On February 18, Hualan Vaccine was listed on the Shenzhen Stock Exchange GEM, opening 31.86% higher, and the highest intraday increase of more than 40%. In the end, Hualan Vaccine closed at 70.30 yuan per share, an increase of 23.59%, with a total market value of 28.121 billion y

Source of this article: Times Weekly Author: Du Sumin

On February 18, Hualan Vaccine (301207.SZ) was listed on the Shenzhen Stock Exchange GEM, opening 31.86% higher, and the highest intraday increase of more than 40%. In the end, Hualan Vaccine closed at 70.30 yuan per share, an increase of 23.59%, with a total market value of 28.121 billion yuan.

prospectus shows that Hualan Vaccine's public offering will not exceed 40.01 million shares, with an issue price of 56.88 yuan per share, and raised 2.495 billion yuan. Among them, 1.084 billion yuan is used for influenza vaccine development and industrialization and existing product supply guarantee capacity building projects, and 761 million yuan is used for the development and industrialization of new pneumonia vaccines. In the end, the actual funds raised were 2.276 billion yuan.

Hualan Vaccine was established in 2005. It is a spin-off and holding subsidiary of the blood products leader Hualan Bio (002007.SZ). It is mainly engaged in the production, research and development and sales of human vaccines. It has the largest influenza vaccine production base in China. 73-year-old Ankang is the actual controller of these two companies. As early as 2009, he became the richest man in Henan with a net worth of 7 billion yuan. With the launch of Hualan vaccine, Ankang's personal wealth has also risen. On February 18, Hualan Bio closed at 26.10 yuan per share, with a total market value of 47.616 billion yuan. According to the latest market value calculation, Ankang's net worth has exceeded 30 billion yuan.

The company's main business products include influenza virus lysis vaccine, tetravalent influenza virus lysis vaccine (hereinafter referred to as tetravalent influenza vaccine), HIN1 influenza virus lysis vaccine, ACYW135 group meningococcal polysaccharide vaccine, and recombinant hepatitis B vaccine (Hanxun yeast) group A group C meningococcal polysaccharide vaccine.

Among them, the quadrivalent influenza vaccine was launched in 2018, taking the lead in filling the domestic gap. With its first-mover advantage, the quadrivalent influenza vaccine of Hualan vaccine has rapidly increased its volume and has become the performance pillar of Hualan vaccine, helping it to rank as the "king of influenza vaccines". More than 80% of the company's revenue has relied on quadrivalent influenza vaccine for three consecutive years.

htmlOn February 18, IPG China chief economist Bai Wenxi said in an interview with a reporter from Times Weekly that Hualan vaccine's operating income is overly dependent on the quadrivalent influenza vaccine. Excessive concentration and single product and revenue sources pose risks to the sustainable growth of corporate revenue and the stability of performance. More than 90% of the revenue of

is due to quadrivalent influenza vaccine. The pediatric dosage form was recently approved

Data shows that from 2018 to 2020, the number of batch issued by Hualan vaccine quadrivalent influenza vaccine was 5.122 million doses, 8.361 million doses and 20.624 million doses, respectively, with a compound growth rate of 100.66%. The number of batch issuance of

has continued to grow for three consecutive years, but with the addition of more and more competitors, the market share of Hualan vaccine has declined, with 100%, 86.10% and 61.41% from 2018 to 2020.

Times Weekly reporter found that as of the end of December 2020, in addition to the Hualan vaccine, four companies including Changchun Institute, Jindike, Beijing Kexing and Wuhan Institute have been approved for batch issuance, and the number of batch issuance in 2020 is 5.02 million doses, 4.24 million doses, 3.66 million doses and 30,000 doses.

In addition, the quadrivalent influenza vaccines of Sanofi , Zhifei Bio, Guoguang, Yalifeng and Zhonghui Yuantong have all entered the phase III clinical trial stage and are expected to enter the market one after another in recent years.

Excessive dependence on the quadrivalent influenza vaccine for operating income has become a hidden concern for Hualan vaccine. The prospectus shows that from 2018 to 2020, Hualan vaccine revenue was RMB 803 million, RMB 1.049 billion and RMB 2.426 billion, respectively, while the revenue share of the quadrivalent influenza vaccine in the same period was as high as 74.84%, 92.71%, and 96.76% respectively.

In this regard, Hualan Vaccine also reminded in its prospectus that the company's vaccine products have a risk of relatively single structure. If there is adverse fluctuation in market demand or other competitors produce higher quality influenza vaccines, or changes in vaccine regulatory policies or changes in vaccination intentions, the company will have the risk of shrinking existing market share and declining sales due to the single product structure, which will affect the company's continued profitability.

Bai Wenxi believes that Hualan vaccine has first-mover advantages in the research, development and production of quadrivalent influenza vaccines, and also has a very high market share, which are all advantages in Hualan vaccines. "On this basis, Hualan Vaccine needs to continuously strengthen its research and development and launch cost-effective products and continuation products to ensure that it will not be overtaken by other companies in the future and maintain sustainable growth in performance.”

Recently, the quadrivalent influenza vaccine (pediatric dosage form) of Hualan vaccine was announced to be approved for production and used for people aged 6 months to 3 years old, and can be officially produced and sold.

In this regard, Bai Wenxi analyzed that the quadrivalent influenza vaccine of Hualan vaccine is expected to continue to increase in volume with the help of new indications, but whether it can eventually recover its market share will continue to decline, remains to be further observed, because the market performance of competitors is getting stronger and stronger.

Haitong Securities said that the first child dosage form of Hualan quadrivalent influenza vaccine is launched, and it is expected to maintain channel advantages. It is expected that the market capacity of the children's dosage form of the forward quadrivalent influenza vaccine will be approximately 2.56 billion yuan.

US CDCh data shows that the highest proportion of influenza vaccine vaccination in the United States was 6 Children aged between months and 4 years old, the penetration rate is 75.5%; the total influenza vaccine penetration rate of children of all ages is 64%. According to the Chinese National Inspection Institute, the total influenza vaccine issuance in my country in 2020 was 58 million doses, and the overall vaccination rate is less than 4.2%.

htmlOn February 14, Hualan Biological said in response to an investor question that there are currently no quadrivalent children's influenza virus cleavage vaccines in China, including the quadrivalent children's influenza virus cleavage vaccines from 10 companies including the company are still in the clinical research or production license application stage. The company's quadrivalent children's influenza virus cleavage vaccines are expected to be launched in 2022, and the R&D process is relatively fast, and they have certain first-mover advantages over other vaccine companies.

According to the medical cube database, there are currently 14 in China A company's quadrivalent childhood influenza vaccine (6-35 months of age) is in the approved clinical stage and beyond. In addition to Hualan Bio products, Sanofi products are being applied for market launch, Beijing Kexing and Changchun Institute are in Phase III clinical, and Shanghai Institute are in Phase II clinical.

raised 761 million yuan for the new pneumonia vaccine project

2020 after the outbreak of the new crown epidemic, many domestic pharmaceutical companies announced their joining the vaccine research and development army. 8 in the same year In 2018, Hualan Biotechnology, the controlling shareholder of Hualan Vaccine, held a signing ceremony for cooperation.

According to the agreement, Hualan Biotechnology will conduct a large-scale production process for the novel coronavirus pneumonia vaccine (recombinant human type 5 adenovirus vector), and strive to achieve an annual production capacity of over 100 million people. Enbao Biotechnology and Hualan Biotechnology will jointly apply for clinical trials of the novel coronavirus pneumonia vaccine. The Phase I clinical trial plan is hosted by National Clinical Medical Research Center for Respiratory Diseases in Guangzhou.

On December 28, 2020, a new coronavirus inactivated vaccine under Sinopharm Group was approved for marketing, becoming the first new coronavirus vaccine in China to be officially approved for marketing. From then on until June 2021, there were 7 new crown vaccines in China that were approved for marketing or emergency use.

On July 28, 2021, Hualan Bio announced that the latest progress in vaccine research and development was revealed, saying that the relevant vaccines developed by the holding subsidiary Hualan Vaccine and Enbao Bio were obtained the drug clinical trial approval notice issued by the National Drug Administration of . Hualan Vaccine will carry out relevant clinical trials as soon as possible as required.

Since then, no more progress has been disclosed for this adenovirus vector vaccine. In addition, in addition to the adenovirus vector vaccine, the new crown vaccine developed by Hualan Vaccine also includes the self-developed freeze-dried nasal spray vaccine, and the new crown vaccine developed by the Guangdong Institute of Public Health and Henan Center for Disease Control and Prevention.

According to the recently disclosed prospectus of Hualan Vaccine, Hualan Vaccine originally planned to use 761 million yuan of the 2.495 billion yuan of the planned funding to be raised for the development and industrialization of new pneumonia vaccines, and plans to build a production line with an annual production capacity of 200 million doses of the new crown vaccine.

Hualan vaccine still wants to get a share of the new crown vaccine market. However, the competition is already fierce. Data shows that as of February 7, 2022, 4 items have been approved for listing in China and 7 items have been approved for emergency use, with a total of 21 items in the clinical trial stage.