Recently, the information disclosed by the Shanghai Stock Exchange shows that Changfeng Pharmaceutical Co., Ltd. (hereinafter referred to as "Changfeng Pharmaceutical") and its sponsor CITIC Securities withdrew their listing application documents. As a result, the Shanghai Stock Exchange has decided to terminate its review of its initial public offering and listing on the STAR Market.
According to Beduo Finance, Changfeng Pharmaceutical submitted a prospectus in June 2023 and is preparing to be listed on the Science and Technology Innovation Board. In this sprint listing, Changfeng Pharmaceutical originally planned to raise 1.5 billion yuan, which will be used for new projects such as the production of inhalation preparations, drug research and development projects, and inhalation preparation research and development laboratory construction projects.
In January 2024, Changfeng Pharmaceutical also replied to the first round of inquiry letters issued by the Shanghai Stock Exchange, which covered 20 categories of issues such as the positioning of the Science and Technology Innovation Board, R&D pipeline layout, sales model, R&D expenses, control, operational compliance, equity incentives, and continuous losses.
Tianyancha App information shows that Changfeng Pharmaceutical was established in January 2013 and is located in Suzhou City, Jiangsu Province. At present, the registered capital of the company is about 371 million yuan, the legal representative is Liang Wenqing, and the shareholders include Suzhou Lingtou Investment Management Enterprise (Limited Partnership), Suzhou U.S.-Zhongrui Investment Management Enterprise (Limited Partnership), Shuanglu Pharmaceutical, etc.
According to the prospectus, Changfeng Pharmaceutical focuses on the research and development, production and sales of drugs in the field of respiratory diseases. Changfeng Pharmaceutical said in the prospectus that the company has built a rich R&D pipeline of inhalation preparations in a number of therapeutic areas with high clinical needs such as asthma, COPD, and allergic rhinitis.
According to reports, Changfeng Pharmaceutical has 3 listed products, 12 main products under development, and 19 other products under development. Among them, the company's self-developed budesonide suspension for inhalation was approved for marketing in May 2021, and in June 2021, it was selected for the fifth batch of national centralized drug procurement, which has covered more than 8,000 terminal medical institutions since its launch.
At present, Changfeng Pharmaceutical has listed 3 varieties of inhalation preparations, and has a series of inhalation preparation research projects such as arformoterol nebulization solution for inhalation, terbutaline sulfate solution for inhalation, salmeterol ticasone inhalation aerosol, mometasone furoate nasal spray, tiotropium bromide powder aerosol, etc.
In 2020, 2021 and 2022, Changfeng Pharmaceutical's revenue will be 4.8588 million yuan, 41.9857 million yuan and 349 million yuan respectively, the net loss will be 405 million yuan, 132 million yuan and 49.3992 million yuan respectively, and the net loss after deducting non-profits will be 154 million yuan, 140 million yuan and 49.5891 million yuan respectively.
When prompting the risk, Changfeng Pharmaceutical said that due to the large number of products under development and high R&D investment, the profits generated by product sales may still not cover R&D investment in the short term. If the commercialization of the approved products is not as expected, and the subsequent products under development cannot be approved for marketing as expected, the company may continue to be unprofitable or the accumulated uncovered losses will continue to expand.
According to Beduo Finance, the Shanghai Stock Exchange asked Changfeng Pharmaceutical in the first round of inquiry letters to explain the status and role of the inhalation device in the research and development process of inhalation preparations, whether it belongs to the core link and core technology, and the reason for the inconsistency in the disclosure of the importance of the inhalation device in the company's two application materials.
At the same time, Changfeng Pharmaceutical is required to explain the specific embodiment of its mastery of inhalation device R&D, production and other technologies, and whether the company's independent research and development of inhalation device related preparations is still in the small-scale/pilot stage, and whether it can verify that the company has the ability to develop and produce inhalation devices.
Explain the progress and achievements of the research and development of tiotropium bromide inhalation powder aerosol, and clearly state whether it has met the requirements of the relevant assessment indicators of major scientific and technological projects, if not, please explain the reasons, how to reflect their core technical strength through participation in major national scientific and technological projects, etc.
With regard to the VAM agreement, Changfeng Pharmaceutical, the actual controller and other shareholders signed a VAM agreement to stipulate the operation and management of the company, and the relevant agreement has been cleared up. In this regard, the Shanghai Stock Exchange required Changfeng Pharmaceutical to explain the agreement and actual implementation of the VAM agreement on matters related to the company's operation and management, and the impact on the control rights.
Prior to this listing, Liang Wenqing and Li Li jointly controlled 27.2536% of the equity of Changfeng Pharmaceutical through Suzhou Lingtou, A.S.-Zhongrui, Minmei Investment, Suzhou Warren and Suzhou Yuanchen, and the nominated and elected directors accounted for the majority of the board seats and were the actual controllers of the company. Among them, Liang Wenqing is the chairman and general manager of the company, and Li Li is the director and chief scientist.
Regarding the continuous loss, Changfeng Pharmaceutical is required to quantitatively analyze the reasons for the company's continuous loss and the unmade loss at the end of the reporting period, the impact of budesonide suspension for inhalation on its profitability after entering centralized procurement, and whether the company's working capital can meet the needs of daily operation and repayment of loans in combination with the analysis of relevant indicators such as monetary fund balance and debt repayment ability.
At the same time, Changfeng Pharmaceutical is required to analyze the level of the main operating factors that need to be reached when reaching breakeven, and whether the company has the ability to continue to operate, based on the market space of listed drugs, the competitive landscape, the possibility of centralized procurement and subsequent procurement, the R&D progress of the pipeline under development, the drug promotion plan, and the expenditure planning of various expenses.
Previously, Changfeng Pharmaceutical had applied for listing on the Science and Technology Innovation Board, and the previous application materials disclosed that the inhalation device was the core of the research and development of inhalation preparations, and the current application materials disclosed that the inhalation device was the focus of research and development, and the previous application materials did not indicate that the inhalation device basically came from direct external procurement or outsourcing research and development.
In this regard, the Shanghai Stock Exchange required Changfeng Pharmaceutical to comprehensively sort out the information disclosure content of the two application materials, whether there are major differences and obvious inconsistencies in the disclosure of business, technology, financial information and other contents, and explain the reasons.