On March 20, Kingsway Biotechnology, which carries the CAR-T label, released its 2021 annual report. In a word: spending money like dirt.
In 2021, Kingsway achieved revenue of $511 million, up 30.8% year-over-year; but the company also paid more, resulting in an annual loss of $500 million. That said, Kingsley's total spending over the past year has reached nearly $1 billion.
At the end of February this year, the legendary bioCAR-T product of Kingsway's important subsidiary was approved for listing in the United States. Therefore, although from the perspective of the volume of operation, Jinsrui can be described as "burning money like flowing water", and the income is not much, but the capital has given it high expectations.
In the second half of 2021, Hillhouse bought and increased its holdings of Legendary Creatures. According to Hillhouse's latest disclosed positions, Legendary Bio is the second largest position in Hillhouse's U.S. stocks, holding a market capitalization of $550 million, second only to BeiGene.
As an important supplier of mRNA vaccine manufacturers, Kingsrey has actually enjoyed the "care" of the market. However, when the day of the halo will really come is still unclear.
The FOUNDC business is still dominant
Kingsway Technology's revenue comes from four segments: Life Science Services & Products, Biologics Development Services, Industrial Synthetic Biologics and Cell Therapy.
Among them, life science services and products, biologics development services refer to the CRO and CDMO services provided by Kingsway Technology for biomedical enterprises; industrial synthetic biological products refer to the focus on enzyme engineering technology; cell therapy mainly refers to the subsidiary Legendary Biology, that is, car-T product production line.
Of the $511 million in total revenue in 2021, cro and CDMO businesses underpin most of Kingsley's revenue.
The fastest growing rate is the CDMO business of Kingsway Technology. According to the annual report, in 2021, Kingsway Technology's biologics development services achieved revenue of $81 million, up 101.5% year-on-year; the loss reached $0.05 billion, a year-on-year narrowing of 68.89%.
According to the company, the rapid growth of the CDMO business is mainly due to the expansion of the customer base and the improvement of production efficiency such as preclinical and antibody or protein drugs. But more importantly, the boom in gene and cell therapies such as mRNA has led to a significant increase in plasmid yields.
The other CRA-T business is the most optimistic from the outside world. In 2021, cell therapy business revenue was $0.9 billion, an increase of 18.6% year-on-year, and loss was $374 million, an increase of 60.2% year-on-year.
Legendary Bio is currently jointly responsible for overseas sales with Janssen, while KimSley's revenue from this business last year was mainly a milestone fee paid by Janssen. According to the 2021 annual report disclosed by Legendary Bio on March 21, Legendary Bio earned $89.8 million last year, but lost $374 million due to the preparation of the commercialization team.
Although the legendary creatures have lost so much, they are still optimistic about the capital. Hillhouse's increase in holdings has added a lot to market confidence. After all, the legendary BCMA target CAR-T has only one opponent in the United States, and it is expected to increase the amount in 2022 and achieve its own hematopoiesis.
The mRNA vaccine project is a highlight
The net loss of $500 million, in addition to the hematopoietic source, Kingsway Technology also needs to respond to where the blood loss is.
According to the annual report, in 2021, the sales expenses of Kingsway Technology were $168 million, administrative expenses were $135 million, and research and development expenses were $358 million. In absolute terms, R&D expenses are much higher than sales and administrative costs, but in terms of growth rate, the sales and administrative expenses of Kingsway Technology are growing rapidly.
The increase of more than 50% reflects the company's previous weakness in sales and operations. Kingsley Technology told health bureau that this is mainly due to the investment of Legendary Bio and Johnson & Johnson in the commercialization of CAR-T product cilta-cel.
In addition to the "tuition fees" necessary to cultivate BD capabilities, Kingsley Technology cannot relax in terms of pillar revenue.
The main revenue of Kingsway Technology is derived from the biopharmaceutical CDMO business. According to The Annual Report, the substantial increase in plasmid revenue is a major reason for the substantial growth in its performance, and it also adds a lot of points to the business line of Kingsway Technology.
At the moment when Omicron is raging, the topic of mRNA vaccines is once again being hyped. The most core of the mRNA vaccine production is the plasmid, and Jinsley is mastering this core technology.
At present, China's new crown vaccine has exceeded 3.2 billion doses, but there has not yet been an mRNA vaccine approved, Kingsway Technology can be said to stand on the cusp of the wind waiting for the wind, naturally to seize the opportunity. According to the response of Kingsway Technology, the company will continue to promote a number of mRNA vaccine projects at home and abroad in 2022.
The popularity of the mRNA vaccine is on the verge of erupting. On March 21, a preliminary approval announcement of the "Fubitai" trademark at the end of February flowed out, followed by Fosun Pharma's Hong Kong stock rose by 21.66%.
The market's sincerity for mRNA vaccines is already full, and as for when mRNA vaccines will give back to the market with real money, we have to wait.
Article | Niacinamide
Operating | twenty-thirteen
#Kingsway Technology ##生物制药 #