One specialization and multiple functions, the industrial value ofshengnuo biotechnology with peptides as the core is not only the exchange of time for space

On June 6, Chengdushengnuo biotechnology ushered in the lifting of the ban on some shares. For the high-yield Sci-Tech Innovation Board, opportunities and risks are full of more games. In the 1 year thatshengnuo biotechnology was listed, its corporate development and business map have undergone multi-dimensional changes. Therefore, a clearer understanding of the current situation of the company has become the premise for us to enter the market.

Deeply cultivate subdivisions and highlight competitiveness

shengnuo biotechnologytechnology was established in 2001, a national high-tech enterprise, the main business is the research and development, production and sales of peptides and peptide-related products. He has won many honors such as Sichuan Polypeptide Drug Engineering Technology Research Center and Sichuan Province Major Scientific and Technological Achievement Transformation Project Demonstration.

Before the listing, APIs, preparations, and CDMOs were its core businesses. APIs mainly included bivalirudin, somatostatin, thymosin, eptifibatide, and liraglutide, etc. There were many types of preparations, covering reproductive , acromegaly, HIV, chronic hepatitis B and other fields.shengnuo biotechnology has been providing CDMO services for peptide innovative drug companies since its establishment.

The picture comes from the official website of shengnuo biotechnology

In the year after its listing,shengnuo biotechnology has broadened its industrial track. First, it seized the concept of new crown drugs and acquired a patented technology of Aoda Bio for 65 million yuan. This technology will be used to develop a peptide new crown specific drug for the treatment and prevention of various coronaviruses including the new coronavirus (2019-nCoV);

the second is the layout of the medical and aesthetic industry, one of which is through a wholly-owned subsidiary The company Shengrong Netac subscribed for the new registered capital of Guangzhou Shengjing Shangmei Biotechnology Co., Ltd. Shengjing’s main business is the research, production and sales of peptide medical beauty products, and the provision of services, and shengnuo biotechnology will also supply raw materials for it in the early stage. ;

The second is the subscription of the newly added registered capital of Chengdu Gechun Biopharmaceutical Co., Ltd. Chengdu Gechun’s main business involves APIs, pharmaceutical intermediates, cosmetic raw materials, authentic Chinese medicinal materials research, natural product extracts, etc.

The multi-segment layout is the embodiment ofshengnuo biotechnology’s pursuit of extending the peptide industry chain: APIs and preparations are the basis, CDMO is the endorsement of industrial strength, and the new crown concept and medical beauty track are new growth points for incubation in the current environment . At the same time, it reflects the competitiveness ofshengnuo biotechnology, which is different from its peers in the industry, and reflects the leading role of industry leaders in promoting subdivisions.

In the post-epidemic era, R&D “does not lie flat”

QYResearch has calculated and predicted that the future peptide drug market will grow at a compound annual growth rate of 7.9%, reaching a market size of 35.8 billion US dollars in 2021 and 49.5 billion US dollars in 2027. The peptide drug market still has huge room for growth.

However, my country’s peptide industry started late, and domestic peptide drugs are still far behind developed countries in terms of preparation varieties and market scale. For domestic peptide pioneers, the field of peptides is both a blue ocean and a land of thorns.

In the early stage of development,shengnuo biotechnology started with the varieties of polypeptide generic drugs. After several years of accumulation, it has gradually acquired the large-scale production technology of raw materials for many varieties, and has won several domestic production approvals and US DMF filings, and based on the existing achievements. Carry out extended development of it, and make breakthroughs in the completion of generic APIs that are difficult to synthesize. With the advancement of time and the maturity of the time,shengnuo biotechnology turned its attention to the strategy of new crown special drugs.

In the post-epidemic era, China has not yet entered the “lie-win stage”. Under the influence of the concept of coexistence with foreign countries, more stringent anti-epidemic requirements were once put forward to us. For a time, the new crown special medicine has become a “sweet pastry” in the eyes of investors. This industry, which is related to the rise and fall of the nation and has high commercial value at the same time, has attracted many companies. At present, no less than 10 domestic companies are working on the new crown special medicine track, but after Pfizer, there is no listed company.

The patent authorization granted by shengnuo biotechnology: a broad-spectrum coronavirus membrane fusion inhibitor and its drug use

(Image source: State Intellectual Property Office official website)

In 2022,shengnuo biotechnology announced its entry into the new crown race with the transfer of the patent of Aoda Bio’s anti-new crown virus polypeptide drug. According to relevant information, this patent will be used to develop a nasal spray-type peptide specific drug for the new crown. The project plans to apply for China’s clinical approval by the end of 2022. It is estimated that it will take 2-3 years to complete the project, and the total investment is expected to be RMB 1.75 billion.

For the pharmaceutical industry, research and development has never been an easy task. The long cycle and high investment are full of a lot of uncertainties, which discourages many companies. It can be said that R&D is not only a test of the strength of pharmaceutical companies, but also a breakthrough in the value of the company itself. Under the current situation, the special medicine for the new crown is not only a rigid demand for anti-epidemic, but also bears the heavy responsibility of national development. The importance of mastering the special medicine for the new crown with independent property rights is self-evident. Forshengnuo biotechnology, this is an expansion of the track, and it also shoulders the corresponding mission of the times.

In the same year,shengnuo biotechnology entered the medical beauty industry and expanded the application of peptides to the fields of peptide medical beauty products, services, cosmetic raw materials, authentic Chinese medicinal materials and other fields in the form of subscription. As far as the existing domestic peptide medical beauty market is concerned, its cognition still generally stays in the anti-wrinkle and anti-aging effects, and the products are relatively chaotic and lack head products. In this context, there are three main concerns forshengnuo biotechnology’s entry into the medical aesthetics industry: 1. Being a professional background, it plays a role in standardizing, improving and promoting the peptide medical aesthetics industry; 2. Promoting the wider application of peptide products in the medical aesthetics field , to bring new prosperity and new growth to the medical beauty industry, and seize the opportunity for dividends; 3. The track belongs to the emerging people’s livelihood category, and the sense of corporate responsibility is fully reflected, and it is expected to be blessed by policies.

Looking at the “Barometer” of Enterprise Operation from the Financial Report

shengnuo biotechnologytechnology’s 2021 annual report data: the company achieved operating income of 387 million yuan, a year-on-year increase of 2.05%, and a net profit of 61.2528 million yuan, a year-on-year increase of 2.09%.

2022 Q1 quarterly report data: The company achieved operating income of 80.7448 million yuan, a year-on-year decrease of 13.44%, net profit of 14.2929 million yuan, a year-on-year increase of 22.64%, and basic earnings per share of 0.18 yuan.

From the “barometer” of enterprise operation, affected by the national centralized procurement,shengnuo biotechnology’s revenue has declined slightly, but the profit side has maintained steady growth, stable operating efficiency, and good profit potential.

Behind the attention of a stock, there are often many components that cannot be quantified but worth noting. With the arrival of the lifting of the ban, various institutions will enter the game, but its industrial value and track potential still exist objectively. What we should think about is whether it is a good opportunity for investors to intervene and deploy? The so-called road is long, and the scenery should be long-term.