Following WuXi AppTec (A+H) and WuXi Biologics, WuXi Giant Nuo became the third listed company in the WuXi series.
Text | Ren Xueyun
Edit | Shang Wenduo
The listing is the peak, with Simcere Pharmaceuticals before it, and Xiaoxinuo, Pharmaceutical stocks start to ebb?
WuXi Giant Nuo (02126.HK) was officially listed on the Hong Kong Stock Exchange today with an issue price of HK$23.80 and a market value of approximately HK$9 billion. The opening price of the day was 24.35 Hong Kong dollars, and then the stock price rose first and then fell. As of press time, it fell by about 7.5% to 22 Hong Kong dollars.
WuXi is the third listed company, 448 times oversubscribed
According to public information, WuXi Biopharmaceuticals was established in 2016. It is a biopharmaceutical company focusing on cellular immunotherapy. It was jointly established by WuXi AppTec and U.S. Biopharmaceuticals. Juno holds 50% of WuXi Juno’s equity.
In recent years, WuXi Department has begun to accelerate its capital market layout. In 2017, WuXi Biologics completed the Hong Kong stock listing. In 2018, WuXi AppTec was listed on A+H shares. WuXi Giant Nuo is the third listed company in WuXi after WuXi AppTec and WuXi Biologics.
In the November 2nd placement, WuXi Giant Nuo received a 448 times oversubscription. The core push behind the popular subscription Power Source is blessed by well-known investment institutions.
According to public information, in March 2018 and June 2020, WuXi Giant Nuo conducted A and B rounds of financing respectively. Investors include well-known institutions such as Temasek, Sequoia China, Yuanhe Holdings, Zhengxin Valley Innovation, China Resources Chia Tai, etc., with a total financing amount of US$190 million.
According to the prospectus, among the shareholders of WuXi Juno, Juno holds 26.09%, WuXi AppTec holds 14.20%, Temasek holds 8.42%, Uric and Syracuse Cayman under Dr. Liu Cheng Holding 16.12%.
Cellular immunotherapy, who will die in the future?
From the perspective of financial data, WuXi Giant Nuo has not yet formed its main business income as no products have been approved for listing.
According to the prospectus, its losses in the first half of 2018-2020 were 273 million yuan, 633 million yuan, and 650 million yuan, respectively, and R&D investment was 75.989 million yuan, 136 million yuan, and 82.26 million yuan. The year-on-year growth of R&D expenses in 2019 and the first six months of 2020 was 78.95% and 57.41% respectively.
As it is still in the “burning” stage, WuXi Junuo said that it expects to continue to lose money in the future.
From the product level, WuXi Biotech’s current pipelines all come from License in. According to the scope of indications, it can be divided into two parts: hematoma products and solid tumor products. Including autologous CAR-T therapy relma-cel targeting CD19 antigen, autologous CAR-T product JWCAR129 targeting BCMA, preclinical stage and autologous TCRmT cell therapy JWATM203 targeting AFP to treat HCC, etc.
Among them, relma-cel has been accepted by the State Food and Drug Administration as a third-line therapy for DLBCL, and will be included in the priority review of new drug applications in September 2020, which means that relma-cel is expected to be the first approved in China A type of biological product CAR-T therapy.
For WuXi Junuo’s first-day break, according to industry analysts, it is mainly because of the strong uncertainty in the cellular immunotherapy market.
Based on WuXi Juno’s own point of view, in July 2016, WuXi Juno’s technical responsibility-the head product of US Juno, JCAR015, caused two leukemia patients in a phase II clinical trial. The toxic effect died and was immediately stopped by the FDA.
In addition, the domestic cellular immunotherapy market is highly competitive. Take the CAR-T product pipeline targeting CD19 as an example, Fosun Pharma’s Fosun Kate CAR-T products submitted the registration application earlier than Relma-cel of WuXi Giant Nuo.
At the same time, Galactic Creatures, Hengrun Dasheng, Precise creatures The CD19 CAR-T products of companies such as Keji Pharmaceutical and other companies are also in clinical trials.