Kingsray was attacked. The stock price blew 27% evaporation 8 billion

Kingsley (01548) was accused by the short-selling agency of clinical data suspected of fraud. The stock price rushed more than 20% yesterday, and the market value evaporated about 8 billion yuan. After the stock price plummeted, the company announced that it would stop trading.

Flaming Research, an independent research institute sponsored by a senior investor, published a report that believes that Kingsley’s CAR-T (chimeric antigen receptor T cell therapy) clinical trial data is objectively questionable, as it undertakes clinical trials. The hospital is weak in the industry and the clinical trial management is loose. At the same time, the institution refers to the company’s selective disclosure of clinical data and misleading investors.

Questioning CAR-T business value valuation 3.29 yuan

The bonfire also pointed out that the cooperation between American pharmaceutical company Janssen and Kingsray is only a defensive strategy, and there is no full due diligence on cooperation. Kingsray also did not disclose the truth of the death of the earlier subjects, but only obscured.

The news dragged down Kingsley’s share price by up to 47%. Before the suspension, the decline narrowed to 27%, closing at 11.86 yuan, with a turnover of 562 million yuan. The agency believes that the commercial value of CAR-T therapy is limited, and the final valuation of Kingsray is only 3.29 yuan per share, which is still 72% potential drop from the latest price.

Kingsray did not respond to this newspaper’s inquiry into the report. In June last year, Kingsray announced the clinical data of CAR-T therapy at the American Society of Clinical Oncology ASCO, which made it the focus of the market. The stock price rose to a historical high of 34 yuan in January this year, 9.3 times higher than last June; However, the stock price has fallen by 40% since the beginning of the year.

Since the end of May, the shares have accumulated large short-selling transactions, excluding the controlling shareholder’s rights issue in early June. The average daily turnover has reached about 230 million yuan, and the average daily short-selling rate has reached 15%. According to the latest data of the CSRC, as of September 14 Jinsui’s short position reached a high level of 1.055 billion yuan.

Looking at Kingsley’s interim results, the company’s revenue in the first half of the year increased by 77% year-on-year to US$110 million (approximately HK$860 million), of which biotechnology services and products, industrial synthetic bioproducts and cell therapy revenue accounted for 66.5% and 6.4%, respectively. And 27.1%; its R&D expenditure increased by 4.8 times year-on-year to US$27.9 million (approximately HK$220 million).