On May 24, 2018, Wuxi Apptec, the first "unicorn" listed in A shares and known as "Huawei" in the pharmaceutical industry, officially broke through the market capitalization of 100 billion yuan, reaching 101.7 billion yuan.

Wuxi Apptec officially reached the upper limit of 44% on the first day of listing on the Shanghai main board on May 8, 2018. as of the closing price of 31.10 yuan, there were more than 400000 orders on the limit board, which shows his popularity. After that, he officially joined the 100-billion-dollar club of pharmaceutical companies with the results of 13 limit boards.

It is understood that the reason why Wuxi Apptec can soar with this volume in A shares is caused by a number of factors, but the most important reason is the concept of unicorn. Not long ago, the government made it clear that it would strongly support innovative companies to list on A-shares and support overseas-listed unicorns to return to A-shares. On March 22, the CSRC also formally issued a number of opinions on the pilot project of issuing stocks or depositary receipts in innovative enterprises.

After the opinion was issued, the A-share unicorn concept plate was highly speculated by market funds, and all enterprises with the concept of unicorn have a good rise. Wuxi Apptec, as a real unicorn enterprise, had a very high degree of market attention before he went public. After the official listing, under the name of "the first share of unicorn" this year, it is naturally easy to be speculated by funds, and it is not surprising that it has risen so much.

Secondly, on April 12, the State Council clearly proposed to speed up the import and listing of innovative drugs. This is also conducive to the development of domestic pharmaceutical innovation, prompting pharmaceutical companies to speed up R & D investment in innovative drugs. This will also bring good development opportunities to some enterprises with strong independent R & D capabilities.

So there is such a good expectation that in the secondary market, the share prices of some pharmaceutical leaders continue to hit new highs. Wuxi Apptec, as the leader of domestic CRO (pharmaceutical R & D contract outsourcing service organization), has great advantages in talent reserve and industrial equipment in the field of innovative drug research and development. after other pharmaceutical stocks continue to hit new highs, Wuxi Apptec's share price will naturally keep up with other pharmaceutical stocks.

It is precisely for the above reasons that at the beginning of Wuxi Apptec's preparation for listing in A-shares, the industry was fully prepared for its market capitalization of more than 100 billion yuan. Wuxi Apptec's current strong performance in A-shares is also basically in line with market expectations.

Why do you get 13 limit boards?

At present, the main advantages of Wuxi Apptec's business are the domestic leading position in preclinical CRO and the construction of small molecular drug CMO production chain through the whole pharmaceutical industry, becoming the domestic leader.

Wuxi Apptec acquired Huiyuan Bio, a leading preclinical CRO company in China, in early 2017. Through this acquisition, on the one hand, it can increase the growth of domestic business, which was originally relatively small in its income structure, on the other hand, it can make use of Huiyuan's business organization in the United States to improve the content of laboratory services in the United States, and enhance the layout of the company's business structure at home and abroad, thus promoting the further development of preclinical CRO business.

In addition, Wuxi Apptec has a professional technical talent team, with nearly 6000 people in the company's R & D team, 70% of whom are master's and doctorates, including more than 400 senior returnee scientists. it is an enterprise with the largest number of employees and scientists in China's pharmaceutical R & D service industry. Compared with the staff composition of major listed CRO and CMO companies in China, Wuxi Apptec's R & D staff is obviously ahead of other companies.

At the same time, according to the analysis of the educational background of employees in major companies, Wuxi Apptec and Hechuan Pharmaceutical accounted for the highest proportion of employees with master's degree or above, reaching 38.99% and 37.19%, followed by Tigermed with 25.86%. If the proportion of Wuxi Apptec Zhonghequan Pharmaceutical's CMO business is excluded, Wuxi Apptec's technical personnel account for 86.48%, with a greater lead.

Wuxi Apptec's goal is to become a platform company for new drug research and development services. in addition to filling the last weak link in clinical CRO, Wuxi Apptec has expanded in advance in gene testing, analytical diagnosis and cell therapy.

According to the disclosure of the purpose of the funds raised in Wuxi Apptec's prospectus, Wuxi Apptec plans to use 200 million yuan and 843 million yuan to raise funds for the construction of a diagnostic analysis and diagnostic service research and development center and a cell and gene therapy factory. Wuxi Apptec works closely with cell and gene therapy R & D enterprises and scientific research institutions, and its holding subsidiary AppTec cooperates with a number of customers to provide clinical trials and customized services for cell and gene therapy products.

Wuxi Apptec has already started the layout of gene testing and cell therapy, cutting into the gene testing market through the acquisition of Iceland's NextCODE Health company, and has set up a joint venture with Juno to jointly research and develop CAR-T therapy in China. The coverage of analytical diagnosis, cell and gene therapy will further strengthen Wuxi Apptec's integrated layout.

Of course, in addition to expanding and strengthening the original business capacity, Wuxi Apptec also carried out a more in-depth layout from the industry to support its future development, such as the R & D and production layout of ADC drugs, cell therapy and gene therapy.

The forward-looking layout will help to seize the market in the future, consolidate Wuxi Apptec's leading position and enhance the company's international competitiveness in the future.

It can be predicted that innovative therapeutic drug treatment strategies will become one of the main forces in drug market R & D and production in the future. at the same time, pharmaceutical R & D and production outsourcing enterprises also need to master the corresponding drug R & D and production capacity to meet the increasing demand.

Wuxi Apptec's advance layout of ADC drugs and gene therapy is in line with the long-term development trend in the future, which is conducive to seizing the market ahead of time, consolidate his leading position in domestic pharmaceutical outsourcing, and enhance the company's international competitiveness.

The market value has increased tenfold in three years.

This listing on the Shanghai Stock Exchange is not the first time that Wuxi Apptec has appeared in the capital market. Wuxi Apptec was listed on the New York Stock Exchange as early as 2008, which is almost a milestone for China's pharmaceutical industry. However, after Wuxi Apptec was privatized and delisted from the New York Stock Exchange with a total price of $3.3 billion in 2015, Wuxi Apptec split into three and split into three listed companies.

After dismantling three, Wuxi Apptec, who is delisted on NASDAQ, has become three listed companies, namely Hequan Pharmaceutical, which is listed on the new third board, with a current market capitalization of 19.879 billion yuan; Wuxi Biologics, which is listed on the Hong Kong Stock Exchange, has a market capitalization of 97.897 billion Hong Kong dollars (about 79.6 billion yuan); and the main body of newly listed Wuxi Apptec has exceeded 100 billion yuan in a short time.

Three years ago, Wuxi Apptec's market capitalization was no more than 20 billion yuan when he was delisted, but after one demolition and three, the overall market capitalization has reached 200 billion yuan, an increase of 10 times.

Hechuan Pharmaceutical is the first company to be split and listed by Wuxi Apptec, which is mainly responsible for providing CRO (production and R & D Outsourcing) services for small molecular drug intermediates, APIs and preparations for multinational pharmaceutical companies. Hequan Pharmaceutical Industry is one of the few "100 shares" in the new third board innovation layer.

According to its financial report, revenue in 2017 reached 2.187 billion yuan, an increase of 24.03 percent over the same period last year, and net profit reached 494 million yuan, an increase of 5.04 percent over the same period last year. Due to the limited flow of the new third board, the current market value energy has not been released, if compared with similar A-share companies, its market value still has room to rise.

Last year, it packaged the biological sector to be listed in Hong Kong with Wuxi Biologics as the main body. In its first year of listing, the report card was quite beautiful, with revenue of 1.619 billion yuan in 2017, an increase of 63.7%, and net profit of 408 million yuan, an increase of 85.1% over the same period last year. Of course, the capital market has also given a good response, and the market capitalization has repeatedly reached record highs since it was listed.

Recently, the movement is continuous, in many places at home and abroad continue to layout. According to its financial report, the number of post-clinical projects has increased from 3 at the end of 2016 to 8, the number of comprehensive projects has increased to 161, and outstanding orders have also exploded. Construction of four cGMP production facilities began.

According to the prospectus, Wuxi Apptec's revenue in the first nine months of 2014, 2015, 2016 and 2017 was 4.139 billion yuan, 4.883 billion yuan, 6.116 billion yuan and 5.677 billion yuan respectively, and the net profit attributable to the shareholders of the parent company was 212 million yuan, 179 million yuan, 878 million yuan and 858 million yuan respectively. In the first quarter of 2018, revenue reached 2.142 billion yuan, an increase of 21.13% over the same period last year, and the net profit attributed to the parent company was close to 300 million yuan.

In this regard, employees of investment institutions said that the reason for the split is that the listing standards of each market are different, and not all sectors of the company can meet the standards of A-share listing. Wuxi Apptec in order to achieve listing as soon as possible, to adopt the way of spin-off will be faster. Of course, one split and three listing is also for the consideration of maximizing the overall market capitalization. At the same time, he pointed out that in the pharmaceutical industry, this kind of spin-off and listing is more common. Thus it can be seen that according to Wuxi Apptec in the split listing, the market capitalization of the three companies has increased steadily one after another, which has indeed played an effect of 1: 1, 1: 1, 1 > 3.