BIOCYTOGEN(2315.HK):REDUCING BURN RATE WITH STRONG INCOME GROWTH AND BETTER OPERATING EFFICIENCY
BIOCYTOGEN(2315.HK):REDUCING BURN RATE WITH STRONG INCOME GROWTH AND BETTER OPERATING EFFICIENCY
Maintain BUY. We revised our DCF-based TP to HK$22.36 from HK$37.96 (WACC: 12.5%, terminal growth rate: 2.0%).Biocytogen reported inline earnings with 1H23 revenue grew 43% YoY to RMB327mn, accounting for 45% of our previous full-year estimate. The Company recorded net loss of RMB190mn in 1H23 (vs RMB272mn net loss in 1H22), representing 67% of our full- year forecast. In 1H23, the pre-clinical CRO service business realized 42% YoY revenue growth to RMB238mn, driven by the strong growth of animal model selling (+58% YoY) and pre-clinical pharmacology & efficacy evaluation business (+37% YoY).The GP margin of the CRO business was 66% in 1H23 (stable vs 67% in 1H22). The antibody development business grew strongly by 44% YoY to RMB88mn in 1H23. With expanding footprint in Europe and the US, the Company's overseas revenue increased 97% YoY to RMB173mn in 1H23 (53% of total 1H23 revenue, vs 46% in FY22). In 1H23, the Company spent RMB248mn (or 76% of total revenue) on R&D, -24% YoY vs RMB328mn (or 143% of total revenue) in 1H22. The SG&A ratio decreased from 58% in 1H22 to 45% in 1H23, showing Biocytogen's improved cost efficiency. We expect the Company to break even in 2025. In Jun 2023, Biocytogen had a cash balance of RMB551mn.
Biocytogen公佈的內聯收益與上半年收入同比增長43％，至3.27億元人民幣，佔我們上一次全年預期的45％。該公司在23年上半年錄得淨虧損1.9億元人民幣（而2022年上半年的淨虧損爲2.72億元人民幣），佔我們全年預測的67％。23年上半年，臨床前CRO服務業務收入同比增長42％，達到2.38億元人民幣，這得益於動物模型銷售（同比增長58％）和臨床前藥理學和療效評估業務（同比增長37％）的強勁增長。CRO業務的GP利潤率在23年上半年爲66％（穩定於上半年的67％）。抗體開發業務在23年上半年同比強勁增長44％，達到人民幣8800萬元。隨着在歐洲和美國業務的擴大，該公司的海外收入在23年上半年同比增長97％至1.73億元人民幣（佔23年上半年總收入的53％，而22財年爲46％）。23年上半年，該公司在研發上的支出爲人民幣2.48億元（佔總收入的76％），同比下降24％，而上半年爲人民幣3.28億元（佔總收入的143％）。銷售和收購比率從22年上半年的58％下降到23年上半年的45％，這表明Biocytogen提高了成本效率。我們預計該公司將在2025年實現收支平衡。2023年6月，Biocytogen的現金餘額爲人民幣5.51億元。
Advanced fully human antibody discovery platforms to drive long-term revenue growth. As of Jul 2023, the Project Integrum (RenMice) has completed the knock-out of around 1,000 gene targets, and formed 400-500k antibody sequences. In 3Q23, the Company will complete the three-year Project Integrum ( 千鼠万抗). Additionally, the Company is also developing BsAb and nano-antibodies based on its RenLite and RenNano platforms. These fully human antibody discovery platforms will be an engine to continuously drive the Company's BD deals and revenue growth. As of end-1H23, the Company had reached 50 co- development/ out-licensing/ transfer development deals with around 30 domestic and global biopharma companies, including Merck, ADC Therapeutics, Hansoh Pharma, etc. The Company signed 16 new deals in 1H23, representing a 45% YoY increase in the number of projects signed. We expect five licensed-out molecules will progress to clinical stage in 2024. Besides the collaboration deals of molecules, Biocytogen has also out-licensed its RenMice platforms to 20 MNC or leading domestic biopharmas, including Merck, Janssen, BeiGene, Innovent, etc. As of Jun 2023, these licensees have initiated 42 projects in total. We expect the molecule co-development collaborations and platform out-licensing deals continue to drive the Company's long-term revenue growth with growing income from upfront fees, milestone fees and royalties.
先進的全人源抗體發現平台可推動長期收入增長。截至2023年7月，Integrum項目（renMice）已經完成了約1,000個基因靶標的敲除，並形成了400-50萬個抗體序列。該公司將在23第三季度完成爲期三年的Integrum項目（千鼠萬抗）。此外，該公司還在基於其RenLite和RenNano平台開發bSaB和納米抗體。這些全人源抗體發現平台將成爲持續推動公司BD交易和收入增長的引擎。截至23年底，該公司已與包括默克、ADC Therapeutics、Hansoh Pharma等在內的約30家國內和全球生物製藥公司達成了50項共同開發/外包許可/轉讓開發協議。該公司在23年上半年簽署了16項新協議，簽署的項目數量同比增長了45％。我們預計，到2024年，有五種獲得許可的分子將進入臨床階段。除了分子合作交易外，Biocytogen還將其renMice平台的許可範圍超過了20家跨國公司或國內領先的生物製藥公司，包括默克、楊森、百濟神州、信達等。截至2023年6月，這些被許可方共啓動了42個項目。我們預計，分子聯合開發合作和平台對外許可協議將繼續推動公司的長期收入增長，來自前期費用、里程碑費用和特許權使用費的收入將不斷增長。
To unlock the value of in-house pipelines via out-licensing. As of Jun 2023, the Company had built an internal pipeline of 10 drug candidates, including 5 clinical and 5 pre-clinical stage assets. Biocytogen's strategy is to self-direct the early discovery of drug molecules and then transfer/co-develop the molecules to/with its partners to accelerate the later Ph2/3 clinical development. Of the 10 in-house assets, 5 have achieved out-licensing agreements with partners. We expect Biocytogen to further license out its differentiated pipeline assets, including YH003 (CD40), YH001 (CTLA-4), YH012 (HER2/TROP2 ADC), YH013 (EGFR/MET ADC), etc.
通過外包許可來釋放內部管道的價值。截至2023年6月，該公司已建立10種候選藥物的內部產品線，包括5種臨床和5種臨床前階段資產。Biocytogen的策略是自行指導藥物分子的早期發現，然後將分子轉移/與其合作伙伴共同開發，以加速後期的Ph2/3臨床開發。在10項內部資產中，有5項已與合作伙伴達成了外包許可協議。我們預計 Biocytogen 將進一步許可其差異化管道資產，包括 YH003（CD40）、YH001（CTLA-4）、YH012（HER2/TROP2 ADC）、YH013（EGFR/MET ADC）等。
Maintain BUY. We revised our DCF-based TP to HK$22.36 from HK$37.96 (WACC: 12.5%, terminal growth rate: 2.0%).
維持買入。我們將基於DCF的目標價從37.96港元上調至22.36港元（WACC：12.5％，終端增長率：2.0％）。
譯文內容由第三人軟體翻譯。
