On December 1, 2021, Medici (688202) issued an announcement that Zhongtai Securities, Nord Fund, Great Wall Fund, Magic Square Quantitative, Yuxiu Capital, and Zhengxin Valley Capital investigated our company on November 25, 2021.
The main contents of this survey are:
Q: What is the company's current order situation and expectations?
A: The company is continuing to improve the marketing system integrating sales and service, further deepening the management system of key customers, and establishing a market sales system that adapts to market competition by continuously strengthening the construction of business development teams at home and abroad. At present, the company's new signing of orders is in good condition, and the company's business development work is actively promoting.
Q: What are the main reasons for the growth of the company's business?
A: The steady growth of the company's performance mainly benefits from the continuous growth of domestic and foreign drug research and development boom, and the company's management team insists on simultaneously improving R&D service capabilities and market expansion capabilities. The company continues to increase investment in new technologies for drug research and development, improve the professional ability, efficiency and quality of the R&D team, consolidate the advantages of pre-clinical integrated comprehensive services, continuously improve the R&D service capabilities to win high recognition from customers, and promote the rapid growth of market orders. The company continues to strengthen the construction of domestic and foreign business teams, and the continuous high growth of customer demand provides a guarantee for performance growth, and reverses the improvement of R&D service capabilities.
Q: What is the current distribution of the company's production capacity?
A: At present, the company's R&D laboratories are located in Pudong New Area, Shanghai, respectively, in Zhangjiang Hi-Tech Park, Chuansha Economic Park and Kailong Nanhui Business Park, with a total of 73,800 square meters of R&D laboratories, which are gradually being built and put into use in accordance with the company's strategic planning and business development.
Q: How is the company planning for CDMO?
A: The company's pharmaceutical research services include API research services and preparation research services, which are still in the laboratory research stage. CDMO/CMO is the focus of the company's future efforts to expand. The company plans to expand the magnitude of CDMO services and establish a large-scale production base that meets GMP standards through its own construction or mergers and acquisitions.
Q: Does the price increase of laboratory animals have an impact on the company?
A: With the continuous growth of the company's business scale, the company's demand for raw materials such as laboratory animals is increasing. The company will strengthen cooperation with raw material suppliers to obtain a stable source of supply to meet the needs of the company's business growth. In the face of the rise in the price of experimental animals, the company will refer to the market situation to make reasonable adjustments to the quotation when quoting the project.
Q: How does the company see the future development of the industry?
A: China's CRO industry is an emerging industry that has only developed in the past two decades, and at present, the domestic CRO industry as a whole presents a pattern of many, small and scattered, and the industry concentration is relatively low. Under the background of domestic pharmaceutical policies encouraging the development from generic drugs to innovative drugs, domestic regulatory levels to international standards, and attracting the transfer of international pharmaceutical research and development needs, the scale of the domestic CRO market has expanded rapidly. In addition, China's pharmaceutical industry is in a golden period of independent innovation and development, pharmaceutical research and development investment continues to increase, in the future with the domestic demand for innovative drug research and development to accelerate the release, cro industry will usher in a sustained growth of the industry development of the golden opportunity.
Q: What is the construction of the company's international service department?
A: The company has established the International Service Department of the Drug Discovery Sector, and will increase its efforts to expand overseas business in the future, establish a high-standard and high-quality drug discovery laboratory and research team with international competitiveness, and focus on serving international large pharmaceutical enterprises and innovative pharmaceutical enterprises. The company will increase the construction of business teams in the United States and Europe, and continue to expand the scale of overseas business.
Q: Does the company's staffing program meet the needs of the company?
A: In order to meet the growing business needs, the company has simultaneously allocated professional and technical personnel, and in the first three quarters of 2021, the number of personnel in the company's three major business sectors has grown rapidly. CRO is a talent-intensive industry, the company attaches great importance to the construction of the talent team, the company's personnel recruitment plan will match the growth and development of the company's business for reasonable allocation, in order to ensure the future development of business and project implementation.
Q: Among the company's customers, which are the more well-known large pharmaceutical companies and innovative pharmaceutical companies?
A: Domestic customers: Hengrui Pharmaceutical, Yangzijiang Pharmaceutical, Baiyunshan Group, Shanghai Pharmaceutical Group, North China Pharmaceutical and other well-known large pharmaceutical enterprises, BIOT, Cinda Biologics, Microchip Biologics, Zejing Pharmaceutical and many other emerging well-known innovative biomedical technology enterprises. International customers: Overseas customers cover the United States, Europe, Japan, South Korea and other regions, and have accumulated many internationally renowned pharmaceutical companies and scientific research institution customers, including Takeda Pharmaceuticals ( Takeda ), Johnson & Johnson , GlaxoSmithKline ( GSK ) , Roche Pharmaceuticals ( Roche ) , EmDMillipore ( EMDMillipore ) and so on.
Q: What is the company's competitive advantage over its peers?
A: The company's competitive advantage mainly lies in the fact that the company has preclinical integrated new drug research and development capabilities and rich R&D experience from drug screening to IND declaration; has relative advantages in the research and development of immuno-oncology drugs, antibodies and antibody drug conjugates; the advantage of professional talent team; the research quality control system meets international standards; and the company has a high-quality customer base and a good industry reputation.
Q: When does a new order translate into revenue?
A: The company mainly has three service models: product customization mode, design and development mode and joint research mode. The cycle required for the three modes varies. In the product customization model, chemical services, biology services and API preparation research services are about 1-3 months, and pharmacodynamics research services are 1-10 months; the design and development model, according to the specific agreed service content, the required cycle varies, about half a year to two and a half years; the joint research model (FTE), according to the specific agreement of the contract, usually the situation is half a year or 1 year.
Q: What are the reasons for the increase in the company's per capita output value?
A: The company's order structure and business structure continue to optimize, sufficient order reserves to promote capacity utilization and personnel efficiency to further improve, the company in an orderly manner to promote the construction and use of new laboratories at the same time, through the improvement and optimization of management processes, improve the utilization rate of laboratories and equipment, the scale effect is gradually reflected.
Q: How does the draft of the Guidelines for Clinical Value-Oriented Clinical Research and Development of Antineoplastic Drugs released by CDE affect the CRO track?
A: The guiding principle emphasizes the implementation of the research and development concept of anti-tumor drug research and development that is clinical value-oriented and patient-centered, and promotes the scientific and orderly development of anti-tumor drugs, which can promote pharmaceutical companies and other new drug research and development institutions to focus more rationally on their research directions, which is conducive to leading the high-quality development of the industry. The introduction of relevant policies is the only way to make the pharmaceutical innovation industry more standardized in the future, which is in line with the company's judgment on the overall development trend of the future industry. As one of the major one-stop biomedical preclinical R&D services CRO in China, the company has comprehensive preclinical new drug R&D service capabilities and can provide customers with preclinical trial services in accordance with Sino-US dual reporting standards. The company will continue to promote and improve the R&D technology platform, attract more customers of large pharmaceutical companies and biotechnology companies, and help more new drugs with clinical value to develop.
Q: What is the company's staffing program, and does the company's rapid development create management challenges?
A: CRO is a talent-intensive industry, the company attaches great importance to the construction of talent team, the company's staff recruitment plan will match the growth and development of the company's business for reasonable allocation, in order to ensure the future business development and project implementation. The company is currently in a period of rapid development, with the expansion of corporate assets and business scale, put forward higher requirements for our management capabilities. The company has made full psychological preparations, strengthen management awareness, in order to maintain a good and healthy growth trend, the company will continue to improve the operation and management capabilities to meet the needs of the expansion of business scale.
Q: In the next few years, what is the direction of the company's guaranteed performance growth?
A: In the future, the company will continue to focus on preclinical research services, and continue to strengthen the company's professional service capabilities in the fields of chemistry, biology, APIs, preparations and preclinical research through the construction and implementation of the drug discovery and pharmaceutical research and declaration platform of the Innovative Drug Research and International Declaration Center, and the preclinical research and declaration platform of the Innovative Drug Research and International Declaration Center. By providing high-quality and comprehensive services to consolidate the company's market position in the industry and further increase the company's market share in domestic and foreign markets. In the next three to five years, through the rapid development of its own scale and complementary mergers and acquisitions, especially in the CDMO/CMO of drugs and the integrated research services of biological drugs, the company is also the focus of the company's efforts to expand. The company has set up the international service department of the drug discovery sector, and will increase the intensity of overseas business expansion in the future, establish a high-standard and high-quality drug discovery laboratory and research team with international competitiveness, focus on serving international large pharmaceutical enterprises and innovative pharmaceutical enterprises; increase the construction of business teams in the United States and Europe, establish a professional overseas business development team, and continue to expand the scale of overseas business.
Medici's main business: The company is a professional biomedical preclinical comprehensive R&D service CRO, providing a full range of one-stop new drug research and development services that meet domestic and international filing standards for pharmaceutical enterprises and scientific research institutions around the world
According to the 2021 third quarter report of Medici, the company's main revenue was 786 million yuan, up 81.62% year-on-year; the net profit attributable to the mother was 181 million yuan, up 142.06% year-on-year; the deduction of non-net profit was 176 million yuan, up 145.7% year-on-year; among them, in the third quarter of 2021, the company's single-quarter main revenue was 301 million yuan, up 74.61% year-on-year; the single-quarter net profit attributable to the mother was 67.8508 million yuan, up 141.67% year-on-year. In a single quarter, the non-net profit was 66.4993 million yuan, up 138.71% year-on-year; the debt ratio was 24.22%, the financial expense was -2.5517 million yuan, and the gross profit margin was 44.46%.
In the past 90 days, a total of 6 institutions have given ratings, 4 buy ratings and 2 overweight ratings; the target average price of institutions in the past 90 days is 862.8; the net inflow of financing in the past 3 months is 963,300, and the financing balance has increased; the net outflow of margin is 5.3191 million, and the balance of margin has decreased. The Securities Star Valuation Analysis Tool shows that 688202 good companies are rated 4 stars, good prices are rated 1.5 stars, and valuation composite ratings are 2.5 stars. (Rating Range: 1 ~ 5 stars, maximum 5 stars)