Recently, Northeast Pharmaceutical disclosed that in order to accelerate the advancement of its collaboration with the United StatesMedAbomecompanyADCMedications andCAR-TThe subsidiary established through the implementation of the cell therapy technology cooperation project has completed its industrial and commercial registration. Northeast Pharmaceutical stated that innovative drug research and development is characterized by high technology, high risk, and high added value. Whether the products can successfully be commercialized in the future is easily affected by some uncertain factors.
Currently, traditional pharmaceutical companies are getting involvedCAR-TandADCWhat are some of them? Traditional pharmaceutical companies are conductingCAR-TandADCWhere does the difficulty lie in the development of such innovative drugs? Frost & SullivanFrost & SullivanZhang Dian, the consulting director for healthcare in Greater China at Frost & Sullivan (referred to as 'Frost & Sullivan'), was interviewed by Huaxia Times to discuss the above topics.
Huaxia Times
Traditional pharmaceutical company Northeast Pharmaceutical is experimenting with innovative transformation.
Recently, Northeast Pharmaceutical disclosed that in order to accelerate the advancement with the United StatesMedAbomecompanyADCMedications andCAR-TThe subsidiary established through the implementation of the cell therapy technology cooperation project has completed its industrial and commercial registration. Northeast Pharmaceutical stated that innovative drug research and development is characterized by high technology, high risk, and high added value. Whether the products can successfully be commercialized in the future is easily affected by some uncertain factors.
In recent years, many traditional pharmaceutical companies such as Shanghai Pharmaceutical Group Co., Ltd., Sihuan Pharmaceutical Group Co., Ltd., and Shijiazhuang Pharmaceutical Group have started to make effortsADCandCAR-TBut the difficulty seems not small.
Zhang Dian, consulting director for Frost & Sullivan Greater China, told the China Times,ADCandCAR-TThe capital investment required for biotech innovation drugs is substantial, the R&D cycle is long, and the risks are high. This places higher demands on technical talents and platforms, making R&D, especially self-developed projects, more difficult. In the field of biotech innovation drugs, it is becoming increasingly
Northeast Pharmaceutical is a traditional generic drug company, formerly known as Northeast Pharmaceutical General Factory, which was established in1946The year is hailed as the cradle of China's national pharmaceutical industry.
The company's main business covers four major sectors: chemical pharmaceuticals, pharmaceutical commerce, pharmaceutical engineering, and biomedicine. The company's main products include vitamin series drugs, anti-infective system medications, obstetrics and gynecology system medications, digestive system medications, urinary system medications, etc.2018In [year], Northeast Pharmaceutical became the only mixed-ownership reform pilot enterprise in Shenyang. Fangda Group, through the secondary market and private placements, became the largest shareholder of Northeast Pharmaceutical, while Dongyao Group dropped to second place.
2020year10In the month, Fangda Steel became the largest shareholder of Northeast Pharmaceutical, and Dongyao Group and its concerted actor Shengjing Financial Holdings completely withdrew from Northeast Pharmaceutical. This means that state-owned assets have officially withdrawn from this company with70An established pharmaceutical company with a history spanning many years. Northeast Pharmaceutical hopes to introduce mature and advanced market management models, business models, cost-effective models, as well as substantial financial support through the Fangda Group.
Fangda took control of Northeast Pharmaceutical2018In that year, the performance of Northeast Pharmaceutical improved briefly. The revenue of Northeast Pharmaceutical in that year74.67Yuan billion, a year-on-year increase31.54%Net profit attributable to the parent company1.95Yuan billion, a year-on-year increase64.04%However2019year2020In the year, performance declined significantly. Data shows that the company2019year-2020The net profit attributable to the parent company for the year was1.74yuan,1226Ten thousand yuan, with the growth rates of net profit attributable to the parent company being-10.87%,-92.95%Arrived2021In [year], Northeast Pharmaceutical's performance soared, achieving a net profit attributable to the parent company9903Ten thousand yuan, a year-on-year increase707.93%The company stated that the significant increase in performance was due to actively carrying out sales business, formulating differentiated marketing strategies, and effectively enhancing product competitiveness. At the same time, the company has continuously strengthened enterprise management, utilizing various measures such as structural adjustment, technological breakthroughs, process optimization, cost reduction, and efficiency improvement. It has quantified refined management into each position, allowing benefits to be fully reflected in all aspects of supply, production, and sales, thus achieving the company's healthy development. In the third quarter of this year, Northeast Pharmaceutical forecasted a net profit attributable to the parent company1.15 - 1.40Yuan, a year-on-year increase of more than300%.
In terms of R&D, the investment of Northeast Pharmaceutical is not high among generic drug companies.2020year-2021The proportion of annual R&D investment to total revenue is as follows:1.70%,1.85%And2021The annual report shows that all the company's R&D investment projects are new generic drug products.
It is also worth noting that the asset-liability ratio of Northeast Pharmaceutical remains very high.2019The asset-liability ratios for the year ending June this year were68.76%,66.12%,67.45%,70.33%.
"
Zhang Dian pointed out that traditional pharmaceutical companies' previous layout mainly revolved around generic drugs in the chemical drug field, whereasADCandCAR-TThe capital investment required for biotech innovation drugs is substantial, the R&D cycle is long, and the risks are high. This places higher demands on technical talents and platforms, making R&D, especially self-developed research, more difficult. In the increasingly competitive homogeneous environment of the biotech innovation drug field (for exampleADCTarget homogenization) has increasingly raised requirements for technological and product originality as well as differentiated competition, further increasing the difficulty for traditional pharmaceutical companies in developing new drugs.
A reporter from China Business Times contacted the secretary-general's office of Northeast Pharmaceutical regarding issues such as innovation transformation and asset-liability ratio. The secretary-general's office replied that everything shall be subject to the announcement.
Northeast Pharmaceutical, which has always had a weak R&D investment, takes the plungeADCandCAR-TThe odds of success remain to be seen.
*This article is reprinted from China Times. Reporters: Wang Yu, Yu Na Original title: investment5100 million yuan to test the watersADCandCAR-TWhat is the chance for traditional pharmaceutical company Northeast Pharmaceutical to innovate and transform successfully? ">In a highly competitive homogeneous environment (for exampleADCTarget homogenization) has increasingly raised requirements for technological and product originality as well as differentiated competition, further increasing the difficulty for traditional pharmaceutical companies in developing new drugs.
Before this collaboration, Northeast Pharmaceutical had been focusing on generic drugs, with R&D investment and revenue accounting for a relatively low proportion compared to other generic drug companies. This is the first attempt at this area.ADCandCAR-TWhat is the chance of Northeast Pharmaceutical succeeding?
"
Experiment with innovation
Recently, Northeast Pharmaceutical announced that its subsidiary Northeast Pharmaceutical(shanghai)Bio-Tech Co., Ltd. has completed industrial and commercial registration and obtained a business license.
this year9month20On the same day, the board of directors of Northeast Pharmaceutical reviewed and approved the "Proposal on the Company's Intended External Investment to Establish a Subsidiary", agreeing that the company will use its own funds5Invest hundreds of millions to establish a wholly-owned subsidiary, thereby accelerating the advancement with the United StatesMedAbomeintroduced through a company agreementADCMedications andCAR-TThe cell therapy technology cooperation project has been implemented. Initially, the subsidiary focused on advancing the research and development of cooperation projects to meet clinical product preparation needs, while also building a small-scale production platform for culture media.
this year9At the beginning of the month, Northeast Pharmaceutical and the United StatesMedAbomeSign theMAb11-22.1Antibody project transfer, cooperative development, and technical service agreement". Public information shows,MAb11-22.1yesMedAbomeA monoclonal antibody developed by the company that selectively identifies malignant tumor cells without reacting with normal peripheral blood cells and major organ tissues. This antibody is used in antibody conjugated drugs(ADCdrug)andCAR-TThe app mentioned is currently in the preclinical research and development phase.MedAbomeThe company has providedMAb11-22.1The technical achievement of antibody development has been applied for a US patent andPCTPatents. The results of in vitro and in vivo tumor growth suppression experiments, as well as preliminary toxicological studies on small animals, have demonstrated good efficacy and safety.
Northeast Pharmaceutical andMedAbomeCooperation includes original antibodiesMAb11-22.1Transfer of the antibody and the development of antibody conjugates based on this antibody(ADCdrug)andCAR-TCo-development of cell therapy products, etc. In this collaboration, Northeast Pharmaceutical is responsible for applying for clinical trials outside the United States, Canada, and Mexico.(IND)Certificates and New Drugs on the Market(NDA)certificate.
Northeast Pharmaceutical believes that this investment meets the company's strategic development needs for internationalization and scientific research innovation, as well as the interests of all shareholders and the company's long-term development strategy.
"
Zhang Dian told the reporter from Huaxia Times that in recent years, many traditional pharmaceutical companies have developed their own products as well as introduced new ones./The cooperation methods include establishing independent subsidiaries or acquiring new companies to layout in the field of biopharmaceutical innovation. Currently involvedADCTraditional pharmaceutical companies include Shanghai Pharmaceutical, Sihuan Pharmaceutical, Shijiazhuang Pharmaceutical Group, Qilu Pharmaceutical, Zhenbao Island Pharmaceutical, and Kelun Pharmaceutical.CAR-TIn the field, traditional pharmaceutical companies have relatively few layouts and most of their pipelines are in preclinical stages, such as Bo'an Biology, a holding subsidiary of Shanghai Pharmaceutical and Greenleaf Pharmaceuticals.
"
Transformation challenges
