30/7/2018-5

Songs: The successful commercialization of new drugs is only 8%

The first unlisted profit-making newcomer, the gift-generating company, B-Pharmacy B (01672), was listed yesterday. Founder, Chairman and CEO Wu Jinyu said in an exclusive interview with the newspaper that the development cost of an innovative drug reached tens of billions. Yuan, starting from the drug clinical trial approval, the chance of successful commercialization is only 8%. In the future, R&D investment will be increased. The financing plan will depend on the company’s development needs.

The song ceremony last night, the city has risen 6.4% to 14.9 yuan, and then fell back below the offer price to 13.66 yuan, and finally the insurance price of 14 yuan, the transaction reached 1.18 billion yuan.

Pricing 14 yuan  let the investors

Wu Jinqi said that the gift price was set at a median price of 14 yuan, mainly considering the first unrecorded profit-making section under the new example. He hoped to give investors a long-term win-win situation with investors. Unrecorded profit biotech companies are new to Hong Kong stocks. He revealed that the company has encountered challenges in roadshows and valuations. Due to the high biomedical technology content, roadshows must educate investors about biomedical concepts and clinical data. Since the company did not record earnings, the valuation was not of reference value, and a lot of research was done before the decision price range was decided.

The gift of hepatitis C medicine “Gonuowei” was approved for listing in the Mainland in June. The drug is the fourth innovative hepatitis C drug listed in the Mainland. For competition, Wu Jinzhen believes that there are 25 million hepatitis C patients in China, and 4 new drugs are not. Enough, patients and doctors need more choices. At present, the company’s other hepatitis C drug “Ravi Davi” listing application has also been accepted by the State Food and Drug Administration (CFDA).

R&D takes 10 years and involves about 10 billion

The research and development cost of songs last year was RMB 114 million, an increase of 82.4% year-on-year. Wu Jinqi said that the development of an innovative drug takes an average of 10 to 15 years, costing 1 billion to 1.5 billion US dollars (about 7.8 billion to 11.8 billion Hong Kong dollars), starting from the clinical trial approval of drugs, and finally the opportunity to successfully commercialize. Only 8%, so it is expected that there will still be a large amount of capital investment in research and development in the future, and copy the successful experience of Gonower to improve the research and development efficiency.

Recently, the mainland government intends to promote drug price cuts. Wu Jinxi said that the pricing of innovative drugs is a complex issue, but supports the government to rationally control drug prices on the premise of encouraging innovation. The company will also balance product pricing. In response to recent “fake vaccines” in the Mainland, he believes that it is a developmental issue in the development of the pharmaceutical industry in the Mainland, supporting the rectification actions of the regulatory authorities, and stressing that if the industry is to upgrade, it must put quality first.