Single products focus on coronary disease treatment!Can this company can IPO by relying on the drug to elute the balloon?

The structure of Yiyi Biological Products is relatively single, and 90 % of the income is derived from the drug culinary cylinder. At the same time, the production of this product has high requirements for raw material performance, and the core suppliers are concentrated overseas

"Investment Times" researcher Zhuo Yi

In modern clinical medicine, heart bridge and stent surgery have become one of the most effective ways to treat coronary heart disease. In addition, there is a treatment method of small trauma, non -foreign body implantation -the drug culinary cylinder.

Drug -eluing balloon is a new technology that combines ordinary balloon expansion and targeting drugs. As an internal treatment method that does not rely on brackets and can achieve local arteries to obtain effective drug concentrations, the drug eluing balloon reduces the risk of stenosis from multiple angles.

In the global market, Midunli, Boston Science, German Bellang, and Germany are the main manufacturers, and domestic manufacturing is still in its infancy.

As a high -tech enterprise in the field of domestic vascular intervention medical devices, Liaoning Yiyi Biotechnology Co., Ltd. (hereinafter referred to as Yiyi Biotechnology) focuses on the field of interventional therapy of coronary arterial disease (coronary heart disease). In 2017, the company independently developed the first domestic non -polymer carrier with the coronary arteries metal stent system, and the first international approved light boat culinary cylinder approved for the original coronary split lesions. The technical leader of my country's new generation of drug stents and coronary drug elution balloon.

On June 27, the Shenzhen Stock Exchange officially accepted the listing request of the Yiyi Biological GEM. In this IPO, the company plans to publicize the shares of not more than 50.34 million shares, and it is planned to raise funds of 1.678 billion yuan. Supplement of mobile funds.

"Investment Times" researchers noticed that the sales volume increased rapidly after the listing of Biyi Biological products, and its sales volume ranked first in the domestic market in 2021. However, the company's product structure is relatively single, and 90 % of the income originated from the drug centers. The production of this product has high requirements for raw material performance, and the core suppliers are concentrated overseas. In addition, affected by the "band -volume procurement" and "two -vote system" policy, its distribution model is hidden. Can Yiyi Bio rely on star single drugs to elute the ball pockets to smoothly IPO?

Single product structure

Researchers in "Investment Times" reviewed the prospectus and found that in 2019, 2020, and 2021 (hereinafter referred to as reporting period), the operating income of Yiyi Biotechnology was 253 million yuan, 363 million yuan, and 617 million yuan, respectively, and net profit was 84.41 million yuan, respectively. , 115 million yuan and 272 million yuan, operating income and net profit have increased significantly.

The company's revenue mainly comes from coronary drug eluing balloon products and balloon expansion catheter products. The total income of these two products accounts for 92.94%, 97.08%, and 99.60%of the main business income. Among them The main business income ratio was 68.38%, 82.55%, and 93.14%, respectively, and the proportion increased year by year.

According to the prospectus, the drug to eluted balloon is an innovative treatment plan for the treatment of coronary artery disease. During surgery, the small wounds of the patient's wrist or thigh root are sent to the lesions of the coronary arteries of the heart, and the drugs that are attached to the surface of the balloon on the surface of the balloon can be attached to the lesion. Excessive hyperplasia of the endometrium, effectively suppress or reduce blood vessel stenosis. After the treatment, the balloon pipe is withdrawn from the body, and the patient does not leave foreign objects in the body, so as to achieve "intervention without implantation".

However, the cost of drug balloon is expensive, and the cost is close to 20-30 stents. Beginning in December 2020, local alliances have successively organized coronary drug eluing balloon concentrated band -in procurement, which has been basically implemented nationwide. The core of the volume procurement policy is to "exchange price", that is, manufacturers reduce prices, and medical institutions guarantee procurement dosage.

The volume procurement policy has achieved significant results. During the reporting period, the average sales price of drug -eluting balloon products decreased all the way, from 8010.98 yuan/piece in 2019 to 4583.11 yuan/piece in 2021, the average price was almost halved.

In the future, with the continuous advancement of the "volume procurement" policy, the risk of impact on the decline in the price decline after the product has not won the bidding or the bidding of the product will have a adverse effect on the profitability of Yiyi creatures.

At the same time, the company also has the risk of income relying on single products. The price of drug elution balloon products has fallen, product sales are expected to increase, and market competition is more intense. In the future, if the biological creatures cannot deal with market competition well, product demand fails to reach the expected level, and the expected income and profits will not be achieved. If the diversified product portfolio of the biological reserves of Yiyi Yiyi has not been successfully listed, the income will continue to rely on the above products, which will adversely affect the company's operation and market competitiveness.

Sales, sales revenue and average price of biopharmaceutical to eluing balloon products

Data source: company prospectus

Core suppliers are concentrated overseas

From the perspective of the corner of the medical device industry chain, the production of products and other products such as drug elution ball pockets has high requirements for the performance and process stability of raw and auxiliary materials. Some raw materials such as Haro pipes, internal pipes, external pipes and other pipes need good strength, and they need good strength. Plasticity, biocompatibility and corrosion resistance, and some raw materials are customized materials, and must be customized to suppliers according to the characteristics of the product and process requirements. At present, there is no mature application -oriented raw material supply system in China. Due to quality assurance, cost, and availability considerations, Yiyi Bio is mainly purchased from countries such as Ireland and other countries, and the number of suppliers is limited.

Specifically, during the reporting period, the main raw material suppliers of Yiyi Bio were concentrated in overseas countries, and the proportion of procurement of the five major suppliers in the top five was 68.76%, 69.05%, and 59.09%, respectively. Essence

If the changes in the international economic and trade field will intensify in the future, further restrictions on the implementation of the above raw materials including trade ban and export restrictions, the risk of qualified suppliers that cannot be switched to replacement in a short time in a short time, and then generate the company's operations. It must have an impact.

Concentration of suppliers is also a potential hidden danger. If the operating conditions of the major suppliers worsen in the future, or the business relationship between suppliers and the company's business has changed significantly, or the cooperation relationship with the supplier is adversely changed, it makes the supplier fail to timely The supply of qualified raw materials will also adversely affect the company's production and operation.

In addition, during the reporting period, the raw materials of Yiyi accounted for 70%of the inventory, and the inventory turnover rate was 0.90, 0.87 and 0.86, respectively, which was decreased year by year. Half of the level of inventory turnover rate, specifically, reflects the slow rotation speed of the biological inventory of Yiyi, and the operating efficiency of enterprises is lower than the industry average.

Visible distribution model

The coronary vascular intervention in the equipment market is fiercely competitive. The "volume procurement" policy has reduced the price of product prices. If you want to maintain a high level of profitability, Yiyi Bio needs to make efforts in sales to expand sales and service networks.

During the reporting period, the proportion of sales revenue from the distribution model from the distribution model increased year by year, and the proportion of 2021 reached 80 %. It mainly relies on the profit of the distribution model. The stability of the dealer is crucial to the continuous development of the business. In July 2019, the General Office of the State Council issued the "Reform Plan for Governance of High -value Medical Consumption", which requires encouragement to encourage localities to reduce the circulation of high -value medical consumables in accordance with the actual situation of the "two -vote system" policies. Under the "two -vote system" policy, the role of biological dealers who are affected by the policies have changed, becoming a distributor, and no longer assume the responsibility of the hospital marketing.

On the one hand, in the future, Yiyi creatures cannot maintain their cooperation with existing dealers, or have cooperative disputes with dealers, or improper sales or after -sales service in the dealer, or the existing dealer's sales will be reduced, or the development of the dealer will not be able to develop. The new dealer, may not effectively manage dealers, will have a certain impact on the company's business, brand, and business conditions.

On the other hand, with the gradual implementation of the reform of the medical and health system and the gradual implementation of the "two -vote system" policy, the role of dealer's role will increase, which will increase the difficulty and cost of market development of Yiyi. The impact of the decline in product prices will adversely affect the company's profitability.

Yiyi biological distribution model income and proportion

Data source: company prospectus

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