Yao Ming Juno is a joint venture between Wuxi Apptec and Juno of the United States in 2016. Yao Ming Juno is "Yao Ming Department No. 3" and is now going public on October 22-28.

Juno Juno USA, a global leader in CAR-T. Wuxi Apptec is the absolute leader of China's CXO industry, with incomparable advantages in customer resources, enabling platform, talent advantages and so on. "Yao Ming Department No. 2" Wuxi Biologics was once a subsidiary of Wuxi Apptec, which was later split and listed in Hong Kong. Wuxi Biologics is currently the absolute leader in China's biopharmaceutical CDMO industry. Wuxi Apptec and Wuxi Biologics both listed in Hong Kong in 2019, up more than 200% so far.

CAR-T therapy has a broad market prospect.

CAR-T is a new type of precise targeted therapy for tumors.

CAR-T is a new type of precise targeted therapy for the treatment of tumors, which transforms T cells through genetic technology.T cells are installed with a "location and navigation device" CAR to specifically identify tumor cells in the body, and release a large number of effector factors through immunity, so that they can effectively kill tumor cells and achieve the purpose of treating malignant tumors.

To put it simply, transform T-cell "ordinary warriors" into "super warriors" and then kill cancer cells, so in theory CAR-T can be applied to all cancers. CAR-T is a promising new tumor immunotherapy method which can be accurate, rapid, efficient and may cure cancer.

The manufacturing process is complexIt is difficult to standardize mass production

Collection of T cells (T cells collected from the patient)-activated T cells (cultured in vitro)-CAR expression (genetically engineered T cells)-CAR-T cell expansion (modified T cell value-added culture)-formulation test (detection before injection)-injection into the patient.

The global CAR-T market has a compound annual growth rate of 751% from 2017 to 2019.

At present, there are no CAR-T products in China. Overseas listed CAR-T products are: Fosun Kate's Yescarta, Novartis's Kymriah and Kate's Tecartus. At present, their main treatment areas are blood cancer and lymphoma.

At present, there are only two CAR-T products on the global market, Fosun Kate's Yescarta and Novartis's Kymriah. According to Frost Sullivan, the global CAR-T market has grown from about $13 million in 2017 to about $734 million in 2019, with a compound annual growth rate of 751%. 2024 CAR-T is expected to reach $4.7 billion / 18.1 billion in 2030.

At present, there are no approved CAR-T products in the Chinese market. According to Frost Sullivan, China's CAR-T market is expected to grow to Rmb600m in 2021 with the launch of new products.

Yao Ming Juno product pipeline focuses on the field of CAR-T therapy.

The company has established an integrated platform focusing on the development, manufacture and commercialization of breakthrough cellular immunotherapy for hematological cancer and solid tumors, and has a rich research and development pipeline in the field of CAR-T therapy. Its main product relma-cel is expected to become China's first approved first-class biological product CAR-T therapy and the best CAR-T therapy of its kind.

"relma-cel"the future is expected to be in China.Have a place in the CAR-T market

The core product of Mingjinuo is "relma-cel" autologous anti-CD19 CAR-T therapy for recurrent or refractory B-cell lymphomas. CD19 is one of the important membrane antigens involved in the activation and proliferation of B cells. it is mainly used as the third-line therapy for lymphatic carcinoma, such as 3L DLBCL, 3L FL, 3L MCL and 3L ALL. The target indications for relma-cel in 2019 (3L DLBCL, 3L FL and 3L MCL, red box) are estimated to be about 28700, 5200 and 3400 patients in China, respectively.

According to the chart below, clinical trial data show that when the efficacy of Relma-cel is quite high (ORR=75.9%,CR=48.3%), the incidence of severe adverse events can be controlled very low, which is significantly smaller than that of CAR-T products already on the market. According to Guotai Junan Securities, the Relma-cel price of Yao Ming Juno is about RMB500,000 yuan / dose / year, which is far lower than the overseas $373000.

Relma-cel 's 3L DLBCL (diffuse large B-cell Lymphoma) was accepted by the State Drug Administration in June 2020 and was listed as a priority qualification and a breakthrough treatment in the field of FL (follicular lymphoma) in September 2020. If it is expectedThe diagnosis and treatment rate of relma-cel in CAR-T therapy accounts for about 10% of the target population, and the number of target patients in 2021-2022 is 1000-2000.

At present, in the field of CD19 CAR-T, Yao Ming Juno and Fosun Kate have submitted applications for new drugs, and Novartis is in phase III clinical practice. Yao Ming Juno is expected to compete for the first approved CAR-T new drug in China, which is expected to be officially approved and put on the market in 2021. In addition, relma-cel relies on Wuxi Apptec's good hospital relations and excellent drug safety data, and is expected to have a place in the CAR-T market in the future.

There are no CAR-T products targeting BCMA in the world.

JWCAR129's CAR-T therapy, targeting B cell maturation antigen "BCMA", mainly treats multiple myeloma ("MM"). MM is a strongly progressive disease, accounting for about 10% of all hematological malignant tumors. At present, multiple myeloma patients are difficult to cure, so there is a large number of medical needs in the field of MM.

The number of MM cases in China increased to 100000 in 2019 and is expected to increase to about 167000 in 2024. At present, there is no global BCMA target CAR-T drug approved.And there is no domestic one.Antibody drugs are recommended as first-line MM therapy. In the domestic CAR-T regimen targeting BCMA, Legend Biotech Corp has made the fastest progress and is in the clinical II phase.

Two products of T cell therapy are used in the field of liver cancer.

JWATM203 is a T cell therapy targeting alpha-fetoprotein ("AFP") in the treatment of hepatocellular carcinoma. JWATM204 is a new autologous T cell therapy candidate targeting phosphatidylinositol proteoglycan-3 ("GPC3"). It is expected to be the best treatment for GPC3 positive HCC patients. Liver cancer is the fourth largest cancer in China, with about 400000 new patients every year. In addition, there is a huge stock of patients, and the market space is very large.

In addition to the star-studded cornerstone investors, its shareholder is also the famous Yunji Inc.

Yao Ming Juno has brought in 10 cornerstone investors with a total subscription of $150 million. These include Hillhouse Capital, Taiping Asset Management, Oaktree Capital, Rock Springs Capital and so on.

According to the prospectus, Yao Ming Juno received rounds An and B financing in March 2018 and June 2020 respectively, with a total financing amount of 190 million US dollars. among them, the participating institutions include Temasek, Sequoia Capital China, Yuanhe Holdings, Zhengxin Valley Innovation, China Resources CP and other well-known investment institutions.

Financial data and valuation

At present, the company does not have any products on the market, so there is no source of income. Its main expenditure is on research and development, so it is reasonable that its losses continue to expand.

According to the comparison of similar companies, Legend Biotech Corp, a Chinese stock, was listed on NASDAQ in June, and its core products areCAR-T drugs targeted by BCMA are in clinical II phase in China.The current market capitalization is about $3.6 billion.。

At present, the relma-cel of Yao Ming Gu Nuo has been approved and accepted in China and included in the priority review.Is expected to be listed in 2021. In addition, the efficacy and safety of relma-cel are better than those of similar products.It is expected to have a place in the CAR-T market in the future.According to the disclosure of IPO informationThe total market capitalization of Yao Ming Juno is about HK $75.24-8.953 billion, or about US $10-1.2 billion, which is about 1% of Legend Biotech Corp's market capitalization.

Summary

1. CAR-T New Cancer Therapy currently there are only three products in the world, namely Fosun Kate's Yescarta, Kate Tecartus and Novartis Kymriah. From 2017 to 2019, the size of the global CAR-T market increased from about $13 million in 2017 to about $734 million in 2019, with a compound annual growth rate of 751 per cent. At present, there is no approved CAR-T product in China. Relma-cel has been included in the priority approval in September and is expected to become the first CAR-T product in China.

two。 The company's core product, relma-cel, relies on Wuxi Apptec's good hospital relations and excellent security data, and is expected to have a place in the CAR-T market in the future.

3. The total market capitalization of Yao Ming Juno is about HK $75.24-8.953 billion, or about US $10-1.2 billion, which is about 1 / 3 of Legend Biotech Corp's market capitalization.