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The company issued the 2022 semi-annual performance report, because the company currently has no products on the market, so it has not achieved sales revenue. 2022H1 lost US $46.1 million during the period, of which R & D expenditure was US $32.1 million and administrative expenses were US $11.1 million, an increase of 160% and 116% respectively over the same period last year. So far, the company has about 169.7 million dollars in cash on hand.
Peace viewpoint:
The clinical practice of core products continues to advance and the indications are constantly expanded. The company's R & D pipeline currently has at least 15 products, of which STP705 is the fastest and is expected to become the company's first commercial product. STP705 is a dual-target siRNA targeting both TGF- β 1 and COX-2. It is the first and only drug in the world to achieve a positive clinical II outcome in the field of siRNA treatment of cancer. According to the data, in the II phase clinical trial of STP705 in the treatment of skin basal cell carcinoma, the patients in the 180ug dose group achieved 100% complete clearance, compared with the existing treatments to meet the aesthetic treatment needs of patients, and verified its great potential in the treatment of non-melanoma skin cancer. In addition to skin cancer, the company continues to expand indications and has launched scar II phase clinical, adult abdominal fat reduction plastic surgery phase I clinical and liver cancer phase I clinical, to further improve the clinical layout of core products.
The technical platform has been gradually improved and the pipeline development of the empowering company. Small nucleic acids need to be transported and delivered with the help of delivery system, so the delivery technology platform is the core barrier to the development of this kind of drugs. With strong R & D strength, the company has built three delivery technology platforms, including Peptide nanoparticles (PNP) delivery platform, new GalNac delivery platform and Peptide-Lipid nanoparticles (PLNP) delivery platform. Among them, STP705 uses PNP delivery system, which has shown the potential for the treatment of skin cancer. STP122G targeting XI factor uses the GalNac delivery system, which has shown a 28-week effect in animal experiments and is expected to submit an IND application to FDA within this year. With the continuous improvement and verification of the technology platform, it has great extension value.
Optimistic about the potential of small nucleic acid technology, the company is currently one of the leading domestic enterprises. Compared with the current mainstream protein targeting small molecules and antibodies, small nucleic acid drugs have the advantages of fast target screening, high success rate of research and development, not easy to produce drug resistance, wider treatment field, not affected by protein properties and greatly improved long-term effectiveness. it has shown subversive therapeutic effects in some indications and has the potential to replace existing treatments and fill gaps in indications, and is expected to produce important varieties. As the company with the largest number of small nucleic acid drug pipelines in China, but also the world's most in-depth layout of tumor small nucleic acid enterprises, in the industry leading position, with a certain first-mover advantage. As the product is gradually verified by clinical data, it can be commercialized in the future.
Maintain the company's "recommended" rating: the company's core product STP705 research and development, product potential continues to verify, is expected to complete commercialization in 2025, to further meet the aesthetic needs of patients for treatment. In addition, considering that the company has three core independent platforms, which have great extension value, and can strengthen the company's R & D pipeline, as the product continues to advance the clinical stage, the company's pipeline valuation is expected to increase, so we maintain the company's "recommended" rating and maintain the previous profit forecast. It is estimated that the company's net profit in 2022, 2023, and 2024 will be-6.16, 10.29, and 1.478 billion yuan respectively. The EPS is-6.97gamma 11.64Compare 16.72 yuan respectively.
Risk hints: 1) R & D failure risk: there is a risk that progress is not as expected or even failure; 2) sales are not as expected: the company's sales ability has not been verified; 3) increased competition risk: there may be more competitive products listed to intensify competition; 4) policy risk: there is a risk of changes in industry regulatory policies.