Author | Betty
Source | IPO (ID:ipopress)
Wuxi Apptec, known as the "Huawei" of the pharmaceutical industry, submitted its listing application to the Hong Kong Stock Exchange on September 18, with co-sponsors Morgan Stanley, Huatai Financial Holdings and Goldman Sachs Group, raising more than $1 billion, according to ID:ipopress. It has been just over 4 months since Wuxi Apptec officially landed on the Shanghai Stock Exchange on May 8 this year.
Wuxi Apptec, who returned to A-shares with the halo of "the first unicorn", broke through the market capitalization of 100 billion yuan in just 14 trading days. Wuxi Apptec (603259.SH) listed in A shares at 21.60 yuan, the latest price is 87.45 yuan, the latest total market capitalization is 89.35 billion yuan, after the listing once hit an all-time high of 138.87 yuan.
In the pharmaceutical field, Wuxi Apptec became the third listed pharmaceutical company in the mainland after Shanghai Pharmaceutical and Shanghai Fosun Pharmaceutical.
In 2007, Wuxi Apptec was listed on the New York Stock Exchange. The total market capitalization in 2014 exceeded 3 billion US dollars. In August 2015, Wuxi Apptec announced privatization and officially embarked on the road of "one-to-three" homecoming. Wuxi Apptec delisted from the New York Stock Exchange on December 10, 2015.
According to the Frost Sullivan report, Wuxi Apptec is the world's leading drug research and development service platform, ranking first in Asia in total revenue in 2017, dedicated to reshaping the business of discovering, developing and manufacturing innovative drugs. Provide comprehensive research and production services, covering the discovery, development and production process of small molecular drugs. At the same time, it provides cell and gene therapy R & D and production services, as well as medical device testing services.
Top 20 global pharmaceutical companies by revenue in 2017
As shown in the picture above, the global pharmaceutical market is currently dominated by large global pharmaceutical companies. As the world's leading open, omni-directional and integrated service platform for pharmaceutical R & D, Wuxi Apptec has 26 R & D bases / branches around the world, serving more than 3000 customers. At present, the company's main customers cover Pfizer Inc, Johnson & Johnson, Novartis, Roche, Merck & Co Inc and other global top 20 large multinational pharmaceutical companies and all kinds of new drug R & D institutions.
Wuxi Apptec's income for the year ended December 31, 2015, 2016 and 2017 was 4.883 billion yuan, 6.116 billion yuan and 7.765 billion yuan respectively, while the net profit for the same period was 684 million yuan, 1.121 billion yuan and 12.97 yuan respectively. In the six months ended June 30, 2018, the company's revenue was 4.409 billion, up 20.3% from a year earlier, and its net profit was 1.304 billion yuan, up 66.75% from a year earlier.
The drug development process is mainly divided into four stages: (I) drug discovery; (ii) preclinical development; (iii) clinical research; and (iv) commercial production.
It operates integrated business through four major business segments, namely, laboratory services in China, laboratory services in the United States, clinical research and other CRO services and CMO/CDMO services. During the business record period, most of the revenue came from laboratory services and CMO/CDMO services in China, accounting for 82.2 per cent.
In terms of sectors, in the first half of 2018, Wuxi Apptec's laboratory service income in China reached 2.416 billion yuan, an increase of 21.65% over the same period last year; revenue from contract production / contract production R & D business reached 1.209 billion yuan, an increase of 26.80% over the same period last year; and revenue from clinical research and other CRO (contract research organizations) business reached 231 million yuan, up 58.8% from the same period last year. In addition, revenue from laboratory services in the United States reached 546 million yuan, down 1.93% from the same period last year.
According to the prospectus, Wuxi Apptec's listing in Hong Kong will be used to expand the productivity and capabilities of global business units, acquire CRO and CMO/CDMO companies, invest in and develop companies with innovative business models and growth potential in the health care industry, and develop high-end technologies, such as drug research and development platforms and automated laboratories using artificial intelligence, medical and health data platforms and mechanochemical technologies.
Dr. Li and Zhang Chaohui and other concerted actors have a combined shareholding ratio of 31.03%.
On the eve of the A-share listing, Wuxi Apptec is the most sought after super unicorn. Up to now, the market value has evaporated by more than 50 billion. If Wuxi Apptec succeeds in listing in Hong Kong, that is, he has a dual financing platform, will it recreate the glory of the continuous trading limit of A shares?