[Transfer] Who can laugh at the end of 10 billion BIOTECH equity assets?

[Transfer] When CXO encounters a downward cycle: tens of billions of BIOTECH equity assets, who can laugh at the end?

Source: amino observation/Huang Kai

Teacher Zhou Jintao said that his life rely on Kangbo.

For CXO, the biggest Kangbo in the past two years is the innovative drug cycle: not only the original business has made a lot of money, but also opened up a "immediate" income business and invests in innovative pharmaceutical companies.

In the past two years, CXO has been expanding its investment map. It is a highlighting moment for CXO to continue to appreciate.

Typical such as Tiger Pharmaceutical, in 2021, he invested "profits" 2.127 billion yuan, accounting for 62.7%of the total profit.

As of the end of the first quarter of this year, the non -current financial assets on Tiger's medical accounts had reached 9.184 billion yuan, and Yaoming Kant also reached 8.565 billion yuan.

However, it is impossible for any industry to continue, and the biotechnology industry is no exception. Right now, the global biotechnology industry has entered a downward cycle, and it has become the norm of biotechnology companies.

This is not a good thing for CXO with a large proportion of investment business. CXO's main business can be kept in drought and flood, but the investment business cannot be. Once the market declines, the value of equity has shrunk, and the assets of investors need to make corresponding "impairment".

Nearly 10 billion equity assets, the only suspense in this CXO leftovers is how big the impact is and whether it will affect the valuation of CXO.

/ 01 /

One year "profit" exceeds 2 billion, investment is more profitable than "selling water"

The wave of innovation is turbulent. Domestic CXO players are no longer satisfied with the money that only "sells water", but directly end the "mining mining" to earn money from the growth of innovative pharmaceutical weapon companies through investment.

Whether it is Pharmaceutical Kant or Tiger Medicine, these CXO and even pharmaceutical companies' investment maps are very vast. According to statistics, there are more than 300 companies in Tiger Pharmaceutical Investment ...

This is also reflected in its rapid expansion of non -current financial assets (including non -listed companies, funds, etc.). As shown in the figure below, at the end of 2017, Tiger's non -current financial assets were only 966 million yuan, and by the end of 2021, it had increased to 8.746 billion yuan.

Like the first -level market investment, the fair value changes of pharmaceutical companies will also become a rich source of profit for CXOs. In the market enthusiasm period, compared with the "selling water" business, investment money is better profitable.

In 2021, Yaoming Kangde's investment income, fair value changes and income of asset disposal of 1.527 billion yuan, a year -on -year increase of doubled. After the significant increase, the company's investment income accounted for 29.73%of the net profit last year.

Of course, compared to Tiger Medicine, this is still a small witch. In 2021, Tiger's fair value change income was 1.815 billion yuan, and investment income was 312 million yuan. Cumulative investment revenue of 2.27 billion yuan, accounting for 62.7%of its total profit.

In other words, the profits generated by Tiger Pharmaceutical Investment are almost twice the net profit of the main business. In 2021, its non -net profit was only 1.232 billion yuan.

CXO's investment is nothing more than using equity binding to better undertake BIOTECH's research and development outsourcing orders. But in the face of such a profit structure, you may no longer distinguish whether the main business of CXO is "selling water" or investing.

Faced with a large increase in investment income in 2021, Tiger Medicine said:

The company will continue to invest and incubate early biotechnology and medical device companies with potential to promote its development. On the basis of gaining potential investment income, it can also obtain potential customers and business opportunities.

It is not difficult to see that in the eyes of Tiger Medicine, investment income is the basis, and the second is to obtain customers' business orders. Rather than saying that it is a CXO company, it is better to say that the investment company is more suitable.

/ 02 /

Can't dodge the downward cycle, CXO earns a big loss from blood

The reason why CXO is highly sought after by the market is not only clearing the logic of growth, but also in the dazzling business model.

Traditional CXO relies on projects to undertake innovative pharmaceutical companies, or change the medicine from the molecular form formula in the computer to a real thing, or to promote the clinical to earn the first fee. In short, it is a "service fee".

This also means that even if the risk of innovative drugs has a large risk, it will not affect CXO companies. Drought and flooding and stable cash flow. This is a good business in the eyes of many investors.

Coupled with the strong assistance of the investment business, the valuation of Tiger Medicine last year was nearly 90 times, and Yao Ming Kangde was close to 170 times, which was called CXO highlight.

However, when the sale of the sailors becomes a golden customer, CXO is directly exposed to the risk of failing to develop the failure of innovative drugs.

Since last year, the global biotechnology industry has entered a downward cycle. Biotech is the first time, and the stock price has fallen. This will also affect the domestic batch of high -investment business accounts for CXO or pharmaceutical companies.

Although the impact is not necessarily the moment. Most of the financial assets of CXO are equity of non -listed companies. As long as these assets are not listed, or lower valuation financing, there may not be a significant impairment of assets for the time being. But the impact still arrived quietly.

For example, Yaoming Kant. In the first half of this year, Yao Ming Kangde's expected investment income was 449 million yuan, and the number in the same period last year was 2.049 billion yuan. In other words, it is also half a year, and the money made this year is about 1.6 billion yuan less than last year. Nevertheless, Yao Ming Kant is still lucky. In such a tragic market, it is already very good to have "floating profit". The worst thing is that the company has begun to "lose money."

For example, Kang Long turned. In the first half of this year's performance trailer, Kang Longhua was listed and the fair value of the equity investment of non -listed companies was 80 million yuan.

There are also Tiansi who are also "losses". According to the preview of the performance, Tasse has a non -net profit of 446 million yuan to 508 million yuan in the first half of the year, and the net profit is 420 million yuan to 350 million yuan. There is no reason behind it: the fair value of the financial assets of investment declines.

For CXO, which is more aggressive in investment business, the blow from investment business may have just begun.

/ 03 /

Where is Kangbo and Kangbo, which is the way to go?

Of course, you may say that everything is cycle, what is strange for biotechnology companies' stock prices?

indeed so. Looking at overseas, the biotechnology industry has been twists and turns, but it has not changed the trend of continuous upward. A number of innovative pharmaceutical companies including regeneration yuan, and after the wind and rain, finally achieved transformation.

But looking back at the development of the overseas biotechnology industry, Biotech, which can stand out, is a minority. Just like the development of innovative medicines, nine deaths. In the market downside, Biotech sells body and bankruptcy liquidation.

Different from traditional companies, even for many years, once the new opportunity is seized, there is still a chance to turn over salted fish. The reason is that even if it cannot grow rapidly, it can still create cash flow, and the company has trial and error costs.

For biotechnology companies, the colder the market means, the more dangerous. Because the financing window is slowly closed, this is the most deadly for Biotech, which is extremely dependent on financing.

This is exactly what the domestic market is happening. According to Pharmaceutical Rubik's Cube data, in the first five months of 2022, the number and amount of investment and financing events in the first -level market declined. Among them, the total number of investment and financing was 492, a year -on -year decrease of 45.8 %.

The first -level market is in the cold winter, especially the secondary market. Throughout the first half of the year, Hong Kong stocks and science and technology boards declared IPO's Biotech very few. Anjesi Medicine, Shangwo Medical, Haihe Pharmaceutical, Yiteng Jingang and other companies invested by Tiger Medicine Investment will continue to go public.

Obviously, in the cold winter, there are fewer and fewer Biotech who can melt money. Some innovative pharmaceutical companies invested by CXO are also destined to go through the cold winter.

Of course, the high risk is high. For CXO, investing in innovative drugs is icing on the cake, or an Achilles, and it is still difficult to conclude at the moment.

With the sharp expansion of various CXO companies' investment maps, the corresponding explosive growth of financial assets. As of the end of the first quarter of this year, the non -current financial assets on Tiger's medical accounts reached 9.184 billion yuan, accounting for more than 30%of the total assets. The assets of Yaoming Kant also reached 8.565 billion yuan.

Next, how the value of these assets evolves is the moment when the answer is revealed.

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