From "A monkey is hard to find"
In mid-2021, many domestic media reported news about "one monkey is hard to find".
The cause of the incident is that after the outbreak of the new crown epidemic, scientists and medical scientists from various countries are actively developing relevant vaccines and drugs to fight the epidemic; and the development of these vaccines or drugs is inseparable from animal clinical experiments.
This has led to a shortage of experimental monkeys in the market, and the price of experimental monkeys has also risen.
Public data shows that the price of a test monkey before the outbreak in 2019 was around 15,000 yuan, and it will soar to around 60,000 yuan in 2020. Hard to find”, and the experimental animal industry has also begun to receive more attention from capital.
To "a mouse is worth ten thousand yuan"
The Red Star Capital Bureau noticed that, like experimental monkeys, experimental mice are also expensive.
On April 12, Yaokang Bio (688046.SH) opened the subscription.
According to the prospectus, Yaokang Bio’s main business is the research and development, production, sales and provision of related technical services of experimental animal mouse models.
The unit price of some strains of guinea pigs of Yaokang Biology is as high as more than 10,000 yuan, and the gross profit rate of some strains of guinea pigs is as high as 95%.
Behind the high price and high gross profit, is "selling guinea pigs" a good business?
How much is Yaokang Biology worth?
A
Absolutely explosive>
"Sick mice" are the most expensive
The average price is also over 200 yuan / piece
When it comes to Yaokang Bio, we must start with the founder Gao Xiang.
After graduating from Nanjing University with a master's degree, Gao Xiang went to Philadelphia to pursue a Ph.D. in developmental biology and anatomy.
In December 2017, Gao Xiang, who returned to his alma mater, and several other doctors from Nanjing University established Yaokang Bio and served as the chairman.
In 2018, the Institute of Biology of Nanjing University was closed down, and Yaokang Bio took over the staff, equipment assets and 2,612 mouse strains and related intellectual property rights of the Institute of Biology.
Since then, Gao Xiang has become deeply attached to the mouse.
Among mammalian experimental animals, experimental mice are the most widely used.
On the one hand, mice are the second mammals to complete whole-genome sequencing after humans, and 99% of human protein-coding genes have homologous genes in the mouse genome.
On the other hand, mice are easy to raise and have strong reproductive ability.
In conclusion, mice have unparalleled advantages in analyzing disease pathogenesis, discovering potential disease therapeutic targets, and verifying the safety and efficacy of new drugs and new treatments.
Yaokang Biotechnology uses gene technology to knock out one or several genes in all the genes in mice, resulting in mice with clinically similar disease phenotypes, imitating human patients for research and treatment.
Simply put, these experimental mice are basically in a "sick" state.
The price varies according to the "condition" of each mouse.
The prospectus shows that Yaokang Bio has sold about 600,000 mouse models in the past year, mainly involving immunodeficient mice, humanized mice, diabetes, atherosclerosis, Alzheimer’s, etc. that can be used for tumor efficacy research. mouse disease model.
From 2018 to 2020 and the first half of 2021 (reporting period), among the commercial mouse models sold by the company, the average price of the most expensive spotted mouse exceeds 10,000 yuan, and the average price of a single mouse of the cheapest basic strain is 60 yuan. Around; the overall average price per mouse is more than 200 yuan.
From the customer point of view, these mice mainly serve scientific research customers and industrial customers.
Scientific research customers mainly include scientific research institutions and tertiary hospitals, and industrial customers mainly include innovative pharmaceutical companies and CRO R&D companies.
According to the corporate prospectus, Yaokang Bio currently serves more than 1,000 customers, including Tsinghua University, Peking University, Nanjing University, Sun Yat-sen University, Zhejiang University, Chinese Academy of Sciences, West China Hospital of Sichuan University, Ruijin Hospital affiliated to Shanghai Jiaotong University School of Medicine, and China Medical Academy of Sciences and Peking Union Medical College Hospital and other domestic first-class scientific research institutions and tertiary hospitals, as well as Hengrui Medicine, BeiGene, Innovent, GenScript, WuXi AppTec, CrownBio, Pharmaron, Champions Oncology, Novartis, Charles River and other well-known innovative pharmaceutical companies and CRO R&D companies at home and abroad.
Stand on the tuyere>
Gross profit margin comparable to Maotai
Yaokang Bio turned losses into profits in two years
The prospectus shows that during the reporting period, Yaokang Bio achieved operating income of 53.2906 million yuan, 193 million yuan, 262 million yuan and 178 million yuan, respectively, and realized net profit attributable to the parent of -6.0227 million yuan, 34.7442 million yuan, 76.4335 million yuan and 46.3414 million yuan.
It can be seen that Yaokang Bio has turned losses into profits only two years after its establishment.
At present, Yaokang Bio provides five mouse-related services, namely commercial mouse model sales business, model customization business, customized breeding business, functional efficacy business, agency import and export and other businesses.
Among them, the commercial mouse model sales business is the main source of revenue for the company. During the reporting period, the commercial mouse model sales business contributed 32.9262 million yuan, 95.2684 million yuan, 153 million yuan and 109 million yuan to the company respectively. Income accounted for 61.79%, 49.88%, 58.59% and 61.54% of the operating income in each period.
From the perspective of gross profit margin, the gross profit margin of the company's main business (excluding share-based payment) during the reporting period was 68.24%, 68.95%, 76.21% and 75.60% respectively.
The commercial mouse model sales business, which contributes the most to revenue, also has a higher gross profit margin. The gross profit margin of commercial mouse model sales is 76.73%, 79.37%, 85.01% and 81.03% respectively.
The commercial mouse model sales business includes spotted mice, immunodeficiency mouse models, humanized mouse models, disease mouse models and basic strain mice.
The highest-priced Spotted Rat has a gross profit margin comparable to that of Maotai (600519.SH).
The prospectus shows that in each period of the reporting period, the gross profit margins of the spotted rat business were 94.88%, 94.18%, 95.65% and 93.13%, respectively. In front of Maotai, which has a gross profit margin of about 91%, the spotted rat is even more profitable.
The reason why Spotted Rat won the "high price" and "high gross profit margin"; on the one hand, because some of its products are pioneered by the company, there is a certain market scarcity, so the product has a pricing advantage; on the other hand, Spotted Rat is a high value-added product. The main investment of the product is reflected in the creation and development of the early stage of research and development, and the relevant expenses are included in the research and development expenses; after the development and creation of the strain is completed, it is usually preserved in the form of in vivo conservation or frozen genetic material, and the relevant breeding and breeding costs are different from other ordinary strains of mice. Not much difference.
Simply put, Spotted Rat is a key product invested by Yaokang Bio in the early stage. The product is high-quality, scarce and not easy to be replaced.
At present, the growth rate of Yaokang Bio’s revenue and net profit is relatively obvious, and some products with core competitiveness have considerable gross profit margins. This pharmaceutical subdivision may have also become a “sweet pastry” for capital.
Industry Watch
The "Battle of Mice" behind the 2.8 billion output value
Small market segment
Competition intensifies due to narrowing of space
According to Frost & Sullivan statistics, the market size of China's experimental mouse products and services in 2019 was 2.8 billion yuan.
Therefore, on the whole, the market segment in which Yaokang Bio is currently located is still relatively small, and the overall market cake is not large enough, which will also limit the company's future imagination.
In addition to the limited domestic market space, this segment is also full of competitors.
At present, there are three major giants of domestic model animals, namely Nanmo Biology, Yaokang Biology, and Biositu. Coincidentally, all three companies are preparing to go public in 2021 to seek capital assistance; the fierce competition among giants can be imagined Know.
In addition to facing the above two major competitors, Yakang Biotech should not be underestimated.
According to the statistics of Frost & Sullivan, in the sales market of finished mice in China in 2019, Viton Lihua’s revenue scale was 220 million yuan, with a market share of 13.7%, ranking first; while Yaokang Bio’s revenue scale was 95.27 million yuan, with a market share of 95.27 million yuan. 6%, ranking second.
The third and fourth places are close behind, with a small gap with Yaokang Biotechnology, with a market share of 5.5% and 5.1%, respectively.
In the mouse model customization service market, Yaokang Bio's market share (6.8%) is not as good as that of Southern Model Biology (9.2%) and Biositu (9.2%).
In view of the domestic competition situation, Yaokang Bio will officially set up a subsidiary in the United States in 2020, and plans to build an animal house in the United States in 2023.
The prospectus shows that since 2018, the proportion of the company's overseas market revenue to total revenue has been increasing.
The overseas market demand is stronger, but the road to the sea is more uncertain; the overseas market is more mature than the domestic development, the market competition is still fierce, and the future development of the company is still full of "smoke of gunpowder".
Through Yaokang Biology, we can see that the A side of the model animal is too high product price and too close contact with capital, but at the same time, the B side of the model animal is not broad enough market space and fierce industry competition.
Is the model animal industry showing signs of overheating?
Perhaps with the successive listings of these companies, the answer will be revealed soon.
Chengdu Business Daily-Red Star News reporter Yu Yao and Liu Mi