"Investor Network" Xu Hui
Editor Hu Shan
On the official website of the Shanghai Stock Exchange, Lippin Pharmaceutical (Xiamen) Co., Ltd. (hereinafter referred to as "Lippin Pharmaceutical"), an improved new drug research and development enterprise with innovative preparation technology as the core, submitted its prospectus to Science and Technology Innovation Board. Different from ordinary enterprises, from 2019 to 2021 (hereinafter referred to as "the reporting period"), as Lippin Pharmaceutical's main core products are still in the stage of research and development and have not yet been put on the market for sale, the company is still in a state of continuous losses so far. the cumulative loss in three years reached more than 70 million.
"Investor Network" noted that this year, Science and Technology Innovation Board pharmaceutical enterprises, except that Chongqing Zhixiang Jintai Biopharmaceutical Co., Ltd. applied to raise 3.98 billion yuan on June 20, the IPO applications of the whole industry were relatively deserted, while Lippin Pharmaceutical's solvency liquidity ratio, quick ratio, asset-liability ratio (merger) and comprehensive gross profit margin were not as good as comparable companies, after relying on well-known investment institutions to finance blood transfusion. The index of the company's solvency has been significantly optimized.
Lippin Pharmaceutical Co., Ltd. plans to raise 1.2 billion yuan to invest in industrialization base construction projects, improved new drug preparation research and development projects and supplementary liquidity projects. If the fund-raising is successful this time, can it help Lippin Pharmaceutical Industry to break the loss deadlock?
The core products have not been put on the market yet
According to the prospectus, Lippin Pharmaceutical, founded in 2012, is an improved new drug research and development enterprise with innovative preparation technology as the core, and its products are mainly 9 new drug pipelines under development, which is the company's core business. respectively for sleep maintenance difficulties, chemotherapy-induced nausea and vomiting, contrast-enhanced heart ultrasound, contrast-enhanced thyroid ultrasound and other indications. At the same time, the company also produces and sells other generic products that do not involve the core technology and do not serve as the key layout direction in the future, including dapoxetine hydrochloride tablets, amsulfamide tablets, simvastatin capsules and so on.
Research and development progress of main product pipelines of Lippin Pharmaceutical Co., Ltd.
According to the prospectus, from 2019 to 2021, Lippin Pharmaceutical's operating income was 24.1787 million yuan, 56.793 million yuan and 51.1251 million yuan respectively, and its net profit was-9.5129 million yuan,-7.3386 million yuan and-56.446 million yuan respectively. Within three years, the company lost 73.2977 million yuan.
If the products are classified by revenue, the revenue of Lippin Pharmaceutical Co., Ltd. mainly comes from the income related to non-core technology platform and core technology platform.
Income. During the reporting period, the income related to non-core technology platforms was 13.8825 million yuan, 12.8396 million yuan and 31.2276 million yuan respectively, accounting for 88.82%, 86.31% and 77.96% of the total revenue respectively, while those related to core technology platforms in the same period were 1.7479 million yuan, 2.0364 million yuan and 8.8295 million yuan respectively, accounting for 11.18%, 13.69% and 22.04% of the total revenue respectively. According to the company's current revenue structure, although the proportion of revenue from the company's core technology products continues to rise, it is still relatively small compared with the traditional drugs corresponding to non-core technologies.
It is worth noting that nine of the core technology platforms of Lippin Pharmaceutical are developing major product pipelines, and the only one was listed in 2020, which is suitable for "perfluoropropane human serum albumin microspheres for injection" of cardiac contrast echocardiography. the revenue performance after listing is not satisfactory. From 2020 to 2021, the revenue of this product is 969700 yuan and 458800 yuan respectively, accounting for 6.52% and 1.15% of the total revenue respectively. In the same period, the annual production capacity of the product is 200000, but the total sales volume of the product in two years is less than 2000. The capacity utilization rate is only 2.62% and 1.17% respectively, and the production and sales rate is 22.42% and 34.57% respectively.
Production, production and sales of perfluoropropane human serum albumin microspheres for injection
According to the prospectus, the product of perfluoropropane human serum albumin microspheres for injection is not entirely independently developed by Lippin Pharmaceutical Co., Ltd., but by Fuman Pharmaceutical (the predecessor of Lizhuo Pharmaceutical) introduced its new drug certificate and production technology from Nanfang Hospital in 2008. From its introduction to 2017, Fuman Pharmaceutical has not been able to break through the technical problems of industrialization. After Lipin Pharmaceutical acquired Fuman Pharmaceutical in 2017, it used the core technology of gas microspheres to overcome the technical barriers to industrialization and obtained the approval of drug production in 2019. And the product will be listed in 2020.
Lippin Pharmaceutical said that between 2020 and 2021, the issuer and Yangzijiang Pharmaceutical Group Co., Ltd. conducted a MAH attempt on the product, during which it produced and sold the product in small quantities only for the purpose of early promotion, resulting in a low production and sales rate of the product during the reporting period. In 2021, the company terminated its cooperation with Yangtze River and paid 9.2 million yuan in compensation.
In the industry, the contrast-enhanced ultrasound market where perfluoropropane human serum albumin microspheres for injection is located, according to the "2020-2026 China Ultrasound contrast Agent Industry Market Research and Investment Prospect Forecast report" released by Zhiyan Consulting, due to the relatively small market scale and high technical barriers of ultrasound contrast agents, the global market is mainly occupied by foreign companies, and so is the Chinese market. With the progress of ultrasound technology and the improvement of the detection rate of various diseases by high-resolution ultrasound, the market scale of ultrasound contrast agent in China is expected to grow rapidly, which is expected to increase to 1.32 billion yuan by 2025.
Sustainable profitability attracts attention
By the end of 2021, Lipin Pharmaceutical has a cumulative loss of 73.2977 million yuan, and the company expects that it will continue to invest in product research and development in the coming period of time, and may continue to lose money. The company's solvency liquidity ratio, quick ratio, asset-liability ratio (merger) and comprehensive gross profit margin are all at a disadvantage compared with comparable companies. Therefore, investors are concerned about whether the company has sustainable profitability.
According to the prospectus, the data of Lippin Pharmaceutical and comparable companies in the same industry show that in 2021, Lippin Pharmaceutical's current ratio, quick ratio and asset-liability ratio (merger) are lower than the average values of comparable companies such as 688091.SH, 688321.SH and 688176.SH. The asset-liability ratio (merger) is higher than the average of comparable companies.
In response, Lippin Pharmaceutical said, "during the reporting period, the company's current ratio, quick ratio and asset-liability ratio (merger) were worse than comparable companies, mainly because the issuer's paper liquidity was less than comparable companies, and listing financing had not yet been completed. However, due to the completion of round C financing at the end of 2020 and the end of 2021, the solvency index has been significantly optimized. "
It is worth mentioning that Lipin Pharmaceutical has successively introduced more than a dozen well-known investment institutions, including Sequoia Capital, Industrial Bank and Deyi Capital, and conducted four rounds of financing before and after, and the last two rounds of financing took place in 2017 and 2020. The company received 200 million yuan in round B and 500 million yuan in round C. Among them, Sequoia Capital contributed 300 million yuan and is currently the second largest shareholder of the company, with a stake of 14.55%.
In addition, in terms of the comprehensive gross profit margin, during the reporting period, the average comprehensive gross profit margins of the three comparable companies of Lippin Pharmaceutical were 95.81%, 95% and 90.91% respectively, while in the same period, the company's comprehensive gross profit margins were 35.56%, 49.26% and 38.33% respectively, far lower than the industry average.
Lippin Pharmaceutical said that this was due to the structural difference in revenue between Lippin Pharmaceutical Co., Ltd. and comparable companies: "during the reporting period, the company's core research and development of new drug products have not yet formed large-scale sales. The company's operating income is dominated by non-core drug sales and drug R & D service income. On the other hand, the sales income of comparable companies such as microcore biology is mainly from the sales of new drugs, and the gross profit margin is higher.
In terms of policy, at present, the state continues to introduce supporting policies in terms of consistency evaluation and listing licensor system under the guidance of encouraging innovation and attaching importance to clinical value. For example, in June 2020, CDE issued the Technical guidelines for Clinical Trials of Chemical modified New drugs (draft for soliciting opinions), which provides clear clinical trial path guidance for improved new drugs, further clarifies clinical definitions and advantages, and encourages clinical development.
For Lippin Pharmaceutical, how to get a piece of the pie in the highly competitive market is still a challenge. The palonosine hydrochloride buccal film being developed by the company belongs to the CINV drug market. At present, 125drugs have been approved to prevent CINV in China, and the aripiprazole oral membrane for the treatment of schizophrenia has been approved more than 500in China. Doxepin hydrochloride buccal film, which is used to treat insomnia, will also face more than 30 kinds of competitive products in China. Whether Lipin Pharmaceutical can take the lead in realizing economies of scale in the region by raising funds and listing, speeding up research and development, broadening the company's customer base, achieving profitability and sustainable growth, "Investor Network" will continue to pay attention. (produced by thinking Finance) ■