Shiyao Group’s acquisition of “myocardial infarction life-saving needle” behind: The impact of enbipu patent expiration?

Zhongxin Jingwei February 15 (Wang Yuling Yan Shuxin) recently, Shiyao Group announced that it has completed the acquisition of 100% rights and interests of Zhuhai Zhifan from an independent third party, which owns 51% shares of Guangzhou Mingkang Biological Engineering Co., LTD. (hereinafter referred to as Mingkang Biological), and will inject 154 million yuan.It is understood that mingkang Biological independently developed recombinant human TNK tissue plasminogen activator for injection (Note: Mingfule) is also known as the “life-saving needle for myocardial infarction”, mainly used for the treatment of patients with acute myocardial infarction within 6 hours of onset.At the same time, Zhongxin Jingwei found that the core variety of butylphthalide soft capsule (note: Enbipu) and its preparation process of The treatment of cerebral apoplexy owned by Shi Pharmaceutical Group will expire at the end of 2023.Industry insiders believe that Shiyao group’s acquisition of Mingkang biology may be intended to make up for the potential decline in performance after the expiration of Enbipu.In response, Shiyao Group responded to New Jingwei and made a comprehensive plan for the expiration of enbipu patent.How will Shiyao group deal with the expiration of Enbipu patent?Can Ming Fu Le become its next growth point of performance?According to the announcement of Shiyao Group, Mingkang biological was founded in 2000, and the core variety Mingfu was the third generation of specific thrombolytic drugs with intellectual property rights listed exclusively in 2015. The approved indication is 6H thrombolysis for myocardial infarction, that is, the treatment of patients within 6 hours of the onset of acute myocardial infarction.In addition, the indication for thrombolysis in cerebral infarction has been launched in phase III clinical trials in 2021, and more than 1300 patients have been enrolled.Public information shows that since 2000, Ming Kang biological has completed several rounds of financing, the introduction of investment institutions including Kangchen Pharmaceutical, Guangzhou Financial holding, China Branch Investment, rich hui venture capital, etc..It is worth noting that in November 2021, Mingkang Biological’s latest round of financing, the investment institution is Wanlian Guangsheng.In the acceptance of investment is less than three months, Shiyao group announced that the indirect acquisition of 51% of Mingkang biological shares.New jingwei also found that although have “fist products”, but in recent years the performance of The Ming Kang biological situation is not optimistic.According to data provided by health industry data platform ZHONGkang CMH, Mingfora’s sales from 2018 to the first three quarters of 2021 were 6.12 million yuan, 13 million yuan, 7.5 million yuan and 19 million yuan respectively.In addition, according to the enterprise early Warning pass, from 2016 to 2019, Mingkang biological operating income was 3.021 million yuan, 4.992 million yuan, 8.7576 million yuan, 200.286 million yuan;During the same period, the net profit of the company suffered losses of 15.002,600 yuan, 11.137,400 yuan, 26.223,100 yuan and 8.790,200 yuan respectively.Ming Kang biological this prostitution, whether it continues to burn money but not always failed to profit?Mingkang Biological responded to Zhongxin Jingwei that, on the one hand, The sales channels and team of Shiyao Group are very strong, which can help Mingkang biological;On the other hand, Ming Kang biological previously accepted fund investment, Shiyao group belongs to industrial investment, more attention to products and long-term earnings.Huang Peng, managing partner of Tianda Republic hangzhou Office, analyzed to Zhongxin Jingwei that for Biotech r&d companies, they may not be as advantageous as established pharmaceutical companies in terms of distribution channels and methods. Through cooperation, Shiyao group may be able to help Mingkang in product sales.What is the intention of stone medicine group acquisition?Although Shiyao group did not specify the reason for the acquisition in the announcement, but it is widely believed that the reason behind the acquisition of Mingkang biological partly lies in the impending patent expiration of enbipu, the core variety of Shiyao Group.Zhongxin Jingwei found that shiyao group butylphthalide soft capsule and its preparation process will expire at the end of 2023.After the patent expires, will the sales of Enbipu be affected?In this regard, Shiyao group replied to Zhongxin Jingwei that the market does not need to worry too much about the patent expiration of Enbipu. On the one hand, Shiyao Group is constantly expanding the indications of Enbipu, including vascular dementia, neuropathy caused by chemotherapy, etc. On the other hand, Shiyao Group is also applying for related indications patents.”Overall, we are fully prepared for the expiration of the Enbiep patent, and even if the patent expires, we feel that the safety barriers are high, both in terms of generic drug filings and process barriers.”Shiyao group replied.In the announcement, Shiyao Group for the acquisition of Mingkang biological full of confidence, that Ming Fule has good business potential, the acquisition will further strengthen the shiyao group product pipeline, and provide new growth momentum.For the cooperation of the two, Everbright Securities published a research report pointed out that the acquisition of The shares of Mingkang is expected to bring Mingfu into the product line. Overall, the domestic thrombolytic drug market is mainly sold by the first and second generation of products, with obvious advantages of the third generation of products and large replacement space.In addition, Mingfule is expected to have a strong synergistic effect with Enbipu, the core variety of Shiyao Group, to enrich the company’s cardiovascular and cerebrovascular product line, and also move the time threshold of the company’s product treatment of stroke forward.In addition, Zhongxin Jingwei noted that Shiyao Group did not specify the offer price of the acquisition in the announcement, only gave the amount of capital injection after the completion of the acquisition.Shiyao group said to Zhongxin Jingwei, and Mingkang biological signed the relevant confidentiality provisions, the specific amount is not convenient to disclose.In this regard, Huang Peng analysis said, after the completion of the acquisition, Shiyao Group will hold 51% of Mingkang Biological shares, under normal circumstances will be consolidated statements, therefore, from the perspective of consolidated statements, the capital injection of 154 million yuan is equivalent to from the “left pocket” into the “right pocket”.What are the prospects for Biotech?Zhongxin Jingwei noted that on the same day that Shiyao group issued the acquisition announcement, on February 8, Beijing World Trade Tianjie Biotechnology Co., LTD. (hereinafter referred to as Tianjie Biotechnology), mingkang’s “old rival”, also issued a notice that its shares may be suspended from listing.The announcement said that in order to eliminate the risk of termination of listing, the company will promote the related bankruptcy restructuring of its wholly-owned subsidiary, Shimatianjie Pharmaceutical Co., LTD., and plans to complete the bankruptcy restructuring process before February 28, 2022.In 2013, Tianjie issued a public assignment memorandum, in which the company said it was also developing the recombinant human tissue plasminogen activator modification yizhentong.Yizentong has completed phase I and II clinical trials and is expected to hit the market in 2015, the prospectus added.Public information shows that Yizhentong is also a third generation thrombolytic drug, mainly used for the treatment of acute myocardial infarction.According to the Announcement on clinical Trial Completion of Recombinant Human Tissue Plasminogen activator Modification (Yizentong) for Injection released by Tiantian in 2015, as early as June 7, 2011, Tiantian had obtained the Approval for Drug Clinical Trial from The State Food and Drug Administration.Celestials also have high hopes for the drug.However, yizhentong’s journey to the market was one of many twists and turns. Not only was yizhentong surpassed by Mingkang Bio’s Mingfule, but yizhentong’s application for listing was not accepted until February 23, 2018, and was subsequently put into the priority approval process.But I haven’t heard from him since.As two well-known Biotech companies in China, one is going to be acquired and the other is still not listed after years of product development, and even the company may be terminated.Behind this incident, the future trend of “cash burning” Biotech companies also attracted attention from the market.Huang Peng told Zhongxin Jingwei that the current valuation of most biopharmaceutical companies is high, and some may even exist bubbles.A biopharmaceutical company can easily be valued at more than RMB 1 billion if it has first-stage clinical products in its product pipeline (such as cell therapy, gene therapy, etc.).”The investment is still very enthusiastic, the biopharmaceutical imagination is very big, represents the direction of scientific and technological progress.”Biopharmaceutical market valuation is based on market size, ranging from ipo to Phase I to Phase II.”Huang Pengshui.He believes that, in general, the valuation of biopharmaceutical in China is relatively high.However, the research and development cycle is very long, the capital demand is very large, the vast majority of enterprises did not go to the end.(Zhongxin Jingwei APP)(The views in this article are for reference only, and do not constitute investment advice. Investment is risky, so be cautious when entering the market.)Zhongxin Jingwei all rights reserved, without written authorization, any units and individuals shall not be reproduced, excerpted or used in other ways.

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