety and ease of use. Among the same products under development, the fastest-progress project currently is AstraZeneca's briakinumab, which submitted a new drug market application to the FDA for the treatment of plaque psoriasis indications in 2019. The first PD-1/VEGF bispecific antibody is used to treat patients with advanced solid tumors. Phase I clinical research is currently underway in Australia. It was approved by the FDA in June 2019 and will soon launch Phase I clinical research in the United States.
On the official website’s under development pipeline display, Tianjing Bio will display Chinese assets and the world respectively, which is quite unique. This corresponds to the different new drug development strategies of other innovative drug companies adopted by Tianjing Bio. Among them, Chinese assets originate from license in, including the rights and interests of target drugs such as CD38, IL-6, IL-7, B7-H3, C5aR1, etc., and its partners include MorphoSys, MacroGenics, Genexine, Huiling Pharmaceutical Co., Ltd., etc.; global assets originate from independent research and development, including target drugs such as CD47, CD73, GM-CSF, CXCL13, etc.
, on the one hand, enriched the types of pipelines under development in Tianjing Bio and accelerated the pace of new drugs on the market. On the other hand, it fully mobilized Tianjing Bio's drug development capabilities and seized the initiative in commercialization. However, if you want to cover such a huge product line in the long run, you will inevitably need huge capital investment and support. After all, for pharmaceutical companies, realizing commercialization is the more important purpose of expanding the pipeline under research.
Kaituo Pharmaceutical's main research drug, Purkrutamide, is a potential best drug of its kind. It is conducting phase III clinical trials for metastatic castration-resistant prostate cancer (or mCRPC) in China, phase II clinical trials in the United States, and clinical trials for breast cancer. The drug combination under development is used to treat major cancer types and other AR-related diseases with great market potential. According to the Frost-Sullivan report, prostate cancer is the second fastest growing cancer among the major cancer types in China in terms of the growth rate of new cases from 2014 to 2018, while breast cancer is the most common type of cancer in women around the world in 2018.
For Kaituo Pharmaceutical, how to verify the same optimality of pukrutamide and achieve commercialization is still a serious test.
Due to limited space in the article, we cannot analyze each project. Just in early July when we were preparing the manuscript, medical projects such as Tianzhihang, Hippuri, Okonweishi, Yongtai Biology, Hongli Medical Management, and Junshi Biotechnology were listed on the Science and Technology Innovation Board and the Hong Kong Stock Exchange. We will sort them out at the end of 2020. We believe that every project entering the capital market has its own unique advantages and unique dilemmas. In an effective capital market, the struggle between the advantages and disadvantages of the project will ultimately determine the direction of market value. We also hope that every innovative project that has gone through the darkness of the early stages of entrepreneurship, the thorns of the entrepreneurial process, and finally towards the public can go further and further on the road to meeting expectations. #Stock#
