Hillhouse Capital's withdrawal from WuXi AppTec, Gloria Ingen, Tigermed and Fangda Holdings indicates the coming of the CXO crisis?
Zhang Kun and Hillhouse evacuated Aier and Tongce, and the institution is abandoning the private hospital?
After 10 years, Aier and Tongce still exist, and a lot of capital may not exist, where can Zhang Kun and Hillhouse endorsement be used?
Hillhouse shrinks, and the first choice to sell is definitely a profitable project.
Hillhouse holds 902,359,632 shares of Gree, three quarterly reports and one share has not decreased, why not say that the air conditioning industry is the next diamond-level track?
The floating loss is 8.5 billion yuan, and it is not sold because it is trapped.
In the primary market, biomedicine attracts the favor of many VC/PE institutions, is still heating up, Zero2IPO data show that in the first three quarters of this year, the total investment in China's equity investment market exceeded 1 trillion yuan, the number of cases and the total investment amount increased by more than 70% year-on-year, of which the biotechnology and medical health fields are quite sought after by capital, with an investment amount of 191.5 billion yuan.
mRAN Therapy has the strongest ability to absorb money, and Aibo Biotech has more than 700 million US dollars in Series C financing, setting a new record for the largest financing before the IPO of a domestic biomedical company. AI pharmaceuticals, targeted protein degradation technology (PROTAC), cell therapy, gene editing, and digital therapy have become hot spots.
In the secondary market, WuXi represents the prosperity of overseas R&D and production business to China, and Medici mainly undertakes local Me-too business, representing the prosperity of domestic innovative drugs.
The 4 indicators represent the CXO boom.
Employee growth. WuXi AppTec Q3 increased the number of employees by 16.69% compared to Q2 (Q2 increased by 4.66% compared to Q1), a total of 33,305 employees, of which 10,643 obtained master's degrees or above, 1,184 obtained doctoral degrees or equivalent, and the scale of operations is accelerating.
Contractual liabilities. The representative receives a deposit from the customer, which is generally 30% of the order amount. Medicy Q3 contract liabilities of 93.11 million yuan, an increase of 72.77% over the end of the previous year, corresponding to the amount of orders in hand of about 300 million yuan, equivalent to a quarterly revenue. Zhaoyan New Drug Contract Liabilities of 1.04 billion yuan, an increase of 78.2% over the end of the previous year, corresponding to the amount of orders in hand of 3 billion yuan, while the revenue in the first three quarters of this year was 857 million yuan, which is too amazing, and the dependence of customers on monkeys is too strong.
Works under construction. Q3 hanging up the medicine stone technology, the construction of 449 million yuan, an increase of 162% over the end of the previous year, production capacity expansion, the next year can also be a war. Kanglong Chemical is under construction of 1.161 billion yuan, an increase of 341.4071 million yuan or 41.61% over the balance at the end of the previous year, mainly due to the expansion of production capacity of Ningbo Hangzhou Bay Life Science and Technology Park, Shaoxing Park Phase I Project, and Ningbo Hangzhou Bay Second Park Phase I Project. Kanglong Chemical Is still in the climbing stage, CDMO production capacity has not been fully released, and there is a lot of room for growth of macromolecules and cell and gene therapy services.
stocks. WuXi AppTec Q3 inventory of 4.52 billion yuan, an increase of 68.3% over the end of the previous year, contract assets of 762 million yuan, a total of 5.282 billion yuan for future assets that can be used to recognize revenue, equivalent to a quarter of revenue. Medici Q3 inventory of 69.73 million yuan, an increase of 113.31% over the end of the previous year, contract assets of 27.86 million yuan, a total of 97.59 million yuan. Kanglong Chemical's Q3 inventory was 567 million yuan, an increase of 101.53% over the end of the previous year, one of the reasons was the acquisition of Zhaoqing Chuang pharmaceutical biotechnology co., LTD., increasing consumable biological assets, and obtaining scarce experimental monkey resources.
WuXi AppTec Third Quarterly Report
CXO head companies WuXi AppTec, Kanglong Huacheng, Tigermed, Zhaoyan New Drug, Andying Q3 performance is still excellent.
WuXi AppTec's overseas revenue accounted for nearly 80%, Q3 net profit of 887 million yuan, an increase of 36.23% year-on-year, deduction of non-net profit of 979 million yuan, can be described as amazing, an increase of 87.28% year-on-year, revenue of 5.985 billion yuan, an increase of 30.58%. The volume is already very large, and it can maintain a high growth rate.
Compared to Q2, the number of active customers increased by 420, bringing the total to more than 5,640.
There are three key areas in terms of revenue composition.
Biology business, with a leading DNA coding compound library (DEL), as of the end of the third quarter of 2021, the number of DEL compound molecules exceeded 90 billion, molecular scaffolds 6,000, and molecular blocks 35,000 (how can Chengdu Pilot play unless the scope of the business is expanded). Building new biological capabilities related to new molecular species, revenue in the first three quarters increased by 56% year-on-year, including oligonucleotides, cancer vaccines, PROTAC, vector platforms, and innovative drug delivery systems.
The Cell and Gene Therapy CTDMO business in China grew rapidly, achieving a 223% year-over-year increase in revenue, partially mitigating the impact of the decline in the U.S. business. In terms of service platforms, the company further strengthened its capabilities in the process development and production of cell and gene therapy products, providing testing services for 326 projects and development and production services for 61 projects, including 10 Phase III clinical trials.
The domestic new drug research and development service department (DDSU) achieved revenue of 311.0532 million yuan, an increase of 10.5% year-on-year. This business should be the first time it appears in the financial report and needs to be paid attention to. Many Biotechs in China do not have the ability to develop internally, and need to purchase preclinical candidate compounds (PCCs) from WuXi and package them into their own research and development. WuXi charges a transfer fee and receives a commission from the customer's drug sales revenue in the agreed proportion. The risk of new drug failure was passed on to Biotech, and most of the R&D and production business returned to WuXi. The risk is yours, the benefit is mine, this business model is invincible, but also unequal, it can be said that the CXO head company has mastered the innovative drug industry chain. In the first three quarters of this year, WuXi AppTec completed the IND declaration of 136 projects and obtained clinical trial approvals for 103 projects, and more than 70% of its project clinical progress ranked among the top three similar drug candidates in China.
Medici domestic revenue accounted for 25%, Q3 net profit of 67.8508 million yuan, an increase of 141.67% year-on-year, flat month-on-month, revenue of 301 million yuan, an increase of 74.61% year-on-year, an increase of 11.48% month-on-month, the performance is stable and normal, Q4 needs to complete 90 million profits, in order to reach the average annual net profit expected by the institution of 270 million yuan.
The fund is more obviously grouped on the Medici, with Gülen CEIBS Holding 3,034,138 shares and Zhao Bei ICBC Frontier Medical holding 1,500,000 shares.
The construction project is 108 million yuan, compared with only 100 million yuan at the end of last year, and the production capacity has expanded significantly.
Zhaoyan New Drug Q3 net profit of 94.27 million yuan, an increase of 76.76% year-on-year, an increase of 56.15% month-on-month, revenue of 322 million yuan, an increase of 37.62% year-on-year, flat month-on-month, the performance is very excellent.
Gülen CEIBS Medical holds 13,543,781 shares, and Zhao Bei ICBC Frontier Medical holds 4,200,000 shares. The top ten heavy stocks of ICBC Frontier Medical are all CXO, which is equivalent to a CXO index fund.
The construction in progress was 89.63 million yuan, an increase of 84.31% over the end of the previous year. From January to September, the number of orders undertaken increased by more than 70% year-on-year, and at the end of the reporting period, the amount of orders in hand exceeded 3 billion yuan, providing a strong guarantee for future performance growth.
Kanglong Huacheng Q3 single quarter revenue, net profit, deduction of non-profit all hit a new high, excellent performance.
In the first three quarters, the revenue of macromolecular and cell and gene therapy services was 109 million yuan, an increase of 1570.86% year-on-year. CMC (Small Molecule CDMO) service revenue was 1.223 billion yuan, an increase of 47.39% year-on-year. These two businesses have the greatest room for future growth. The revenue of clinical research services was 664 million yuan, an increase of 60.60% year-on-year.
The balance of contract liabilities increased by 188.8881 million yuan, an increase of 39.91%, mainly due to the expansion of business scale.
Boten shares three quarterly reports
In "The Final Day of the CXO Feast" on May 27, we judged that 2024 will be the inflection point of CXO, and the market will react in advance. Investors are deeply jealous of CXO's cyclical nature and will compare performance quarter by quarter with the most demanding standards.
Judging from the data of the primary and secondary markets, the CXO boom is still continuing, the inflection point has not yet arrived, but there has been differentiation, and Dragon Ball (WuXi Biologics, WuXi AppTec, Kanglong Huacheng, Tigermed, Zhaoyan New Drug, Gloria Ying, Yaoshi Technology) Chinese medicine stone technology has fallen behind, and the expansion of production capacity has always been conservative and has not been fully powered at the best time.
Among the API companies that transformed CDMO, Boteng shares were the first to land, with a net profit of 146 million yuan in Q3, an increase of 15.87% month-on-month, and revenue of 774 million yuan, an increase of 8.56% month-on-month. Sequential growth is the most stringent measure of growth stocks. The global team grew to 3,610, an increase of 975 from the end of 2020. Gene Cell Therapy CDMO business achieved revenue of CNY 10.08 million.
At present, the most successful TRANSFORMATION OF CDMO by API companies is Jiuzhou Pharmaceutical, with a net profit of 198 million yuan in Q3, an increase of 80.39% year-on-year, an increase of 10% month-on-month, and a revenue of 1.136 billion yuan, an increase of 53.97% year-on-year and a month-on-month increase of 12.25%. The key is that the CDMO business accounts for 55% of revenue.
However, most of the CDMO business of API companies accounts for less than 30% of revenue, which is still a cyclical attribute, and the performance of Q3 is unbearable, but it does not know how to guide market expectations, and the growth rate of CDMO may not be slow, and it has not been disclosed separately. The financial reports of WuXi AppTec and Boteng are exemplary and worth learning from these Zhejiang API companies.
THE API CDMO has no experience in developing innovative drugs, and its research and development capabilities are weak, so it is necessary to complete the transformation in the dividend period as soon as possible.