Thank you for organizing the Snowball Research Group for allowing us to have face-to-face communication with senior executives of Tianjing Bio. A lot has been gained, especially some understanding of the industry status of biotech companies.
Author: free old wood
Source: Snowball
communication before, deliberately done some preparation. As an investor, the first thing we think of is how much money this company makes every year, can it make more money in the future, and will it get better and better in the future? So, first look at the financial statements.
basically has no income and burns money at an accelerated rate every year. The profit of
in the past three years is -286 million, -446 million, and -143 million. Most of
is invested in research and development, and operating cash flow is negative every year.
If you just look at this financial report, I believe most people will stay away from such a company.
Let’s take a look at the stock price. At the beginning of this year, the issue price was US$14. The highest price reached US$47.46. The current price is US$35.69. The total market value of US$2.516 billion is equivalent to RMB 16.6 billion. The stock price rose 154.9% in less than a year. How should
evaluate the value of such a company that does not make money? Does his house really have hidden treasures? With various questions in mind, I came to the company with friends from the Snowball Research Group.
The company is not tall, except for a few offices, it feels like a big laboratory and computer room. It is not much different from the laboratory in our university.
Investors who count cash and physical assets will definitely be disappointed. For the rest of
, like a class in a university, Mr. Zhu Jielun, Executive Director and Chief Financial Officer of Tianjing Biology, introduced us to the mines at Tianjing Biology’s home. What exactly does
have? The
courseware is all in English, Mr. Jaylen, have you considered our feelings?
For a layman, it may take a few days to understand Chinese, let alone English.
This page of PPT should have listed the most valuable family of heavenly creatures.
but do you understand? I can't read it either, but luckily I can copy homework. This is what
translates.
This is the R&D pipeline of the heavenly creatures.
Tianjing Biology claims that it has:
’s unique R&D strategy and business opportunities. Tianjing Biology’s business model is mainly based on two R&D strategies:
► "Quick product launch" strategy for China’s R&D pipeline: This strategy is mainly focused on Seek opportunities for the development and commercialization of experimental drugs in Greater China from global biopharmaceutical companies.
► "Quick proof of concept" strategy for the global R&D pipeline: This strategy is mainly focused on pushing the company's own innovative or differentiated biological drugs into the clinical verification stage in the United States.
Let's count the details one by one.
Most of these R&D pipelines are not unfamiliar to investors, and the simplest and most contrasting ones are the most familiar to A-share investors. I think it should be this:
TJ101 Prepare for Phase III clinical trials. It is a long-acting growth hormone.
According to the company’s introduction: Tianjing Bio is an innovative biopharmaceutical company in the clinical stage. The company mainly focuses on the early discovery, drug development and commercialization of innovative or differentiated biopharmaceuticals in the fields of tumor immunity and autoimmune diseases. Significant unmet medical needs.
TJ101 is a growth hormone, and it can be seen at a glance that it is incompatible with the company's other R&D pipelines.
is such a humble growth hormone, but there is a well-known big bull stock in A shares. That is Changchun Hi-tech. Changchun Hi-tech has relied on revenue from growth hormone in the past few years. Although the stock has undergone major adjustments, the current market value is still 140.9 billion yuan.
Moreover, Changchun High-tech Co., Ltd. expects that the growth hormone revenue will still have a good growth space in the future. What is the difference between
TJ101 of Tianjing Biological and growth hormone of Changchun High-tech? What are the new changes?
Heavenly creature will TJ101Introduced to the Chinese market from Genexine.
From the company's introduction, we can know that TJ101 is safer, and the effect is not inferior to Changchun High-tech Jinsaizeng. The curative effect of
TJ101 is similar to that of the short-acting regimen, but the administration frequency is lower. According to the Genexine study, if the subjects used TJ101 (GX) at a dose of 0.8 mg/kg body weight once a week, 1.2 mg/kg body weight once a week, and 2.4 mg/kg body weight twice a month. -H9), the subjects’ height growth rates were 11.50 cm per year, 11.54 cm per year, and 11.86 cm per year, while the height growth rate of the control group treated with gonadotropin was approximately 11.24 cm per year.
If this product goes on the market, sales are good. If it can capture Changchun Hi-tech’s 20% market share, compared to Changchun Hi-tech’s 140 billion market value, will Tianjing Biological’s market value of US$2.516 billion equal to RMB 16.6 billion of market value suddenly appear inexpensive?
Of course, the market is very complicated. Even if medicines have advantages, they may not have good sales. Good products and good marketing can exert the greatest value. At present, in addition to products, marketing of Changchun Hi-tech is also very important.
has the first-mover advantage and quickly occupied the market, making it difficult for latecomers to enter. Regarding the sales of TJ101. The company’s management stated that it would cooperate with domestic pharmaceutical companies with obvious advantages in the field of pediatrics. After all, the company is good at research and development, not sales. Although
is not the company's most important product, it may be the first product to provide the company with cash flow. If TJ101 is just an appetizer, the main dish of Tianjing Biology should be TJC4 with differentiated CD47 antibodies.
CD47 is expected to become one of the innovative tumor immunotherapy targets with good development prospects. Less than 40% of cancer patients respond to PD-1/PD-L1 monotherapy in clinical applications. According to Frost & Sullivan data, although PD-1/PD-L1 therapy provides a new model for cancer treatment, less than 40% of cancer patients have a single PD-1/PD-L1 The treatment produces a response in clinical application. TJC4 is a CD47 fully human monoclonal antibody for tumor immunotherapy discovered and developed by Tianjing Bio. CD47 monoclonal antibody can trigger the function of macrophages and is expected to become one of the innovative tumor immunotherapy targets with good development prospects. Unlike other tumor immune targets that are currently being explored, the CD47-SIRPα signaling pathway inhibits the phagocytosis of tumor cells by macrophages by sending a "don't eat me" signal to macrophages that eat tumor cells during tumor progression. . CD47 monoclonal antibody is expected to become an innovative and promising therapeutic antibody, which can effectively and directly kill tumor cells by triggering the function of macrophages.
Clinical studies have shown that most of the current CD47 monoclonal antibodies have relatively large side effects, while the binding level of TJC4 and red blood cells is relatively low. Clinical studies have shown that most of the current CD47 monoclonal antibodies have large blood adverse reactions. . There are currently multiple CD47 antibody products in the clinical development stage, among which the most advanced product is Forty Seven's 5F9 (currently in the phase II clinical research stage for multiple tumor indications). However, clinical studies so far have shown that most of the CD47 antibodies will produce obvious blood adverse reactions. The reason may be mainly due to the ability of ordinary CD47 antibodies to bind to red blood cells. Some clinical studies have had to be terminated. However, the binding level of TJC4 and red blood cells of Tianjing Biological is relatively low.
So how much is this TJC4 worth?
There are countless drug candidates targeting CD47 in the preclinical and clinical development stages around the world, but there are still no approved anti-CD47 therapies in China and the United States.
Forty Seven, Inc. is an innovative pharmaceutical company in the research and development stage. It was acquired by Gilead Sciences for US$4.9 billion in March 2020. Gilead Sciences is looking at a product that is currently in the development stage. Monoclonal antibody products targeting CD47--Grogizumab.
Grogizumab was presented at the American Society of Hematology ("ASH") meeting in December 2019 for the treatment of myelodysplastic syndrome ("MDS") and acute myeloid leukemia ("AML") patients 1b Periodic research results. The $4.9 billion valuation of
also highlights the huge expectations of global pharmaceutical giants on the commercial potential of CD47.
On September 4, the global pharmaceutical giant AbbVie announced in an announcement that it and Tianjing Bio will carry out global market development and development on Iemzoparlimab (TJC4, a CD47 monoclonal antibody originally developed by Tianjing Bio). Commercial cooperation. AbbVie will provide USD 200 million in cash flow support to Tianjing Bio in the first phase, and will pay a milestone payment of 1.74 billion in the future. In addition, if AbbVie is interested in the two dual-antibody products owned by Tianjing Biological, it will pay the company more than $1 billion in payment. The highest potential value of this cooperation can reach nearly US$3 billion.
This time AbbVie chose to cooperate with Tianjing Bio, which is undoubtedly the best affirmation of the company's CD47 product. The CD47 monoclonal antibody product that the company currently masters has strong safety and low toxicity, avoids binding to red blood cells, and is likely to be the first CD47 monoclonal antibody to be marketed in China.
According to company executives, the CD47 star product is currently undergoing clinical trials in combination with Merck’s K drug. The applicable symptoms are ovarian cancer and non-small cell lung cancer; it also lies in Roche’s rituximab. Anti-drugs are used in clinical trials of combination drugs, and the indication is lymphoma.
Tianjing Bio also issued an announcement announcing that Hillhouse Capital, in collaboration with GIC, Avidity Partners, Aobo Capital, and many other celebrity private placements, invested approximately US$418 million in the company through private placement. The successful completion of this financing project, in addition to the affirmation of the cooperation between AbbVie and Tianjing Biotechnology, has finally landed, and the deeper reason is that it also values the future prospects of the company's CD47 monoclonal antibody products.
has counted two pipelines, which has changed my initial impression that the company is not worth investing at all by just looking at the financial report. The company has several blockbuster pipelines under development, which may also be an important reason for the long-term optimism of top pharmaceutical companies and the capital market.
If all the pipelines of Tianjing Biology can succeed, I believe it is currently greatly underestimated. I won't introduce the remaining pipelines one by one. Those who are interested can go to the research report.
makes me think about it. From the development of the heavenly creatures, I really understand that technology is the first productive force. Real science and scientists are great wealth. With the development of the motherland, a large number of scientists returned to the country to develop and promote the development of various industries and even lead the world.
also felt the power of capital. This long-term forward-looking and far-sighted capital has made a huge contribution to the development of science and technology. The perfect combination of technology and capital has rapidly promoted social progress. Of course, it is inevitable that the combination of pseudo-technology and capital will be a huge scam. Because the imagination of science and technology is too big, it is difficult for ordinary people to grasp.
(Reminder: Tianjing Bio is a US stock-listed company. Those interested can pay attention. The company is a biomedical company. There is a lot of room for imagination in the future, but it does not mean it will be realized. High-yield and high-risk, investment needs to be cautious.)
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