Due to its subsidiary's TAEST16001 injection being included in the breakthrough therapeutic list, Xiangxue Pharmaceutical has risen for seven consecutive trading days, with a significant growth of +28.10% YoY in overall sales volume of 18,000 kiloliters in 2023. Regarding product structure, operating income of products valued at 100-300 billion yuan are respectively 4.01/12.88/0.06 billion yuan.
Caixin reported on August 8 (Reporter: Zhang Liangde; Intern: Dong Fangyu) that Xiangxue Pharmaceutical, which has been struggling with losses and debt, has seen its stock price rise continuously for seven trading days due to its subsidiary's TAEST16001 injection being included in the breakthrough therapeutic list of the National Medical Products Administration's drug review center, during which the accumulative maximum increase exceeded 200%. Due to the abnormal fluctuation of the stock price, Zhongshan Securities, a local brokerage in Guangdong province, where the company is also based, issued a public warning to investors through its WeChat subscription account about investment risks.
Caixin finds out that the brokerage firms received the information through our public announcement, while we are aware of the warning from brokerage firms. Relevant risk warnings are also disclosed by our company.
On the evening of July 29, Xiangxue Pharmaceutical announced that its subsidiary, Guangdong Xiangxue Precision Medical Technology Co., Ltd., filed an application for TAEST16001 injection to be included in the breakthrough therapeutic list of the National Medical Products Administration's drug review center. The Company aims to accelerate the conduct of critical clinical trials and conditional approval for listing under the guidance of the Drug Evaluation Center, striving to become the first innovative TCR-T cell therapy drug approved and listed in China. If the product can be approved for listing, it can establish the Company's leading position in the TCR-T immunotherapy field, which is conducive to enhancing the Company's core competitiveness.
The next day, Xiangxue Pharmaceutical's stock price opened high and remained high, with a daily limit increase of 20CM. The stock price has risen continuously for seven trading days since the announcement, and has touched the daily limit board for five trading days. Today, the highest stock price reached 10.11 yuan, an increase of over 200% from the closing price on July 29th.
Regarding the rapid rise in the company's stock price, sources believe that "it is mainly due to the subsidiary's TAEST16001 injection being included in the breakthrough therapeutic list, and exactly in early August, the FDA approved a TCR treatment technology product of a British company in the United States, and also, both domestic and foreign policies have been favorable for innovative drugs. The impact of policies and changes in the market environment at home and abroad have increased the market's attention on the company."
On August 2nd, the U.S. Food and Drug Administration (FDA) announced the approval of Adaptimmune's Tecelra, the first T-cell receptor (TCR) gene therapy to be approved by the FDA for the treatment of adult unresectable or metastatic synovial sarcoma who had received chemotherapy, with a commercial price of 0.727 million US dollars. The market expects that domestic similar product manufacturers will obtain substantial profits.
Benefiting from the successful launch of the first TCR-T product, Xiangxue Pharmaceutical, which is making progress, has received considerable market attention. The Company stated that its TAEST16001 product is still in the clinical stage and it is uncertain when it will be listed. Meanwhile, it is managed by the relevant regulatory authorities in China, and the product price cannot be predicted now.
Zhongshan Securities issued a "Risk Warning on Xiangxue Pharmaceutical" on its WeChat public account, noting the significant abnormal fluctuations in the company's stock trading. According to the company's announcement, the inclusion of TAEST16001 injection in the breakthrough therapeutic list will not have a significant impact on its performance in 2024. The brokerage firm believes that the company's stock price has risen significantly in the short term, but the company's fundamentals have not undergone significant changes. There may be non-rational speculation and the risk of a sharp correction in stock prices. Investors are advised to pay attention to the company's public announcements and be cautious of trading risks in the secondary market.
From the basic perspective of Xiangxue Pharmaceutical, the company has recently been mired in debt and loss troubles, with the cumulative net loss from 2021 to 2023 amounting to approximately 1.596 billion yuan.
According to Tianyancha, the company is currently the subject of cumulative enforceable targets of more than 1.5 billion yuan due to contractual disputes. Additionally, as per the Q1 2024 report, the Company's total liabilities amount to 5.955 billion yuan, including 1.494 billion yuan in short-term borrowings and 1.102 billion yuan in accounts payable. However, the Company's cash balance only amounts to 0.117 billion yuan. The good news of the TAEST16001 injection may be a drop in the bucket for the Company's overall financial situation.
After the stock price rise for two consecutive days, Xiangxue Pharmaceutical's agent, Lin Zhenbang, resigned for personal reasons, and the Company has not disclosed any information on his replacement.