On June 25, Baike Bio (688276.SH) was finally listed on the Science and Technology Innovation Board.
Baike Bio was spun off from Changchun High-tech (000661.SZ), known as "Northeast Moutai". The issue price was 36.35 yuan / share, the opening of the market on the 25th at 120 yuan / share, as of the close, its stock price was 118.50 yuan / share, up 220%.
Founded in March 2004, Baike Bio has been focusing on the research and development, production and sales of human biological vaccines. Changchun Gaoxin holds 46.15% of the shares of Baike Biotech and is the largest shareholder of Baike Biotech.
Kong, the company's director and general manager, maintains a 25.25% stake. At 118.50 yuan per share, Kong Wei holds a market value of more than 12 billion yuan, successfully joining the billionaire club.
Kong Wei, Director and General Manager of Baike Biotech. Image source: 100%Biotech official website
According to the prospectus, the main products of Baike Bio are chickenpox vaccine, human rabies vaccine and nasal spray influenza vaccine. The company's live attenuated chickenpox vaccine has always occupied a leading position in the market, and in 2020, the company's chickenpox vaccine batch issuance accounted for 32.01%, ranking first in the market.
The company's revenue from 2018 to 2020 was 1.019 billion yuan, 976 million yuan and 1.441 billion yuan, the corresponding net profit was 128 million yuan, 221 million yuan and 418 million yuan, and the revenue of chickenpox vaccine accounted for 84.96%, 97.06% and 76.83% respectively.
In terms of human rabies vaccine, this product is a vaccine variety owned by mai fung bio, a wholly-owned subsidiary. The lyophilized nasal spray influenza vaccine is the only influenza vaccine administered by nasal spray in China, which has obtained production approval in February 2020 and will be listed for sale in the second half of 2020, which will provide the company with new profit growth points.
Tianfeng Securities Research Report said that rabies vaccine is expected to resume sales in 2022, herpes zoster vaccine is expected to be listed in 2023, nasal influenza vaccine (water injection) is expected to be listed around 2024, and DTP vaccine is expected to be listed in 2025.
In addition, 16 products are under investigation (4 are in clinical trials), including live attenuated herpes zoster vaccine, adsorbed acellular dtyptonia (three-component) combined vaccine, Haemophilus influenzae type b conjugate vaccine, fully human anti-rabies monoclonal antibody, fully human anti-tetanus toxin monoclonal antibody, etc.
In particular, it is worth mentioning that the company is currently cooperating with the University of Hong Kong and Xiamen University to develop a live attenuated vaccine for the new coronavirus. Baike Bio has developed three batches of pilot-scale samples, and has been qualified by the Central Inspection Institute to complete pre-clinical research. On August 24, 2020, the company submitted pre-review clinical trial data to the Drug Evaluation Center of the State Drug Administration.
Baike Bio adopts the product research and development mode of independent research and development, cooperative research and development and commissioned research, with an average annual R&D investment of more than 10% of revenue, and has obtained 23 domestic authorized invention patents and 6 international authorized invention patents.
The company's product sales cover 31 provinces, autonomous regions and municipalities directly under the Central Government in addition to Hong Kong, Macao and Taiwan, and export to India, Indonesia, Pakistan, Nigeria, the Philippines and other countries.
100 grams of bio-produced chickenpox vaccine. Image source: 100%Biotech official website
Since 2011, Baike Bio has planned to build a vaccine production base of 125,000 square meters, and in 2020, the vaccine base will add 41,000 square meters of land, providing guarantees for meeting the large-scale production of existing products and accelerating the listing of follow-up products.
Over the past 10 years, the number of vaccine products has grown steadily, and the number of vaccines under development is increasing. According to the US CDC (Centers for Disease Control and Prevention), there are currently nearly 300 new vaccine varieties under development around the world, mainly in the fields of infectious diseases, and are expanding to cancer, autoimmune diseases and other fields. If we can develop vaccines for prevention and treatment of diseases that cannot meet the needs in the future, such as cancer, addictive diseases, allergic reactions, diabetes, Alzheimer's, HIV, hepatitis C, etc., it is expected to form breakthrough therapies and create greater market value. At present, there are many blockbuster varieties in the world in the clinical stage, and they are expected to be listed in the next few years, and the global vaccine market is expected to usher in a new round of rapid expansion period. The global vaccine market is expected to grow to $34.2 billion in 2020 and to $47.6 billion in 2025, with an average annual compound growth rate of about 6.80%.
The predecessor of Baike Bio is Baike Pharmaceutical Research Institute, which was jointly invested and established by Changchun Gaoxin and its holding subsidiary Baike Pharmaceutical in March 2004, and its name was "Changchun Gaoxin Baike Pharmaceutical Research Institute Co., Ltd."
100 grams of creatures. Image source: Visual China
Kong Wei is one of the key figures of Baek Biotech, 56 years old he graduated from Jilin University with a doctorate, and later engaged in postdoctoral research at the University of Maryland School of Pharmacy and the Johns Hopkins University School of Medicine and The School of Public Health.
At present, there are four main non-patented technologies of Baike Biotech - live attenuated vaccine technology for chickenpox, inactivated vaccine technology for hepatitis A, human rabies vaccine (Vero cell microcarrier) technology and nasal spray lyophilized influenza live attenuated vaccine technology. The first two of these, live attenuated chickenpox vaccine technology and hepatitis A inactivated vaccine technology, were invested by Convi through its wholly-owned Dior Technology in 2006 through a capital increase in intangible assets.
In 2006, the company successfully applied for clinical trial approval of chickenpox vaccine and completed the clinical trial of chickenpox vaccine, and obtained the production approval of chickenpox vaccine in 2008. On this basis, the follow-up company has continuously optimized and improved and innovated independently, and gradually evolved to form the current company's main sales of chickenpox vaccine.
Kong Wei started working at Baike Pharmaceutical in 2002 as a director and general manager. After the establishment of Baike Bio in 2004, he has served as a director and general manager. He is also currently a professor at the School of Life Sciences of Jilin University.