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中国生物科技服务(08037.HK):专注精准生物科技 即将扬帆远航

China Biotechnology Service (08037.HK): Focusing on precision biotechnology is about to set sail

招商證券(香港) ·  Sep 21, 2020 00:00  · Researches

  China Biotech Services Holdings Co., Ltd. is a pre-clinical biotechnology company focused on precise detection and treatment

The company's R&D pipeline includes more than 10 precision treatment projects, and 3 of these products are expected to submit new drug clinical trial applications within 2020

The company is one of the main providers of COVID-19 testing services in Hong Kong. The daily testing capacity can reach 130,000 copies and rich experience in the field of precision testing and treatment. In November 2017, the company began trading on the GEM of the Hong Kong Stock Exchange under the name “China Biotechnology Services Holdings Co., Ltd.” It is a pre-clinical biotechnology company focused on precise detection and treatment. The company's precision testing department, PHC (Hong Kong Standard Pathological Laboratory), is one of the largest third-party medical testing institutions. It has 4 branch centers in Hong Kong, providing advanced testing technology such as comprehensive genetic sequencing and mass spectrometry. The company entered the field of precision treatment after acquiring Longyao in 2018. Longyao has more than 10 preclinical candidates for CAR-T cell immunotherapy, leading the product development pipeline. The company expects to submit the following 3 new drug clinical trial applications from the fourth quarter of 2020 to '21:1) generic CAR-T; 2) CD20-CAR-T-OX40; 3) MSC-L. Additionally, the company is actively exploring strategic expansion in BD. The company invested in Pillar Biosciences and Broncus Medical as early investors, which is expected to generate business synergies.

The company plays an important role in COVID-19 testing in Hong Kong, and the Huasheng Testing Center, a joint venture between the company and BGI, is one of the three testing service providers of the Hong Kong SAR government's COVID-19 popularization community testing program. Huasheng Testing Center is currently the largest COVID-19 testing service provider in Hong Kong, with a daily virus testing capacity of 130,000 copies. As of September 14, about 2 million COVID-19 tests have been completed for Hong Kong residents.

valuations

The company's valuation on September 18, 2020 was approximately $166 million. There are no comparable companies that have been accurately tested among companies listed on the Hong Kong Stock Exchange, and the current average valuation of comparable companies listed on China's A-share shares is 11 times/10 times the predicted market sales rate for the 20/21 fiscal year. Additionally, Legendary Organics (LEGN US, unrated), the only late-stage CAR-T comparable company that is listed on NASDAQ and has no revenue, currently has a market capitalization of $4.5 billion.

The translation is provided by third-party software.


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