With both medium products and CDMO services, the company has developed rapidly. Founded in 2013, the company has built a CDMO service platform for antibody drug development while having high-quality culture medium products. The company has served more than 500 biopharmaceutical enterprises and scientific research institutes at home and abroad, and more than 50 clinical protein / antibody drugs use company culture medium and CDMO services. From 2018 to 2021, the level of company expense rate has been continuously optimized, and the profitability has also been improved. The income side increased from 34 million yuan to 213 million yuan, and the three-year CAGR was 84.54%. The company began to turn a loss into a profit in 2020, with a net profit of 60 million yuan and a net interest rate of 28.39% in 2021.
Medium track long slope thick snow, rich product variety and large-scale production for the company to build a moat advantage. The commercial application of cell culture medium mainly includes three directions: recombinant protein / antibody drug production, vaccine production, gene therapy / cell therapy drug production, and the domestic market scale is expected to exceed 8 billion yuan in 2025, and the localization rate has increased to 22.8% in 2020. The company has developed hundreds of medium products, including catalogue medium, customized medium and OEM, whose key performance is no less than that of imported comparable products. In recent years, with the strengthening of scale effect, the profitability of the product has been further improved, reaching 72% in 2021. At the same time, the company has established advanced production lines of large-scale dry powder and liquid cell culture medium, which can realize large-scale production of single batch 2000Kg medium.
The company's CDMO service and the sales of culture medium products complement each other. The market scale of biomedicine CDMO is growing fast, but the industry concentration is low. The company has created an one-stop CDMO service platform for bio-drug R & D and production from DNA to IND and BLA, which is complementary to the culture medium business. From 2018 to 2021, the company's CDMO revenue continued to increase. With the gradual release of the expansion capacity in 2019 and the continuous optimization of technology and personnel, the gross profit margin will be further improved, which has been improved to 39.05% in 2021. At present, the company's CDMO platform covers an area of about 4000m2 and has a 200L/500L GMP raw liquid production line, which can carry out GMP sample production and support the production of new drug Chinese, American and European IND, clinical I&II phase samples and later process characterization samples.
Fund-raising project: expand the application field of CDMO service platform and extended culture medium, and further enhance the core competitiveness. The company's fund-raising plans are respectively used for: 1) CDMO biopharmaceutical commercial production platform (320 million yuan, accounting for 63.95%), plans to build a 6000 square meter second phase CDMO production base, will be equipped with 200L-2000L to meet the needs of biopharmaceutical commercial production line. 2) Cell culture R & D center project (80 million yuan, accounting for 16.16%), including the development of new generation CHO and HEK293 cell culture medium, new vaccine chemical composition limitation, cell line construction platform upgrade, matching process development and quality analysis platform, etc. 3) replenish liquidity projects (100 million yuan, accounting for 19.89%), continue to increase capital investment in research and development, production and sales, and further enhance the company's core competitiveness.
Risk tips: the risk of stable supply of raw materials; the risk of downstream customer product research and development failure or unable to industrialization; the repeated uncertainty risk of COVID-19 epidemic.