"Synthetic biology" this fire from the end of April to the beginning of May, the first trading day after the May Day holiday, a number of related stocks harvested "20CM" single-day limit, Tuesday, there are still concept stocks continue to connect the board.
As of the close of trading on May 7, Blue Biotech (603739. SH) has recorded five consecutive boards, and the stock price has risen by 61.13% in five trading days, and Fujilai (301258. SZ) is the big winner in this round of rise, harvesting the "20CM" price limit for three consecutive trading days, with a cumulative increase of 78.35% in five trading days, followed by Twining Biotechnology (301301. SZ), which closed up 7.08% on Tuesday, and from April 26 to May 7, the stock rose by 72.86%, and the stock price hit a new high.
In addition, in the last 5 trading days, Ectoli (300381. SZ) rose 71.37%, and Shengda Biotech (603079. SH), Jiabiyou (688089. SH) rose by more than 40%, and Boen Group (001366. SZ) rose more than 30%.
Titanium Media App Mapping Data source: Wind
It is worth noting that among the "synthetic biology" concept stocks on May 7, the net outflow of the main capital of Twining Biotechnology reached 420 million yuan, and Lukang Pharmaceutical (600789. SH) 257 million yuan, Jindawei (002626. SZ) 119 million yuan, of which the net outflow of the main force of Twining Biotech reached 133 million yuan on May 6.
Where did the "synthetic organisms" of the fire come from? What is the position of concept stocks in the industrial chain? To what extent is the current application of "synthetic biology" technology? What are the remaining potential markets to be tapped?
The concept became popular, and individual stocks responded
This wave of "synthetic biology" concepts, which were not interrupted by the small long holiday, became popular and began at a forum in April.
On April 26, at the annual meeting of the 2024 Zhongguancun Forum, Tan Tianwei, president of Beijing University of Chemical Technology and academician of the Chinese Academy of Engineering, mentioned that at present, led by the National Development and Reform Commission, the Ministry of Industry and Information Technology and the Ministry of Science and Technology and other national ministries and commissions are jointly developing a national biotechnology and biomanufacturing action plan, and it is expected to be introduced in the near future, and "biomanufacturing +" is the key content.
Synthetic biology is biological manufacturing, is a new "creation" technology, the integration of biology, chemistry, engineering and other technologies, with renewable biomass as raw materials, with organisms as the production medium, aiming to use cheap raw materials, strain, cells, enzymes as manufacturing plants, large-scale fermentation to obtain target products, with clean, efficient, renewable and other characteristics.
According to the White Paper on China's Synthetic Biology Industry 2024 (hereinafter referred to as the "White Paper"), the global synthetic biology industry has experienced rapid growth in the past five years, with the market size growing from US$5.3 billion in 2018 to more than US$17 billion in 2023, with an average annual growth rate of 27%. The global synthetic biology market is expected to maintain a rapid development momentum in the foreseeable future, growing into a global market with a volume of nearly $50 billion by 2028.
Source: China Synthetic Biology Industry White Paper 2024 (jointly launched by BCG and B Capital)
Under the strong expectation of the introduction of favorable policies, the secondary market is surging.
Two trading days (April 29 and 30) after the above-mentioned Zhongguancun Forum related remarks, the Wind Synthetic Biology Index (8841747.WI) rose by 4.55% and 4.79% respectively, and rose by 4.93% on the first trading day after the May Day holiday (May 6), as of May 7, the index has reached a new high of 1367.84 points.
Among them, the constituent stocks are climbing higher and higher, with Blue Biotech five consecutive boards, Twining Biotech two consecutive transactions to harvest the "20CM" daily limit, Shengda Biological to get three daily limits, and Boen Group to obtain two consecutive daily limits.
Both Blue Biotech and Shengda Biotech received an inquiry letter about the abnormal fluctuation of the stock price, and replied that there were no major matters affecting the abnormal fluctuation of the listed company's stock, and there was no other material information that should be disclosed but was not disclosed. Stocks such as Chuanning Biotech, Fujilai, and Yiduoli have issued indicative announcements on abnormal stock price fluctuations.
In the past few days, many investors have asked about the relevant layout of the company on the interactive platform, and a large number of listed companies have responded to their business reach in the field of synthetic biology.
Suzhou Longjie (603332. SH): The company's main products are imitation fur fiber, imitation suede fiber and bio-based PTT memory fiber. The company is the main manufacturer of bio-based PTT memory fiber in China, and bio-based PTT memory fiber is mainly used for high-end bio-based PTT materials. At present, bio-based PTT high-end materials are widely used in high-end clothing manufacturing, sports and outdoor products, industrial materials and other fields. The raw material of bio-based PTT memory fiber produced by the company is bio-based PTT polyester chips. The diol monomer used in bio-based PTT polyester chips is bio-based 1,3-propanediol (PDO). The company's upstream uses synthetic biology methods in the industrial production of 1,3-propanediol (PDO), which is more environmentally friendly and improves the economic benefits in the production process.
United Water (603291. SH): United Water is a comprehensive and all-round water company, and in terms of sewage treatment, we will choose the most appropriate process and treatment method according to the different quality of sewage water. In some industrial sewage treatment projects, the company will adopt the method of adding sewage treatment to treat special bacteria, and in order to maintain the treatment efficiency of special bacteria, bacteria promoters will be added regularly.
Luther Environment (688156. SH): Biological fermentation is the basic industry of biomanufacturing, and the company's distiller's grains bio-fermented feed business belongs to the category of biomanufacturing. The company's distiller's grains bio-fermented feed business mainly involves the resource utilization of distiller's grains, using microbial solid-state fermentation and continuous multi-stage low-temperature drying technology, and using unconventional raw materials - distiller's grains as the medium to prepare bio-fermented feed, which can effectively retain the nutrients and functional substance activities of the products, protect the intestinal health of animals, and achieve ecological and healthy breeding.
Zhejiang Zhenyuan(000705. SZ): Zhenyuan Biotech, a subsidiary of the company, is a biomanufacturing company focusing on synthetic biotechnology, which has strong advantages over traditional chemical synthesis and proteolysis methods in terms of safety, environmental protection, production costs, resource consumption, energy conservation and carbon reduction. Zhenyuan Biotech is now building production lines for histidine, levodopa, tyrosine and other products, which are expected to be put into trial production by the end of this year and put into formal production in 2025. The above-mentioned products can be used in food and feed additives, health food raw materials (functional food raw materials), pharmaceutical raw materials and intermediates, etc.
Jin Dawei (002626. SZ): The company has a "National Enterprise Technology Center" R&D platform, and has established a large-scale biological enzyme library platform, which can continuously use the "engineering characteristics" of synthetic biology to realize the quantitative and controllable synthesis pathway and finished products, integrate efficient, energy-saving and low-carbon process technology, improve conversion efficiency and improve the quality of finished products. Good progress has been made in the industrialization of projects and the reserve of new products, the application of biosynthesis technology, the completion of a number of industrializable projects, and the optimization of small tests and technical parameters of a number of projects.
Sunway(301159. SZ): One of the company's main products, SunwayWorld Laboratory Information Management System (SW-LIMS), can be applied to laboratories in the field of synthetic biology, which can realize the electronic and paperless acquisition, processing, transmission and application of testing data through the comprehensive management of synthetic biology process management, whole-process traceability of biological sample testing business, testing data and report review, resources and other elements, so as to effectively improve the management and testing capabilities of synthetic biology laboratories.
Rip Biotech (300119. SZ): Tianjin Sairui Polypeptide Technology Co., Ltd. is a holding subsidiary of the company, mainly engaged in the development and sales of peptide synthesizers, which use chemical synthesis technology. In the field of synthetic biology, the company focuses on research and development in veterinary vaccines, antibody drugs, enzyme preparations, probiotics, veterinary drug raw materials, additive raw materials, and related intermediates.
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The market is chaotic, but the development of industrialization is still in its infancy
Under the enthusiasm of funding, "synthetic biology" has been strongly tied to the term "technological revolution", with some articles calling it the "third biotechnology revolution" and some opinions calling it the "fifth biotechnology revolution".
As for who is the leading company in the field of "synthetic biology", there have been multiple versions on the market, and Cathay Biologics and WuXi AppTec are among the "leaders".
"Synthetic biology" is not a new thing, according to the white paper, 2000 is the first year of synthetic biology recognized by the industry, in 2004 held the "synthetic biology 1.0" conference, but also the first international conference in the field, after 2008, synthetic biology has entered a period of innovation and application transformation, in 2014, synthetic biology technology has entered a new stage of development, the construction of engineering platform and the open source application of biological big data combined, Comprehensively promote the innovation of synthetic biology technology and the development and commercialization of related applications.
The synthetic biology industry chain has three links: upstream, midstream and downstream.
Upstream companies include reading-writing-editing-learning, automation/high-throughput quantification, and biomanufacturing, such as MGI, which produces gene sequencers, and BGI, which is based on DNA synthesis and gene editing.
The midstream includes chassis cell selection and transformation, culture condition optimization, purification method development, etc., Twining Biotech, Abiochem Biotech, Azure Biotech, and Yiduoli are in the middle of the industrial chain, among them, Twining Biotech mainly produces antibiotic APIs, Abiochem Biotech can mass-produce diabetic drug sitagliptin intermediates, AIDS drug dulutevir intermediates, pesticide intermediates, etc., while Azure Biotech is in the enzyme preparation subdivision track, mainly producing feed enzymes, industrial enzymes, and food enzymes.
In terms of innovative drugs and innovative therapies, cell and gene therapy (CGT) is currently one of the key application fields of synthetic biology in the field of biomedicine, and the application of human autologous cell modification, gene therapy and gene editing has entered the initial stage of commercialization. In the field of consumer personal care, in the "Regulations on the Management of Registration and Filing Materials of New Raw Materials for Cosmetics" issued by the State Food and Drug Administration, the three major raw materials include raw materials derived from biotechnology, such as genetic engineering, cell engineering, fermentation engineering, enzyme engineering and protein engineering sources.
In addition, synthetic biology is used in agriculture, food and nutrition, high-performance materials, bulk chemicals, and bioenergy.
In contrast, there is a large gap between the development and application of synthetic biology technology in China and abroad. For example, in the upstream of the industrial chain, the second-generation sequencing technology is currently synchronized at home and abroad, but the third-generation sequencing technology started late; In the field of midstream enzyme preparations, domestic enterprises mainly produce traditional enzyme preparations such as amylase and saccharification enzyme, which are seriously homogeneous and have low technical content, while the core technical barriers such as new strains and new genes of foreign giants are high.
Western Securities pointed out that synthetic biology is still in the early stage of industrialization, and Chinese companies are expected to become globally competitive enterprises by virtue of synthetic biology products/cost advantages. Huaan Securities said that the national and local policies have been implemented frequently, and the industrialization of biomanufacturing is expected to accelerate. Donghai Securities believes that the value judgment logic of the current bio-based chemical project lies on the one hand whether it can significantly reduce energy consumption in line with the national low-carbon development path, and on the other hand, whether the production capacity has the value of cost reduction, efficiency increase or convertible substitution compared with the existing process route.
(This article was first published in Titanium Media App Author丨Yang Yaru Editor丨Sun Cheng)