Wen | Hu Wenliu, a weekly magazine of Finance and Economics
Edited | Sun Yue
On December 15, the biomedical sector of the stock market fell collectively. As of the close, Hong Kong-stock WuXi Biologics closed down 19.24%, WuXi AppTec closed down 19.06%, Kanglong Chemical Closed down 15.57%, Rongchang Bio closed down 17.34%, and Jinsrui closed down 11.17%.
The A-share pharmaceutical sector also "dived", and the stock prices of 18 pharmaceutical companies fell collectively, of which WuXi AppTec, the "leading stock in the sector", closed down 10.00%, and Kanglong Chemical, Tigermed and Kyushu Pharmaceutical closed down 7.24%, 8.07% and 7.59% respectively.
The 400 billion "CXO leader" plummeted
On December 15, wuXi AppTec's A-share market experienced a "big turmoil", the stock price closed at 124.02 yuan / share, the total market value of 366.559 billion yuan, down more than 40 billion yuan from December 14, at the same time, WuXi AppTec Hong Kong stocks closed at 130.80 Hong Kong dollars / share, a decline of nearly 20%. In this regard, relevant people from WuXi AppTec told the media that the current operation of the company is normal.
On the evening of December 15, the Dragon and Tiger list showed that among the top ten traded stocks, the top three net sales were WuXi AppTec, Ping An Bank and LONGi Shares, of which WuXi AppTec bought 395 million yuan, sold 1.092 billion yuan, and net sold 697 million yuan.
On the news side, many industry insiders believe that perhaps because of some rumors that "the United States plans to add dozens of additional Chinese companies to the entity list, including biotechnology companies." ”
According to the financial report, WuXi AppTec is a pharmaceutical R&D and production outsourcing company, which is mainly responsible for all processes in the pharmaceutical process, including R&D outsourcing CRO and CMO/CDMO for production outsourcing. It is worth mentioning that the company has always been mainly from overseas customers. In the first half of 2021, the company achieved revenue of 10.537 billion yuan and net profit of 2.675 billion yuan; of which the revenue from overseas customers was 8.035 billion yuan, an increase of 45% year-on-year, and the revenue from Chinese customers was 2.501 billion yuan.
Eight pharmaceutical companies have responded to the rumors
In response to the collective plunge of the A/H share CRO sector, the market has responded to rumors about the so-called "U.S. stock list". On December 15, according to the incomplete statistics of "Finance and Economics" Weekly, in addition to WuXi AppTec, there were 7 relevant pharmaceutical companies in the CRO concept sector of the A-share market that responded to this matter.
Jiuzhou Pharmaceutical Securities Department said that the current company is operating normally, no relevant news has been received, even if as rumors say, the company's US business is basically doing pre-clinical projects, the overall volume is small, and the impact on profits will not be great.
Tigermed Securities said that it has not received official and accurate news for the time being, and if there is news that meets the information disclosure standards, it will be disclosed. In addition, Tigermed's U.S. subsidiary, Fonda, is locally registered in the United States and will not have much impact on the company's business.
Haoyuan Pharmaceutical Board Secretary Office said that it is looking for the reason for the decline in stock prices, and now looking at the relevant statements on the Internet, the first thing that needs to be done is to confirm the authenticity of the news, and then to assess the impact on Haoyuan Pharmaceutical.
Kanglong Huacheng Securities Department said that the company did not receive any notice, the company's overseas income accounted for 80%, but the company did not separately split the U.S. how much revenue, Kanglong Huacheng did not make any estimates of things that had no basis.
Zhaoyan new drug related personnel said that even if there are so-called sanctions, the company's overseas revenue accounts for less than 5%, and the impact is very small.
Boteng securities department said that the relevant news is just a rumor, the company still has to wait for further official news, the United States "sanctions" generally have a list, need to confirm whether the company is on the list; at the same time, Boten shares speculate that the United States to call the so-called "sanctions", may be aimed at the genetic information business, then this will not have much impact on the main business.
Gloria Ying Securities Department said that the company has noticed the above rumors; although more than 80% of the business is overseas, the company is not a biomedical company in the traditional sense, but to provide research and development and production services to biopharmaceutical companies, and the two sides do not constitute a competitive relationship; in addition, it is not easy to measure the relevant impact at present, and everything has to wait for official news.
On December 15, a securities analyst said, "In the past two years, rumors about CXO being sanctioned have appeared many times, but in retrospect, they have not landed, in the end, CXO's business model is still a formal market economy model, so it is completely worrying about inclusion in the entity list." ”
BeiGene "broken hair"
At the same time, BeiGene, which also belongs to the biomedical sector, "broke".
On December 15, BeiGene landed on the Science and Technology Innovation Board, becoming a company listed in the United States, Hong Kong, Chinese mainland. However, shortly after the opening, BeiGene plunged from the initial offering price of 176.96 yuan / share to 155.88 yuan / share, and by the close, BeiGene fell 16.42% to 160.98 yuan / share, with a total market value of 214.874 billion yuan.
For the first day of the break of the BeiGene Science and Technology Innovation Board, industry insiders said that it was "expected", after the new share subscription stage, BeiGene had been abandoned by retail investors for nearly 200 million yuan. In this listing, BeiGene issued 115 million new shares in A-shares, raising 22 billion yuan.
It is worth mentioning that BeiGene is the only biomedical company that Hillhouse has a heavy position and has been running with it for 7 years. According to public information, Hillhouse Capital participated in 8 rounds of financing in BeiGene; as of June 30, 2021, Hillhouse was the third largest shareholder in BeiGene, and Hillhouse and its subsidiaries held a total of 147 million shares in BeiGene, accounting for 12.43% of the total number of issued shares.
Previously, Hillhouse Capital was called the "A-share investment vane" by industry insiders, but it "fled" CXO companies as early as the third quarter of 2021.
In the third quarter of 2021, with the intensive disclosure of the third quarterly reports of various pharmaceutical companies, the market found that Hillhouse Capital withdrew from the top ten circulating shareholders of a number of listed companies in the third quarter, of which several companies that were reduced belonged to the CXO industry. For example, on August 25, Hillhouse Capital withdrew from tigermed's top ten outstanding shareholders; on September 24, Hillhouse Capital continued to reduce its holdings of Fangda Holdings by 21.974 million shares, reducing its shareholding ratio to 4.50%; on September 30, Hillhouse Capital withdrew from the top ten outstanding shareholders of Gloria Britain.
Hillhouse Capital's escape from the CXO track also once triggered extensive discussion in the capital market on whether the CXO industry has ushered in an inflection point; the "break" on the first day of Hillhouse Capital's heavy-duty BeiGene listing also triggered the "A-share investment vane" debate.
Vaccine stocks rose sharply
In addition, in the biomedical field, the secondary market on December 15 also reported good news, and several vaccine stocks rose not small.
As of December 15, the unnamed pharmaceutical tail market straight up touched the limit, closing at 23.45 yuan / share; Kexing Pharmaceutical closed at 30.69 yuan / share, an increase of 5.36%; KangSino closed at 30.41 yuan / share, an increase of 10.77%.
On the news side, Kexing Pharmaceutical has obtained two strains of Omicron virus from Hong Kong, that is, a neutralization test; the latest research results show that one of the strains of Omicron and 48 immune serums vaccinated with the third dose of Kerraf were tested for neutralizing antibodies, and the serum neutralization antibody positivity rate was 94%.
At the same time, on the news side of CanSino, the recombinant new coronavirus vaccine (type 5 adenovirus vector) produced by Shanghai Shangpharm Kangsino Biopharmaceutical Co., Ltd. has recently achieved mass production offline, and 1 dose injection can achieve rapid protection within 14 days. In addition, the company is already preparing for the production of inhaled COVID-19 vaccines.
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