Dongyao Pharmaceutical was incorporated in Hong Kong in December 2009 and listed in Hong Kong in November 2019. At the beginning of listing, the company was positioned as a Biotech company dedicated to developing and commercializing innovative oncology drugs. Beginning in 2021, the company fully transformed its CDMO business, focusing on biopharmaceutical CDMO business fields such as monoclonal antibodies and ADCs. Currently, it has formed an antibody production capacity of 20,000 L and has built a “localized/end-to-end” commercial production platform integrating monoclonal antibodies and ADC. At the same time, the company is the only company in China to establish a commercial ADC production workshop of the same factory integrating antibodies, ADC stock solutions and formulations to avoid the uncertainty of compliance brought about by domestic segmented production. In terms of the pharmaceutical business, the company currently has three commercialized varieties, which are sold domestically through the CSO model. Park Shin-ting's rights in overseas emerging markets, the main sales variety, has been exclusively licensed to Kexing Pharmaceutical. TAB014, which is progressing the fastest in the research pipeline, has authorized China's interests to Zhaoke Ophthalmology, which will be responsible for phase III clinical development and future commercial sales of this product.
Report summary
Three varieties in the pharmaceutical sector were commercialized, and Park Shin-ting quickly released quantities. Currently, the company has commercialized three varieties. In the first year of commercialization, Park Hin-ting achieved sales revenue of nearly 300 million yuan. The domestic market reached sales cooperation with Jimin Trust, and the rights of overseas emerging markets have been exclusively authorized by Kexing Pharmaceutical. In the harvesting market, Ty Zhi'an won bids for the collection of the thirteen provinces of Henan Province and the collection of seven provinces and cities. The non-harvesting market reached cooperation with Jimin Credible. Melisia's AIDS treatment rights in mainland China have been authorized by Frontier Biology. TAB014, which is progressing the fastest in the research pipeline, is in clinical phase III in China, and the product has been authorized by Zhaoke Ophthalmology in China.
The CDMO business is growing rapidly, and the ADC field has a unique advantage. The company's CDMO business revenue increased from 6.42 million in 2020 to 72.54 million in 2022. The two-year CAGR was 236%. By the end of 2022, there were about 52 million orders in hand. The number of projects was 45, including 18 ADC projects and 23 antibody projects. The company currently has an antibody production capacity of 20,000 L and has set up a “localized/end-to-end” commercial production platform integrating monoclonal antibodies and ADC. At the same time, the company has set up a commercial ADC production workshop of the same factory integrating antibodies, ADC stock solutions and formulations to avoid compliance uncertainty caused by domestic segmented production.
Risk warning: risk of price reduction in product collection, risk of product development failure, risk of product commercialization falling short of expectations, risk of declining industry sentiment.