A-share IPO of pharmaceutical companies in 2021: 53 companies attract more than 80 billion yuan
On the first day of the A-share market opening in the new year, 18 billion yuan of funds poured into the A-share pharmaceutical sector, especially the Chinese medicine concept stocks.
In recent years, the A-share listing of pharmaceutical companies has been harvested for years. In the past 2021, 53 A-share pharmaceutical companies have IPOs, attracting more than 80 billion yuan, but the secondary market is clearly differentiated, and many companies’ primary markets are hot and over-raised. However, the secondary market share price continued to fall and even broke.
Some analysts believe that due to various factors, the high performance growth of some pharmaceutical stocks remains to be seen. The secondary market is not very popular, but the pharmaceutical sector is still a high-quality track for A-shares. It has performance support and low valuations. The blue-chip segment leader of the United States, opportunities arise in the adjustment and decline.
Text/Guangzhou Daily All-media reporter Zhang Zhongan, trainee reporter Zhang Wenzhuo
Innovative companies with IPO funds raised over 80 billion yuan are favored
According to data from Dongcai Choice, including medical devices, 53 pharmaceutical companies will be listed on the A-share market in 2021, raising a total of 83.2 billion yuan. Companies listed on the Growth Enterprise Market or the Science and Technology Innovation Board account for the vast majority, and their business scope covers the development of innovative drugs. , Medical device research and development, molecular diagnostic reagent research and development, etc.
It is worth noting that the primary market is sought after by funds, not only the IPO scale is large, but also frequent over-raising.
"From the perspective of the entire A-share IPO issuance this year, the primary market is very hot. One performance is that the issuance price is much higher, and the valuation is not low. The other performance is the over-raising. It shows that funds are more compared to the primary market. Optimistic." A securities analyst believes.
According to incomplete statistics from all media reporters of the Guangzhou Daily, 25 of the 53 companies mentioned above are over-raised, accounting for 47%, mainly involving sub-sectors such as biological reagents, innovative drugs, and medical devices.
Among them, Yiqiao Shenzhou first raised 3.824 billion yuan, which is the company with the most super raised funds.
The reporter found that the Sci-tech Innovation Board and ChiNext are the first choices for IPOs of pharmaceutical companies.
Among them, 38 pharmaceutical companies successfully landed on the Science and Technology Innovation Board last year, accounting for 72% of the entire A-share pharmaceutical company's IPO that year, an increase of 35% compared to 2020.
The primary and secondary markets differentiated and many companies broke
However, in the relatively hot primary market, there are still many companies whose share prices are in a state of breakout.
Some analysts pointed out that the pharmaceutical industry has a wide range, and the performance of the secondary market reflects the different attitudes of institutional funds to the primary and secondary markets.
Take the first day of listing as an example. On October 28 last year, Chengda Biologics officially landed on the Sci-tech Innovation Board. As the "industry leader" that has occupied half of the domestic rabies vaccines for a long time, it closed at 80 yuan on the first day, a decrease of 27.7%.
It closed at 75.88 yuan on January 4 this year, a decrease of 0.33% that day, which was a 31.02% drop from the issue price of 110 yuan.
The pharmaceutical sector has always been highly sought after by investors. Why are these innovative drugs in the primary and secondary markets?
Some insiders analyzed that this is related to the high difficulty and long cycle of innovative drug research and development.
In March 2021, when BeiGene President Wu Xiaobin participated in the CCTV "Dialogue" program, he said that innovation in the medical field is not only a commercial issue, but also a scientific issue.
When a drug is finally successfully developed by scientists from the laboratory, it has to face the challenge of how to transform it into a product.
The agency recommends paying attention to selected high-quality innovative tracks
Due to the particularity of the industry, some innovative drug companies still have to bear the risk of weak growth or even loss while their profit margins are compressed.
BeiGene's 2021 mid-year report shows that the company achieved operating income of US$756 million in the first half of last year, an increase of 542.23% year-on-year, but the net loss attributable to the parent company of the same period was US$414 million.
Connaught’s prospectus shows that in 2019 and 2020, there will be a total loss of RMB 167 million and RMB 818 million, respectively.
However, my country's pharmaceutical field is still a high-demand industry, and innovative drugs enjoy many policy dividends.
Therefore, in the medium and long term, high-quality companies are still a better investment track.
Especially in the area of innovative drugs, the state has issued "Opinions on Deepening the Reform of the Review and Approval System to Encourage Innovation in Drugs and Medical Devices" and other documents. The top-level policy design has addressed the historical limitations of R&D resources, irregular reviews, slow progress, and efficiency in bidding. The problem of insufficient motivation for innovative drug innovation caused by low, high difficulty in hospital admission, and difficulty in connecting medical insurance.