[National Medicine Vitamin] Nuo Chengjian Hua Cui Yisong: Red Chips A A is a strategic consideration

Editor's note: China's local pharmaceutical companies have long been majoring in generic drugs, and innovative drugs are basically monopolized by foreign companies. In recent years, this phenomenon has gradually been broken, and a number of local innovative pharmaceutical companies are emerging.

With the implementation of the major special implementation of the "major new drug creation" in 2008, the reform of the drug regulatory system in 2015, the 2018 pharmaceutical band procurement, the Hong Kong Stock Exchange allowed unsuccessful biotechnology companies to list, science and technology board, GEM focus on support biomedicine and other policies The implementation of local innovation pharmaceutical companies ushered in more and more development opportunities.

Over the past few years, with the support of the government and capital markets, domestic innovative pharmaceutical companies have embarked on the international stage and gradually harvested the listing and commercialization of drugs.

In early 2020, the new crown pneumonia's epidemic disrupted the operating order of the traditional world, and also highlighted the importance of the biomedical industry and the significance of medical innovation. New drug research and development, clinical trials, can be available, and can be paid. These medical vocabulary is gradually well known by the public.

As witnesses and recorders, the Economic Observer will continue to pay attention to the development and change of the Chinese biomedical industry, and talk about the witnesses and witnesses who talk about this great change.

This article is the eleventh in the [National Medicine Vitamin] series of reports. Dialogue Nuocheng Jianhua Chairman and CEO Cui Yisong.

Reporter Qu Yixian, a reporter from the Economic Observer, on September 8th, Nuo Chengjian (09969.HK) announced that it will issue 265 million RMB shares at the price of 11.03 yuan per share, and the number of shares will account for 15%of the total shares. An innovative pharmaceutical company that returns to A is about to be born.

Compared with the Baiji Shenzhou and Cinda Bio, which are equivalent to the same industry company, Nuo Chengjianhua was established in 2015. It is not too early, but the pace is not slow. It will usher in the first self -developed product to be approved for 5 years. —Orbitinib, and entered the medical insurance catalog after a medical insurance negotiation one year later.

Judging from the attention of the outside world, Nuo Chengjian has a label that cannot be removed -Shi Yigong. Cui Yisong, chairman and CEO of Shi Yigong and Nuocheng Jianhua, met in New Jersey in the United States in the early years. In 2015, he co -founded Nuocheng Jianhua. Shi Yigong is currently the chairman of the scientific advisory committee of the company.

In addition to the listing of science and technology boards, Nuo Chengjian's latest attention was at the end of July. The lymphoma therapy of lymphoma therapy TAFASITAMAB, which was licensed, landed on Ruijin Hainan Hospital in Boao Le City. This medicine is also its second commercialization. product.

In Cui Yisong's view, the introduction of permission is an important supplement, but self -research is still the main choice. The reason why the market is not good at the science and technology board at this time is because of strategic considerations: there are 5 billion yuan in cash in hand, and about 3 billion yuan, which can promote several more clinical projects. The capital market is inaccurate, and "stocking has surplus food" does not panic.

Red chip return to A

Economic Observer: Why is it listed on the science and technology board?

Cui Yisong: Science and Technology Board is an innovation. In the past, the New Third Board of Mainland China was not very active. It was difficult for companies without profit to list in Mainland China because the listing conditions mainly depended on revenue and profit. The real innovation pharmaceutical company has a large investment in the early stage, and it is difficult to meet the listing standards in accordance with the traditional listing rules.

The reason why it is listed on the Science and Technology Board is mainly to upgrade the new drug research and development platform, and the project can be pushed more after financing. The ultimate goal is to benefit more patients. As a company based on China, it should still be listed in China, so that more institutions and shareholders can understand Nuo Chengjian, and our product pipelines are based on China to the world.

In addition, most of our employees are Chinese citizens, listed on the science and technology board, and employees' equity incentive operations are much simpler.

Economic Observer: Your Hong Kong stock IPO has merged 1.8 billion. This time, it is planned to raise 30-4 billion yuan. How to set the price? Are you satisfied with this fundraising?

Cui Yisong: At that time, when IPO in Hong Kong, there were not so many clinical research in the company. Now more and more clinical studies are now higher than the three years of funds in the next three years. The more you invest in the third phase of the third phase, there is a certain amount of funds there, so that you will be confident to ensure the company's sustainable development, and you will not stop studying because there is no money. There may be 3 or 5 after 3 or 5 years. The product is listed.

There are many uses for financing money. The upgrading of the R & D platform, the promotion of R & D projects, and the marketing layout of the R & D platform. We not only have hematoma products, but also two physical tumor products are expected to be listed in two to three years. These require money.

In addition, the financing of the first and secondary markets is now difficult, and some external assets are much cheaper than last year. We can also use Rong's funds to make the company develop faster. Maybe others can't buy it. We can buy it, which is a good time for us.

Economic Observer: Now no matter whether it is Hong Kong stocks or science and technology boards, there are decline in the overall. How do the valuations of the listing now be marked with the listing companies?

Cui Yisong: Everyone's valuation of Innovation Pharmaceutical Company is determined based on expectations. For example, what returns have been returned in 3 years and what are the returns in 5 years. Our project progress is still very good, and there will be more and more projects later.

We position this listing as a strategic listing. The competition of any industry in the process of capitalization is fierce, and this change is also the driving force for change and development. In the end, we must also accept the test of the capital market, and the company will face it actively. All in all, how to develop the outside world is difficult to control, and more importantly, consolidate its own moat.

Economic Observer: Now Hong Kong stocks are at a low point. How can you consider the red -chip A. If the Hong Kong stock is benchmarking the Hong Kong stock? Cui Yisong: We have opened several boards to discuss this. Directors, shareholders and teams have a consensus. This time we are a strategic listing and hope to return to the mainland market. The world situation changes every day, and the entire macro environment is unprepared.

In fact, the current stock change does not reflect the company's fundamentals. Our company has been developing the best since last year. The capital market is developing dynamically, depending on the future. We believe that domestic investment is more active, and I believe everyone is more optimistic about innovation companies.

Economic Observer: The performance of the Hong Kong stock 18A biomedical company in the capital market has been relatively negative since last year. What do you think of this market?

Cui Yisong: The so -called "spring" and "winter" refers to the stocks, which are the "spring" and "winter" of the capital market. China had no new medicine creation before, and it was just started. Therefore, the entire industry did not understand the creation of new drugs. New drug creation itself has great risks. Real innovation companies must have core and their own technical barriers. Every family now says that they want to be the largest biomedical company in the world. This is not a shouting slogan. It is necessary to go step by step, planning and strategic.

The previous capital market is overheating and high valuation, which actually caused a certain waste of resources. Now it is returning to the correct channel. Just like the crops inside the ground, some people who do not have cold are frozen to death. Even if it is frozen to death, it can provide nutrients. If 40%or 50%of companies survive, these companies have their own professional advantages. This is a good thing, indicating that it will slowly develop in an orderly manner after returning.

For Nuo Chengjian, whether it is "midsummer" or "cold winter", we are advancing along our orbit.

commercialize

Economic Observer: What do you think of Obatini's commercial performance in 2021?

Cui Yisong: Obesini was approved on December 25, 2020. When we listed, we actually had two competitive products -Ibetinib and Zabitinib. At the end of 2021, we negotiated and entered the medical insurance. Last year's sales were more than 200 million. Like the initial Ibitinib, the first year was more than 200 million. I think the BTK track is in the benign competitive market, and it is a good result to sell more than two billion yuan.

After the medical insurance on January 1 this year, our sales performance in the first half of the year has exceeded the results of last year. It is expected that the increase in the second half of this year, next year, and the next year will rise straight. The Medical Insurance Bureau and the Health Commission jointly launched a "dual channel" mechanism. Obitinib is a oral medicine, which really benefited from this policy.

Economic Observer: What else do you need to do in this area of ​​hospital access?

Cui Yisong: We can enter the hospital after entering the medical insurance. We are quickly promoting admission. Of course, the speed of entering the hospital is different in every city, and the drug will need to meet. We are generally good to enter the hospital.

The commercialization plan this year is to better penetrate the market, and then sink to the city. In short, it is to implement medical insurance related matters. The dual -channel cities are better. convenient. Before entering medical insurance, commercialization work is mainly concentrated in first -tier and second -tier cities. Now we are thinking about how to enter a more sinking market.

Economic Observer: What are the plans for the expansion of the commercial team?

Cui Yisong: Now our entire commercial team is around 250 people. With the increase of medical insurance sales, more people need more people. In addition, our second product is also settled in Boao. It is expected to submit NDA (new drug listing application) in Mainland China next year. It also needs to prepare a team to determine the expansion speed as needed.

We often do market analysis to see where there is potential and where people need people. Now because the framework has been set up, it is relatively easy to add people in it.

Economic Observer: Because you have the down payment of Bo Jian last year, this year's financial figures will go down. Does this bring pressure on commercialization?

Cui Yisong: Now most of the Hong Kong stocks 18A companies are losing money because innovative drugs need high investment, and R & D expenditure is high. Globally, we have more than 30 studies, and financial losses are mainly due to this. We need to do our best to push the project to the greatest efforts.

We are also doing BD (business expansion), but BD is not signed when we want to sign, sometimes it takes a long time if you ca n’t talk about it. Essence I hope that our BD project will be more and more in the future, try to make each year a milestone.

We still have to make a better plan. This year, Obitinib sales revenue is expected to be much higher than last year. For cash flow, we now have more than 5 billion in pure cash, and the finances are still very healthy. It is not so much that it costs funds.

Economic Observer: Your second commercial product is License-in (licensed introduced). In the future, it will focus on self-research or License-in?

Cui Yisong: The strength of our company is independent research and development, but License-in is a very important supplement.

The advantage of independent research and development is that we can choose the target and make the compound better, just like Obitinib, which we have been listed, we can choose carefully. In addition, the cost is relatively low, and it also has international rights. However, it takes time for the development of new drugs. Generally, a new medicine takes nearly 10 years. We have a very rich pipeline in the field of blood tumors. There are many new drug mechanisms in blood tumors that can treat different indications. We want to introduce good drugs to Chinese patients. The TAFASITAMAB introduced by us can extend the patient from several months to more than thirty months. This is a great improvement, and there is just a combination of medication opportunities with our pipeline.

If we do not have accumulation in the field of hematoma, it is wrong to introduce blindly, but we are already deeply cultivating.

In the future, we will not mainly rely on introduction. The best way is to develop itself. It can be sold in China, which is high. Waiting to the international market or License Out, there may be a lot of profit margin at that time.

Economic Observer: Just after the financing, you may consider doing License in, how to choose the target?

Cui Yisong: Be sure to cooperate with our pipeline. For example, finding a blood pressure -lowering medicine now has nothing to do with our products. It still needs to be related to the disease field we entered. It is better if you can have some combined medicine with our product line.

The most important talent

Economic Observer: You founded Nuo Chengjian with Shi Yigong. Is there any node incident?

Cui Yisong: We have known for many years. It takes many years to build a company for many years.

After graduating from college, I went to the United States to study doctoral and doctoral after graduation. After graduating, I worked in Merck for 14 years. From 2009 to 2010, I was the chairman of the American Traditional Chinese Medicine Development Association. International conferences have given keynote speeches.

At the end of 2010, I decided to return to China. After staying in the United States for more than two decades, although work and life are also good, at that time, I saw that Chinese biomedicine had just started, and I felt that it was time to come back to make some contributions.

In 2011, I returned to China as the general manager and chief scientific official of Bao Nuo Technology. In 2015, the PPD was peeled off the Paulo. I also had other choices at the time. At that time, the domestic innovative drug environment gradually improved. Teacher Shi Yigong and I decided to be a new drug creation company together, so that we can maximize the value of our returnees. Because China was relatively backward in this regard, it was necessary to cultivate better drugs, and we need to train a group of people. We feel that through the establishment of Nuo Chengjian, we can achieve this goal. Teacher Shi can also give the company scientific guidance in the fields of structural biology.

After Teacher Shi founded West Lake University, we communicated every other time. As the chairman of our scientific consultant committee, Teacher Shi is not responsible for the company's daily implementation. The technical aspect will give scientific guidance, or when encountering scientific problems will help recommend relevant experts. This is also what we need.

Economic Observer: Back to Nuo Cheng's 7 -year entrepreneurial business, what is the most difficult thing you have experienced?

Cui Yisong: There are many difficult things. In a large company, the commercial team is a big team, but in a startup, a person has to do a lot of things and have no chance of trying and error.

From the source innovation, clinical research to production, every kind of difficulty is different. Just say marketization, how to enter the hospital, how to enter the medical insurance, how to implement the medical insurance, and how to train a doctor, every step must overcome difficulties, and everything is a challenge.

7: 00 ~ 9:00 in the morning is the time I often discuss things with the US team, talk about clinical clinical, BD, and partners. I often discuss with our commercial team because they are outside during the day. How about the sales performance on this day?

Economic Observer: People, pipelines, money, which one do you value most?

Cui Yisong: I still think it is a person, because our team is relatively senior, in every aspect, and all the foundations are people. Only when people are in place can there be a pipeline. the most important. We spend a lot of time in team recruitment and training, and it will be troublesome to find a person, but the platform is also important. Sometimes it is no matter how good people are. I have been thinking about how this platform makes people exert potential.

(Intern Mao Zhicheng also contributed to this article)

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