Author: Blue Forgetful Machine
EDIT: Six Ears
Source: Blue Media Finance
In ancient times, there were "five rats" in Tokyo, and now there are "three rats" in A shares.
Recently, Jicui Yaokang from Jiangsu, Nanmo Bio from Shanghai, and Biosaitu in Beijing have all set their sights on the science and technology innovation board. The first two companies have submitted IPO prospectuses, and BIOSAtu is also eager to move, and signed a listing counseling agreement with CICC, an "investment banking aristocrat".
All three companies are in the rat business. However, it is not the street rat that everyone shouts and beats, but the guinea pig that tries drugs for humans.
Although the rat is small, it is a "giant rat". Sick rats are more valuable!
One rat with arthritis for $200; two pairs of mice with epilepsy for $2,000; want three blind mice? Gotta prepare $250...
Don't look at the "three rats" now breaking into the science and technology innovation board, the big guys behind them are all doctors and professors. 70 years ago, most of the first mice in the business were veterinarians.
In 1900, Lathrop, a retired elementary school teacher in the United States, opened a chicken farm in her hometown of Massachusetts. I wanted to live my old age by raising chickens, but I didn't want to catch up with the economic depression before World War I, and the principal of raising chickens was lost.
When God closes a door, he must open a window. Chickens can't be raised, let's raise mice.
Lathrop found that pet rats were particularly popular in the United States at the time. What she didn't expect was that her pet rat had attracted Castle, the genetics god of harvard's Bursay Institute.
The Osse Institute is not far from Lathraop's hometown, and after buying Lathrop's pet mice, Castle began to have his student C .C.Little use these mice to conduct genetics and tumor research.
It was in Little's hands that the world's first modern experimental mouse strain DBA (inbred line of mice) was born. For his special contributions to experimental mice, Little also appeared on the cover of Time Magazine.
It's been 40 years since lab mice were really treated as a business.
At that time, the world was filled with the smoke of World War II, and the supply of painkillers and anti-inflammatory drugs was in short supply. U.S. pharmaceutical companies, which see business opportunities, have invested money in the development of new drugs. World War II was a tragedy in human history, but it also created the "golden age" of pharmaceutical companies.
When a new drug is launched, it has to go through many clinical trials. Before giving it to someone to eat, you have to go to the stomach of the mouse.
Some people have to ask, pigs have more genes similar to people, why do you have to use mice?
In fact, there are many kinds of experimental animals, including mice, monkeys, dogs, rabbits, fish, etc. Rats include mice, rats, gophers, guinea pigs and so on.
On the one hand, mice are the second mammal after humans to complete whole genome sequencing, and 99% of human protein-coding genes have homologous genes in the mouse genome; on the other hand, compared with large animals such as pigs and monkeys, mice have short lifespans, fast reproduction, and lower feeding costs.
Imagine if you replace mice with pigs, schools and research institutes will have to vigorously build several pig farms.
Although mice have many advantages over other animals, it is not so easy to raise experimental mice. Experimental mice have extremely high environmental requirements, not only need to apply for various qualifications, but also are very complicated to manage.
The research and development of new drugs is a job that is easy to lose hair, and then the work of raising mice is taken over, and the bosses of pharmaceutical companies are not all bald. Therefore, pharmaceutical companies choose to outsource this business.
In 1947, a young veterinarian named Henry Forster saw a strong demand for mice from pharmaceutical companies, so he collected thousands of rat cages from a farm and transported them to the Charles River in Boston to begin breeding in large quantities.
What diseases pharmaceutical companies need to develop, he will provide what kind of old.
The young veterinarian became the founder of the charles river laboratories. Later, these early selling guinea pigs gradually transformed into CRO (pharmaceutical research and development outsourcing) companies, and began to become the "golden father" of the houlang.
Jicui Yaokang, Nanmo Bio, and Biosaitu are among the many back waves.
In the 1990s, the Soviet Union collapsed, and the U.S. economy saw a golden decade. The Dow rose 309 percent, and half the world's wealth is concentrated in the United States. Under the prosperous scene, it attracts the influx of "talents" from all over the world, and the enthusiasm for going abroad is constantly heating up in China.
Gao Xiang, who graduated from Nanjing University with a master's degree, came to Thomas Jefferson University in Philadelphia to study for a doctorate in developmental biology and anatomy; Shen Yuelei, who graduated from the China Academy of Inspection, flew to the "Massachusetts" where there are many colleges and universities in the United States to study for a doctorate at the University of Massachusetts Medical School.
If it were not for the fact that the two papers were half a beat slower than others, Shen Yuelei at this moment should be a professor at a university.
For him, entrepreneurship is more like a helpless move.
In 2008, Shen Yuelei founded a company called Biocytogen in the United States, whose main business is related to his research direction - the production and sale of experimental mice. Perhaps with a professional background, Shen Yuelei soon earned the first pot of gold, and his mice successively entered roche, Johnson & Johnson, Merck and other pharmaceutical companies.
A year later, in order to reduce costs, Shen Yuelei moved some of the mouse culture work back to China. At the end of 2009, Shen Yuelei rented two rooms in Zhongguancun, registered the "Beo Saitu", and began to customize the animal around the experimental mice.
At this time, Baishan Village in Changping District, which is 15 kilometers away from Bai'ao Saitu, already has an industry giant called "Weitong Lihua". It is the aforementioned subsidiary of Charles River in China and was established in 1999.
For every 100 mice sold in China, 8 come from Viton Lihua. Due to the relatively fragmented nature of the industry, Viton Lihua ranked first with a market share of 7.7%.
Not long after the establishment of Viton Lihua, a company called "Nanmo Bio" was established in Shanghai, which was also engaged in the mouse business. Nammo Biotech was funded by the Genome Center and the Shanghai Academy of Biological Sciences. Fei Jian and Wang Mingjun hold a total of 48.87% of the shares, and are the actual controllers of the company.
Fei Jian is a professor at Tongji University and served at the Chinese Academy of Sciences in the early days. The prospectus shows that the subsidiary of the Chinese Academy of Sciences has always been one of the main customers of Nanmo Biotech.
Among the three, the eldest Gao Xiang was the last to enter the commercial sea. In the same year of the establishment of Nammo Biology, Gao Xiang returned to China and served as a professor at his alma mater, Nanjing University. During his tenure at NTU, he was involved in the establishment of the Institute of Model Animals and the Institute of Biology of Nanjing University.
Gao Xiang left school to sell mice, it was 17 years later. In December 2017, Gao Xiang and several other phDs of NTU partnered to establish "Jicui Yaokang", with Gao Xiang as the chairman of the company.
As a latecomer, Jicui Yaokang has developed the most rapidly, and in only two years, the sales of experimental mice have reached 190 million yuan, accounting for 6.7% of the market, second only to Witone Lihua.
In December 2020, the Shanghai Stock Exchange accepted Nanmo Biotech's application for listing on the Science and Technology Innovation Board; three months later, Capital State reported that BIOC had signed a listing counseling agreement with CICC in February this year to be listed on the Science and Technology Innovation Board; at the end of June this year, Jicui Pharmaceutical Kang also submitted an IPO prospectus for the Science and Technology Innovation Board to the Shanghai Stock Exchange.
The three "rats" are ready to fight for the "first share of mice".
Although the white rat is small, it is a "giant rat".
According to the prospectus, from 2018 to 2020, the revenue of Jicui Pharmaceutical Kang was 0.53 billion yuan, 193 million yuan and 262 million yuan, respectively, and the corresponding net profits were -6.0355 million yuan, 30.2955 million yuan and 71.1071 million yuan; in the same period, the revenue of Nanmo Bio was 121 million yuan, 155 million yuan and 196 million yuan, and the corresponding net profits were 15.1112 million yuan, 23.2499 million yuan and 44.5559 million yuan.
Jicui Yaokang and Nanmo Bio both belong to the CXO (pharmaceutical outsourcing) industry, which belongs to the "M734 Medical Research and Experimental Development" subdivision track according to the "Classification and Code of National Economic Industries". The business of Jicui Yaokang and Nammo Biology is similar, involving mouse model sales business, custom breeding business, model customization business, etc.
Up to now, Jicui Yaokang has accumulated more than 16,000 kinds of commercial mouse models with independent intellectual property rights, including immunodeficient mice and humanized mice for diabetes, atherosclerosis, Alzheimer's disease, tumor efficacy research, etc.; more than 10,000 gene-modified animal models have been developed by NAM BIO, including more than 5,000 self-developed models.
Experimental mice are different from ordinary mice, cheap dozens of pieces, expensive tens of thousands of yuan.
As an important part of the biomedical industry chain, in order to study drugs for the treatment of cancer, there must be a mouse model of cancer; in order to study diabetes, there must be a mouse model of diabetes...
This requires the use of genetic technology to knock out one or several genes in all about 30,000 genes in mice, making it an animal model suitable for clinical trials of drugs, which can mimic human patients for research and treatment.
Such mice are called knockout mice, and are also the fighting rats among mice.
As early as 2010, Guangzhou Daily reported that a rat with arthritis sold for nearly $200; two pairs of mice with epilepsy sold for as much as $2,000; want three blind mice? Gotta prepare about $250...
Shen Yuelei, founder of BIOSAItu, also said, "A pair of knockout mice for scientific research is priced at about 180,000 yuan in China." ”
There are many prices for experimental animals on the China Laboratory Animal Information Network, including Jicui Yaokang, which wants to break into the science and technology innovation board, but the price column shows "negotiable". In 2017, BIOSET launched a severe immunodeficiency mouse with a promotional price of 250 yuan.
There are also merchants selling experimental mice on a certain treasure.
A shop called "Nanjing Shengmin Scientific Research Animal Farm" has a price of 26-20,000 yuan for experimental mice. For example, TLR2 and TLR4 gene knockout mice, one 11,000 yuan, one pair of 20,000 yuan; SPF grade sterile purines that can be used as pets, one 180 yuan; SPF level (environmental standard) BALB/c mice, one 26 yuan.
Jicui Pharmaceutical Kang wrote in the prospectus that the company can sell about 600,000 mouse models per year.
From 2018 to 2020, the revenue brought by the sales of commercialized mouse models to Jicui Yaokang was 0.33 billion yuan, 0.95 billion yuan and 153 million yuan, respectively, accounting for about half of the total revenue. If you sell 600,000 pieces a year and have an annual income of 150 million yuan, the average price of Jicui Yaokang is 254 yuan per mouse.
At the same time, compared to the custom business, the gross profit margin of selling mouse models is also the highest. In 2020, the gross profit margin of this business was as high as 81.52%. That is to say, for every mouse model sold, Jicui Yaokang can earn 207 yuan.
The subdivision of mice does have gold, but compared with the downstream CRO market, the market size of experimental mice is only one-tenth of its size.
GMI data shows that the global market size of experimental mouse models was about $7.6 billion in 2019 and is expected to increase to $10.5 billion in 2023. The United States is the world's largest market for mouse models, with a market size of $6.1 billion, accounting for 80% in 2019.
In 2019, the market size of China's mouse models accounted for 5% of the world's total, at 2.8 billion yuan (about 432 million US dollars). If you roughly calculate it at 254 yuan per mouse model, China can sell about 11.02 million experimental mice a year.
As the upstream of CRO, animal model companies complement CRO companies.
The prospectus of Jicui Yaokang and Nanmo Bio shows that its customers are divided into two categories, one is a scientific research customer based on universities and hospitals, and the other is an industrial customer based on CRO.
The top 5 customers of Jicui Yaokang include BeiGene (6160. HK), WuXi AppTec (603259. SH); WuXi Biologics (02269. HK), Colone Biotech has always been one of the top five customers of NAM BIO.
The difference is that BeiGene, which is also breaking through the science and technology innovation board, has not yet made a profit, and Jicui Pharmaceutical Kang has achieved profitability, and the level of profitability is still growing steadily.
BeiGene's anti-cancer drug track is also the most important market for mouse model companies in the field of disease. According to the prospectus of Jicui Yaokang, the market for mouse models is mainly concentrated in tumor immunity, metabolic diseases, and nervous system diseases. Among them, the scale of the tumor immunity market is 1.87 billion yuan, accounting for 66%.
In the early years, China's pharmaceutical industry was dominated by generic drugs, and the ability to innovate was insufficient. In recent years, the state has issued a number of industrial support policies and implemented a series of measures such as accelerating the approval of new drugs, and China's drug research and development is shifting from generic drugs to innovative drugs.
As the market size of antineoplastic drugs increases from 182.7 billion yuan in 2019 to 367.2 billion yuan in 2024, the market size of mouse models will also be further improved. According to Frost & Sullivan' estimates, by 2024, the market size of China's mouse models will reach 8.4 billion yuan (about 1.3 billion US dollars).
It can be said that mice and innovative drugs achieve each other.
In front of you is a blue ocean, and all kinds of star capital have also set their eyes on this giant mouse.
In August last year, before the completion of the share reform of Jicui Pharmaceutical, state-owned assets in Jiangbei New Area had bought 3.72% of the equity of Jicui Limited from biomedical valley at a price of 48.4273 million yuan; not long after, Qingdao Sinopharm also acquired 3.72% of the company's equity at a price of more than 60 million yuan higher than the former.
Later, Sequoia Capital and Hillhouse Capital entered the market, and at that time, the valuation of Jicui Pharmaceutical Kang had reached 3.4 billion yuan.
This time, the IPO plan of Jicui Pharmaceutical Kang Science and Technology Innovation Board is to raise 820 million yuan, accounting for no more than 10% of the total share capital after the issuance, which also means that the market value of the issuance will reach more than 8.2 billion, which is nearly 2 times more than the latest valuation.
Raising chickens and pigs is not good, it is better to try raising mice.